[Contents] Income Tax Ordinance, 2001 I THE INCOME TAX ORDINANCE 2001 ****** C ONTENTS ******* Chapter 1 PRELIMINARY 1. Short title, extent and commencement. 1 2. Definitions. 2 3. Ordinance to override other laws. 22 Chapter II CHARGE OF TAX 4. Tax on taxable income. 23 5. Tax on dividends. 24 6. Tax on certain payments to non-residents. 24 7. Tax on shipping and air transport income of a non-resident person. 25 8. General provisions relating to taxes imposed under sections 5, 6 and 7 26
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THE INCOME TAX ORDINANCE 2001 · THE INCOME TAX ORDINANCE 2001 ***** ... Profit on debt, financial costs and lease ... XIV Income Tax Ordinance, 2001 [Contents] 146 Recovery of tax
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[Contents] Income Tax Ordinance, 2001 I
THE
INCOME TAX
ORDINANCE 2001******
CONTENTS*******Chapter 1
PRELIMINARY1. Short title, extent and commencement. 12. Definitions. 23. Ordinance to override other laws. 22
Chapter IICHARGE OF TAX
4. Tax on taxable income. 235. Tax on dividends. 246. Tax on certain payments to non-residents. 24
7. Tax on shipping and air transport income of anon-resident person. 25
8. General provisions relating to taxes imposedunder sections 5, 6 and 7 26
II Income Tax Ordinance, 2001 [Contents]
Chapter III
TAX ON TAXABLE INCOMEPART I
COMPUTATION OF TAXABLE INCOME
9. Taxable income. 2710. Total income. 2711. Heads of income. 27
PART IIHEAD OF INCOME SALARY
12. Salary. 28
13. Value of perquisites. 3214. Employee share schemes. 35
PART III
HEAD OF INCOMEINCOME FROM PROPERTY
15. Income from property. 3715A Deduction in computing income chargeable
under the head “Income from Property38
16. Non-adjustable amounts received in relationto Buildings.
41
17. Omitted. 41
PART IV
HEAD OF INCOME: INCOME FROMBUSINESS
Division I
Income from Business
18. Income from business. 4119. Speculation business. 43
[Contents] Income Tax Ordinance, 2001 III
Division II
Deductions:
General Principles
20. Deductions in computing income chargeableunder the head "Income from Business".
44
21. Deductions not allowed.
Division III
Deductions:
Special Provisions
45
22. Depreciation. 4723. Initial allowance. 51
23A. First Year Allowance. 52
23B. Accelerated depreciation to alternate energyprojects.
53
24. Intangibles. 53
25. Pre-commencement expenditure. 56
26. Scientific research expenditure. 56
27. Employee training and facilities. 57
28. Profit on debt, financial costs and leasepayments.
58
29. Bad debts. 60
29A Provision regarding consumer loans. 61
30. Profit on non-performing debts of a bankingcompany or development finance institution.
62
31. Transfer to participatory reserve.
Division IV
Tax Accounting
63
32. Method of accounting. 6333. Cash-basis accounting. 64
HEAD OF INCOME CAPITAL GAINS37. Capital gains. 6837A Capital gain on disposal securities. 71
38. Deduction of losses in computing the amountchargeable under the head “Capital Gains”.
PART VI
HEAD OF INCOME FROM OTHERSOURCES
72
39. Income from other sources. 7340. Deductions in computing income chargeable
under the head “Income from Other Sources”.75
PART VII
EXEMPTIONS AND TAX CONCESSIONS
41. Agricultural income. 7642. Diplomatic and United Nations exemptions. 7743. Foreign government officials. 7844. Exemptions under international agreements. 7845. President’s honours. 7946. Profit on debt. 8047. Scholarships. 8048. Support payments under an agreement to live
apart.80
49. Federal, Provincial Government, and LocalGovernment income.
80
[Contents] Income Tax Ordinance, 2001 V
50. Foreign-source income of short-term residentindividuals.
81
51. Foreign-source income of returningexpatriates.
82
52. Omitted. 8253 Exemptions and tax concessions in the Second
Schedule.82
54 Exemptions and tax provisions in other laws. 83
55 Limitation of exemption.
PART VIIILOSSES
84
56 Set off of losses. 8456A Set off of losses of companies operating
hotels.85
57. Carry forward of business losses. 8557A Set off of business loss consequent to
amalgamation.86
58 Carry forward of speculation business losses. 8759. Carry forward of capital losses. 8859A. Limitations on set off and carry forward of