INCOME TAX MANUAL PART I

INCOME TAX ORDINANCE, 2001

AMENDED UPTO 30th June, 2013

GOVERNMENT OF PAKISTAN
FEDERAL OARD OF REVENUE !REVENUE DIVISION"
.

INCOME TAX MANUAL PART I

INCOME TAX ORDINANCE, 2001

AMENDED UPTO 30T# JUNE, 2013

Pu$%&'he( $)*

FACILITATION AND TAXPA+ERS EDUCATION ,ING

INCOME TAX ORDINANCE 2001

TA LE OF CONTENTS C#APTER 1 PRELIMINAR+ 1. 2. 3. Short title, extent and commencement Definitions Ordinance to override other laws C#APTER II C#ARGE OF TAX 4. 5. . $. &. Tax on taxable income Tax on dividends Tax on certain !a"ments to non#residents Tax on shi!!in% and air trans!ort income of a non# resident !erson 'eneral !rovisions relatin% to taxes im!osed (nder sections 5, and $ C#APTER III TAX ON TAXA LE INCOME PART I COMPUTATION OF TAXA LE INCOME ). 1*. 11. Taxable income Total income +eads of income PART II #EAD OF INCOME SALAR+ 12. 13. 14. Salar" ,al(e of !er-(isites .m!lo"ee share schemes 2) 31 35 2$ 2$ 2$ 23 24 24 25 25 1 1 22

PART III #EAD OF INCOME INCOME FROM PROPERT+ 15. 150. 1 . 17. /ncome from !ro!ert" Ded(ctions in com!(tin% income char%eable (nder the head 1/ncome from 2ro!ert" 3on#ad4(stable amo(nts received in relation to b(ildin%s Omitted by the Finance Act, 2006. PART IV #EAD OF INCOME INCOME FROM USINESS D&-&'&.n I In/.0e 12.0 u'&ne'' 1&. 1). /ncome from b(siness S!ec(lation b(siness D&-&'&.n II De(u/t&.n' Gene23% P2&n/&4%e' 2*. 21. Ded(ctions in com!(tin% income char%eable (nder the head 5/ncome from 6(siness5 Ded(ctions not allowed D&-&'&.n III De(u/t&.n' S4e/&3% P2.-&'&.n' 22. 23. 230. 236. 24. 25. 2 . 2$. 2&. 2). 2)0 De!reciation /nitial allowance 7irst 8ear 0llowance 0ccelerated de!reciation to alternate ener%" !ro4ects. /ntan%ibles 2re#commencement ex!endit(re Scientific research ex!endit(re .m!lo"ee trainin% and facilities 2rofit on debt, financial costs and lease !a"ments 6ad debts 2rovision re%ardin% cons(mer loans 4$ 51 52 52 52 55 55 5 5 5& 5) 44 45 42 43 3$ 3$ 4*

3*. 31.

2rofit on non#!erformin% debts of a ban9in% com!an" or develo!ment finance instit(tion Transfer to !artici!ator" reserve D&-&'&.n IV T35 A//.unt&n6

* *

32. 33. 34. 35. 3 .

:ethod of acco(ntin% ;ash#basis acco(ntin% 0ccr(al#basis acco(ntin% Stoc9#in#trade <on%#term contracts PART V #EAD OF INCOME CAPITAL GAINS

1 1 1 3 5

3$. 3$0. 3&.

;a!ital %ains ;a!ital %ain on dis!osal of sec(rities Ded(ction of losses in com!(tin% the amo(nt char%eable (nder the head 1;a!ital 'ains= PART VI #EAD OF INCOME INCOME FROM OT#ER SOURCES

& )

3). 4*.

/ncome from other so(rces Ded(ctions in com!(tin% income char%eable (nder the head 1/ncome from Other So(rces= PART VII EXEMPTIONS AND TAX CONCESSIONS

$* $2

41. 42. 43. 44. 45. 4 . 4$. 4&. 4). 5*.

