Tax Book 2023

xiii

Tax on ‘taxable income’

1. Heads of income [section 11 ]


2. Income for tax purposes [section 9 and 10 ]


3. Tax payable on taxable income [first Schedule to the Ordinance ]

Salary

[Sections 12 to 14 along with all other operating sections read with rule 3 to 7 income tax rules, 2002 ]

1. Basis of assessment


2. Residence


3. Employee share schemes


4. Perquisites and benefits in kind


5. Taxation at source


6. Pension, gratuity and receipts from provident fund


7. Exemptions and tax concession

Income from property

1 Basis of charge

2 Non / adjustable amounts received in relation to buildings

Profits chargeable to tax as ‘income from business

[Sections 18 to 36 , relevant clauses of Second Schedule and Rules 10 TO 12 and 13 ]

1 Principles regarding chargeable income

2 General principles for all allowable deductions

3 Deductions not allowed

4 Depreciation

5 Special provisions for allowable deductions in computing profits chargeable to tax as ‘income

from business’

6 Intangibles

7 Pre /commencement expenditure

8 Scientific research expenditure

9 Employee training and facilities

10 Profit on debt, financial costs and lease payments

11 Bad debts

12 Profit on the non-performing debts of a banking company or development finance institution

13 Transfer to participatory reserve

14 Relief for losses

15 Exemptions and tax concessions

Capital gains

[Sections 2 ( 10 ) read with 37, section 76, 77, 78, 79, 95 to 97 and various exemption clauses]

1 Principles for computing capital gains

2 Deduction of losses

Income from other sources [Section 39, 40, 55( 1 ), 67, 89, 101 ( 6 ), 111]

1. Description of other sources


2. Allowable deductions