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80A.
Air transport business of non-residents.- (1) Notwithstanding
anything contained in this Ordinance, where a nonresident person carries on the business
of operation of aircrafts, as the owner or charterer thereof (hereafter in this section
referred to as the "principal"), the aggregate of the receipts specified in
sub-section (1A) shall be deemed to be income received in Pakistan by the principal from
the said business chargeable to tax under the head "Income from business or
profession" and tax thereon shall be charged at the rate of three per cent of such
income.
(1A) The receipts, referred to in sub-section (1), shall be the following, namely:-
(a) the amount paid or payable (whether in or out of Pakistan) to the principal or to any
person on his behalf on account of the carriage of passengers, livestock, mail or goods
loaded from any place in Pakistan; and
(b) the amount received or deemed to be received in Pakistan by or on behalf of the
principal on account of the carriage of passengers, livestock, mail or goods from any
place outside Pakistan.]
(2) The principal or any agent authorised by him in this behalf shall
prepare and furnish to the Deputy Commissioner, within
forty-five days from the last day of each quarter of every financial year, that is to say,
the thirtieth day of September, the thirty-first day of December, the thirty-first of
March and the thirtieth day of June, respectively, a return, in respect of each quarter as
aforesaid, showing the receipts referred to in sub-section (1A).
(3) On receipt of the return, the Deputy Commissioner may,
after calling for such particulars, accounts or documents as he may require, determine the
aggregate of the amounts referred to in sub-section (1A) and
charge tax as laid down in sub-section (1).
(4) Where the principal fails to pay tax as determined under sub-section (1), for more
than three months, the Commissioner of Income Tax may issue to the authority by whom
clearance may be granted to that aircraft a certificate containing the name of the
principal and the amount of tax payable by him; and, on receipt of such certificate, the
said authority shall be empowered and required to refuse clearance from any airport in
Pakistan to any aircraft owned or chartered by such person until the tax payable has been
paid.
(5) Nothing contained in this Ordinance shall be so construed as to allow any expense
against the aggregate amount of receipts as determined under sub-section (1A).
(6) The tax paid under this section shall be deemed to be the final discharge of the tax
liability of the assessee under this Ordinance, and the assessee shall not be required to
file the return of total income under section 55 nor shall he be entitled to claim any
refund or adjustment on the basis of such return.
80AA. Tax on income of non-residents from fees for technical
services.-(1) Notwithstanding anything contained in this Ordinance, where any
consideration by way of fees for technical services referred to in the Explanation to
sub-section (5) of section 12 is received or is deemed to be received by, or accrues or
arises or is deemed to accrue or arise to, a non-resident, the whole of such consideration
shall be deemed to be income of the non-resident and tax thereon shall be charged at the
rate of fifteen per cent of such income.
(2) A non-resident referred to in sub-section (1), or an agent authorised by him in this
behalf, shall prepare and furnish to the Deputy Commissioner
within thirty days from the last day of each period of six months in every financial year,
that is to say, the thirty-first day of December and the thirtieth day of June,
respectively, a return, in respect of each such period of six months as aforesaid, showing
therein full particulars of the income referred to in the said sub-section:
Provided that, where such non-resident is likely to leave Pakistan in any six month period
as aforesaid or shortly after its expiry and he has no present intention of returning to
Pakistan, the provisions of section 81 shall, so far as may be, apply as if references to
financial year, the return of total income, the income year, the order of assessment, the
assessment year and rate of tax were references to the corresponding provisions of this
section.
(3) On receipt of such return, the Deputy Commissioner may,
after calling for such particulars, accounts or documents as he may require; determine the
income referred to in sub-section (2) and charge tax thereon in accordance with the
provisions of this section.
(4) Nothing contained in this Ordinance shall be so construed as to allow any expense
against the income determined under sub-section (3).
(5) The tax paid under this section shall, to the extent that the income of the
non-resident is chargeable under this section, be deemed to be the final discharge of his
tax liability under this Ordinance, and he shall not be required to file the return of
total income under section 55 or be entitled to claim any refund or adjustment on the
basis of such return.
