INCOME TAX ORDINANCE, 1979
Note: Text in Blue Background highlights the changes after Finance Ordinance, 2001.
CHAPTER I PRELIMINARY SECTION
1. Short title, extent and commencement
2. Definitions
CHAPTER II ADMINISTRATION
4 Appointment of income tax authorities
4A. Private income tax authorities
4AA. Appointment of certain persons for survey etc.
4AAA. Appointment of persons for audit of tax withholding
5. Jurisdiction of income tax authorities
6. Exercise of jurisdiction by a successor
7. Guidance to Deputy Commissioner
8. All Officer to follow the orders of the Central Board of Revenue
CHAPTER III CHARGE OF TAX
10. Charge of super tax and surcharge
12. Income deemed to accrue or arise in Pakistan
13. Un-explained investment, etc., deemed to be income
14. Exemptions
CHAPTER IV COMPUTATION OF TOTAL INCOME
15. Heads of income
16. Salary
18. Deductions
19. Income from house property
20. Deductions
21. Liability in the case of co-owners
22. Income from business or profession
23. Deductions
25. Amounts subsequently recovered in respect of deductions, etc.
27. Capital gains
28. Computation of capital gains
29. Cost of acquisition, and consideration for transfer, how determined
31. Deductions
32A. Documents, certificates, etc., to be furnished by certain companies
33. Assessment of royalties or copy-right fees for literary or artistic work
34A Set-off of losses of certain companies
35. Carry forward of business losses
37. Capital losses
38. Limitation as to set-off and carry forward of losses in the case of firms, partner, etc.
CHAPTER V ALLOWANCES AND RELIEFS
39. Allowance for life insurance
40. Allowance for contributions to Provident Funds, etc.
41. Allowance for investment in Defence Savings and NIT Certificates, etc
41A. Allowance for investment in shares
42. Allowance for purchase of books
44. Retirement annuity contracts and trust schemes
44A. Retirement annuity contract for professionals
44AA. Retirement annuity scheme
44AAA. Allowance for mark up paid
44B. Allowance for mark up paid (Omitted)
46. Contribution to benevolent fund and group insurance
47. Allowance for donations for charitable purposes
48. Exemption from tax of newly established industrial undertakings
49. Allowances to be treated as deductions from income
CHAPTER VI PAYMENT OF TAX BEFORE ASSESSMENT
50. Deduction of tax at source
51. Certificate of deduction of tax
52. Liability of persons failing to deduct or pay tax
52A. Recovery from the person from whom tax was not deducted or collected.
54. Payment of tax with return of income
CHAPTER VII ASSESSMENT
55A. Method of furnishing return of total income
56. Notice for furnishing return of total income
57. Revised returns of total income
58. Wealth statement
59. Self-assessment
59A. Assessment on the basis of return
59B. Assessment under the simplified procedure for assessment
59C. Fixed Tax
59D. Tax on undisclosed income
59E. Fixed or minimum tax
60A. Provisional assessment in certain cases
61. Notice for production of books of account, etc.
61A. Utilisation of certain information
62. Assessment on production of accounts, evidence, etc .
62A. Assessment after appellate decision
62B. No title has been given to the section.
62C. Powers of tax authorities to modify orders, etc. (Omitted)
66. Limitation for assessment in certain cases
66A. Powers of Inspecting Additional Commissioner to revise Deputy Commissioner's order
CHAPTER VIII TAX LIABILITY IN SPECIAL CASES
69. Assessment of firms and partners
70. Change in constitution of a firm
71. Discontinuance of business of dissolution of a firm or association of persons
72. Assessment in case of discontinued business or profession
73. Succession to business, otherwise than on death
74. Liability in the case of a deceased person
75. Partition of a Hindu undivided family
76. Liability in the case of a private company going into liquidation
77. Liability for payment of tax in the case of private companies, firms and associations of persons
78. Liability of agents representing assessee
79. Income from transactions with non-residents
80. Shipping business of non-residents
80A. Air transport business of non-residents
80AA. Tax on in come of non-residents from fees for technical services
80AAA. Tax on income of non-residents from royalty
80B. Tax on income of certain persons from dividends and bank profits, etc.
80BB. Tax on income of goods transport vehicles owners
80C. Tax on income of certain contractors and importers
80CC. Tax on income of certain exporters
80CD. Tax on income of industrial undertakings located in Export Processing Zones
80D. Minimum tax on income of certain companies and registered firms
80DD. Minimum tax on income of importers of edible oils, etc.