0%ric(lt(ral income Di!lomatic and >nited 3ations exem!tions 7orei%n %overnment officials .xem!tions (nder international a%reements 2resident?s hono(rs 2rofit on debt Scholarshi!s S(!!ort !a"ments (nder an a%reement to live a!art 7ederal and 2rovincial 'overnment, and local a(thorit" income 7orei%n#so(rce income of short#term resident individ(als

$4 $4 $5 $5 $ $ $$ $$ $$ $&

51. 52. 53. 54. 55.

7orei%n#so(rce income of ret(rnin% ex!atriates Omitted by Finance Ordinance, 2002 .xem!tions and tax concessions in the Second Sched(le .xem!tions and tax !rovisions in other laws <imitation of exem!tion PART VIII LOSSES

$& $) $) &*

5 . 5 0. 5$. 5$0. 5&. 5). 5)0. 5)00. 5)6.

Set off of losses Set off of losses of com!anies o!eratin% hotels. ;arr" forward of b(siness losses Set off of losses conse-(ent to amal%amation ;arr" forward of s!ec(lation b(siness losses ;arr" forward of ca!ital losses <imitations on set off and carr" forward of losses 'ro(! Taxation. 'ro(! relief PART IX DEDUCTI LE ALLO,ANCES

&1 &1 &1 &2 &3 &4 &4 &5 &

*. *0. *6.

@a9at Aor9ers? Aelfare 7(nd Aor9ers? 2artici!ation 7(nd PART X TAX CREDITS

&) &) &)

1. 2. 3. 4. 5. 50. 56. 5;. 5D. 5..

;haritable donations Tax credit for investment in shares and ins(rance ;ontrib(tion to an 0!!roved 2ension 7(nd. 2rofit on debt :iscellaneo(s !rovisions relatin% to tax credits Tax credit to a !erson re%istered (nder the Sales Tax 0ct, 1))* Tax credit for investment Tax credit for enlistment Tax credit for newl" established (nderta9in%s Tax credit for ind(strial (nderta9in%s established before the first da" of B(l", 2*11

)* )1 )3 )4 )5 ) ) )& )& 1**

C#APTER7IV COMMON RULES PART I GENERAL . $. &. ). $*. $1. $2. $3. /ncome of 4oint owners 0!!ortionment of ded(ctions 7air mar9et val(e Cecei!t of income Ceco(!ed ex!endit(re ;(rrenc" conversion ;essation of so(rce of income C(les to !revent do(ble derivation and do(ble ded(ctions PART II TAX +EAR $4. Tax "ear PART III ASSETS $5. $ . $$. $&. $). Dis!osal and ac-(isition of assets ;ost ;onsideration received 3on#armDs len%th transactions 3on#reco%nition r(les C#APTER V PROVISIONS GOVERNING PERSONS PART I CENTRAL CONCEPTS D&-&'&.n I Pe2'.n' &*. 2erson D&-&'&.n II Re'&(ent 3n( N.n72e'&(ent Pe2'.n' &1. Cesident and non#resident !ersons 113 112 1*$ 1*$ 1*) 11* 11* 1*5 1*2 1*2 1*2 1*3 1*3 1*3 1*3 1*4

&2. &3. &4.

Cesident individ(al Cesident com!an" Cesident association of !ersons D&-&'&.n III A''./&3te'

114 114 114

&5.

0ssociates PART II INDIVIDUALS D&-&'&.n I T353t&.n .1 In(&-&(u3%'

115

& . &$.

2rinci!le of taxation of individ(als Deceased individ(als D&-&'&.n II P2.-&'&.n' Re%3t&n6 t. A-e236&n6

11$ 11$

&&. &&0. &).

0n individ(al as a member of an association of !ersons Share !rofits of com!an" to be added to taxable income 0(thors D&-&'&.n III In/.0e S4%&tt&n6

11& 11& 11)

)*. )1.

Transfers of assets /ncome of a minor child PART III ASSOCIATIONS OF PERSONS

11) 12*

)2. 93.

2rinci!les of taxation of associations of !ersons Omitted by the Finance Act, 2007. PART IV COMPANIES

121

)4. )5. ) .

2rinci!les of taxation of com!anies Dis!osal of b(siness b" individ(al to wholl"#owned com!an" Dis!osal of b(siness b" association of !ersons to wholl"#owned com!an"

122 122 124

)$. )$0.