(6) The provisions of this section shall not apply to a non-resident in respect of any
consideration referred to in sub-section (1) for rendering technical services under an
agreement entered into on or before the thirtieth day of June, 1987.
80AAA. Tax on income of non-residents from royality. -
(1) Notwithstanding anything contained in this Ordinance where any consideration by way of
royalty, referred to in the Explanation to sub-section (4) of section 12 is received or is
deemed to be received by, or accrues or arises or is deemed to accrue or arise to, a
non-resident, the whole of such consideration shall be deemed to be income of the
non-resident and tax thereon shall be charged at the rate of fifteen per cent of such
income.
(2) A non-resident referred to in sub-section (1), or an agent authorised by the
non-resident to receive such royalty on his behalf, shall prepare and furnish to the
Deputy Commissioner within thirty days from the last day of each period of six months in
every financial year, that is to say, the thirty-first day of December and the thirtieth
day of June respectively, a return, in respect of each such period of six months as
aforesaid, showing therein full particulars of the income referred to in the said
sub-section and tax deducted thereon.
(3) On receipt of such return, the Deputy Commissioner may, after calling for such
particulars, accounts or documents as he may require, determine the income referred to in
sub-section (2) and charge tax thereon in accordance with the provisions of this section.
(4) Nothing contained in this Ordinance shall be so construed as to allow any expense
against the income determined under sub-section (3).
(5) The tax paid under this section shall, to the extent that the income of the
non-resident is chargeable under this section, be deemed to be the final discharge of his
tax liability under this Ordinance and he shall not be required to file the return of
total income under section 55 nor shall claim any refund or adjustment on the basis of
such return,";
80B. Tax on income of certain persons from dividends and bank
profits, etc.- (1) Notwithstanding anything contained in this Ordinance or any
other law for the time being in force, where any amount referred to in sub-section (2) is
received by or accrues or arises or is deemed to accrue or arise to [--]
an individual, unregistered firm, association of persons, Hindu undivided family or
artificial juridical person referred to ,in clause (32) of section 2, the whole of such
amount shall be deemed to be income of such person and tax thereon shall be charged at the
rates specified in the First Schedule.
(2) The amount referred to in sub-section (1) shall be the following, namely:-
(a) dividend on which tax is deductible under sub-section (6A) of section 50;
(aa)interest or profit
on Directorate of National Savings’ regular income certificates and monthly income
savings account scheme where monthly installment exceeds one thousand rupees, in which
investment is made upto thirtieth June, 2001.";
(b) interest or profit on which tax is deductible under sub-section (2A) of section 50;
(bb) the amount received on encashment of bearer certificates on
which tax is deductible under sub-section (5B) of section 50:
Provided that this clause
shall not apply in respect of any assessment year commencing on, or after, the first day
of July, 2002;"; and
(c) interest or profit on which tax is deductible under sub-section (7D) of section 50:
Provided that this clause
shall not apply in respect of any assessment year commencing on, or after, the first day
of July, 2002
(d) prizes and winnings on which tax is deductible or collectable under sub-section
(7C) of section 50.
(3) Nothing contained in this Ordinance shall be so construed as to authorise any
allowance or deduction against the income as determined under sub-section (1) or any
refund of tax deducted or collected under section 50 or set off of any loss under any
provision of this Ordinance.
(4) Where the assessee has no income other than the income referred to in sub-section (1)
in respect of which tax has been deducted or collected, the tax deducted or collected
under section 50 shall be deemed to be the final discharge of the tax liability of the
assessee under this Ordinance and he shall not be required to file the return of total
income under section 55.
(5) In a case to which sub-section (4) applies, an order under section 59A shall be deemed
to have been made in respect of income referred to in sub-section (1).
