EnglishFrenchPortugueseRussianUrdu

COMPARATIVE SECTIONS Income Tax Ordinance, 2001 Vs Ordinance, 1979

COMPARATIVE SECTIONS

Income Tax

Ordinance, 2001

 

Income Tax

Ordinance, 1979

 

 

 

 

Remarks

Sections

Particulars

 

Sections

 

1.                 

Short title, extent and commencement

1

 

 

 

 

 

2.                 

Definitions

 

 

 

 

2

 

 

 

 

 

3.                 

The Provision of this Ordinance to override other laws

 

 

 

 

 

 

 

 

New

4.                 

Tax on taxable income

 

 

 

 

9

 

 

 

 

5.                 

Tax on dividends

 

 

 

 

80B

 

 

 

 

6.                 

Tax on certain payments to non-residents

 

 

 

 

80AA, 80AAA

 

 

 

 

7.                 

Tax on shipping and air transport income of a non-resident person

 

 

 

 

80, 80A

 

 

 

 

 

8.                 

General provisions relating to taxes imposed under sections 5,6, and 7.

 

 

 

 

80A, 80AA, 80AAA,          80B

 

 

 

 

 

9.                 

Taxable income

 

 

 

 

 

 

 

 

New

10.             

Total income

 

 

 

 

2(44), 11(1)

 

 

 

 

New

11.             

Heads of income

 

 

 

 

15

 

 

 

 

 

12.             

Salary

 

 

 

 

16

 

 

 

 

 

13.             

Value of perquisites

 

 

 

 

 

 

 

 

14.             

Employee Share Scheme

 

 

 

 

 

 

 

 

New

15.             

Income from property

 

 

 

 

19

 

 

 

 

16.             

Non-adjustable amounts received in relation to buildings

 

 

 

 

12(13), 12(15)

 

 

 

 

 

17.             

Deductions in computing income chargeable under the head “Income from Property

 

 

 

 

20

 

 

 

 

 

18.             

Income from business

 

 

 

 

22

 

 

 

 

 

19.             

Speculation business

 

 

 

 

22,36

 

 

 

 

New

20.             

Deductions in computing income chargeable under the head “Income from Business”

 

 

 

 

23

 

 

 

 

 

21.             

Deductions not allowed

 

 

 

 

24

 

 

 

 

 

22.             

Depreciation

 

 

 

 

23(1)(v), The Third Schedule

 

 

 

 

 

23.             

Initial allowance

 

 

 

 

23(1)(v), The Third Schedule

 

 

 

 

 

24.             

Intangibles

 

 

 

 

 

 

 

 

New

25.             

Pre-commencement expenditure

 

 

 

 

 

 

 

 

New

26.             

Scientific research expenditure

 

 

 

 

23(1)(xi), 23(1)(xii)

 

 

 

 

 

27.             

Employee training and facilities

 

 

 

 

23(1)(xiii), 23(1)(xv)

 

 

 

 

 

28.             

Profit on debt, financial costs and lease payments

23(1)(xxi), 23(1)(xxii), 25(a)

 

29.             

Bad debts

23(1)(x), 25(aa)

 

30.             

Profit on non-performing debts of a banking company or development finance institution

23(1)(xxi),(xxii), 25(a)

 

31.             

Transfer to participatory reserve

 

32.             

Method of accounting

32

 

33.             

Cash-basis accounting

 

New

34.             

Accrual-basis accounting

25(c), etc.

 

35.             

Stock-in-trade

New

36.             

Long-term contracts

 

New

37.             

Capital gains

2(12), 27, 28

 

38.             

Deduction of losses in computing the amount chargeable under the head “Capital Gains”

27

 

39.             

Income from other sources

12(16), 12(18), 30

 

40.             

Deductions in computing income chargeable under the head “Income from Other Sources”

31

 

41.             

Agricultural income

2(1), The Second Schedule Pt-1, Cl (1)

 

42.             

Diplomatic and United Nations exemptions

The Second Schedule, Pt-1 Cl (16)

New section

43.             

