s. 55

Limitation of exemption

Tax On Taxable Income

(1) Where any income is exempt from tax under this Ordinance, the exemption shall be, in the absence of a specific provision to the contrary contained in this Ordinance, limited to the original recipient of that income and shall not extend to any person receiving any payment wholly or in part out of that income. PART VIII LOSSES

Amendment history (11)

The colon substituted by the Finance Act, 2008.
Proviso omitted by the Finance Act, 2008. The omitted proviso
Sub-section (2) omitted by the Finance Act, 2003. Omitted sub-section (2)
Inserted by the Finance Act, 2013.
The words “or income from property” omitted by the Finance Act, 2021.
Full stop substituted with a colon and thereafter a new proviso added by the Finance Act, 2025.
Inserted by the Finance Act, 2002
Inserted by the Finance Act, 2007.
The word “company” substituted by the Finance Act, 2019.
After word “Pakistan” the expression “, Gilgit-Baltistan” inserted by the Finance Act, 2019.
The word “onward” substituted by the word “onward” by the Finance Act, 2014.

Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.

Source FBR PDF page 108

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.