80BB. Tax on income of goods
transport vehicles owner. (1) Notwithstanding anything contained in this
ordinance or any other law for the time being in force, where any tax is withheld in
accordance with sub-section (6) of section 50 at the rates specified in sub-paragraph (I)
of Paragraph G of the first Schedule, from any person being the owner of a goods transport
vehicle, the tax so collected shall be deemed to be the final discharge of the tax
liability of such person under this Ordinance in respect of income derived from plying of
goods transport vehicles and he shall not be required to file the return of total income
under section 55.
(2) In a case to which sub-section (1) applies, an order under section 59 A shall be
deemed to have made in respect of income referred to sub-section (1).
80C. Tax on income of certain contractors and importers.-
(1) Notwithstanding anything contained in this Ordinance or any other law for the time
being in force, where any amount referred to in sub-section (2) is received by or accrues
or arises or is deemed to accrue or arise to any person [--]
the whole of such amount shall be deemed to be income of the said person and tax thereon
shall be charged at the rate specified in the First Schedule.
(2) The amount referred to in sub-section (1) shall be the
following, namely:-
(a) Where the person is a resident,-
(i) the amount representing payments on which tax is deductible under sub-section (4) of
section 50, other than payments on account of services rendered [omitted].
(ia) the amount representing payments from which tax is deductible
under sub-section (4A) of section 50;
(ii) the amount as computed for the purpose of collection of tax under sub-section (5) of
section 50 in respect of goods imported, not being goods imported by an industrial
undertaking as raw material for its own consumption; and
(iia) the amount on which tax is collectable under sub-section
(5AAA) of section 50;
(iii) the amount on which tax is deductible under sub-section (7A)
of section 50 in respect of lease of right to collect octroi duties, tolls, fees or other
levies, by whatever name called; and]
(iv) the amount on which tax is deductible under sub-section (7H)
of section 50; and;
(b) where the person is a non-resident, the amount representing payments on account of
execution of a contract for construction, assembly or like project in Pakistan on which
tax is deductible under sub-section (4) of section 50:
Provided that nothing in
this section shall apply to amounts referred to in clauses (ia), (iia) and (iii) of
sub-section (2) in respect of any assessment year commencing on, or after, the first day
of July, 2002.
(3) Nothing contained in this Ordinance shall be so construed as to authorise any
allowance or deduction against the income as determined under sub-section (1) or any
refund of tax deducted or collected under section 50 or set off of any loss under any
provision of this Ordinance.
(4) Where the assessee has no income other than the income referred to in
sub-section (1) in respect of which tax has been deducted or collected, the tax deducted
or collected under section 50 shall be deemed to be the final discharge of his tax
liability under this Ordinance and he shall not be required to file the return of total
income under section 55:
Provided that, in respect of the assessment year commencing on the first day of July,
1991, where the tax deducted or collected in the preceding financial year under
sub-section (4) or sub-section (5) of section 50 is less than the tax payable under this
section, the tax so deducted or collected shall not constitute full and final discharge of
the tax liability of the assessee and he shall be required to pay the amount representing
the difference between the tax payable under this section and the tax so deducted or
collected and all the provisions of this Ordinance shall apply accordingly;
Provided further that where the tax deducted or collected under
any sub-section of section 50 specified in clause (a) of sub-section (2) is, for any
reason, not collected or deducted in accordance with the said sub-section or the tax so
deducted in less than the amount deductible or collectable, the assessee shall be required
to pay the said amount;
Provided further that where the tax
deducted or collected under any sub-section of section 50 specified in clause (a) of
sub-section (2) is, for any reason, not collected or deducted in accordance with the said
sub-section or the tax so deducted in less than the amount deductible or collectable, the
assess shall be required to pay the said amount.
(5) Where an assessee, while explaining the nature and source of any sum, investment,
money, valuable article, excess amount or expenditure, referred to in section 13, takes
into account any source of income which is subject to tax in accordance with the
provisions of this section, he shall not be entitled to take credit of any sum as is in
excess of an amount which if taxed at a rate or rates, other than the rate applicable to
income chargeable to tax under this section, would have resulted in tax liability equal to
the tax payable in respect of income under section.
