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Income Tax Ordinance 2001
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CPRs TO Excel Tax calculator Img to PDF PDF to Img Income Tax Ordinance 2001 Income Tax Rules 2002 Schedules

Income Tax Ordinance 2001

Section 1
Short title, extent and commencement
Section 2
Definitions
Section 3
Ordinance to override other laws
Section 4
Tax on taxable income
Section 4A
Omitted by Finance Act 2014
Section 4AB
Subject to this Ordinance
Section 4B
Super tax for rehabilitation of temporary displaced persons.
Section 4C
Super tax on high earning persons.
Section 5
Tax on dividends
Section 5A
Tax on undistributed Profits.
Section 5AA
Tan on return on investments in Sukuks.
Section 6
Tax on certain payments to non-residents
Section 7
Tax on shipping and air transport income of a non- resident person
Section 7A
Tax on shipping of a resident person.
Section 7B
Tax on profit on debt
Section 7C
Tax on builders
Section 7D
Tax on developers
Section 7E
Tax on deemed income.
Section 7F
Tax on builders and developers.
Section 8
General provisions relating to taxes imposed under sections 5, 6 and 7
Section 9
Taxable income
Section 10
Total income
Section 11
Heads of income
Section 12
Salary
Section 13
Value of perquisites
Section 14
Employee share schemes
Section 15
Income from property
Section 15A
Deductions in computing income chargeable under the head “Income from Property”
Section 16
Non-adjustable amounts received in relation to buildings.
Section 17
Omitted by the Finance Act, 2006.
Section 18
Income from business
Section 19
Speculation business
Section 20
Deductions in computing income chargeable under the head "Income from Business"
Section 21
Deductions not allowed
Section 22
Depreciation
Section 23
Initial allowance
Section 23A
Omitted by the Finance Act, 2021
Section 23B
Accelerated depreciation to alternate energy projects.
Section 24
Intangibles
Section 25
Pre-commencement expenditure
Section 26
Scientific research expenditure
Section 27
Employee training and facilities
Section 28
Profit on debt, financial costs and lease payments
Section 29
Bad debts
Section 29A
Provision regarding consumer loans
Section 30
Profit on non-performing debts of a banking company or development finance institution
Section 31
Transfer to participatory reserve
Section 32
Method of accounting
Section 33
Cash-basis accounting
Section 34
Accrual-basis accounting
Section 35
Stock-in-trade
Section 36
Long-term contracts
Section 37
Capital gains
Section 37A
Capital gain on disposal of securities
Section 38
Deduction of losses in computing the amount chargeable under the head “Capital Gains”
Section 39
Income from other sources
Section 40
Deductions in computing income chargeable under the head “Income from Other Sources”
Section 41
Agricultural income
Section 42
Diplomatic and United Nations exemptions
Section 43
Foreign government officials
Section 44
Exemptions under international agreements
Section 44A
Exemption under Foreign Investment (Promotion and Protection) Act, 2022 (XXXV of 2022).
Section 45
President’s honours
Section 46
Profit on debt
Section 47
Scholarships
Section 48
Support payments under an agreement to live apart
Section 49
Federal Governments, Provincial Government and Local Government
Section 50
Foreign-source income of short-term resident individuals
Section 51
Foreign-source income of returning expatriates
Section 52
Omitted by Finance Ordinance, 2002
Section 53
Exemptions and tax concessions in the Second Schedule
Section 54
Exemptions and tax provisions in other laws
Section 55
Limitation of exemption
Section 56
Set off of losses
Section 56A
Set off of losses of companies operating hotels.
Section 57
Carry forward of business losses
Section 57A
Set off of business loss consequent to amalgamation
Section 58
Carry forward of speculation business losses
Section 59
Carry forward of capital losses
Section 59A
Limitations on set off and carry forward of losses
Section 59AA
Group Taxation.
Section 59B
Group relief
Section 59C
Omitted by Finance Act, 2022
Section 60
Zakat
Section 60A
Workers’ Welfare Fund
Section 60B
Workers’ Participation Fund
Section 60C
Omitted by the Finance Act, 2022.
Section 60D
Deductible allowance for education expenses
Section 61
Charitable donations
Section 62
Omitted by the Finance Act, 2022.
