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Income Tax Ordinance, 2001 (2021-2022)

Availability: In stock
  • Author : Petiwala
  • Cover : Hard bound
  • Edition : July 2021
  • Price : 1530
  • PKR: 1800
  • Description
    Manufacturer: Petiwala Publication

1. Short title, extent and commencement
2. Definitions
3. Ordinance to override other laws
4. Tax on taxable income
4B. Super tax for rehabilitation of temporary displaced persons
5. Tax on dividends
5A. Tax on undistributed Profits
5AA. Tan on return on investments in Sukuks.
6. Tax on certain payments to non-residents
7. Tax on shipping and air transport income of a non-resident person
7A. Tax on shipping of a resident person
7B. Tax on profit on debt
7C. Tax on builders
7D. Tax on developers
8. General provisions relating to taxes imposed under sections 5, 6 and 7
9. Taxable income
10. Total income
11. Heads of income
12. Salary
13. Value of perquisites
14. Employee share schemes
15. Income from property
15A. Deductions in computing income chargeable under the head “Income from Property”
16. Omitted
17. Non-adjustable amounts received in relation to buildings
18. Income from business
19. Speculation business
20. Deductions in computing income chargeable under the head "Income from Business"
21. Deductions not allowed
22. Depreciation
23. Initial allowance
23A. Omitted
23B. Accelerated depreciation to alternate energy projects
24. Intangibles
25. Pre-commencement expenditure
26. Scientific research expenditure
27. Employee training and facilities
28. Profit on debt, financial costs and lease payments
29. Bad debts
29A Provision regarding consumer loans
30. Profit on non-performing debts of a banking company or development finance institution
31. Transfer to participatory reserve
32. Method of accounting
33. Cash-basis accounting
34. Accrual-basis accounting
35. Stock-in-trade
36. Long-term contracts
37. Capital gains
37A. Capital gain on disposal of securities
38. Deduction of losses in computing the amount chargeable under the head “Capital Gains”
39. Income from other sources
40. Deductions in computing income chargeable under the head “Income from Other Sources”
41. Agricultural income
42. Diplomatic and United Nations exemptions
43. Foreign government officials
44. Exemptions under international agreements
45. President’s honours
46. Profit on debt
47. Scholarships
48. Support payments under an agreement to live apart
49. Federal Governments, Provincial Government and Local Government
50. Foreign-source income of short-term resident individuals
51. Foreign-source income of returning expatriates
52. Omitted
53. Exemptions and tax concessions in the Second Schedule
54. Exemptions and tax provisions in other laws
55. Limitation of exemption
56. Set off of losses
56A. Set off of losses of companies operating hotels
57. Carry forward of business losses
57A. Set off of business loss consequent to amalgamation
58. Carry forward of speculation business losses
59. Carry forward of capital losses
59A. Limitations on set off and carry forward of losses
59AA. Group Taxation
59B. Group relief
60. Zakat
60A. Workers’ Welfare Fund
60B. Workers’ Participation Fund
60C. Deductible allowance for profit on debt
60D. Deductible allowance for education expenses
61. Charitable donations
62. Tax credit for investment in shares and insurance
62A. Tax credit for investment in health insurance
63. Contribution to an Approved Pension Fund
64. Omitted
64A Section  re-numbered as 60C
64AB Section  re-numbered as 60D
64B. Tax credit for employment generation by manufacturers
64D. Tax credit for point of sale machine
65. Miscellaneous provisions relating to tax credits
65A. Omitted
65B. Tax credit for investment
65C. Omitted
65D. Omitted
65E. Tax credit for industrial undertakings established before the first day of July, 2011
65F. Tax credit for certain persons
65G. Tax credit for specified industrial undertakings
66. Income of joint owners
67. Apportionment of deductions
68. Fair market value
69. Receipt of income
70. Recouped expenditure
71. Currency conversion
72. Cessation of source of income
73. Rules to prevent double derivation and double deductions
74. Tax year
75. Disposal and acquisition of assets
75A. Purchase of assets through banking channel
76. Cost
77. Consideration received
78. Non-arm's length transactions
79. Non-recognition rules
80. Person
81. Resident and non-resident persons
82. Resident individual
83. Resident company
84. Resident association of persons
85. Associates
86. Principle of taxation of individuals
87. Deceased individuals
88. An individual as a member of an association of persons
88A. Omitted
89. Authors
90. Transfers of assets
91. Income of a minor child
92. Principles of taxation of associations of persons
93. Omitted
94. Principles of taxation of companies
95. Disposal of business by individual to wholly-owned company
96. Disposal of business by association of persons to wholly-owned company
97. Disposal of asset between wholly-owned companies
97A. Disposal of asset under a scheme of arrangement and reconstruction
98. Change in control of an entity
98A. Change in the constitution of an association of persons
98B. Discontinuance of business or dissolution of an association of persons
