Section 99 of Income Tax Ordinance, 2001 discussed special tax provisions related to various businesses including profits and gains of any insurance business shall be computed in accordance with the rules in the Fourth Schedule.
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 99 of the Income Tax Ordinance, 2001:
99. Special provisions relating to insurance business. — The profits and gains of any insurance business shall be computed in accordance with the rules in the Fourth Schedule.
99A. Special provisions relating to traders.-(1) Subject to sub-section (3), tax payable on the profits and gains of a trader as defined in sub-section (4) who upto thirty first day of December, 2015 has not filed a return for any of the preceding ten tax years shall be computed in accordance with the rules laid down in Part I of the Ninth Schedule.
(2) Subject to sub-section (3), tax payable on the profits and gains of any trader as defined in sub-section (4), who-
(a) is a filer; or
(b) is NTN holder and a non-filer but has filed return or returns in any of the last ten preceding tax years, shall be computed in accordance with the rules laid down in Part II of the Ninth Schedule.
(3) Sub-sections (1) and (2) shall apply, if-
(a) the return filed by the trader qualifies for acceptance in accordance with the rules laid down in the Ninth Schedule;
(b) return relates to tax years 2015 to 2018; and
(c) income from business consists of profits and gains from trading activity only.
(4) For the purpose of this section and the Ninth Schedule, ‘trader’ means an individual or an association of persons (AOP) buying goods or merchandise and selling the same without further processing and providing, business-related after sales, services by doing repair jobs.
Explanation 1.- For the removal of doubt it is clarified that any person engaged in-
(a) rendering of, or providing, services as defined in clause (ii) of sub-section (7) of section 153; or
(b) business of retailer falling under rule (5) of Chapter II of the Sales Tax Special Procedures Rules, 2007, shall not be treated as a trader for the purposes of this section.
Explanation 2.- It is also clarified that this section shall not apply to a person who is a Member of the Senate of Pakistan, the National Assembly of Pakistan or a Provincial Assembly.”
99B. Special procedure for small traders and shopkeepers:-Notwithstanding anything contained in this Ordinance the Board with the approval of the Minister-in-charge may, by notification in the official Gazette, prescribe special procedure for scope and payment of tax, filing of return and assessment in respect of such small traders and shopkeepers, in such cities or territories, as may be specified therein.
99C. Special procedure for certain persons.- Notwithstanding anything contained in this Ordinance, the Board with the approval of the Minister-in-charge may, by notification in the official Gazette, prescribe special procedure for scope and payment of tax, record keeping, filing of return and assessment in respect of small businesses, construction businesses, medical practitioners, hospitals, educational institutions and any other sector specified by Board with the approval of the Minister-in-charge, in such cities or territories, as may be specified therein.
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