Section 62A
Omitted by the Finance Act, 2022.
Section 63
Contribution to an Approved Pension Fund.
Section 64
Omitted by Finance Act, 2015.
Section 64A
Section re-numbered as 60C
Section 64AB
Section re-numbered as 60D
Section 64B
Tax credit for employment generation by manufacturers
Section 64C
Omitted by Finance Act, 2021
Section 64D
Tax credit for point of sale machine
Section 65
Miscellaneous provisions relating to tax credits
Section 65A
Omitted by the Finance Act, 2017
Section 65B
Tax credit for investment
Section 65C
Omitted by the Finance Act, 2021
Section 65D
Omitted by the Finance Act, 2021
Section 65E
Tax credit for industrial undertakings established before the first day of July, 2011
Section 65F
Tax credit for certain persons
Section 65G
Tax credit for specified industrial undertakings
Section 65H
Omitted by the Finance Act, 2022.
Section 66
Income of joint owners
Section 67
Apportionment of deductions
Section 68
Fair market value
Section 69
Receipt of income
Section 70
Recouped expenditure
Section 71
Currency conversion
Section 72
Cessation of source of income
Section 73
Rules to prevent double derivation and double deductions
Section 74
Tax year
Section 75
Disposal and acquisition of assets
Section 75A
Purchase of assets through banking channel
Section 76
Cost
Section 77
Consideration received
Section 78
Non-arm's length transactions
Section 79
Non-recognition rules
Section 80
Person
Section 81
Resident and non-resident persons
Section 82
Resident individual
Section 83
Resident company
Section 84
Resident association of persons
Section 85
Associates
Section 86
Principle of taxation of individuals
Section 87
Deceased individuals
Section 88
An individual as a member of an association of persons
Section 88A
Omitted by Finance Act, 2014
Section 89
Authors
Section 90
Transfers of assets
Section 91
Income of a minor child
Section 92
Principles of taxation of associations of persons
Section 93
Omitted by the Finance Act, 2007.
Section 94
Principles of taxation of companies
Section 95
Disposal of business by individual to wholly-owned company
Section 96
Disposal of business by association of persons to wholly-owned company
Section 97
Disposal of asset between wholly-owned companies
Section 97A
Disposal of asset under a scheme of arrangement and reconstruction.
Section 98
Change in control of an entity
Section 98A
Change in the constitution of an association of persons
Section 98B
Discontinuance of business or dissolution of an association of persons
Section 98C
Succession to business, otherwise than on death
Section 99
Special provisions relating to insurance business
Section 99A
Special provisions relating to payment of tax through electricity connections
Section 99B
Special procedure for small traders and shopkeepers
Section 99C
Special procedure for certain persons
Section 99D
Additional tax on certain income, profits and gains.
Section 100
Special provisions relating to the production of oil and natural gas, and exploration and extraction of other mineral deposits
Section 100A
Special provisions relating to banking business.
Section 100B
Special provision relating to capital gain tax.
Section 100BA
Special provisions relating to persons not appearing in active taxpayers’ list.
Section 100C
Tax credit for certain persons
Section 100D
Special provisions relating to builders and developers
Section 100E
Special provisions relating to small and medium enterprises
Section 100F
Omitted by the Finance Act, 2022
Section 101
Geographical source of income
Section 101A
Gain on disposal of assets outside Pakistan
Section 102
Foreign source salary of resident individuals
Section 103
Foreign tax credit
Section 104
Foreign losses
Section 105
Taxation of a permanent establishment in Pakistan of a non-resident person
Section 106
Thin capitalization
Section 106A
Restriction on deduction of profit on debt payable to associated enterprise
Section 107
Agreements for the avoidance of double taxation and prevention of fiscal evasion
Section 108
Transactions between associates
Section 108A
Report from independent chartered accountant or cost and management accountant
Section 108B
Transactions under dealership arrangements
Section 109
Recharacterisation of income and deductions
Section 109A
Controlled foreign company.
Section 110
Salary paid by private companies
Section 111
Unexplained income or assets
Section 112
Liability in respect of certain security transactions
Section 113
Minimum tax on the income of certain persons.