98C. Succession to business, otherwise than on death
99. Special provisions relating to insurance business
99A. Special provisions relating to traders
99B. Special procedure for small traders and shopkeepers
99C. Special procedure for certain persons
100. Special provisions relating to the production of oil and natural gas, and exploration and extraction of other mineral deposits
100A. Special provisions relating to banking business
100B. Special provision relating to capital gain tax
100BA. Special provisions relating to persons not appearing in active taxpayers’ list.
100C. Tax credit for certain persons
100D. Special provisions relating to builders and developers
100E. Special provisions relating to small and medium enterprises
101. Geographical source of income
101A Gain on disposal of assets outside Pakistan
102. Foreign source salary of resident individuals
103. Foreign tax credit
104. Foreign losses
105. Taxation of a permanent establishment in Pakistan of a non-resident person
106. Thin capitalization
106A. Restriction on deduction of profit on debt payable to associated enterprise
107. Agreements for the avoidance of double taxation and prevention of fiscal evasion
108. Transactions between associates
108A. Report from independent chartered accountant or cost and management accountant
108B. Transactions under dealership arrangements
109. Recharacterisation of income and deductions
109A Controlled foreign company
110. Salary paid by private companies
111. Unexplained income or assets
112. Liability in respect of certain security transactions
113. Minimum tax on the income of certain persons
113A. Omitted  
113B. Omitted
113C. Alternative Corporate Tax
114. Return of income
114A. Business bank account
115. Persons not required to furnish a return of income
116. Wealth statement
116A Foreign   income and assets statement
117. Notice of discontinued business
118. Method of furnishing returns and other documents
119. Extension of time for furnishing returns and other documents
120. Assessments
120A. Omitted  
120B. Restriction of proceedings
121. Best judgment assessment
122. Amendment of assessments
122A. Revision by the Commissioner
122B. Revision by the Chief Commissioner
122C. Provisional assessment
122D. Agreed assessment in certain cases
123. Provisional assessment in certain cases
124. Assessment giving effect to an order
124A. Powers of tax authorities to modify orders, etc.
125. Assessment in relation to disputed property
126. Evidence of assessment
127. Appeal to the Commissioner (Appeals)
128. Procedure in appeal
129. Decision in appeal
130. Appointment of the Appellate Tribunal
131. Appeal to the Appellate Tribunal
132. Disposal of appeals by the Appellate Tribunal
133. Reference to High Court
134. Omitted
134A. Alternative Dispute Resolution
135. Omitted
136. Burden of proof
137. Due date for payment of tax
138. Recovery of tax out of property and through arrest of taxpayer
138A. Recovery of tax by District Officer (Revenue)
138B. Estate in bankruptcy
139. Collection of tax in the case of private companies and associations  of persons
140. Recovery of tax from persons holding money on behalf of a taxpayer
141. Liquidators
142. Recovery of tax due by non-resident member of an association of persons
143. Non-resident ship owner or charterer
144. Non-resident aircraft owner or charterer
145. Assessment of persons about to leave Pakistan
146. Recovery of tax from persons assessed in Azad Jammu and Kashmir
146A. Initiation, validity, etc., of recovery proceedings.
146B. Tax arrears settlement incentives scheme
146C. Assistance in the recovery and collection of taxes
147. Advance tax paid by the taxpayer
147A. Advance tax from provincial sales tax registered person
148. Imports
148A. Omitted
149. Salary
150. Dividends
150A omitted by the Finance Act, 2021
151. Profit on debt
152. Payments to non-residents
152A. Payment for foreign produced commercials
153. Payments for goods, services and contracts
153A. Omitted
153B. Omitted
154. Exports
154A. Export of Services
155. [Rent of immoveable] property
156. Prizes and winnings
156A. Petroleum products
156B. Omitted
157. Omitted  
158. Time of deduction of tax
159. Exemption or lower rate certificate
160. Payment of tax collected or deducted
161. Failure to pay tax collected or deducted
162. Recovery of tax from the person from whom tax was not collected or deducted
163. Recovery of amounts payable under this Division
164. Certificate of collection or deduction of tax
165. Statements
165A. Furnishing of information by banks
165B. Furnishing of information by financial institutions including banks
166. Priority of tax collected or deducted
167. Indemnity
168. Credit for tax collected or deducted
169. Tax collected or deducted as a final tax
170. Refunds
170A. Electronic processing and electronic issuance of Refunds by the Board
171. Additional payment for delayed refunds
171A. Payment of refund through income tax refund bonds.
172. Representatives
173. Liability and obligations of representatives
174. Records
175. Power to enter and search premises
175A. Real-time access to information and databases
176. Notice to obtain information or evidence
