Tag: Income Tax Ordinance 2001

Making a false or misleading statement to tax authorities is a serious offence in Pakistan. The law prescribes criminal penalties, including imprisonment and fines, under the Income Tax Ordinance, 2001 (updated for tax year 2026).

The Federal Board of Revenue (FBR) allows taxpayers in Pakistan to adjust certain losses against income under specific conditions, as provided in the Income Tax Ordinance, 2001.

The Income Tax Ordinance, 2001 allows a tax credit for people who contribute to a pension fund during the tax year 2025-26. Section 63 of the updated law explains how this benefit works for salary earners.

The Income Tax Ordinance, 2001 explains how charitable donations are treated for tax purposes in the tax year 2025-26. Section 61 provides details about who can claim a tax credit and how the amount is calculated.

The Income Tax Ordinance, 2001 explains how to calculate the cost of stock-in-trade when it is sold or used during the tax year 2025-26. Section 35 of the updated law gives a simple formula for this calculation.

The Income Tax Ordinance, 2001 clearly defines the principles of accrual based accounting for income under the head “Business” for the tax year 2025-26. Section 34 of the updated ordinance explains how income and expenses are treated under this system.