Dis!osal of asset between wholl"#owned com!anies Dis!osal of asset (nder scheme of arran%ement and reconstr(ction.

125 12$

PART V COMMON PROVISIONS APPLICA LE TO ASSOCIATIONS OF PERSONS AND COMPANIES )&. ;han%e in control of an entit" PART VA TAX LIA ILIT+ IN CERTAIN CASES )&0. )&6. )&;. ;han%e in the constit(tion of an association of !ersons Discontin(ance of b(siness or dissol(tion of an association of !ersons S(ccession to b(siness, otherwise on death 13* 13* 13* 12)

C#APTER7VI SPECIAL INDUSTRIES PART I INSURANCE USINESS )). S!ecial !rovisions relatin% to ins(rance b(siness PART II OIL, NATURAL GAS AND OT#ER MINERAL DEPOSITS 1**. 1**0. 1**6. S!ecial !rovisions relatin% to the !rod(ction of oil and nat(ral %as, and ex!loration and extraction of other mineral de!osits S!ecial !rovisions relatin% to ban9in% b(siness. S!ecial !rovision relatin% to ca!ital %ain tax. C#APTER VII INTERNATIONAL PART I GEOGRAP#ICAL SOURCE OF INCOME 1*1. 'eo%ra!hical so(rce of income 135 133 133 133 132

PART II TAXATION OF FOREIGN7SOURCE INCOME OF RESIDENTS 1*2. 1*3. 1*4. 7orei%n so(rce salar" of resident individ(als 7orei%n tax credit 7orei%n losses 13) 13) 14*

PART III TAXATION OF NON7RESIDENTS 1*5. 1* . Taxation of a !ermanent establishment in 2a9istan of a non#resident !erson Thin ca!italiEation PART IV AGREEMENTS FOR T#E AVOIDANCE OF DOU LE TAXATION AND PREVENTION OF FISCAL EVASION 1*$. 0%reements for the avoidance of do(ble taxation and !revention of fiscal evasion 145 141 142

C#APTER VIII ANTI7AVOIDANCE 1*&. 1*). 11*. 111. 112. Transactions between associates Ce#characteriEation of income and ded(ctions Salar" !aid b" !rivate com!anies >nex!lained income or assets <iabilit" in res!ect of certain sec(rit" transactions 14 14 14 14 14&

C#APTER IX MINIMUM TAX 113. 1130. 1136. :inim(m tax on the income of certain !ersons. :inim(m tax on b(ilders :inim(m tax on land develo!ers 15* 152 152

C#APTER X PROCEDURE PART I RETURNS 114. 115. 11 . 11$. 11&. 11). Cet(rn of income 2ersons not re-(ired to f(rnish a ret(rn of income Aealth statement 3otice of discontin(ed b(siness :ethod of f(rnishin% ret(rns and other doc(ments .xtension of time for f(rnishin% ret(rns and other doc(ments PART II ASSESSMENTS 12*. 12*0. 121. 122. 1220. 1226. 122;. 123. 124. 1240. 125. 12 . 0ssessments Omitted by Finance Act, 2005 6est 4(d%ment assessment 0mendment of assessments Cevision b" the ;ommissioner Cevision b" the Ce%ional ;ommissioner 2rovisional assessment 2rovisional assessment in certain cases 0ssessment %ivin% effect to an order 2owers of tax a(thorities to modif" orders, etc. 0ssessment in relation to dis!(ted !ro!ert" .vidence of assessment PART III APPEALS 12$. 12&. 12). 13*. 131. 132. 133. 134. 1340. 135. 13 . 0!!eal to the ;ommissioner F0!!ealsG 2roced(re in a!!eal Decision in a!!eal 0!!ointment of the 0!!ellate Trib(nal 0!!eal to the 0!!ellate Trib(nal Dis!osal of a!!eals b" the 0!!ellate Trib(nal Ceference to +i%h ;o(rt Omitted by Finance Act, 2005 0lternative Dis!(te Cesol(tion Omitted by the Finance Ordinance, 2002 6(rden of !roof 1$) 1&1 1&1 1&3 1&5 1&$ 1&& 1)1 1)3 1 $ 1 & 1$* 1$3 1$4 1$4 1$5 1$5 1$$ 1$$ 1$$ 154 15) 1 1 1 3 1 3 1 5

