Preliminary Chapter- 04
As regards clause (3E), it exclusively defines the terms to mean any approved gratuity or recognised
provident fund. In other words this has to be read in conjunction with section 2(3B), 2(3C) and Sixth
Schedule to this Ordinance.
"Approved superannuation fund" [U/s 2(4)]: means a superannuation fund, or any part of a
superannuation fund, approved by the Commissioner Inland Revenue in accordance with Part II of the Sixth
Schedule;
Explanation: It exclusively defines statutory superannuation funds that are approved by the Commissioner
Inland Revenue in accordance with Part II of the Sixth Schedule to the Ordinance read with rules 91 to 121.
"Assessment" [U/s 2(5)] includes provisional assessment, re-assessment and amended assessment, and
the cognate expressions shall be construed accordingly;
Explanation: The amended definition of the expression "assessment" has historic background based on
judicial pronouncements that the original assessment order, reassessment orders and final assessment
orders are really but steps in a series of judicial proceedings all connected on intrinsic unity and are
regarded as one legal proceeding.
"Assessment year" [U/s 2(5A)] means assessment year as defined in the repealed Ordinance;
Explanation: It is a fixed period of twelve months starting from 1st July and ending on 30th June.
"Asset management company" [U/s 2(5B)] means an asset management company as defined in the
Non-Banking Finance Companies and Notified Entities Regulations, 2007;
Explanation: The asset management companies have the following features:-
- The company should be a public company under the Companies Act, 2017.
- It has a paid-up capital of not less than Rs. 30 million,
- Any director, officer or employee of such company who has not been convicted of fraud or breach of
trust or adjudicated as insolvent or had suspended payment or has compounded with his creditors. - The promoters and directors of such company are, in the opinion of corporate law authority, persons
of means and integrity having special knowledge and experience of matters which the company may
have to deal with.
“Asset move” [U/s 2(5C)] means the transfer of an offshore asset to an unspecified jurisdiction by or on
behalf of a person who owns, possesses, controls, or is the beneficial owner of such offshore asset for the
purpose of tax evasion
"Association of persons" [U/s 2(6)] "AOP" includes a firm, a Hindu undivided family, any artificial
juridical person and anybody of persons formed under a foreign law, but does not include a company;
Explanation: Now the Ordinance treats all kinds of bodies of persons except companies as AOP. It means
that Punjab Bar Council, which is an artificial juridical person, is to be treated as an AOP.
The taxation of AOPs is elaborated in section 92 and 93. If there is a change in the constitution of an AOP,
section 98A will apply. The CBR has clarified that not all AOPs are obliged to deduct tax u/s153 as clause
(c) sub-section (9) of the said section providing that only AOP "constituted by or under law" should act as
withholding agent. The concept of AOP under section 2(6) read with section 80 is different from one
provided in section 153(9)(c).
"Banking company" [U/s 2(7)] means a banking company as defined in the Banking Companies
Ordinance, 1962 and includes anybody corporate which transacts the business of banking in Pakistan;
Explanation: Previously only specific statutory bodies like Pakistan Industrial Credit Investment
Corporation (PICIC), ADBF, National Bank of Pakistan, Band of Punjab, formed under specific law and
doing banking business, were covered under this definition, whereas now all bodies corporate, if engaged