Section 113A
Omitted by the Finance Act, 2016
Section 113B
Omitted by the Finance Act, 2016
Section 113C
Alternative Corporate Tax
Section 114
Return of income
Section 114A
Business bank account
Section 114B
Powers to enforce filing of returns.
Section 115
Persons not required to furnish a return of income
Section 116
Wealth statement
Section 116A
Foreign income and assets statement
Section 117
Notice of discontinued business
Section 118
Method of furnishing returns and other documents
Section 119
Extension of time for furnishing returns and other documents
Section 120
Assessments
Section 120A
Omitted by Finance Act, 2013
Section 120B
Restriction of proceedings
Section 121
Best judgment assessment
Section 122
Amendment of assessments
Section 122A
Revision by the Commissioner
Section 122B
Revision by the Chief Commissioner
Section 122C
Omitted by the Finance Act, 2017
Section 122D
Agreed assessment in certain cases
Section 123
Provisional assessment in certain cases
Section 124
Assessment giving effect to an order
Section 124A
Powers of tax authorities to modify orders, etc.
Section 125
Assessment in relation to disputed property
Section 126
Evidence of assessment
Section 126A
Pecuniary jurisdiction in appeals.
Section 127
Appeal to the Commissioner (Appeals)
Section 128
Procedure in appeal
Section 129
Decision in appeal
Section 130
Appellate Tribunal
Section 131
Appeal to the Appellate Tribunal
Section 132
Disposal of appeals by the Appellate Tribunal
Section 133
Reference to High Court
Section 134
Omitted by Finance Act, 2005
Section 134A
Alternative Dispute Resolution
Section 135
Omitted by the Finance Ordinance, 2002
Section 136
Burden of proof
Section 137
Due date for payment of tax
Section 138
Recovery of tax out of property and through arrest of taxpayer
Section 138A
Recovery of tax by District Officer (Revenue)
Section 138B
Estate in bankruptcy
Section 139
Collection of tax in the case of private companies and associations of persons
Section 140
Recovery of tax from persons holding money on behalf of a taxpayer
Section 141
Liquidators
Section 142
Recovery of tax due by non-resident member of an association of persons
Section 143
Non-resident ship owner or charterer
Section 144
Non-resident aircraft owner or charterer
Section 145
Assessment of persons about to leave Pakistan
Section 146
Recovery of tax from persons assessed in Azad Jammu and Kashmir
Section 146A
Initiation, validity, etc., of recovery proceedings.
Section 146B
Tax arrears settlement incentives scheme
Section 146C
Assistance in the recovery and collection of taxes
Section 146D
Recovery of liability outstanding under other laws.
Section 147
Advance tax paid by the taxpayer
Section 147A
Advance tax from provincial sales tax registered person
Section 148
Imports
Section 148A
Omitted through Finance Act, 2020 dated 30th June, 2020
Section 149
Salary
Section 150
Dividends
Section 150A
omitted by the Finance Act, 2021
Section 151
Profit on debt
Section 152
Payments to non-residents
Section 152A
Omitted by the Finance Act, 2021
Section 153
Payments for goods, services and contracts
Section 153A
Omitted by Finance Act, 2013
Section 153B
Omitted by Finance Act, 2021
Section 154
Exports
Section 154A
Export of Services
Section 155
Rent of immoveable property
Section 156
Prizes and winnings
Section 156A
Petroleum products
Section 156B
Omitted by Finance Act, 2020
Section 157
Omitted by the Finance Ordinance, 2002
Section 158
Time of deduction of tax
Section 159
Exemption or lower rate certificate
Section 160
Payment of tax collected or deducted
Section 161
Failure to pay tax collected or deducted
Section 162
Recovery of tax from the person from whom tax was not collected or deducted
Section 163
Recovery of amounts payable under this Division
Section 164
Certificate of collection or deduction of tax
Section 164A
Settlement of transactions liable to Withholding Tax by SWAPS agents
Section 165
Statements
Section 165A
Furnishing of information by banks
Section 165B
Furnishing of information by financial institutions including banks
Section 166
Priority of tax collected or deducted
Section 167
Indemnity
Section 168
Credit for tax collected or deducted
Section 169
Tax collected or deducted as a final tax
Section 170
Refunds
Section 170A
Electronic processing and electronic issuance of Refunds by the Board
Section 171
Additional payment for delayed refunds
Section 171A
Payment of refund through income tax refund bonds.-
Section 172
Representatives
Section 173
Liability and obligations of representatives
Section 174
Records
Section 175
Power to enter and search premises
Section 175A
Real-time access to information and databases
Section 175B
National Database and Registration Authority (NADRA)
Section 176
Notice to obtain information or evidence
Section 177
Audit
Section 178
Assistance to Commissioner
Section 179
Accounts, documents, records and computer- stored information not in Urdu or English language
Section 180
Power to collect information regarding exempt income
Section 181
Taxpayer’s Registration
Section 181A
Active taxpayers’ list
Section 181AA
Compulsory registration in certain cases
Section 181B
Taxpayer card
Section 181C
Displaying of National Tax Number
Section 181D
Business licence scheme
Section 181E
Record of beneficial owners.
