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Disposal and acquisition of assets
(1) A person who holds an asset shall be treated as having made a disposal of the asset at the time the person parts with the ownership of the asset, including when the asset is —
(a) sold, exchanged, transferred or distributed; or (b) cancelled, redeemed, relinquished, destroyed, lost, expired or surrendered.
(2) The transmission of an asset by succession or under a will shall be treated as a disposal of the asset by the deceased at the time asset is transmitted.
(3) The application of a business asset to personal use shall be treated as a disposal of the asset by the owner of the asset at the time the asset is so applied.
(3A) Where a business asset is discarded or ceases to be used in business, it shall be treated to have been disposed of.
(4) A disposal shall include the disposal of a part of an asset.
(5) A person shall be treated as having acquired an asset at the time the person begins to own the asset, including at the time the person is granted any right.
(6) The application of a personal asset to business use shall be treated as an acquisition of the asset by the owner at the time the asset is so applied.
(7) In this section, - business asset means an asset held wholly or partly for use in a business, including stock-in-trade and a depreciable asset; and personal asset means an asset held wholly for personal use.
(a) sold, exchanged, transferred or distributed; or (b) cancelled, redeemed, relinquished, destroyed, lost, expired or surrendered.
(2) The transmission of an asset by succession or under a will shall be treated as a disposal of the asset by the deceased at the time asset is transmitted.
(3) The application of a business asset to personal use shall be treated as a disposal of the asset by the owner of the asset at the time the asset is so applied.
(3A) Where a business asset is discarded or ceases to be used in business, it shall be treated to have been disposed of.
(4) A disposal shall include the disposal of a part of an asset.
(5) A person shall be treated as having acquired an asset at the time the person begins to own the asset, including at the time the person is granted any right.
(6) The application of a personal asset to business use shall be treated as an acquisition of the asset by the owner at the time the asset is so applied.
(7) In this section, - business asset means an asset held wholly or partly for use in a business, including stock-in-trade and a depreciable asset; and personal asset means an asset held wholly for personal use.
Amendment history (4)
- The words “Central Board of Revenue” substituted by the Finance Act, 2007.
- Inserted by the Finance Act, 2003.
- New section 75A inserted by the Finance Act, 2019.
- Words inserted by the Finance Act, 2025.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 143
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.