Tag: Income Tax Ordinance 2001

In a move to incentivize investment in employee development and welfare, Section 27 of the Income Tax Ordinance, 2001 allows for the adjustment of expenses incurred on employee training and facilities.

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Section 26 of the Income Tax Ordinance, 2001, provides a significant incentive for businesses in Pakistan. The Federal Board of Revenue (FBR) has incorporated this provision, updated up to June 30, 2021, through the Finance Act, 2021, encouraging businesses to engage in scientific research.

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Section 25 of the Income Tax Ordinance, 2001 provides a valuable tax benefit by allowing deductions for pre-commencement expenditure.

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Federal Board of Revenue (FBR) has issued tax rates on motor vehicles for year 2021/2022. The authorities collect motor vehicle tax under Section 234 of Income Tax Ordinance, 2001.

Under this section any person at the time of collecting motor vehicle tax shall also collect advance tax at the rates specified in Division III of Part IV of the First Schedule.

Rates of collection of tax under section 234,—

(1) In case of goods transport vehicles, tax of two rupees and fifty paisa per kilogram of the laden weight shall be charged .

(1A) In the case of goods transport vehicles with laden weight of 8120 kilograms or more, advance tax after a period of ten years from the date of first registration of vehicle in Pakistan shall be collected at the rate of twelve hundred rupees per annum;

(2) In the case of passenger transport vehicles plying for hire with registered seating capacity of—

S.No.	Capacity	Rs per seat per annum
(i)	Four or more persons but less than ten persons.	50
(ii)	Ten or more persons but less than twenty persons.	100
(iii)	Twenty persons or more.	300

(3) In case of other private motor vehicles shall be as set out in the following Table, namely:-

S. No.	Engine capacity	Tax
(1)	(2)	(3)
1.	upto 1000cc	Rs. 800
2.	1001cc to 1199cc	Rs. 1,500
3.	1200cc to 1299cc	Rs. 1,750
4.	1300cc to 1499cc	Rs. 2,500
5.	1500cc to 1599cc	Rs. 3,750
6.	1600cc to 1999cc	Rs. 4,500
7.	2000cc & above	Rs. 10,000

(4) where the motor vehicle tax is collected in lump sum,

S. No.	Engine capacity	Tax
(1)	(2)	(3)
1.	upto 1000cc	Rs. 10,000
2.	1001cc to 1199cc	Rs. 18,000
3.	1200cc to 1299cc	Rs. 20,000
4.	1300cc to 1499cc	Rs. 30,000
5.	1500cc to 1599cc	Rs. 45,000
6.	1600cc to 1999cc	Rs. 60,000
7.	2000cc & above	Rs. 120,000

The rate of tax shall be increased by 100 per cent in case person is not on the Active Taxpayers List (ATL).

(The rates are given as per Income Tax Ordinance, 2001 updated up to June 30, 2021. Team Pkrevenue.com is endeavored to provide correct data. However, the team Pkrevenue.com shall not responsible for any omission.)

The Federal Board of Revenue (FBR) has clarified the provisions related to amortization deductions for intangibles in Section 24 of the Income Tax Ordinance, 2001, through updates issued up to June 30, 2021.

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Section 23 of Income Tax Ordinance, 2001 has explained initial allowance for person who places eligible depreciable assets into Pakistan.

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How depreciation deduction allowed for tax calculation is explained by the Federal Board of Revenue (FBR) through updated version of the Income Tax Ordinance, 2001, which incorporates amendments introduced through the Finance Act, 2021.

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