PART IV COLLECTION AND RECOVER+ OF TAX 13$. 13&. 13&0. 13&6. 13). 14*. 141. 142. 143. 144. 145. 14 . 14 0. 14 6. D(e date for !a"ment of tax Cecover" of tax o(t of !ro!ert" and thro(%h arrest of tax!a"er Cecover" of tax b" District Officer FCeven(eG .state in ban9r(!tc" ;ollection of tax in the case of !rivate com!anies and associations of !ersons Cecover" of tax from !ersons holdin% mone" on behalf of a tax!a"er <i-(idators Cecover" of tax d(e b" non#resident member of an association of !ersons 3on#resident shi! owner or charterer 3on#resident aircraft owner or charterer 0ssessment of !ersons abo(t to leave 2a9istan Cecover" of tax from !ersons assessed in 0Ead Bamm( and Hashmir /nitiation, validit", etc., of recover" !roceedin%s. Tax arrears settlement incentives scheme PART V ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE D&-&'&.n I A(-3n/e T35 P3&( $) the T3543)e2 14$. 0dvance tax !aid b" the tax!a"er D&-&'&.n II A(-3n/e T35 P3&( t. 3 C.%%e/t&.n A6ent 14&. /m!orts D&-&'&.n III De(u/t&.n .1 T35 3t S.u2/e 14). 15*. 151. 152. Salar" Dividends 2rofit on debt 2a"ments to non#residents 215 215 215 21$ 211 2* 1)5 1) 1)$ 1)$ 1)$ 1)& 2** 2*1 2*1 2*2 2*3 2*3 2*4 2*4

153. 1530. 154. 155. 15 . 15 0. 15 6. 157. 15&.

2a"ments for %oods, services and contracts Omitted by Finance Act, 2005 .x!orts /ncome from !ro!ert" 2riEes and winnin%s 2etrole(m !rod(cts Aithdrawal of balance (nder !ension f(nd Omitted by the Finance Ordinance, 2002 Time of ded(ction of tax

22* 225 22 22& 22& 22& 22)

D&-&'&.n IV Gene23% P2.-&'&.n' Re%3t&n6 t. the A(-3n/e P3)0ent .1 T35 .2 the De(u/t&.n .1 T35 3t S.u2/e 15). 1 *. 1 1. 1 2. 1 1 1 1 1 1 1 1 3. 4. 5. 50. . $. &. ). .xem!tion or lower rate certificate 2a"ment of tax collected or ded(cted 7ail(re to !a" tax collected or ded(cted Cecover" of tax from the !erson from whom tax was not collected or ded(cted Cecover" of amo(nts !a"able (nder this Division ;ertificate of collection or ded(ction of tax Statements 7(rnishin% of information b" ban9s 2riorit" of tax collected or ded(cted /ndemnit" ;redit for tax collected or ded(cted Tax collected or ded(cted as a final tax 23* 231 231 232 233 233 233 23 23$ 23$ 23$ 23)

PART VI REFUNDS 1$*. 1$1. Cef(nds 0dditional !a"ment for dela"ed ref(nds PART VII REPRESENTATIVES 1$2. 1$3. Ce!resentatives <iabilit" and obli%ations of re!resentatives 245 24$ 242 243