(5A) [Omitted]
(6) For the purpose of determining, the share of a partner of a firm out of such income of
the firm as is determined under section 80B or this section, the said income of the firm
shall be taken to be an amount which if taxed at the rate or rates, other than the rate
applicable to income chargeable to tax under section 80B or this section, would have
resulted in tax liability equal to the tax payable in respect of income under section 80B
or this section.
(7) In a case to which sub-section (4) applies, an order under section 59A shall be deemed
to have been made in respect of income referred to in sub-section (1).]
80CC. Tax on income of certain exporters.- (1)
Notwithstanding anything contained in this Ordinance or any other law for the time being
in force, where any amount referred to in sub-section (5A), or
sub-Section (5AA) of section 50 is received by any person, the whole of such amount
shall be deemed to he the income of the said person and tax there on shall be charged at
the rates specified in the First Schedule.
(2) Nothing contained in this Ordinance shall be so construed as to authorise any
allowance or deduction against the income as determined under-sub-section (1) or any
refund of tax deducted under sub-section (5A) of section 50 or set off of any loss under
any provision of this Ordinance.
(3) Where the assessee has no income other than the income referred to in sub-section (1)
in respect of which tax has been deducted under sub-section (5A) of section 50, the tax so
deducted shall be deemed to be the final discharge of his tax liability under this
Ordinance and he shall not be required to file the return of total income under section
55.
(4) Where an assessee while explaining the nature and source of any
sum, investment, money, valuable article, excess amount or expenditure, referred to in
section 13, takes into account any source of income which is subject to tax in accordance
with the provisions of this section, he shall not be entitled to credit of any sum as is
in excess of an amount which if taxed at a rate or rates, other than the rate applicable
to income chargeable to tax under this section, would have resulted in tax liability equal
to the tax payable in respect of income under this section.
(5) For the purpose of determining the share of a partner of a firm out of such income of
the firm as is determined under this section, the income of the firm shall be taken to be
an amount which if taxed at the rate or rates, other than the rate applicable to income
chargeable to tax under this section, would have resulted in tax liability equal to the
tax payable in respect of income under this section.
(6) In a case to which sub-section (3) applies, an order under section 59A shall be deemed
to have been made in respect of income referred to in sub-section (1).]
80CD. Tax on income of industrial
undertakings located in Export Processing Zones. (1) Notwithstanding anything
contained in this Ordinance or any other law for the time being in force, where any goods
referred to in sub-section (5AAB) of section 50 are exported by any person, the value of
such goods shall be deemed to be the income of the said person and tax thereon shall be
charged at the rates specified in the First Schedule.
(2) Nothing contained in this Ordinance shall be so construed as to authorise any
allowance or deduction against the income as determined under sub-section (1) or any
refund of tax collected under sub-section (5AAB) of section 50 or set off of any loss
under any provision of this ordinance.
(3) Where the assessee has no income other than the income referred to in subsection (1)
in respect of which tax has been collected under sub-section (5AAB) of section 50, the tax
so collected shall be deemed to be the final discharge of his tax liability under
this Ordinance and he shall not be required to file the return of total income under
section 55.
(4) Where an assessee while explaining the nature and source of any sum, investment,
money, valueable article, excess amount or expenditure, referred to in section 13, takes
into account any source of income which is subject to tax in accordance with the provision
of this section, he shall not be entitled to credit of any sum as is in excess of an
amount which if taxed at a rate or rates, other than the rate applicable to income
chargeable to tax under this section , would have resulted in tax liability equal to the
tax payable in respect of income under this section.
(5) In a case to which sub-section (3) applies, an order under section 59A shall be deemed
to have been made in respect of income referred to in sub-section (1).
80D. Minimum tax on
income of certain Persons:. (1) Notwithstanding anything
contained in this Ordinance or any other law for the time being in force, where no tax is
payable or paid by a company or a registered firm an individual,
an association of persons, an unregistered firm or a Hindu undivided family which, not
being a company, does not qualify for assessment under the self assessment scheme under
sub-section (1) of section 59 resident in Pakistan or the tax payable or paid is less than one-half per cent of the
amount representing its turnover from all sources, the aggregate of the declared turnover
shall be deemed to be the income of the said company or
a registered firm an individual, an association of persons, an
unregistered firm or a Hindu undivided family [omitted]and
tax thereon shall be charged in the manner specified in sub-section (2).
