Tax Credits Chapter- 15
a. Tax credit on charitable donations Section 61
b. Tax credit on investment in shares and insurance - omitted
by FA, 2022Section 62c. Tax credit for investment in health insurance - omitted by FA,
2022Section 62Ad. Tax credit on Contribution to approved pension fund Section 63
e. Tax credit for employment generation by manufacturers Section 64B
f. Tax credit for persons employing fresh graduates - Omitted
by FA, 2021Section 64Cg. Tax credit for point of sale machine Section 64D
h. Tax credit for exempt share from AOP Section 88
i. Tax credit for investment Section 65B
j. Tax credit for enlistment - Omitted by FA, 2021 Section 65C
k. Tax credit for newly established industrial undertakings -
Omitted by FA, 2021Section 65Dl. Tax credit for industrial undertakings established before the
first day of July, 2011Section 65Em. Tax credit for certain persons Section 65 F
n. Tax credit for specified industrial undertakings Section 65 G
(3) Reduction in tax liability in case of flying and submarine
allowance - Omitted by FA, 202 2Clause (1) Part-III 2nd
Schedule
(4) Reduction in tax liability in case of full time teacher or researcher Clause (2) Part-III 2nd
Schedule
( 5 ) Reduction in tax liability on Yield or profit on Behbood and
Pensioners Certificates / AccountsClause (6) Part III 2nd
Schedule
( 6 ) Tax credit for tax already paid or deducted at source Under various sections(See master example at the end of this chapter.)- Miscellaneous provisions relating to tax credits (Section – 65)
(a) Where a person is member of an AOP and then Tax credit shall be calculated including share
of profit from AOP (See master example at the end of this chapter)
(b) Where a person is earning income from property then tax credit shall be calculated including
the property income with effect from tax year 2011 (See master example at the end of this
chapter)
(c) Tax credit in excess of tax liability shall not be refunded, carried forward or carried back to a
preceding tax year. [Section 65(3)]
(d) If the person is member of AOP then tax credit in excess of tax liability can be claimed by the
AOP by agreement in writing and such agreement must be furnished with the return of AOP.
[Section 65(4) and (5)]
(e) Where the person is entitled to a tax credit under section 65B, 65D or 65E, provisions of clause
(d) of sub-section (2) of section 169 and clause (d) of sub-section (1) of section 113 shall not
apply. [Section 65(6)]- Foreign tax credit (Section 103)
Tax credit on net foreign source income (after admissible deductions allowed under this Ordinance)
other than the salary income shall be lesser of foreign income tax paid or the Pakistani tax
payable on average rate on total income including foreign source income.