Income Tax Ordinance, 2001
The Income Tax Ordinance, 2001[1] (the Ordinance) was promulgated on September 13, 2001, by the Federal Government of Pakistan to levy Income Tax for the purpose of the Federation. It is the primary law to deal with Income Tax in Pakistan and was replaced with previous law named The Income Tax Ordinance, 1979. The Ordinance was published in the Extraordinary Gazette of Pakistan. The Ordinance was initially promulgated with a lot of ambiguities, inconsistencies, flaws, and misconceptions. To smooth out the lawful arrangements, the Government of Pakistan needs to carry countless revisions[2] to the Ordinance. Therefore, a lot of amendments were presented through Finance Ordinances, Finance Acts[3], and Notifications. Currently, the Ordinance consists of thirteen (13) Chapters, two hundred and forty-one (241) Sections, and Twelve (12) Schedules.
Chapters with Sections in the Income Tax Ordinance, 2001
The Ordinance[4][5][6] consists of the following Chapters and Sections
| Chapter No. | Sections | Chapter Title |
|---|---|---|
| I | 1 to 3 | PRELIMINARY |
| II | 4 to 8 | CHARGE OF TAX |
| III | 9 to 65E | TAX ON TAXABLE INCOME |
| IV | 66 to 79 | COMMON RULES |
| V | 80 to 98C | PROVISIONS GOVERNING PERSONS |
| VI | 99 to 100D | SPECIAL INDUSTRIES |
| VII | 101 to 107 | INTERNATIONAL |
| VIII | 108 to 112 | ANTI-AVOIDANCE |
| IX | 113 to 113C | MINIMUM TAX |
| X | 114 to 206A[7] | PROCEDURE |
| XI | 207 to 231 | ADMINISTRATION |
| XII | 231A to 236Y | TRANSITIONAL ADVANCE TAX PROVISIONS |
| XIII | 237 to 241 | MISCELLANEOUS |
Schedules of the Income Tax Ordinance, 2001
Besides the above-referred Chapters and Sections, the Ordinance has the following 12 Schedules
| Schedule No. | Subject Matter |
|---|---|
| First | RATES OF TAX |
| Second | EXEMPTIONS AND TAX CONCESSIONS |
| Third | DEPRECIATION |
| Fourth | RULES FOR THE COMPUTATION OF THE PROFITS AND GAINS OF INSURANCE BUSINESS |
| Fifth | RULES FOR THE COMPUTATION OF THE PROFITS AND GAINS FROM THE EXPLORATION AND PRODUCTION OF PETROLEUM |
| Sixth | RULES TO PROVIDENT FUND, SUPERANNUATION AND GRATUITY FUND |
| Seventh | RULES FOR THE COMPUTATION OF THE PROFITS AND GAINS OF A BANKING COMPANY AND TAX PAYABLE THEREON |
| Eighth | RULES FOR THE COMPUTATION OF CAPITAL GAINS ON LISTED SECURITIES |
| Ninth | RULES FOR THE COMPUTATION OF THE TAX PAYABLE ON PROFITS AND GAINS OF A TRADER |
| Tenth | RULES FOR PERSONS NOT APPEARING IN THE ACTIVE TAXPAYERS’ LIST |
| Eleventh | RULES FOR COMPUTATION OF PROFITS AND GAINS OF BUILDERS AND DEVELOPERS AND TAX PAYABLE THEREON |
| Twelfth | PCT CODES |
![[icon]](/File:Wiki_letter_w_cropped.svg){kind=small} | This section needs expansion. You can help by adding to it. (October 2011) |
See also
- Taxation in Pakistan
- Tax on Cash Withdrawal
- Federal Board of Revenue
References
- ↑ Income Tax Ordinance, 2001
- ↑ Improving the Income Tax Ordinance 2001 by DAWN NEWS
- ↑ Amendments in Income Tax Ordinance, 2001 by Finance Act 2020 - KPMG
- ↑ Taxation of Non-Residents under Income Tax Law of Pakistan - Researchgate
- ↑ Taxation of Non-Residents under Income Tax Law of Pakistan - SSRN Papers
- ↑ Complete Income Tax Ordinance, 2001 Online
- ↑ FBR, PBA agree on implementation of Section 165, 165A of Income Tax Ordinance 2001
Income Tax Ordinance, 2001
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