Section 182
Offences and penalties
Section 182A
Return not filed within due date.
Section 183
Exemption from penalty and default surcharge
Section 184
Omitted by the Finance Act, 2010.
Section 185
Omitted by the Finance Act, 2010.
Section 186
Omitted by the Finance Act, 2010.
Section 187
Omitted by the Finance Act, 2010.
Section 188
Omitted by the Finance Act, 2010.
Section 189
Omitted by the Finance Act, 2010.
Section 190
Omitted by the Finance Act, 2010.
Section 191
Prosecution for non-compliance with certain statutory obligations
Section 191A
Prosecution for failure to furnish information in return of income
Section 191B
Prosecution for non-registration
Section 192
Prosecution for false statement in verification
Section 192A
Prosecution for concealment of income.
Section 192B
Prosecution for concealment of and offshore assets
Section 193
Prosecution for failure to maintain records
Section 194
Prosecution for improper use of National Tax Number Certificate
Section 195
Prosecution for making false or misleading statements
Section 195A
Prosecution for non-compliance with notice under section 116A.—
Section 195B
Prosecution for enabling offshore tax evasion
Section 196
Prosecution for obstructing an income tax authority
Section 197
Prosecution for disposal of property to prevent attachment
Section 198
Prosecution for unauthorised disclosure of information by a public servant
Section 199
Prosecution for abetment
Section 200
Offences by companies and associations of persons
Section 201
Institution of prosecution proceedings without prejudice to other action
Section 202
Power to compound offences
Section 203
Trial by Special Judge
Section 203A
Appeal against the order of a Special Judge
Section 203B
Power to arrest and prosecute
Section 203C
Procedure to be followed on arrest of a person
Section 203D
Special Judges
Section 203E
Cognizance of offences by Special Judges
Section 203F
Special Judge, etc. to have exclusive jurisdiction
Section 203G
Provisions of Code of Criminal Procedure, 1898, to apply
Section 203H
Transfer of cases
Section 203I
Place of sittings
Section 204
Power to tender immunity from prosecution
Section 205
Default surcharge
Section 205A
Reduction in default surcharge, consequential to reduction in tax or penalty
Section 206
Circulars
Section 206A
Advance ruling
Section 207
Income tax authorities
Section 208
Appointment of income tax authorities
Section 209
Jurisdiction of income tax authorities
Section 209A
Uniform
Section 210
Delegation
Section 211
Power or function exercised
Section 212
Authority of approval
Section 213
Guidance to income tax authorities
Section 214
Income tax authorities to follow orders of the Board
Section 214A
Condonation of time limit
Section 214B
Power of the Board to call for records
Section 214C
Selection for audit by the Board
Section 214D
Omitted by the Finance Act, 2018
Section 214E
Inserted by the Finance Supplementary (Amendment) Act, 2018
Section 215
Furnishing of returns, documents etc.