PART VIII RECORDS, INFORMATION COLLECTION AND AUDIT 1$4. 1$5. 1$ . 1$$. 1$&. 1$). 1&*. Cecords 2ower to enter and search !remises 3otice to obtain information or evidence 0(dit 0ssistance to ;ommissioner 0cco(nts, doc(ments, records and com!(ter#stored information not in >rd( or .n%lish lan%(a%e 2ower to collect information re%ardin% exem!t income PART IX NATIONAL TAX NUM ER CERTIFICATE 1&1. 1&10. 1&16. 1&1;. Tax!a"er?s Ce%istration 0ctive tax!a"ers? list Tax!a"er card Dis!la"in% of 3ational Tax 3(mber PART X PENALT+ 1&2. 1&3. 1&4. 1&5. 1& . 1&$. 1&&. 1&). 1)*. Offences and !enalties .xem!tion from !enalt" and defa(lt s(rchar%e Omitted by the Finance Act, 2010. Omitted by the Finance Act, 2010. Omitted by the Finance Act, 2010. Omitted by the Finance Act, 2010. Omitted by the Finance Act, 2010. Omitted by the Finance Act, 2010. Omitted by the Finance Act, 2010. PART XI OFFENCES AND PROSECUTIONS 1)1. 1)2. 1)20. 1)3. 1)4. 2rosec(tion for non#com!liance with certain stat(tor" obli%ations 2rosec(tion for false statement in verification 2rosec(tion for concealment of income. 2rosec(tion for fail(re to maintain records 2rosec(tion for im!ro!er (se of 3ational Tax 3(mber ;ertificate 2 5 2 2 2 2 25 2 1 255 255 255 255 24& 24) 25* 251 254 254 254

1)5. 1) . 1)$. 1)&. 1)). 2**. 2*1. 2*2. 2*3. 2*30. 2*4.

2rosec(tion for ma9in% false or misleadin% statements 2rosec(tion for obstr(ctin% an income tax a(thorit" 2rosec(tion for dis!osal of !ro!ert" to !revent attachment 2rosec(tion for (na(thoriEed disclos(re of information b" a !(blic servant 2rosec(tion for abetment Offences b" com!anies and associations of !ersons /nstit(tion of !rosec(tion !roceedin%s witho(t !re4(dice to other action 2ower to com!o(nd offences Trial b" S!ecial B(d%e 0!!eal a%ainst the order of a S!ecial B(d%e 2ower to tender imm(nit" from !rosec(tion PART XII ADDITIONAL TAX

2 $ 2 $ 2 $ 2 & 2 & 2 & 2 ) 2 ) 2 ) 2$* 2$*

2*5. 2*50.

Defa(lt s(rchar%e Ced(ction in defa(lt s(rchar%e, conse-(ential to red(ction in tax or !enalt" PART XIII CIRCULARS

2$2 2$4

2* . 2* 0.

;irc(lars 0dvance r(lin% C#APTER XI ADMINISTRATION PART I GENERAL

2$ 2$

2*$. 2*&. 2*). 21*. 211. 212. 213. 214. 2140. 2146.

/ncome tax a(thorities 0!!ointment of income tax a(thorities B(risdiction of income tax a(thorities Dele%ation 2ower or f(nction exercised 0(thorit" of a!!roval '(idance to income tax a(thorities /ncome tax a(thorities to follow orders of the 6oard ;ondonation of time limit 2ower of the 6oard to call for records

2$$ 2$& 2$) 2&1 2&3 2&3 2&4 2&4 2&4 2&5

214;. 215. 21 . 21$. 21&. 21). 22*. 221. 222. 223. 224. 225. 22 . 22$. 22$0.

Selection for a(dit b" the 6oard 7(rnishin% of ret(rns, doc(ments etc. Disclos(re of information b" a !(blic servant 7orms and noticesI a(thentication of doc(ments Service of notices and other doc(ments Tax or ref(nd to be com!(ted to the nearest C(!ee Cecei!ts for amo(nts !aid Cectification of mista9es 0!!ointment of ex!ert 0!!earance b" a(thoriEed re!resentative 2roceedin%s (nder the Ordinance to be 4(dicial !roceedin%s 2roceedin%s a%ainst com!anies (nder li-(idation ;om!(tation of limitation !eriod 6ar of s(its in ;ivil ;o(rts Ceward to officers and officials of /nland Ceven(e

2&5 2& 2& 2)* 2)* 2)1 2)1 2)2 2)2 2)2 2)5 2)5 2)5 2) 2)

