Tag: Income Tax Ordinance 2001

Section 78 of the Income Tax Ordinance, 2001 has been instituted to address non-arm’s length transactions. The Federal Board of Revenue (FBR) has provided clarity on this provision, which was updated up to June 30, 2021, through the Finance Act, 2021.

The Federal Board of Revenue (FBR) has provided clarity on the determination of consideration received by individuals on the disposal of assets through Section 77 of the Income Tax Ordinance, 2001, as updated up to June 30, 2021.

Section 76 of Income Tax Ordinance, 2001 has defined the procedure for calculating income tax against cost incurred on purchase of assets.

Banking payment has been made must for asset purchase by the tax authorities in a move aimed at promoting transparency and curbing tax evasion.

Disposal and acquisition of assets under tax law have been explained under Section 75 of Income Tax Ordinance, 2001.

Normal tax year to run through July 01 to June 30 as defined under Section 74 of the Income Tax Ordinance, 2001. This provision has been updated with the Finance Act, 2021, and includes some important special provisions.

In the intricate landscape of taxation, ensuring fairness and preventing duplicity is paramount. Section 73 of the Income Tax Ordinance, 2001, as updated up to June 30, 2021, serves this purpose by delineating rules to prevent double derivation and double deductions.

Section 72 of the Income Tax Ordinance, 2001 has outlined tax on income from ceases business. The Federal Board of Revenue (FBR) has incorporated these regulations into the Ordinance, ensuring that taxpayers understand the implications of income derived from a business, activity, investment, or other sources that have ceased.

Section 71 of the Income Tax Ordinance, 2001 sets forth the requirement that every amount considered for taxation purposes must be in Pakistani Rupees (PKR).

In a bid to provide clarity on the income tax treatment for expenditures or losses that are initially deducted but later compensated, Section 70 of the Income Tax Ordinance, 2001 outlines specific provisions.