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Tax on profit on debt
(1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IIIA of Part I of the First Schedule, on every person, other than a company, who receives a profit on debt from any person mentioned in clauses
(a) to
(d) of sub-section (1)of section 151.
(2) The tax imposed under sub-section (1) on a person, other than a company, who receives a profit on debt shall be computed by applying the relevant rate of tax to the gross amount of the profit on debt.
(3) This section shall not apply to a profit on debt that –
(a) is exempt from tax under this Ordinance; or (b) exceeds five million Rupees.
(a) to
(d) of sub-section (1)of section 151.
(2) The tax imposed under sub-section (1) on a person, other than a company, who receives a profit on debt shall be computed by applying the relevant rate of tax to the gross amount of the profit on debt.
(3) This section shall not apply to a profit on debt that –
(a) is exempt from tax under this Ordinance; or (b) exceeds five million Rupees.
Amendment history (5)
- Inserted by the Finance Act, 2015
- Sub clause 3 of 7B substituted by Finance Act, 2019, substituted clause read as follow
- The words “thirty six” substituted by the Finance Act, 2021.
- Inserted by the Finance Act, 2016.
- Section 4 substituted by the Finance Act, 2017. The substituted section
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 41
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.