PART II DIRECTORATES7GENERAL 22&. 22). 23*. The Directorate#'eneral of /nternal 0(dit Directorate 'eneral of Trainin% and Cesearch Directorate 'eneral F/ntelli%ence and /nvesti%ationG, /nland Ceven(e PART III DIRECTORATES7GENERAL 23*0. 23*6. 23*;. 231. Directorate#'eneral of Aithholdin% Taxes Directorate#'eneral of <aw Directorate#'eneral of Cesearch and Develo!ment Omitted by Finance Act, 2005 C#APTER XII TRANSITIONAL ADVANCE TAX PROVISIONS 2310. 23100. 2316. 232. 233. 2330. 23300. ;ash withdrawal from a ban9 0dvance tax on transactions in ban9
2(rchase of motor cars and 4ee!s

2)$ 2)$ 2)$

2)) 2)) 2))

3** 3** 3*1 3*2 3*3 3*3

Omitted by the Finance Ordinance, 2002 6ro9era%e and ;ommission ;ollection of tax b" a stoc9 exchan%e re%istered in 2a9istan ;ollection of tax b" 3;;2<

234. 2340. 235. 23 . 23 0. 23 6. 23 ;. 23 D. 23 . 23 7. 23 '. 23 +. 23 /. 23 B.

Tax on motor vehicles ;3' Stations. .lectricit" ;ons(m!tion Tele!hone (sers 0dvance tax at the time of sale b" a(ction 0dvance tax on !(rchase of air tic9et 0dvance Tax on sale or transfer of immovable 2ro!ert" 0dvance tax on f(nctions and %atherin%s 0dvance tax on forei%n#!rod(ced T, !la"s and serials 0dvance tax on cable o!erators and other electronic media 0dvance tax on sales to distrib(tors, dealers and wholesalers 0dvance tax on sales to retailers ;ollection of advance tax b" ed(cational instit(tions 0dvance tax on dealers, commission a%ents and arhatis etc. C#APTER XIII MISCELLANEOUS

3*4 3*5 3*5 3* 3* 3*$ 3*$ 3*& 3*& 3*& 3*) 3*) 3*) 31*

23$. 23$0. 23&. 23). 23)0. 23)6. 24*.

2ower to ma9e r(les .lectronic record Ce!eal Savin%s Transition to 7ederal 6oard of Ceven(e. Ceference to a(thorities Cemoval of diffic(lties

311 312 312 312 31 31 31

SC#EDULES

FIRST SC#EDULE PART I RATES OF TAX D&-&'&.n I R3te' .1 T35 1.2 In(&-&(u3%' 3n( A''./&3t&.n .1 Pe2'.n' D&-&'&.n IA (Omitted by the Finance Act, 2013) D&-&'&.n I (Omitted by the Finance Act, 2012) D&-&'&.n II R3te' .1 T35 1.2 C.043n&e' D&-&'&.n III R3te .1 D&-&(en( T35 D&-&'&.n IV R3te .1 T35 .n Ce2t3&n P3)0ent' t. N.n7 2e'&(ent' D&-&'&.n V R3te .1 T35 .n Sh&44&n6 .2 A&2 T23n'4.2t In/.0e .1 3 N.n72e'&(ent Pe2'.n D&-&'&.n VI (Omitted by the Finance Act, 2013) 325 31&

31&

32 32

32$

D&-&'&.n VII C34&t3% G3&n' .n (&'4.'3% .1 Se/u2&t&e'

32)

D&-&'&.n VIII C34&t3% G3&n' .n D&'4.'3% .1 I00.-3$%e P2.4e2t) PART II R3te' .1 A(-3n/e T35 T35 .n I04.2t .1 G..('

33*

331

PART IIA C.%%e/t&.n .1 T35 12.0 D&'t2&$ut.2', De3%e2', An( ,h.%e'3%e2'

332

PART III DEDUCTION OF TAX AT SOURCE D&-&'&.n I P2.1&t .n (e$t D&-&'&.n II P3)0ent' t. n.n72e'&(ent'

333

333

333

D&-&'&.n III P3)0ent' 1.2 G..(' .2 Se2-&/e' D&-&'&.n III A (Omitted by the Finance Act, 2012)

334

D&-&'&.n IV E54.2t' D&-&'&.n V In/.0e 12.0 P2.4e2t) D&-&'&.n VI P2&8e' 3n( ,&nn&n6'

33

33$

33&

D&-&'&.n VIA Pet2.%eu0 P2.(u/t' D&-&'&.n VI CNG St3t&.n'

