Income Tax Ordinance, 2001 updated till June 30, 2021

Income Tax Ordinance, 2001 updated till June 30, 2021

Following is the complete sections of the Income Tax Ordinance, 2001 updated up to June 30, 2001 after incorporating changes brought through Finance Act, 2001.

Section 2. Definitions.

Section 4: Tax on taxable income.

Section 4B: Super Tax.

Section 5: Tax on dividends.

Section 6: Tax on payment to non-residents.

Section 7: Tax on shipping, air transport income of non-residents.

Section 7B: Tax on profit on debt.

Section 7C and 7D: Tax on builders, developers.

Section 8: General provisions for final tax regime.

Section 9 and 10: Taxable income, total income under statute.

Section 11: Heads of income for imposition of tax.

Section 12: Salary income explained by tax ordinance.

Section 13: Value of perquisites for salary tax computation.

Section 14: Employee share scheme not chargeable to tax.

Section 15: Tax on income from property under updated ordinance.

Section 16: Non-adjustable amounts received in relation to buildings.

Section 18: Taxation on income from business under updated law.

Section 19: Tax treatment of income from speculation business.

Section 20: Tax law allows deductions against business income.

Section 21: Expenditures not allowed against business income.

Section 22: How depreciation deduction allowed for tax calculation.

Section 23: Initial allowance adjustment in computing income tax.

Section 24: Tax deduction allowed against cost of intangibles.

Section 25: Tax treatment of pre-commencement expenditure.

Section 26: Expenses on scientific research against tax liability.

Section 27: Expenses on employee training allowed tax adjustment.

Section 28: Expenditure against profit on debt allowed.

Section 29: Expenditures against bad debt allowed.

Section 30: Expenditures on non-performing debts under tax law.

Section 31: Tax expenditures against transfer of participatory reserve.

Section 32, 33, and 34: Method of accounting under income tax ordinance.

Section 35: Tax treatment of disposal of stock in trade.

Section 36: Determination of tax on long term contracts.

Section 37: Taxation of capital gain under.

Section 37A: Capital gain tax on disposal of securities.

Section 38: Loss adjustment in computing capital gain tax.

Section 39: Income from other sources under tax ordinance.

Section 40: Adjustment against income from other sources.

Section 41: Tax ordinance exempts agriculture income.

Section 42: Income tax exemption to diplomatic, UN.

Section 43: Foreign govt officials entitled to tax exemption.

Section 44: Tax exemption under international agreements.

Section 45: Tax exemption on award granted by President.

Section 46: Profit of non-resident granted income tax exemption.

Section 47: Scholarship cost exempted from income tax.

Section 48: Support payment made tax exempted.

Section 49: Income of governments exempted under tax law.

Section 50: Foreign source income tax exempted.

Section 51: Income tax exemption to Pakistani expatriates.

Section 53: Exemptions, concessions under Second Schedule.

Section 54: Exemption, tax provisions in other laws.

Section 55: Limitation of exemption under tax ordinance.

Section 56: Set off losses against income tax.

Section 57: Carry forward of business losses allowed.

Section 58: Carry forward of speculation business losses against income.

Section 59 and 59A: Carry forward of capital losses allowed against income tax.

Section 59AA: Group taxation under income tax.

Section 59B: Tax treatment of losses under group relief.

Section 60: Deductible allowance against income tax liability.

Section 61: Tax credit granted for charitable donations.

Section 62: Tax credit granted on investment in share, investment.

Section 63: Tax incentive for contribution to pension fund.

Section 64B: Employment generation gets tax credit.

Section 64D: Point of sale machines allowed tax credit.

Section 65: Tax credits for various provisions of law.

Section 65B: Tax incentive for companies on purchase of machinery.

Section 65E: Tax credit for establishing industrial undertaking.

Section 65F: Law allows certain persons to avail tax credit.

Section 65G: Tax credit for capital investment in specified sectors.

Section 66: Tax treatment of property owned by persons.