Explanation:-- For the removal of
doubt, it is declared that the expressions "where no tax is payable or paid" and
"or the tax payable or paid" apply to all cases where tax is not payable or paid
for any reason whatsoever including any loss of income, profits or gains or set off of
loss of earlier years, exemption from tax, credits or rebates in tax, and allowances and
deductions (including depreciation) admissible under any provision of this Ordinance or
any other law for the time being in forced.
(2) The company or a registered firm an individual, an association of persons, an unregistered firm or a Hindu
undivided family which, not being a company, does not qualify for assessment under the
self assessment scheme under sub-section (1) of section 59 referred to in sub-section
(1) shall pay as income tax-
(a) an amount, where no tax is payable or
paid, equal to one-half per cent of the said turnover: and
(b) an amount, where the tax payable or paid,
is less than one-half per cent of the said turnover, equal to the difference between the
tax payable or paid and the amount
calculated in accordance with clause (a).
Explanation: For the removal of doubt it is declared that "turnover" means the
gross receipts, exclusive of trade discount shown on invoices or bills, derived from the
sale of goods or from rendering, giving or supplying services or benefits or from
execution of contracts.
(3) Nothing in this
section shall apply to an individual, an association of persons, an unregistered firm or a
Hindu undivided family in respect of any assessment year commencing on, or after, the
first day of July, 2001
80DD. Minimum tax on income of importers of edible oils,
etc.-- Notwithstanding anything contained in this Ordinance, or any other law
for the time being in force, the tax collected under sub-section (5) of section 50 on
import of edible oils [omitted] shall be deemed to be the minimum
amount of tax payable under this Ordinance and where the final tax liability determined
under this Ordinance exceeds the amount collected under the said sub-section, the said
amount shall be adjustable against such liability [omitted]..
80E. Minimum tax on income of certain persons.--
81. Assessment of persons about to leave Pakistan.- (1) Where any
person is likely to leave Pakistan in the current financial year or shortly after its
expiry and has no present intention of returning to Pakistan, he shall give to the Deputy Commissioner a notice to that effect not less than
fifteen days before the probable date of his departure (hereinafter in this section
referred to as the 'said date').
(2) The notice under sub-section (1) shall be accompanied by a return or returns of total
income in respect of the period commencing from the end of the latest income year for
which an order has been made under sub-section (1) of section 59, section 62, 63 or 65,
or, where no such order has been made, a return has been made under section 55, 56 or 57,
as the case may be, and ending on the said date, or where no such order or return has been
made, the income year or years comprising the period ending on the said date; and the
period commencing from the end of the latest income year to the said date shall, for
purposes of this section, be deemed to be an income year (distinct and separate from any
other income year) for the assessment year in which the said date falls.
(3) Notwithstanding anything contained in sub-sections (1) and (2), the Deputy Commissioner may serve a notice on any person who, in
his
opinion, is likely to leave Pakistan during the current financial year or shortly after
its expiry and has no present intention of returning to Pakistan to furnish, within such
time as may be specified in such notice, a return or returns of total income for the
income year or years for which the assessee is required to furnish such return or returns
under sub-section (2).
(4) The assessment shall be made at the rates applicable to the relevant assessment year
and all the provisions of this Ordinance shall, so far as may be, apply accordingly.
82. Persons leaving Pakistan to obtain tax clearance certificate.-
(1) Subject to such exceptions as may be made by the Central Board of Revenue, no person
who is not domiciled in Pakistan or who, being domiciled in Pakistan at the time of his
departure, has no intention of returning to Pakistan or, in the opinion of any income tax
authority, is not likely to return to Pakistan, shall leave Pakistan either by land, sea
or air, unless he first obtains from the Deputy Commissioner,
authorised in this behalf by the Central Board of Revenue, a certificate stating that he
has no liabilities under this Ordinance, the repealed Act, the Estate Duty Act, 1950 (X of
1950), the Sales Tax Act, 1951 (III of 1951), the Gift Tax Act, 1963 (XIV of 1963) or the
Wealth Tax Act, 1963 (XV of 1963), or that satisfactory arrangements have been made for
the payment of all such taxes and duties which are or may become payable by that person.
