Income Tax Ordinance, 2001 (2001)

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Legal status

In force

Effective date

2001-09-13

Sections

457

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Section 4A: Omitted by Finance Act 2014(repealed)
Section 4AB: Subject to this Ordinance, a surcharge payable
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 6A: Tax on payments for digital transactions in e-commerce platforms
Section 7: Tax on shipping and air transport income of a non-resident
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
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
Section 16: Non-adjustable amounts received in relation to buildings
Section 17: Omitted by the Finance Act, 2006(repealed)
Section 18: Income from business
Section 19: Speculation business
Section 20: Deductions in computing income chargeable under the head
Section 21: Deductions not allowed
Section 22: Depreciation
Section 23: Initial allowance
Section 23A: Omitted by the Finance Act, 2021(repealed)
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
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
Section 39: Income from other sources
Section 40: Deductions in computing income chargeable under the head
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)
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
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(repealed)
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(repealed)
Section 60: Zakat
Section 60A: Workers’ Welfare Fund
Section 60B: Workers’ Participation Fund
Section 60C: Omitted by the Finance Act, 2022(repealed)
Section 60D: Deductible allowance for education expenses
Section 61: Charitable donations
Section 62: Omitted by the Finance Act, 2022(repealed)
Section 62A: Omitted by the Finance Act, 2022(repealed)
Section 63: Contribution to an Approved Pension Fund
Section 63A: Tax credit for interest paid on low-cost housing loan
Section 64: Omitted by Finance Act, 2015(repealed)
Section 64A: Section re-numbered as 60C(repealed)
Section 64AB: Section re-numbered as 60D(repealed)
Section 64B: Tax credit for employment generation by manufacturers
Section 64C: Omitted by Finance Act, 2021(repealed)
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(repealed)
Section 65B: Tax credit for investment
Section 65C: Omitted by the Finance Act, 2021(repealed)
Section 65D: Omitted by the Finance Act, 2021(repealed)
Section 65E: Tax credit for industrial undertakings established before the first
Section 65F: Tax credit for certain persons
Section 65G: Tax credit for specified industrial undertakings
Section 65H: Omitted by the Finance Act, 2022(repealed)
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(repealed)
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(repealed)
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
Section 97: Disposal of asset between wholly-owned companies
Section 97A: Disposal of asset under a scheme of arrangement and
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
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
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
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
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(repealed)
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
Section 106: Thin capitalization
Section 106A: Restriction on deduction of profit on debt payable to associated
Section 107: Agreements for the avoidance of double taxation and prevention
Section 108: Transactions between associates
Section 108A: Report from independent chartered accountant or cost and
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(repealed)
Section 113B: Omitted by the Finance Act, 2016(repealed)
Section 113C: Alternative Corporate Tax
Section 114: Return of income
Section 114A: Business bank account
Section 114B: Powers to enforce filing of returns
Section 114C: Restriction on economic transactions by certain persons
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(repealed)
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(repealed)
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: Omitted by the Finance Act, 2025(repealed)
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(repealed)
Section 134A: Alternative Dispute Resolution
Section 135: Omitted by the Finance Ordinance, 2002(repealed)
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
Section 140: Recovery of tax from persons holding money on behalf of a
Section 141: Liquidators
Section 142: Recovery of tax due by non-resident member of an association
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
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(repealed)
Section 149: Salary
Section 150: Dividends
Section 150A: omitted by the Finance Act, 2021(repealed)
Section 151: Profit on debt
Section 151A: Gain arising on disposal of certain debt securities
Section 152: Payments to non-residents