Foreign government official

The Second Schedule, Pt-1, Cl (2)

 

44.             

Exemption under International agreements

163, The Second Schedule, Pt-1, Cl (12) and Cl (12A)

 

45.             

President’s honors

The Second Schedule,

Cl (40)

New

46.             

Profit on debt

New

47.             

Scholarships

The Second Schedule, Pt-1 Clause (87)

 

48.             

Support payments under an agreement to live apart

New

49.             

Federal and Provincial Government, and local authority income

The Second Schedule, Pt-1,  Cl (88)

 

50.             

Foreign-source income of short-term resident individuals

The Second Schedule, Pt-IV Cl (26)

 

51.             

Foreign-source income of returning expatriates

The Second  Schedule, Pt-1, Cl (130A)

 

52.             

Non-resident shipping and airline enterprises, (omitted by the Finance Ordinance, 2002)

The Second Schedule, Pt-1, Cl (141)

 

53.             

Exemptions and t ax concessions in the Second Schedule

14

 

54.             

Exemptions and t ax concessions in other laws

New

55.             

Limitation of exemption

151

 

56.             

Set off of losses

34

 

57.             

Carry forward of business losses

35,38(6)

 

57A.

Set off of business loss consequent to amalgamation.

New

58.             

Carry forward of speculation business  loss

36

 

59.             

Carry forward of capital losses

37

 

60.             

Zakat

 

Clarification

61.             

Charitable donations

47

 

62.             

Investment in shares

41A

 

63.             

Retirement annuity scheme

44AA

 

64.             

Profit on debt

44AAA

 

65.             

Miscellaneous provisions relating to tax credits

New

66.             

Income of joint owners

21

 

67.             

Apportionment of deductions

 

68.             

Fair market value

29(3)

Rule 8 (III Schedule)

69.             

Receipt of income

New

70.             

Recouped expenditure

25(a), (aa)

 

 

71.             

Currency conversion

New and Clarification

72.             

Cessation of source of income

12(8)

 

73.             

Rules to prevent double derivation and double deductions

11(2)

(Section 11(2), Section 16 Proviso

74.             

Tax year

2(8)(26)

New

75.             

Disposal and  acquisition of assets

27(2)

 

76.             

Cost

28(1)

 

77.             

Consideration received

New

78.             

Non-arm’s length transactions

29(2)

New

79.             

Non-recognition rules

27(2)(b), 29(1)

New, Clarification

80.             

Person

2(32)

 

81.             

Resident and non-resident persons

2(30), 2(40)

 

82.             

Resident individual

2(40)(a)

 

83.             

Resident company

2(31)(40)(c)

 

84.             

Resident association of persons

2(40(b)

 

85.             

Associates

New

86.             

Principle of taxation of individuals

New

87.             

Deceased individuals

74

 

88.             

An individual as a member of an association of persons

Clarification

89.             

Authors

33

 

90.             

Transfer of assets

83

 

91.             

Income of a minor child

83A

 

92.             

Principles of taxation of associations of persons

38, 69

 

93.             

Taxation of members of an association of persons

38, 69

 

94.             

Principles of taxation of companies

New and Clarification.

95.             

Disposal of business by individual to wholly – owned company

New and reference.

96.             

Disposal of business by association of persons to wholly- owned  company

 

97.             

Disposal of asset between wholly-owned companies 

New and reference to 73, 12(12)

98.             

Change in control of an entity

New

99.             

Special provisions relating to insurance business

26(a)

 

100.         

Special provisions relating to the production of oil and natural gas, and exploration and extraction of other mineral deposits

26(b)(c)

 

101.         

Geographical source of income

12(1), 12(5), 12(10)

 

102.         

Foreign source salary of resident individuals

 

103.         

Foreign t ax credit

163(3), 164

 

104.         

Foreign losses

New

105.         

Taxation of a permanent establishment in Pakistan of a non-resident person.

24(e), 12(2), 12(4) etc.

 

106.         

Thin capitalization

New

107.         

Agreements for the avoidance of double taxation and prevention of fiscal evasion

163

 

108.         

