Preliminary Chapter- 04
"Startup" [U/s 2(62A)] means;
(i) a business of a resident individual, AOP or a company that commenced on or after first day of July,
2012 and the person is engaged in or intends to offer technology driven products or; services to any
sector of the economy provided that the person is registered with and duly certified by the Pakistan
Software Export Board (PSEB) and has turnover of less than one hundred million in each of the last
five tax years; or
(ii) any business of a person or class of persons, subject to the conditions as the Board with the approval
of Federal Minister in-charge may, by notification in the official Gazette, specify.
“Synchronized Withholding Administration and Payment System agent” or “SWAPS agent” U/s
(62B) means any person or class of persons notified by Board to collect or deduct withholding taxes
through Synchronized Withholding Administration and Payment System;”;
"Tax" [U/s 2(63)] means any tax imposed under Chapter II, and includes any penalty, fee or other charge
or any sum or amount leviable or payable under this Ordinance;
Explanation: It means any tax imposed and includes any penalty, fee or other charge or any sum or
amount leviable or payable under this Ordinance.
"Taxable income" [U/s 2(64)] The taxable income of a person for a tax year shall be the total income of
the person for the year reduced (but not below zero) by the total of any deductible allowances under Part IX
of this Chapter of the person for the year.
Example: From following information, compute taxable income of the person.
Total income 400,000
Zakat paid to central zakat fund 10,000
Mark up paid on loan used for construction
of personal house u/s 60C (omitted by Finance Act, 2022) 20,000
Solution:
Total income 400,000
Less deductible allowances
Zakat 10,000
Taxable income 39 0,000Explanation of u/s 2(64)"taxable Income" It refers to the definition given in section 9 which reads as
under:
The taxable income of a person for a tax year shall be the total income of the person for the year reduced
(but not below zero) by the total of any deductible allowances.
"Taxpayer" [U/s 2(66)] means any person who derives an amount chargeable to tax under this Ordinance,
and includes-
(a) any representative of a person who derives an amount chargeable to tax;
(b) any person who is required to deduct or collect tax; or
(c) any person required to furnish a return of income or pay tax;
Explanation: It means any person who derives any amount chargeable under this Ordinance and
includes.-
- Any representative of a person, as defined u/s 172.
- Any person who is required to collect or deduct tax under this Ordinance.
- Any person required to furnish a return of income or pay tax under this Ordinance.
“TAX INVOICE” U/s (66A) means an invoice as prescribed under the Income Tax Rules, 2002;”;
"Tax treaty" [U/s 2(67) and 107]