Section 30: Profit on non-performing debts of a banking company or

30. Profit on non-performing debts of a banking company or development finance institution.—(1) A banking company or development finance institution 6[or Non-Banking Finance Company (NBFC) or modaraba] shall be allowed a deduction for any profit accruing on a non-performing debt of the banking company or institution 7[or Non-Banking Finance Company (NBFC) or modaraba] where the profit is credited to a suspense account in accordance with the Prudential Regulations for Banks or 8[Non- Banking Finance Company or modaraba] Non-bank Financial Institutions, as the case may be, issued by the State Bank of Pakistan 9[or the Securities and Exchange Commission of Pakistan]. (2) Any profit deducted under sub-section (1) that is subsequently recovered by the banking company or development finance institution 10[or Non- Banking Finance Company (NBFC) or modaraba] shall be included in the income of the company or institution 1[or Non-Banking Finance Company (NBFC) or modaraba] chargeable under the head “Income from Business” for the tax year in which it is recovered.

Effective date: 2001-09-13

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