Transactions between associates

79

 

109.         

Re-characterization of income and deductions

New

110.         

Salary paid by private companies

16(1)

 

111.         

Unexplained income of assets

13

 

112.         

Liability in respect of certain security transactions

84

 

113.         

Minimum tax on the income of certain persons

80D

 

114.         

Return of income

55, 57

 

115.         

Persons not required to furnish a return of income

Proviso to section 55(1)(C), 143B

 

116.         

Wealth statement

58

 

117.         

Notice of discontinued business

72

 

118.         

Method of furnishing returns and other documents

55A, 55(2)

 

119.         

Extension of time for furnishing returns of other documents

55(3)

 

120.         

Assessments

59, 59(1), 59A

 

121.         

Assessments of persons who have not furnished a return

63

 

122.         

Amendment of assessments

62, 65, 66A

 

123.         

Provisional assessment in certain cases

60A

 

124.         

Assessment giving effect to an order

66,

 

124A

Powers of tax authorities to modify orders, etc.

62BB

 

125.         

Assessment in relation to disputed property

66(3)

Clarificatory-66(3)

126.         

Evidence of assessment

 

127.         

Appeal to the Commissioner (Appeals)

129, 130.

 

128.         

Procedure in appeal

131

 

129.         

Decision in appeal

132

 

130.         

Appointment of the Appellate Tribunal

133

 

131.         

Appeal to the Appellate Tribunal

134

 

132.         

Disposal of Appeals by the Appellate Tribunal

135

 

133.         

Reference  to High Court

136

 

134.         

Appeal to Supreme Court

137

 

135.         

Revision by the Commissioner (Omitted by the Finance Ordinance, 2002)

138

 

136.         

Burden of proof

New but concept was therein the Ordinance

137.         

Due date for payment of tax

54

 

138.         

Recovery of tax out of property and through arrest of taxpayer

93

New and Clarification

138A

Recovery of tax by District Officer (Revenue)

94

 

139.         

Collection of tax in the case of private companies and associations of persons

77

 

140.         

Recovery of  tax from persons holding money on behalf of tax payers

92

 

141.         

Liquidators

76

 

142.         

Recovery of tax due by non-resident member of an association of persons

 

143.         

Non-resident ship owner or chatterer

80

 

144.         

Non-resident aircraft owner or chatterer

80A

 

 

145.         

Collection of tax from persons  leaving Pakistan permanently

81, 82

 

146.         

Recovery of tax from persons assessed in Azad Jammu and Kashmir

93A

 

147.         

Advance tax paid by the taxpayer

53

 

148.         

Imports

50(5), 80C, 80DD

 

149.         

Salary

50(1)

 

150.         

Dividends

50(6A)

 

151.         

Profit on debt

50(7D)

 

152.         

Payments to non-residents

50(3), 50(3A)

 

153.         

Payments for goods and services

50(4), 80C

 

154.         

Exports

50(5A), (5AA), 80CC

 

155.         

Income from property

50(7B)

 

156.         

Prizes and winnings

50(7C), 80B

 

157.         

Petroleum products

80C, 50(7H)

 

158.         

Timing of deduction of tax

Every sub-section of Section 50 at the time of payment/ transaction.

159.         

Exemption of lower rate certificate

50(4), 50(10)

SRO’s giving Exemption.

160.         

Payment of tax collected or deducted

Section 50(8)(c)

 

161.         

Failure to pay  tax collected or deducted

52

 

162.         

Recovery of tax from the person from whom tax was not collected or reduced

52A

 

163.         

Recovery  of amounts payable under this Division

New

164.         

Certificate of collection or deduction of tax

51

 

165.         

Statements

139 to 143

New and Clarification

166.         

Priority of tax collected or deducted

Various sub-sections

167.         

Indemnity

161

 

168.         

Credit for tax collected or deducted

New

169.         

Tax collected or deducted as a final tax

80, 80A, 80AA, 80AAA, 80B, 80BB, 80C, 80CC, 80DD

 

170.         

Refunds

96 – 100

 

171.         

Additional payment for delayed refunds

102

 

172.         

