The Federal Board of Revenue (FBR) has issued an updated version of the Income Tax Ordinance, 2001 to explain tax treatment of losses under group relief.

ISLAMABAD: In a bid to streamline tax treatment for holding companies and subsidiary companies within a 100% owned group, Section 59AA of the Income Tax Ordinance, 2001 has been explained by the Federal Board of Revenue (FBR).

Islamabad – The Federal Board of Revenue (FBR) has granted individuals the ability to carry forward capital losses under Sections 59 and 59A of the Income Tax Ordinance, 2001.

In a bid to address the dynamics of speculation businesses, Section 58 of the Income Tax Ordinance, 2001 plays a pivotal role by allowing individuals who sustain losses in a tax year to carry forward speculation business losses against income.

Carry forward of business losses allowed by the Federal Board of Revenue (FBR) in a move to provide relief to business community.

Section 56 of Income Tax Ordinance, 2001 explained set off losses against income tax. It allowed a person, who sustained losses for any tax year under head of income, is allowed to set off losses against the income.

In a bid to clarify the limitation on exemption under the Income Tax Ordinance, 2001, the Federal Board of Revenue (FBR) has highlighted Section 55 of the ordinance.

Section 54 of the Income Tax Ordinance, 2001 establishes guidelines regarding exemption and tax provisions found in other laws.