Section 7B: Tax on profit on debt

5[7B. Tax on profit on debt.—(1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IIIA of Part I of the First Schedule, on every person, other than a company, who receives a profit on debt from any person mentioned in clauses (a) to (d) of sub-section (1)of section 151. (2) The tax imposed under sub-section (1) on a person, other than a company, who receives a profit on debt shall be computed by applying the relevant rate of tax to the gross amount of the profit on debt. 1[(3) This section shall not apply to a profit on debt that – (a) is exempt from tax under this Ordinance; or (b) exceeds 2[five] million Rupees.]

Effective date: 2001-09-13

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