81. Assessment of persons about to leave Pakistan
82. Persons leaving Pakistan to obtain tax clearance certificate
83. Income from revocable transfer of assets, etc.
84. Liability certain in transaction in securities.
CHAPTER IX RECOVERY OF TAX
86. Charge of additional tax for failure to deduct and pay tax
87. Charge of additional tax for failure to pay advance tax
88. Charge of additional tax for failure to pay tax with the return
89. Charge of additional tax for failure to pay tax or penalty
90. Reduction in additional tax, consequential to reduction in tax or penalty
91. Penalty for non-payment of tax
92. Recovery of tax from persons holding money on behalf of an assessee
93. Recovery of tax by tax Recovery Officer
93A. Recovery of tax from persons assessed in Azad Jammu and Kashmir
94. Recovery of tax by Collector
95. Initiation, validity, etc., of recovery proceedings
CHAPTER X REFUND AND TAX CREDIT
96. Refunds
97. Persons entitled to claim refund in certain cases
98. Refund where salary, etc. is paid in arrears
99. Form of application, disposal of claims for refund and limitation
100. Refund on assessment and appeal, etc.
101. Correctness of assessment, etc., not to be questioned through refund applications
102. Additional payment for delayed refunds
103. Power to withhold refund in certain cases
104. Adjustment of refund against tax
105. Tax credit for investment in shares and debentures of Equity Participation Fund
105A. Tax credit for investment in debentures or negotiable bonds
106. Tax credit for investment in share-capital of industrial companies
107. Tax credit for replacement, balancing and modernisation of machinery or plant
107A. Tax Credit
107AA. Tax credit for investment
CHAPTERXI PENALTIES
108. Penalty for failure to furnish return of total income and certain statements
109. Penalty for failure to maintain prescribed accounts
110. Penalty for non-compliance of notice, etc.
111. Penalty for concealment of income, etc.
112. Penalty for failure to give notice of discontinuance of business or profession
113. Penalty in case of registered firms
114. Penalty for failure to give notice by liquidator
116. Imposition of penalty after notice of hearing, etc.
CHAPTER XII
OFFENCES AND PROSECUTIONS
117. Prosecution for non-compliance of certain statutory obligations
118. Prosecution for false statement in verification
119. Prosecution for concealment of income, etc.
121. Prosecution for disposal of property to prevent attachment, etc.
122. Prosecution for unauthorised disclosure of information by a public servant
123. Liability for prosecution in the case of company, etc.
124. Institution of prosecution proceedings without prejudice to other action
125. Sanction of prosecution, etc.
126. Power to compound offence
128. Power to tender immunity from prosecution
CHAPTER XIII APPEALS AND REVISION
129. Appeal to the Appellate Additional Commissioner
130. Form of appeal and limitation
131. Procedure in appeal
132. Decision in appeal
133. Appointment of the Appellate Tribunal
134. Appeal to the Appellate Tribunal
135. Disposal of appeals by the Appellate Tribunal
137. Appeal to the Supreme Court
CHAPTER XIIIA SETTLEMENT OF CASES
138A. Income tax Settlement Commission
138B. Definitions
138C. Powers and functions of the Commission
138D. Application for settlement of cases
138E. Disposal of applications by the Commission.
138EE Disposal of second appeal cases (Omitted)
138F. Recovery of sums due under order of settlement
138G. Bar on subsequent application for settlement in certain cases
138H. Order of settlement to be conclusive
138I. Power of Commission to re-open proceedings
138J. Proceedings before Commission to be judicial proceeding
138K. Communications of orders
CHAPTER XIIIB DIRECTORATE GENERAL OF INSPECTION
138L. Appointment of Directorate General of Inspection
138M. Definitions
138N. Inspection authorities
138O. Jurisdiction of inspection authorities
138P. Functions and powers of Directorate-General
CHAPTER XIV MISCELLANEOUS
139. Statement regarding salary
140. Statement regarding dividends
141. Statement regarding interest, profit, rent, etc.
142. Statement regarding payments to non-residents and contractors
143. Statement regarding certain payments
143A. Statement regarding certain properties
143B. Statement regarding certain assessees
143C. Displaying of National Tax Number Certificate
143D. Obtaining of National Tax Number Card
143E. Liability of tax withholding agents to be registered
144. Power to call for information
145. Power of survey
146. Power to enter and search business premises
147. Assistance to income tax authorities
148. Power to take evidence on oath, etc.
149. Power to impound and retain books of accounts, etc.
150. Disclosure of information by a public servant
152. Tax or refund to be calculated to the nearest rupee
153. Receipts to be given for moneys paid or recovered under this ordinance
154. Service of notice
155. Certain mistakes not to vitiate assessments, etc.
156. Rectification of mistakes
157. Appearance by authorised representative
158. Proceedings under the Ordinance to be judicial proceedings
159. Proceedings against companies under liquidation
160. Computation of limitation period
161. Indemnity
162. Bar of suits in Civil courts
163. Avoidance of double taxation and prevention of fiscal evasion
164. Unilateral relief
164A. Power to collect information regarding exempt income
165. Power to make rules
165A. Authority of approval
166. Repeal and savings
Schedules
The First Schedule
Part I Rate of Income Tax
Part II Rates of Super Tax
Part III Rates of Surcharge
Part IV No Heading
Part V Rates of income tax for companies
The Second Schedule
Part I Exemptions from Total Income
Part II Reduction in Tax Rates
Part III Reduction in Tax Liability
Part IV Exemption from Specific Provisions
The Third Schedule
Rules for the Computation of Depreciation Allowance
The Fourth Schedule
Rules for the Computation of the Profits and Gains of Insurance Business
The Fifth Schedule
Part I Rules for the Computation of the Profits and Gains from the Exploration and Production of Petroleum
The Sixth Schedule
Part I Recognised Provident Funds
Part II Approved Superannuation Funds
Part III Approved Gratuity Funds
The Seventh Schedule
Rules for the Computation of Relief from Tax by way of Credit in respect of Foreign Tax.
The Eighth Schedule