General provisions for final tax regime

General provisions for final tax regime

ISLAMABAD: Section 8 of the Income Tax Ordinance, 2001 deals with general provisions for granting final tax regime.

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

Following is the text of Section 8 of the Ordinance:

8. General provisions relating to taxes imposed under sections 5, 5AA, 6, 7, 7A and 7B.– (1)-Subject to this Ordinance, the tax imposed under Sections 5, 5AA, 6, 7, 7A and 7B shall be a final tax on the amount in respect of which the tax is imposed and—

(a) such amount shall not be chargeable to tax under any head of income in computing the taxable income of the person who derives it for any tax year;

(b) no deduction shall be allowable under this Ordinance for any expenditure incurred in deriving the amount;

(c) the amount shall not be reduced by —

(i) any deductible allowance; or

(ii) the set off of any loss;

(d) the tax payable by a person under section 5, 5A, 5AA, 6, 7, 7A and 7B shall not be reduced by any tax credits allowed under this Ordinance; and

(e) the liability of a person under section 5, 6 or 7 shall be discharged to the extent that —

(i) in the case of shipping and air transport income, the tax has been paid in accordance with section 143 or 144, as the case may be; or

(ii) in any other case, the tax payable has been deducted at source under Division III of Part V of Chapter X.

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

Leave a Reply

You have to agree to the comment policy.