Lahore 24°C
Karachi 29°C
Islamabad 20°C
Deductions in computing income chargeable under the head “Income from Business”
(1) Subject to this Ordinance, in computing the income of a person chargeable to tax under the head Income from Business for a tax year, a deduction shall be allowed for any expenditure incurred by the person in the year wholly and exclusively for the purposes of business .
(1A) Subject to this Ordinance, where animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, a deduction shall be allowed equal to the difference between the actual cost to the taxpayer of the animals and the amount, if any, realized in respect of the carcasses or animals.
(2) Subject to this Ordinance, where the expenditure referred to in sub- section (1) is incurred in acquiring a depreciable asset or an intangible with a useful life of more than one year or is pre-commencement expenditure, the person must depreciate or amortise the expenditure in accordance with sections 22, 23, 24 and 25.
(3) Subject to this Ordinance, where any expenditure is incurred by an amalgamated company on legal and financial advisory services and other administrative cost relating to planning and implementation of amalgamation, a deduction shall be allowed for such expenditure.
(1A) Subject to this Ordinance, where animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, a deduction shall be allowed equal to the difference between the actual cost to the taxpayer of the animals and the amount, if any, realized in respect of the carcasses or animals.
(2) Subject to this Ordinance, where the expenditure referred to in sub- section (1) is incurred in acquiring a depreciable asset or an intangible with a useful life of more than one year or is pre-commencement expenditure, the person must depreciate or amortise the expenditure in accordance with sections 22, 23, 24 and 25.
(3) Subject to this Ordinance, where any expenditure is incurred by an amalgamated company on legal and financial advisory services and other administrative cost relating to planning and implementation of amalgamation, a deduction shall be allowed for such expenditure.
Amendment history (4)
- tax” substituted by the Finance Act, 2004.
- Inserted by the Finance Act, 2009.
- Inserted by the Finance Act, 2021.
- Added by the Finance Act, 2002
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 65
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.