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Non-adjustable amounts received in relation to buildings
(1) Where the owner of a building receives from a tenant an amount which is not adjustable against the rent payable by the tenant, the amount shall be treated as rent chargeable to tax under the head Income from Property in the tax year in which it was received and the following nine tax years in equal proportion.
(2) Where an amount (hereinafter referred to as the earlier amount) referred to in sub-section (1) is refunded by the owner to the tenant on termination of the tenancy before the expiry of ten years, no portion of the amount shall be allocated to the tax year in which it is refunded or to any subsequent tax year except as provided for in sub-section (3).
(3) Where the circumstances specified in sub-section (2) occur and the owner lets out the building or part thereof to another person (hereinafter referred to as the succeeding tenant) and receives from the succeeding tenant any amount (hereinafter referred to as the succeeding amount) which is not adjustable against the rent payable by the succeeding tenant, the succeeding amount as reduced by such portion of the earlier amount as was charged to tax shall be treated as rent chargeable to tax under the head Income from Property as specified in sub-section (1). PART IV HEAD OF INCOME: INCOME FROM BUSINESS Division I Income from Business
(2) Where an amount (hereinafter referred to as the earlier amount) referred to in sub-section (1) is refunded by the owner to the tenant on termination of the tenancy before the expiry of ten years, no portion of the amount shall be allocated to the tax year in which it is refunded or to any subsequent tax year except as provided for in sub-section (3).
(3) Where the circumstances specified in sub-section (2) occur and the owner lets out the building or part thereof to another person (hereinafter referred to as the succeeding tenant) and receives from the succeeding tenant any amount (hereinafter referred to as the succeeding amount) which is not adjustable against the rent payable by the succeeding tenant, the succeeding amount as reduced by such portion of the earlier amount as was charged to tax shall be treated as rent chargeable to tax under the head Income from Property as specified in sub-section (1). PART IV HEAD OF INCOME: INCOME FROM BUSINESS Division I Income from Business
Amendment history (3)
- Section 17 omitted by the Finance Act, 2006. The omitted section 17
- Semi colon substituted and Explanation added by the Finance Act, 2021.
- 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 61
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.