Section 152A: Omitted by the Finance Act, 2021(repealed)
Section 153: Payments for goods, services and contracts
Section 153A: Omitted by Finance Act, 2013(repealed)
Section 153B: Omitted by Finance Act, 2021(repealed)
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(repealed)
Section 157: Omitted by the Finance Ordinance, 2002(repealed)
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
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
Section 165: Statements
Section 165A: Furnishing of information by banks
Section 165B: Furnishing of information by financial institutions
Section 165C: Furnishing of information by online marketplace, payment
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
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 175AA: Exchange of banking and tax information related to high-risk
Section 175B: National Database and Registration Authority (NADRA)
Section 175C: Posting of officer of Inland Revenue
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
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(repealed)
Section 185: Omitted by the Finance Act, 2010(repealed)
Section 186: Omitted by the Finance Act, 2010(repealed)
Section 187: Omitted by the Finance Act, 2010(repealed)
Section 188: Omitted by the Finance Act, 2010(repealed)
Section 189: Omitted by the Finance Act, 2010(repealed)
Section 190: Omitted by the Finance Act, 2010(repealed)
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
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
Section 199: Prosecution for abetment
Section 200: Offences by companies and associations of persons
Section 201: Institution of prosecution proceedings without prejudice to other
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
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(repealed)
Section 214E: Inserted by the Finance Supplementary (Amendment) Act, 2018(pending text)
Section 215: Furnishing of returns, documents etc
Section 216: Disclosure of information by a public servant
Section 216A: Omitted by the Finance Act, 2022(repealed)
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(repealed)
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(pending text)
Section 230: Directorate General (Intelligence and Investigation), Inland
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(repealed)
Section 231A: Omitted by the Finance Act, 2021(repealed)
Section 231AA: Omitted by the Finance Act, 2021(repealed)
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(repealed)
Section 233: Brokerage and Commission
Section 233A: Omitted by the Finance Act, 2021(repealed)
Section 233AA: Omitted by the Finance Act, 2021(repealed)
Section 234: Tax on motor vehicles
Section 234A: omitted by the Finance Act, 2021(repealed)
Section 235: Electricity Consumption
Section 235A: omitted by the Finance Act, 2021(repealed)
Section 235B: omitted through Finance Act, 2020 dated 30th June, 2020(repealed)
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(repealed)
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(repealed)
Section 236E: Omitted by the Finance Act, 2016(repealed)
Section 236F: Omitted through Finance Act, 2020(repealed)
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(repealed)
Section 236I: Omitted by the Finance Act, 2022(repealed)
Section 236J: Omitted through Finance Act, 2020(repealed)
Section 236K: Advance tax on purchase or transfer of immovable property
Section 236L: Omitted by the Finance Act, 2021(repealed)
Section 236M: Omitted by the Finance Act, 2018(repealed)
Section 236N: Omitted by the Finance Act, 2018(repealed)
Section 236O: Advance tax under this chapter
Section 236P: omitted by the Finance Act, 2021(repealed)
Section 236Q: Omitted by the Finance Act, 2022(repealed)
Section 236R: Omitted through Finance Act, 2020(repealed)
Section 236S: omitted by the Finance Act, 2021(repealed)
Section 236T: Omitted by the Finance Act, 2016(repealed)
Section 236U: omitted through Finance Act, 2020 dated 30th June, 2020(repealed)
Section 236V: Omitted by the Finance Act, 2021(repealed)
Section 236W: Omitted through Finance Act, 2019(repealed)
Section 236X: omitted through Finance Act, 2020 dated 30th June, 2020(repealed)
Section 236Y: Omitted by the Finance Act, 2021(repealed)
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
Eighth Schedule: Eighth Schedule
Eleventh Schedule: Eleventh Schedule
Fifteenth Schedule: Fifteenth Schedule
Fifth Schedule: Fifth Schedule
First Schedule: First Schedule
Fourteenth Schedule: Fourteenth Schedule
Fourth Schedule: Fourth Schedule
Ninth Schedule: Ninth Schedule
Second Schedule: Second Schedule
Seventh Schedule: Seventh Schedule
Sixth Schedule: Sixth Schedule
Tenth Schedule: Tenth Schedule
Third Schedule: Third Schedule
Thirteenth Schedule: Thirteenth Schedule
Twelfth Schedule: Twelfth Schedule

Legal information only. Verify current law and obtain advice from a qualified lawyer for your circumstances.

The Income Tax Ordinance, 2001