Section 67: Income tax law describes apportionment of deductions.

Section 68: Income tax calculation on fair market value.

Section 69: Treatment of time for receiving amount under tax law.

Section 70: Income tax on compensation against loss.

Section 71: Every amount to be taken in PKR for income tax purpose.

Section 72: Tax on income from ceased business.

Section 73: Rules to prevent double deduction under income tax law.

Section 74: Normal tax year to run through July 01 to June 30.

Section 75: Disposal and acquisition of assets under tax law.

Section 75A: Banking payment must for asset purchase.

Section 76: Calculation of asset cost for income tax purpose.

Section 77: Tax treatment on consideration against asset disposal.

Section 78: Non-arm’s length transactions under tax law.

Section 79: Non-recognition of rules under income tax ordinance.

Section 80: Income Tax Ordinance defines persons.

Section 81: Law explains resident, non-resident persons.

Section 82: Resident individuals defined under tax law.

Section 83: Tax law defines resident company.

Section 84: Who are resident association of persons?

Section 85: How two persons called associates under tax law?

Section 86: Principle of taxation of individuals.

Section 87: Taxation on income of deceased individuals.

Section 88: Tax treatment of individual of AOP member.

Section 89: Income of authors under tax ordinance.

Section 90: Treatment of tax on transfers of assets.

Section 91: Income of minor child under tax law.

Section 92: Principles of taxation of Association of Persons.

Section 94: Principles of taxation of companies.

Section 95: Computation of gains on business disposal to company.

Section 96: Gain on AOP assets disposal between companies.

Section 97: Gain on asset disposal between companies.

Section 97A: Asset disposal under scheme of arrangement.

Section 98: Treatment of deduction in change of entity control.

Section 99: Special tax provisions relating to various businesses.

Section 100: Special tax provisions for exploration, production.

Section 100A: Computing profit, gains of banking companies.

Section 100B: Special provisions relating to capital gain tax.

Section 100BA: Special tax provisions for non-ATL persons

Section 100C: Allowing tax credit for charitable organization

Section 100D: Special provisions related to builders, developers

Section 100E: Special provisions related to SMEs

Section 101: Taxation of geographical source of income

Section 102: Tax exemption on foreign source of income

Section 103: Tax credit on residents’ foreign income

Section 104: Taxability of expenses incurred on foreign income

Section 105: Taxation on permanent establishment in Pakistan

Section 106A: Restriction on deduction of profit on debt payable to associated enterprise.

Section 107: Agreements for the avoidance of double taxation and prevention of fiscal evasion

Section 108: Transactions between associates.

Section 108A: Report from independent chartered accountant or cost and management accountant

Section 108B: Transactions under dealership arrangements

Section 109: Recharacterisation of income and deductions

Section 109A: Controlled foreign company

Section 110: Salary paid by private companies

Section 111: Unexplained income or assets

Section 112: Tax liability in certain security transactions.

Section 113: Application of minimum tax.

Section 113C: Levy of alternative corporate tax.

Section 114: Requirement of filing income tax return by persons.

Section 114A: Requirement of business bank account

Section 115: Details of persons not required to file income tax return

Section 116: Filing wealth statement to declare assets, liabilities

Section 116A: Filing wealth statement against foreign income

Section 117: Intimation required on discontinuing business

Section 118: How to file returns and other documents?

Section 119: Get a time extension to file returns and other documents

Section 120: Assessment of declared income tax return

Section 120B: Proceeding limitations under asset declaration scheme.

Section 121: Powers to make best judgment in assessment cases.

Section 122: Commissioner can amend assessment order

Section 122A: Commissioner empowered to call taxpayer’s record

Section 122B: Commissioner can revise the assessment order

Section 122D: Procedure to settle agreed assessment cases

Section 123: Finalization of provisional amended assessment

Section 124: Assessment giving effect to an order

Section 124A: Powers of tax authorities to modify orders.

Section 125: FBR can issue assessment orders in disputed property

Section 126: Tax officer should issue conclusive assessment order

Section 127: How to make appeal before commissioner IR?