Representatives

78

 

173.         

Liability and obligations of representatives

78

 

174.         

Records

New

175.         

Powers to enter and search premises

145,  146

 

176.         

Notice to obtain information or evidence

144, 148, 149

 

177.         

Audit

4A

 

178.         

Assistance to the Commissioner

147

 

179.         

Accounts, documents, records and computer – stored information not in Urdu or  English language

New

180.         

Power to collect information regarding exempt income

164A

 

181.         

National Tax Number Card

 

143D

 

182.         

Penalty for failure to furnish a return or statement

108

 

183.         

Penalty for non-payment of tax

88, 91

 

184.         

Penalty for concealment of income

111

 

185.         

Penalty for failure to maintain records

109

 

186.         

Penalty for non-compliance with notice

110

 

187.         

Penalty for making false or misleading statements

__

 

188.         

Penalty for failure to give notice

112, 114

 

189.         

Penalty for obstruction

115

 

190.         

Imposition of penalty

116

 

191.         

Prosecution of non-compliance with certain statutory obligations

117

 

192.         

Prosecution for false statement in verification

118

 

193.         

Prosecution for failure to maintain records

New

194.         

Prosecution for improper use of National Tax Number Card

New

195.         

Prosecution for making false or misleading statement

 

196.         

Prosecution for obstructing a taxation officer

 

197.         

Prosecution for  disposal of property to prevent attachment

124

 

198.         

Prosecution for unauthorized disclosure of information by a public servant

122

 

199.         

Prosecution for abetment

120

 

200.         

Offences by companies and associations of persons

123

 

201.         

Institution of prosecutions proceedings without prejudice to other action

124

 

202.         

Power to compound offences

126

 

203.         

Trial by Special Judge

127

 

204.         

Power to tender immunity from prosecution

128

 

205.         

Additional tax

86, 90

 

206.         

Circulars

New – Clarification

207.         

Income Tax Authorities

3

 

208.         

Appointment of income tax authorities

4

 

209.         

Jurisdiction of income tax authorities/exercise of jurisdiction by successor.

5, 6

 

210.         

Delegation

5

New

211.         

Power or function exercised

New

212.         

Authority of approval

165A

 

213.         

Guidance to income tax authorities

7

 

214.         

Income tax authorities to follow Orders of Central Board of Revenue

8

 

215.         

Furnishing of returns, documents, etc.

 

 

216.         

Disclosure of information by a public servant

150

 

217.         

Forms and notices; authentication of documents

 –

New

218.         

Service of notices and other documents

154

 

219.         

Tax or refund to be computed to the nearest Rupee

152

 

220.         

Receipts for amount paid

153

New

221.         

Rectification of mistakes

156

 

222.         

Appointment of expert

 

223.         

Appearance by authorized representatives

157

 

224.         

Proceedings under the Ordinance to be judicial proceedings

158

 

225.         

Proceedings against companies under liquidation

159

 

226.         

Computation of limitation period

160

 

227.         

Bar of Suits in Civil Courts

162

 

228.         

Appointment of Directorate-General of Inspection

138L

 

229.         

Inspection Authorities

138N

 

230.         

Jurisdiction of Inspection Authorities

138O

 

231.         

Functions and Powers of Directorate

138P

 

232.         

(Omitted by the Finance Ordinance, 2002)

 

233.         

Brokerage and Commission

50(4A)

 

234.         

Transport business

50(6)

 

235.         

Electricity consumption

50(7E)

 

236.         

Telephone users

50(7F)

 

237.         

Power to make rules

165

 

238.         

Repeal

166

 

239.         

Savings

166

 

240.         

Removal of difficulties

167

 

 

 

  First Schedule                                          First Schedule

  Second Schedule                                      Second Schedule

                 Third Schedule                                         Third Schedule

  Fourth Schedule                                       Fourth Schedule

  Fifth Schedule                                          Fifth Schedule

  Sixth Schedule                                         Sixth Schedule

  Seventh Schedule                                     Eighth Schedule

 

Print Friendly, PDF & Email