177. Audit
178. Assistance to Commissioner
179. Accounts, documents, records and computer-stored information not in Urdu  or English language 180. Power to collect information regarding exempt income
181. Taxpayer’s Registration
181A. Active taxpayers’ list
181AA. Compulsory registration in certain cases
181B. Taxpayer card
181C. Displaying of National Tax Number
181D. Business licence scheme
182. Offences and penalties
182A Return  not  filed  within  due  date
183. Exemption from penalty and default surcharge
184. Omitted
185. Omitted
186. Omitted
187. Omitted
188. Omitted
189. Omitted
190. Omitted
191. Prosecution for non-compliance with certain statutory obligations
192. Prosecution for false statement in verification
192A. Prosecution for concealment of income.
193. Prosecution for failure to maintain records
194. Prosecution for improper use of National Tax Number Certificate
195. Prosecution for making false or misleading statements
195A. Prosecution for non-compliance with notice under section 116A.
195B. Prosecution for enabling offshore tax evasion
196. Prosecution for obstructing an income tax authority
197. Prosecution for disposal of property to prevent attachment
198. Prosecution for unauthorised disclosure of information by a public servant
199. Prosecution for abetment
200. Offences by companies and associations of persons
201. Institution of prosecution proceedings without prejudice to other action
202. Power to compound offences
203. Trial by Special Judge
203A. Appeal against the order of a Special Judge
203B. Power to arrest and prosecute
203C. Procedure to be followed on arrest of a person
203D. Special Judges
203E. Cognizance of offences by Special Judges
203F. Special Judge, etc. to have exclusive jurisdiction
203G. Provisions of Code of Criminal Procedure, 1898, to apply
203H. Transfer of cases
203I. Place of sittings
204. Power to tender immunity from prosecution
205. Default surcharge
205A. Reduction in default surcharge, consequential to reduction in tax or penalty
206. Circulars
206A. Advance ruling
207. Income tax authorities
208. Appointment of income tax authorities
209. Jurisdiction of income tax authorities
210. Delegation
211. Power or function exercised
212. Authority of approval
213. Guidance to income tax authorities
214. Income tax authorities to follow orders of the Board
214A. Condonation of time limit
214B. Power of the Board to call for records
214C. Selection for audit by the Board
214D. Omitted
214E. Inserted by the Finance Supplementary (Amendment) Act, 2018
215. Furnishing of returns, documents etc
216. Disclosure of information by a public servant
216A. Proceeding against authority and persons
217. Forms and notices; authentication of documents
218. Service of notices and other documents
219. Tax or refund to be computed to the nearest Rupee
220. Receipts for amounts paid
221. Rectification of mistakes
222. Appointment of expert
222A. Fee and service charges
223. Appearance by authorized representative
224. Proceedings under the Ordinance to be judicial proceedings
225. Proceedings against companies under liquidation
226. Computation of limitation period
227. Bar of suits in Civil Courts
227A. Reward to officers and officials of Inland Revenue
227B. Reward of whistleblowers
227BA. Reward and benefits for certain persons
227C. Omitted
227D Automated impersonal tax regime
227E E-hearing
228. The Directorate-General of Internal Audit
229. Directorate General of Training and Research
230. Directorate General (Intelligence and Investigation), Inland Revenue
230A. Directorate-General of Withholding Taxes
230B. Directorate-General of Law
230C. Directorate-General of Research and Development
230D Directorate-General of Broadening of Tax Base
230E Directorate-General of Transfer Pricing
230F Directorate  General  of  Immovable  Property.
230G Directorate General of Special Initiative
230H Directorate General of Valuation
230I Directorate General of Compliance Risk Management
231. Omitted
231A. Omitted
231AA. Omitted
231B. Advance tax on private motor vehicles
232. Omitted
233. Brokerage and Commission
233A. Omitted
233AA. Collection of tax by NCCPL
234. Tax on motor vehicles
234A. Omitted
235. Electricity Consumption
235A. Omitted
235B. Omitted
236. Telephone and internet users
236A. Advance tax at the time of sale by auction
236B. Omitted
236C. Advance Tax on sale or transfer of immovable Property
236D. Omitted
236E Omitted
236F. Omitted
236G. Advance tax on sales to distributors, dealers and wholesalers
236H. Advance tax on sales to retailers
236HA Omitted
236I. Collection of advance tax by educational institutions
236J. Omitted
236K. Advance tax on purchase or transfer of immovable property
236L. Omitted
236M. Omitted
236N. Omitted
236O. Advance tax under this chapter
236P. Omitted
236Q. Payment to residents for use of machinery and equipment
236R. Omitted
236S. Omitted
236T. Omitted
236U. Omitted
236V. Omitted
236W. Omitted
236X. Omitted
236Y Omitted
237. Power to make rules
237A. Electronic record
238. Repeal
239. Savings
239A. Transition to Federal Board of Revenue.
239B. Reference to authorities
240. Removal of difficulties
241. Validation
242. Benefits of repealed provisions

