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

COMPARATIVE SECTIONS Income Tax Ordinance, 2001 Vs Ordinance, 1979

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