(2) Notwithstanding anything contained in sub-section (1), in the case of a person not
domiciled in Pakistan, the Deputy Commissioner may, if he
is satisfied that such person intends to return to Pakistan, issue an exemption
certificate in respect of any journey or journeys to be undertaken by that person within
such period as may be specified in the certificate.
(3) If the owner or charterer of any ship or aircraft carrying persons from any place in
Pakistan to any place outside Pakistan allows any person to whom sub-section (1) applies
to travel by such ship or aircraft without first satisfying himself that such person is in
possession of a certificate as required by sub-section (1) or sub-section (2), he shall be
personally liable to pay the amount of tax, if any, payable by such person and all the
provisions of this Ordinance shall, so far as may be, apply accordingly.
(4) For the purposes of this section, the expression "owner" and
"charterer" include any representa-tive, agent or employee empowered by the
owner or charterer to allow persons to travel by the ship or aircraft, as the case may be.
83. Income from revocable transfer of assets, etc.- (1) All income arising to any
person by virtue of revocable transfer of assets shall be chargeable to tax as the income
of the transferor and shall be included in his total income.
(2) The provisions of sub-section (1) shall not apply to any income arising to any person
by virtue of a transfer which i~ not revocable during the life-time of the beneficiary and
the transferor derives no direct or indirect benefit from such income.
(3) All income arising by virtue of a transfer, whether revocable or not, and whether
effected before or after the commencement of this Ordinance shall, where the assets remain
the property of the transferor be chargeable to tax as the income of the transferor and
shall be included in his total income.
(4) All income derived from any asset transferred by an assessee directly or indirectly
to-
(a) his spouse, otherwise than [--] for adequate consideration,
or in connection with an agreement to live apart; or
(b) any minor child of the assessee otherwise than [--] for
adequate consideration; or
(c) any person for the benefit of his spouse or any minor child, or both, otherwise than [--] for adequate consideration,
shall be chargeable to tax as the income of the transferor, and shall be included in his
total income:
Provided that where a transfer fails to
produce evidence of transfer of an asset by way of its registration or mutation in the
relevant record. income arising from such asset shall be chargeable to tax as the income
of the transfer or and shall be included in his total income.
(5) For the purpose of this sections,-
(a) a transfer shall be deemed to be revocable if-
(i) it contains any provision for the re-transfer directly or indirectly of the whole or
any part of the assets to the transferor, or
(ii) it gives, in any way, the transferor a right to resume power, directly or indirectly
over the whole or any part of the assets;
(b) "transfer" includes any disposition, settlement, trust, covenant, agreement
or arrangement; and
(c) "minor child" does not include a married daughter.
83A. Income of minor child.- Any income chargeable
under the head "Income from business or profession" which is received by or
arises or accrues, or is deemed to arise or accrue to any minor child of the assessee,
such income shall be deemed to be the income of the assessee:
Provided that the provisions of this section shall not apply where the income of the minor
child is derived from a business acquired by him through inheritance.
Explanation.- For the purpose of this section, "assessee" shall be the parent
determined by the Deputy Commissioner.
84. Liability certain in transactions in securities.- (1) Where
the owner of any securities sells or transfers in any manner those securities and
thereafter buys back or re-acquires them and the result of the transaction is that any
interest becoming payable in respect thereof is receivable by any person other than the
said owner, the interest so payable shall be deemed to be the income of the said owner and
not of any other person and all the provisions of this Ordinance shall, so far as may be,
apply accordingly.
(2) For the purpose of sub-section (1), "interest" includes dividends, and
"securities" includes stocks and shares.