Section 216
Disclosure of information by a public servant
Section 216A
Omitted by the Finance Act, 2022
Section 217
Forms and notices; authentication of documents
Section 218
Service of notices and other documents
Section 219
Tax or refund to be computed to the nearest Rupee
Section 220
Receipts for amounts paid
Section 221
Rectification of mistakes
Section 222
Appointment of expert
Section 222A
Fee and service charges
Section 223
Appearance by authorized representative
Section 224
Proceedings under the Ordinance to be judicial proceedings
Section 225
Proceedings against companies under liquidation
Section 226
Computation of limitation period
Section 227
Bar of suits in Civil Courts
Section 227A
Reward to officers and officials of Inland Revenue
Section 227B
Reward of whistleblowers
Section 227BA
Reward and benefits for certain persons
Section 227C
omitted through Finance Act 2019
Section 227D
Automated impersonal tax regime
Section 227E
E-hearing
Section 228
The Directorate-General of Internal Audit
Section 229
Directorate General of Training and Research
Section 230
Directorate General (Intelligence and Investigation), Inland Revenue
Section 230A
Directorate-General of Withholding Taxes
Section 230B
Directorate-General of Law
Section 230C
Directorate-General of Research and Development
Section 230D
Directorate-General of Broadening of Tax Base
Section 230E
Directorate-General of Transfer Pricing
Section 230F
Directorate-General of Immovable Property.
Section 230G
Directorate General of Special Initiative
Section 230H
Directorate General of Valuation
Section 230I
Directorate General of Compliance Risk Management
Section 230J
International Centre of Tax Excellence
Section 230K
Tax Fraud Investigation Wing Inland Revenue
Section 231
Omitted by Finance Act, 2005
Section 231A
Omitted by the Finance Act, 2021
Section 231AA
Omitted by the Finance Act, 2021
Section 231AB
Advance tax on cash withdrawal
Section 231B
Advance tax on private motor vehicles
Section 231C
Advance tax on foreign domestic workers
Section 232
Omitted by the Finance Ordinance, 2002
Section 233
Brokerage and Commission
Section 233A
omitted by the Finance Act, 2021
Section 233AA
Collection of tax by NCCPL
Section 234
Tax on motor vehicles
Section 234A
omitted by the Finance Act, 2021
Section 235
Electricity Consumption
Section 235A
omitted by the Finance Act, 2021
Section 235B
omitted through Finance Act, 2020 dated 30th June, 2020
Section 236
Telephone and internet users
Section 236A
Advance tax at the time of sale by auction
Section 236B
Omitted by the Finance Act, 2021
Section 236C
Advance Tax on sale or transfer of immovable Property
Section 236CA
Advance Tax on TV plays and advertisements
Section 236CB
Advance tax on functions and gatherings
Section 236D
Omitted by the Finance Act, 2020
Section 236E
Omitted by the Finance Act, 2016
Section 236F
Omitted through Finance Act, 2020
Section 236G
Advance tax on sales to distributors, dealers and wholesalers
Section 236H
Advance tax on sales to retailers
Section 236HA
Omitted by the Finance Act, 2021
Section 236I
Omitted by the Finance Act, 2022
Section 236J
Omitted through Finance Act, 2020
Section 236K
Advance tax on purchase or transfer of immovable property
Section 236L
Omitted by the Finance Act, 2021
Section 236M
Omitted by the Finance Act, 2018
Section 236N
Omitted by the Finance Act, 2018
Section 236O
Advance tax under this chapter
Section 236P
omitted by the Finance Act, 2021
Section 236Q
Omitted by the Finance Act, 2022
Section 236R
Omitted through Finance Act, 2020
Section 236S
omitted by the Finance Act, 2021
Section 236T
Omitted by the Finance Act, 2016
Section 236U
omitted through Finance Act, 2020 dated 30th June, 2020
Section 236V
Omitted by the Finance Act, 2021
Section 236W
Omitted through Finance Act, 2019
Section 236X
omitted through Finance Act, 2020 dated 30th June, 2020
Section 236Y
Advance tax on persons remitting amounts abroad through credit or debit or prepaid cards
Section 236Z
Bonus shares issued by companies.
Section 237
Power to make rules
Section 237A
Electronic record
Section 237B
Prize schemes to promote tax culture
Section 238
Repeal
Section 239
Savings
Section 239A
Transition to Federal Board of Revenue.
Section 239B
Reference to authorities
Section 240
Removal of difficulties
Section 241
Validation
Section 242
Benefits of repealed provisions