Income Tax Ordinance, 2001

CHAPTER-X

PROCEDURE PART V ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE Division I Advance Tax Paid by the Taxpayer

From: 2023-07-01 - To: 0000-00-00 147. Advance tax paid by the taxpayer.- (1) Subject to sub-section (2), every taxpayer 1[whose income was charged to tax for the latest tax year under this Ordinance or latest assessment year under the repealed Ordinance] other than - 2[***] (b) income chargeable to tax under sections 5, 6 and 7; 3[***] (c) income subject to deduction of tax at source under section 149; 4[and] 5[***] (d) income from which tax has been collected under Division II or deducted under Division III 6[or deducted or collected under Chapter XII] and for which no tax credit is allowed as a result of sub-section (3) of section 168, shall be liable to pay advance tax for the year in accordance with this section. (2) This section does not apply to an individual 7[***]] where the individual’s 8[or 9[***] latest assessed taxable income excluding income referred to in clauses 10[(b),] (c) and (d) of sub-section (1) is less than 11[one million] rupees. 12[***] 13[(4) Where the taxpayer is 14[an association of persons or] a company, the amount of advance tax due for a quarter shall be computed according to the following formula, namely 15[;] (A x B/C)-D Where - A is the taxpayer’s turnover for the quarter; 16[Provided that where the taxpayer fails to provide turnover or the turnover for the quarter is not known, it shall be taken to be one-fourth of one hundred and ten percent of the turnover of the latest tax year for which a return has been filed;] B is the tax assessed to the taxpayer for the latest tax year; Explanation.- For removal of doubt it is clarified that tax assessed includes tax under sections 16a[4C,] 113 and 113C.] C is the taxpayer’s turnover for the latest tax year; and D is the tax paid in the quarter for which a tax credit is allowed under section 168 17[***] 18[. 19[(4A) Any taxpayer 20[including a banking company] who is required to make payment of advance tax in accordance with sub-section (4), shall estimate the tax payable for the relevant tax year, at any time before the second installment is due. In case the tax payable is likely to be more than the amount that the taxpayer 21[including a banking company] is required to pay under…