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.
(more…)Tag: Income Tax Ordinance 2001
-
Initial allowance adjustment in computing income tax
Section 23 of Income Tax Ordinance, 2001 has explained initial allowance for person who places eligible depreciable assets into Pakistan.
(more…) -
Advance tax rates on motor car purchase, registration
The advance tax rates on motor vehicle registration and purchase from manufactures for year 2021/2022 shall be:–
(more…) -
How depreciation deduction allowed for tax calculation
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.
(more…) -
Expenditures not allowed against business income
Section 21 of Income Tax Ordinance, 2001 highlights expenditures and deductions, which are not allowed under business income.
(more…) -
Tax law allows deductions against business income
KARACHI: Income Tax Ordinance, 2001 has allowed certain deductions against income from business for calculation of tax liability.
(more…) -
Tax treatment of income from speculation business
Section 19 of Income Tax Ordinance, 2001 explains speculation business and tax treatment of income from this business.
(more…) -
Taxation on income from business under updated law
Section 18 of Income Tax Ordinance, 2001 has explained the incomes derived from various types of transactions including sales of goods shall be taxed under income from business.
(more…) -
Non-adjustable amounts received in relation to buildings
Section 16 of Income Tax Ordinance, 2001 explains the non-adjustable amounts received in relation to buildings.
The Federal Board of Revenue (FBR) issued the updated Income Tax Ordinance, 2001 up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 16 of Income Tax Ordinance, 2001:
Section 16. Non-adjustable amounts received in relation to buildings.— (1) Where the owner of a building receives from a tenant an amount which is not adjustable against the rent payable by the tenant, the amount shall be treated as rent chargeable to tax under the head “Income from Property” in the tax year in which it was received and the following nine tax years in equal proportion.
(2) Where an amount hereinafter referred to as the “earlier amount” referred to in sub-section (1) is refunded by the owner to the tenant on termination of the tenancy before the expiry of ten years, no portion of the amount shall be allocated to the tax year in which it is refunded or to any subsequent tax year except as provided for in sub-section (3).
(3) Where the circumstances specified in sub-section (2) occur and the owner lets out the building or part thereof to another person hereinafter referred to as the “succeeding tenant” and receives from the succeeding tenant any amount hereinafter referred to as the “succeeding amount” which is not adjustable against the rent payable by the succeeding tenant, the succeeding amount as reduced by such portion of the earlier amount as was charged to tax shall be treated as rent chargeable to tax under the head “Income from Property” as specified in sub-section (1).
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
-
Tax on income from property under updated ordinance
The rent received by a person during a tax year shall be charged under income from property. The tax on income from property shall be charged under Section 15 of Income Tax Ordinance, 2001.
(more…)