SPECIAL PROVISIONS REGARDING DEDUCTIONS FROM INCOME FROM BUSINESS

Depreciable assets mean any tangible moveable property, immovable property (other than unimproved land), or structural improvements to immovable property that has

Deprecation is called a tax shield for the business

Depreciation is allowed at

Depreciable asset use in the business for the fist time in tax year commencing on or after 1^st day of July 2020 the depreciation deduction shall be reduced by

Depreciation for any asset used partly for business shall be allowed to the extent of

Written down value of a depreciable asset acquired in the tax year shall be the cost of asset as reduced by:

Written down value of a depreciable asset shall be cost of the asset reduced by

Where income of any business is exempt depreciation deduction shall be given effect to

Depreciation deduction cannot exceed

Depreciation shall be allowed, where a depreciable asset is deposed

Asset acquired on or after 1^st July 2020, depreciation shall be allowed, where a depreciable asset is deposed

Where consideration of disposal of depreciable asset is more than written down value the excess shall chargeable to tax under the head

Where consideration on disposal of depreciable asset is less than written down value the difference shall be allowed as:

Leasing company or any financial institution allowed depreciation deduction of leased depreciable assets from

Cost of structural improvement to immovable property or immovable property shall not include

Assets owned by leasing company or financial institutions are leased to another person is treated to have been used by:

If the depreciable asset is jointly owned by a tax payer and licensed Islamic financial institution through Mushakrika financing asset shall be treated to be owned by

Tangible moveable, immovable property or structural improvement to immovable property shall not be considered as depreciable asset where

For the purpose of depreciation Cost of passenger transport vehicle not plying for hire shall not exceed

Rate for depreciation for building is

Rate for depreciation for furniture, plant and machinery, motor vehicles, ships and technical or professional books is:

Rate of depreciation of computer hardware or equipment used in manufacture of IT products, air craft and aero engines is

Rate of depreciation for below ground installation for mineral oil concern is

Rate of depreciation for offshore platform and production installation for mineral oil concerns is

100% depreciation is allowed for a ramp build to provide access to person with disabilities for amount not exceeding

A person placing eligible depreciable asset into service in Pakistan for the first time in a tax year shall be allowed a deduction namely:

Leasing company or any financial institution allowed initial allowance of leased depreciable assets as a deduction from

Deduction of initial allowance for any plant or machinery that has been previously used in Pakistan is:

Any plant or machinery shall not be considered as eligible depreciable asset were

Eligible depreciable asset means a depreciable asset other than

Rate of initial allowance for plant and machinery is:

A deduction namely first year allowance shall be allowed for installation of plant, machinery and equipment installed by industrial undertaking for

Rate of first year allowance for plant and machinery is

A deduction namely accelerated depreciation to alternate energy projects is allowed for installation of plant, machinery and equipment installed to generate alternate energy where the tax payer is

A deduction namely accelerated depreciation to alternate energy projects is allowed for installation of plant, machinery and equipment installed to generate alternate energy where the eligible depreciation assets put to use after

A deduction namely accelerated depreciation to alternate energy projects is allowed for installation of plant, machinery and equipment installed to generate alternate energy in lieu of

A deduction namely first year allowance shall be allowed for installation of plant, machinery and equipment installed by industrial undertaking in lieu of

Rate of accelerated depreciation to alternate energy projects is

Deduction allowed for intangibles used in deriving business income namely

Amortization deduction for intangible is allowed were      

Rate of amortization deduction for intangible is computed as A/B where A is the cost of intangible and B is

Whree life of the intangible is not ascertainable its useful life shall be treated

Amortization for any intangible used partly for business hall be allowed to the extent of

Where intangible is not in use for the whole year the amount of amortization shall be calculated as A*B/C where A is the amount of amortization for the whole year. B is number of days in a tax year the tangible is used in deriving income form business and C is

Amortization shall be allowed where an intangible is dispose:

Where consideration on disposal of intangible is more than written down value the excess shall chargeable to tax under the head

Where consideration on disposal of intangible is less than written down value the difference shall be allowed as:

Written down value of the intangible at the time of disposal shall be cost of the intangible reduced by

Expenditure of renewing the intangible is

Intangible available on a non-working day is treated

Any expenditure incurred before the commencement of a business wholly and exclusively to derive income chargeable to tax is called

Pre-commencement expenditure includes

Pre-commencement expenditure shall be amortized on      

Total deduction allowed for pre-commencement expenditure shall not exceed

Rate of amortization for pre-commencement expenditure is

A person shall be allowed a deduction for scientific research expenditure incurred in Pakistan in a tax year wholly and exclusively for the purpose of deriving.

For the purpose of section 26 scientific undertaken in Pakistan in the field of natural or applied science for the development of human knowledge for the purpose of:

Deduction for scientific expenditure includes

Research for the purpose of ascertain the existence, existence, location, extent or quality of a natural deposit qualifies for:

Deduction of expenditure other than capital expenditure is allowed for expenditure on

Deduction from income form business is allowed for

For determining deduction on account of lease rental the cost of a passenger transport vehicle not playing for hire the extent of principal amount shall not exceed.

For bad debts in a tax year a person shall be allowed.

In there are reasonable grounds of believing that the debt is irrecoverable it can be treated as deduction as bad debt provided

A non-banking financial company or house building finance corporation shall be allowed a deduction for creation of a reserve to off-set bad debts arising out of consumer loans not exceeding

A banking or non-banking financial institution shall be allowed a deduction for

If non-performing debt is subsequently recovered it shall be included in the income of the banking or non-banking financial institution for the income chargeable to tax under the head

A deduction for participatory redeemable capital against an agreement relating to participatory redeemable capital between a company and a banking company is limited to

Following is/ are accounting methods as per Income Tax Ordinance, 2001.

A company shall account for income chargeable to tax under the head income form business on

A person may apply in writing for a change in accounts method to

Commissioner may approve the application for change of accounting method if he is satisfied that

Accounting for income chargeable to tax under the head income from business on the method that derive income when it is received and shall incur expenditure when it is paid is

Income when it is due to the person and expenditure when it is payable by the person is the

Absorption cost is

Average-cost method of stock in trade is

Direct labour cost is

Direct material cost

First in first out method is:

Stock in trade means

Prime cost includes

Stock in trade disposed is computed with the formula (A+B)-C where A is opening value of stock in trade B is cost of stock in trade acquired by the person in the year and C is

Opening value of stock in trade of a person for a tax year shall be

Closing value of stock in trade shall be lower of

a person accounting for income from business under cash basis of accounting may compute the cost of stock in trade on

A person accounting for income derived under the head Income from business on accrual basis may compute the cost of stock in trade

Stock valuation method can be changed

As per section 36 long term contracts are chargeable to tax under the head Income from business on: 

The percentage of completion of a long-term contract in a tax year shall be determined by comparing

Long term contract is contract for manufacture, installation, or construction where the performance is not completed within the tax year other than a contract