Income From Business Chapter- 09
Taxable income 250,000- Scientific research Expenditure [U/s 26]
A person shall be allowed deduction on account of scientific research expenditures incurred in
Pakistan wholly and exclusively for business is admissible.
“Scientific research” means any activity undertaken in Pakistan in the fields of natural or applied
science for the development of human knowledge.
"Scientific research expenditure" means any expenditure incurred by a person on scientific
research within Pakistan for the purposes of developing the persons business, including any
contribution to a scientific research institution to undertake scientific research for the purposes of
persons business, other than expenditure incurred:
in the acquisition of any depreciable asset or intangible;
in the acquisition of immovable property or
for the purposes of ascertaining the existence, location, extent or quality for a natural deposit.- Employee training and facilities [U/s 27]
A person shall be allowed a deduction for any expenditure (other than capital expenditure)
incurred in a tax year in respect of-
educational institution or hospital in Pakistan established for the benefit of employees and
their dependents;
institute in Pakistan established for the training of industrial workers recognized, aided, or
run by the Federal Government or a Provincial Government or a Local Government; or training of any person as a citizen of Pakistan in connection with a scheme approved by the
Board.- Profit on debt, financial costs and lease payments [U/s 28(1)]
The following shall be allowed as admissible expenses under the head business income:- PROFIT ON DEBT:
(a) profit on debt in the tax year to the extent that the proceeds or benefit of the debt used for
the business purposes;
(b) any amount incurred in the tax year to a modaraba or a participation term certificate holder
for funds borrowed and used for the business purposes;
(c) any amount incurred by a scheduled bank in the tax year on profit or loss sharing account
or a deposit with the bank as a distribution of profits;
(d) any amount incurred by HBFC, NDLC, SME bank in the tax year on profit and loss basis the
share in profits to the SBP on its investment in property, leasing operations and credit line
respectively.
(e) any amount incurred by a person in the tax year on profit and loss basis to a banking company
under a scheme of musharika;
(f) any amount incurred by a person in the tax year to a certificate holder under a musharika as
share in the profits of the musharika; or - LEASE RENT:
Lease rental expenses for the year to a scheduled bank, financial institution, an approved modaraba,
an approved leasing company or a Special Purpose Vehicle on behalf of the Originator for use of an
asset for business purposes;