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Income tax ordinance defines non-profit organization

Income Tax Ordinance, 2001 has defined the meaning of Non-Profit Organization for the purpose of tax treatment on the activity of NPOs.

The Income Tax Ordinance, 2001 up dated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained as:

“Non-profit organization” means any person other than an individual, which is —

(a) established for religious, educational, charitable, welfare purposes for general public, or for the promotion of an amateur sport;

(b) formed and registered by or under any law as a non-profit organization;

(c) approved by the Commissioner for specified period, on an application made by such person in the prescribed form and manner, accompanied by the prescribed documents and, on requisition, such other documents as may be required by the Commissioner;  and none of the assets of such person confers, or may confer, a private benefit to any other person.