Section 128: Procedure for Commissioner (Appeals) in proceeding

Section 129: Powers of Commissioner (Appeals) in making decision

Section 130: Formation of Appellate Tribunal Inland Revenue

Section 131: How to make appeal before ATIR?

Section 132: Appeal disposal by Appellate Tribunal Inland Revenue

Section 133: Appeal before High Court against ATIR decision

Section 134A: Alternate dispute resolution under ordinance

Section 136: Burden of proof to lie on taxpayers

Section 137: What is due date for tax payment?

Section 138: Recovery through property attachment, arrest taxpayers

Section 138A: Tax recovery through district officer

Section 138B: Tax liability in state of bankruptcy

Section 139: Tax recovery from shareholder of company in liquidation

Section 140: FBR can make tax recovery from third party

Section 141: Company in bankruptcy needs to appoint liquidator

Section 142: Recovery of tax by non-resident member of AOPs

Section 143: Return filing by non-resident ship owner

Section 144: Non-resident aircraft owner or charterer

Section 145: Assessment of persons about to leave Pakistan

Section 146: Recovery of tax from persons assessed in Azad Jammu and Kashmir and Gilgit-Baltistan.

Section 146A , Section 146B and Section 146C : Powers to initiate recovery proceeding any time

Section 147: Taxpayers liable to pay advance tax

Section 147A: Advance tax from provincial registered taxpayers

Section 148: Advance tax on imports to be collected by Customs

Section 149: Employers to deduct tax on salary income

Section 150: Person paying dividends required to withhold tax

Section 151: Provision related to withholding tax on profit on debt

Section 152: Payment to non-resident persons chargeable to tax

Section 153: Tax payment for sale of goods and services

Section 154: Tax to be deducted on realization of export proceeds

Section 154A: Tax payment on export of IT services

Section 155: Income tax on rental immoveable property

Section 156: Income tax on prize bonds, lottery winning

Section 156A: OMCs collect income tax from petrol pumps

Section 158: Time of payment made under tax law

Section 159: Issuance of exemption, reduced tax rate certificate

Section 160: Tax collection and deduction

Section 161: Withholding agent to be liable for failure in deducting tax

Section 162:  Recovery of tax from the person from whom tax was not collected or deducted

Section 163: Recovery of tax under section 163

Section 164: Issuing tax certificate must for withholding agents

Section 165: Withholding agents to provide taxpayers’ information

Section 165A: Furnishing of information by banks

Section 165B: Furnishing of information by financial institutions including banks.

