Expenses on employee training allowed tax adjustment

Expenses on employee training allowed tax adjustment

Section 27 of Income Tax Ordinance, 2001 has allowed adjustment of expenses incurred on employee training and facilities.

The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

Following is the text of Section 27 of Income Tax Ordinance, 2001:

27. Employee training and facilities.— A person shall be allowed a deduction for any expenditure (other than capital expenditure) incurred in a tax year in respect of—

(a) any educational institution or hospital in Pakistan established for the benefit of the person’s employees and their dependents;

(b) any institute in Pakistan established for the training of industrial workers recognized, aided, or run by the Federal Government or a Provincial Government or a Local Government; or

(c) the training of any person, being a citizen of Pakistan, in connection with a scheme approved by the Board for the purposes of this section.

(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

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