FIRST SCHEDULE PART I RATES OF TAX  



  •          Rates of Tax for Individuals

  •          Rates of Tax for  Association of Persons

  •          Rates of Tax for Companies

  •          Rates of Super Tax

  •          Rate of Dividend Tax

  •          Rate for Profit on Debt

  •          Rate of Tax on Return on investment in Sukuks received from a special purpose vehicle

  •          Rate of Tax on Certain Payments to Non-residents

  •          Rate of Tax on Shipping or Air Transport Income of a Non-resident Person

  •          Income from Property

  •          Capital Gains on disposal of Securities

  •          Capital Gains on Disposal of Immovable Property

  •          Tax on Builders

  •          Tax on Developers

  •          Minimum tax under section 113

  •          Rates of Advance Tax

  •          Advance Tax on Dividend

  •          Profit on Debt

  •          Return on Investment in Sukuks

  •          Payments to non-residents

  •          Payments for Goods or Services

  •          Exports

  •          Exports of Services

  •          Income from Property

  •          Prizes and Winnings

  •          Petroleum Products

  •          Brokerage and Commission

  •          Tax on motor vehicles

  •          Electricity Consumption

  •          Telephone

  •          Advance tax on Purchase, Registration and Transfer Motor Vehicles

  •          Advance tax at the time of sale by auction

  •          Advance tax on sale or transfer of Immovable property

  •          Advance tax on sale to distributors, dealers or wholesalers

  •          Advance tax on sale to retailers

  •          Collection of advance tax by educational institutions

  •          Advance Tax on purchase of immoveable property

  •          Payment to a resident person for right to use machinery and equipment

    THE SECOND SCHEDULE EXEMPTIONS AND TAX CONCESSIONS

    THE THIRD SCHEDULE

    THE FOURTH SCHEDULE  

    THE FIFTH SCHEDULE

    THE SIXTH SCHEDULE

    THE SEVENTH SCHEDULE

    THE EIGHTH SCHEDULE                                                                      

    THE NINTH SCHEDULE

    TENTH SCHEDULE

    ELEVENTH SCHEDULE

    TWELFTH SCHEDULE

    THE  THIRTEENTH SCHEDULE

    FOURTEENTH SCHEDULE

1800 (PKR)
1530 (PKR)