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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

 

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