Section 166: Priority of tax collected or deducted

Section 167: Indemnity under section 167

Section 168: Provision for claiming tax credit against paid amount

Section 169: Final tax regime under income tax ordinance

Section 170: Procedure to claim income tax refund

Section 170A: Electronic payment of income tax refunds

Section 171: KIBOR+ additional amount to be paid for delayed refunds

Section 171A: Income tax bonds to be issued for refund payment

Section 172: Taxpayers’ representatives to deal tax matters

Section 173: Liability and obligations of representatives

Section 174: Taxpayers must maintain record of past 6 years

Section 175: FBR’s powers to enter taxpayers’ premises for search

Section 176: Commissioner empowered to call for any record

Section 177: Commissioner can select taxpayers for audit

Section 178: Tax authorities can take help from police, other agencies

Section 179: Commissioner can hire translator for documents

Section 180: FBR can obtain information of exempt income

Section 181: Registration of taxpayers for income tax

Section 181A and 181AA: ATL and mandatory registration

Section 181B: FBR to issue card to honor taxpayers

Section 181C: Businesses require displaying NTN

Section 181D: Businesses require to obtain tax license

Section 182(1): Penalty for non-filing tax return and wealth statement

Section 182(1): Amended through Tax Laws (Third Amendment) Ordinance, 2021

Section 182(2): Penalty for non-issuance of cash memos

Section 182A: Returns filed after due date not to get ATL status

Section 183: Exemption from penalty and default surcharge

Section 191: Prosecution for failure to comply with tax obligations

Section 192: Three-year jail for false statement under income tax law

Section 192A: Two years jail for income concealment

Section 192B: Three years for undeclared offshore asset

Section 193: Failure to keep record to attract two years imprisonment

Section 194: Prosecution for improper use of NTN Certificate

Section 195: Prosecution for making false, misleading statements

Section 195A: Prosecution for not declaring foreign assets

Section 196: Obstructing tax officials punishable offence

Section 197: Prosecution for disposal of property

Section 198: Prosecution for sharing unauthorized information

Section 199: Abetment in tax matters to be offence

Section 200: Prosecution for offence by companies, AOPs

Section 201: Institution of prosecution proceedings

Section 202: Commissioner’s power to compound offences

Section 203: Trial of tax cases by special judge

Section 204: Power to tender immunity from prosecution

Section 205: Default surcharge

Section 206: Circulars

Section 207: Income tax authorities

Section 208: Appointment of income tax authorities

Section 209: Jurisdiction of income tax authorities

Section 210: Delegation

Sections 211, 212 and 213

Section 214: Income tax authorities to follow orders of the Board

Section 215: Furnishing of returns and documents

Section 216: Disclosure of information by public servant in tax matters

Section 216A: Proceedings against authority and persons

Section 217: Authentication of forms, notices and other documents

Section 218: Service of notices and other documents

Section 219: Tax or refund computed to the nearest rupee

Section 220: Receipts for amounts paid

Section 221: Commissioner can rectify mistakes apparent from record

Section 222: Appointment of expert

Section 223: Appearance by authorised representative

Section 224: Proceedings under the Ordinance to be judicial proceedings

Section 225: Proceedings against companies under liquidation

Section 226: Computation of limitation period under section 226

Section 227: Bar of suits in Civil Courts

Sections 227A, 227B, 227C, 227D, 227E: Reward for officials, whistleblowers in tax recovery

Section 228 to 230I: Functions of Directorates under tax law

Section 231B: Advance tax on private motor vehicles

Section 233: Brokerage and commission

Section 234: Tax on motor vehicles

Section 235: Advance tax rates on electricity consumption

Section 236: Telephone and internet users

Section 236A: Advance tax at the time of sale by auction

Section 236C: Advance Tax on sale or transfer of immovable Property

Section 236G: Advance tax on sales to distributors, dealers and wholesalers

Section 236H: Advance tax on sales to retailers

Section 236I: Advance tax collection by educational institutes

Section 236K: Advance tax on purchase of immovable property

Section 236O: Advance tax not applicable on certain authorities

Section 236Q: Payment to residents for use of machinery, equipment

Section 237: Tax ordinance empowers FBR to make rules

Sections 238, 239, 240, 241, 242 of Tax Ordinance

FIRST SCHEDULE

Tax rates for individuals, AOPs for Tax Year 2022

Rate of tax for salaried persons for tax year 2022

Rates of income tax for companies during Tax Year 2022

Rate of super tax for Tax Year 2022

Rate of dividend tax for Tax Year 2022

Rate for profit on debt for Tax Year 2022

Rate of tax on return on investment in sukuks

Tax rates on royalty, fee for technical services

Tax rates on shipping, air transport income

CGT rates on disposal of securities during Tax Year 2022

CGT rates on immovable property for Tax Year 2022

Tax rates on builders, developers for tax year 2022

Minimum tax rates for tax year 2022

Rates on Advance tax for Tax Year 2022

Advance tax rates on dividend for Tax Year 2022

Rate of tax on exports during Tax Year 2022

Tax rates on income from property during tax year 2022

Tax rates on prize and winnings during tax year 2022

Disclaimer: PkRevenue.com team has endeavored to provide the actual text of the Income Tax Ordinance, 2001 updated through Finance Act, 2021. However, PkRevenue.com team is not responsible for any error.

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