33&

33)

PART IV
DEDUCTION OR COLLECTION OF ADVANCE TAX D&-&'&.n II 2.9e236e C.00&''&.n D&-&'&.n IIA R3te' 1.2 C.%%e/t&.n .1 T35 $) 3 St./9 E5/h3n6e Re6&'te2e( &n P39&'t3n D&-&'&.n II R3te' 1.2 /.%%e/t&.n .1 t35 $) NCCPL D&-&'&.n III T35 .n 0.t.2 -eh&/%e' D&-&'&.n IV E%e/t2&/&t) C.n'u04t&.n

34*

34*

341

341

341

343

D&-&'&.n V Te%e4h.ne u'e2' D&-&'&.n VI C3'h :&th(23:3% 12.0 $3n9

345

34

D&-&'&.n VIA A(-3n/e t35 .n T23n'3/t&.n' &n 3n9 D&-&'&.n VII Pu2/h3'e .1 M.t.2 C32' 3n( Jee4' D&-&'&.n VIII A(-3n/e t35 3t the t&0e .1 '3%e $) 3u/t&.n D&-&'&.n IX A(-3n/e t35 .n Pu2/h3'e .1 A&2 T&/9et D&-&'&.n X A(-3n/e t35 .n '3%e .2 t23n'1e2 .1 I00.-3$%e 42.4e2t) D&-&'&.n XI A(-3n/e t35 .n 1un/t&.n' 3n( 63the2&n6'

34

34

34$

34$

34$

34$

D&-&'&.n XII A(-3n/e t35 .n 1.2e&6n742.(u/e( 1&%0' 3n( TV 4%3)'

34&

D&-&'&.n XIII D&-&'&.n XIV A(-3n/e t35 .n '3%e t. (&'t2&$ut.2', (e3%e2' .2 :h.%e'3%e2'

34& 34)

D&-&'&.n XV A(-3n/e t35 .n '3%e t. 2et3&%e2'

34)

D&-&'&.n XVI C.%%e/t&.n .1 3(-3n/e t35 $) e(u/3t&.n3% &n't&tut&.n' D&-&'&.n XVII A(-3n/e t35 .n (e3%e2', /.00&''&.n 36ent' 3n( 32h3t&', et/;

34)

34)

SECOND SC#EDULE EXEMPTIONS AND TAX CONCESSIONS PART I EXEMPTIONS FROM TOTAL INCOME PART II REDUCTION IN TAX RATES PART III REDUCTION IN TAX LIA ILIT+ PRT IV EXEMPTION FROM SPECIFIC PROVISIONS

T#E

35*

35*

3)2

4*1

4*5

T#E T#IRD SC#EDULE

PART I DEPRECIATION

43

43

PART II INITIAL ALLO,ANCE

43&

PART III PRE7COMMENCEMENT EXPENDITURE

43)

T#E FOURT# SC#EDULE

RULES FOR T#E COMPUTATION OF T#E PROFITS AND GAINS OF INSURANCE USINESS 44*

T#E FIFT# SC#EDULE

PART I RULES FOR T#E COMPUTATION OF T#E PROFITS AND GAINS FROM T#E EXPLORATION AND PRODUCTION OF PETROLEUM

445

445

PART II RULES FOR T#E COMPUTATION OF T#E PROFITS AND GAINS FROM T#E EXPLORATION AND EXTRACTION OF MINERALS DEPOSITS !OT#ER T#AN PETROLEUM"

451

T#E SIXT# SC#EDULE

PART I RECOGNI<ED PROVIDENT FUNDS

454

454

PART II APPROVED SUPERANNUATION FUNDS

4 3

PART III APPROVED GRATUIT+ FUNDS

4 $

T#E SEVENT# SC#EDULE

RULES FOR T#E COMPUTATION OF T#E PROFITS AND GAINS OF A ANKING COMPAN+ AND TAX PA+A LE T#EREON

4$*

4$2

T#E EIG#T# SC#EDULE

RULES FOR T#E COMPUTATION OF CAPITAL GAINS ON LISTED SECURITIES

4$)

4$)