Income Tax Ordinance, 2001

CHAPTER-IX

ANTI-AVOIDANCE

From: 2023-07-01 - To: 0000-00-00 1[113. Minimum tax on the income of certain persons.- (1) This section shall apply to a resident company 2[, 3[permanent establishment of a non-resident company,] an individual (having turnover of 4[hundred] million rupees or above in the tax year 5[2017] or in any subsequent tax year) and an association of persons (having turnover of 4[hundred] million rupees or above in the tax year 6[2017] or in any subsequent tax year)] where, for any reason whatsoever allowed under this Ordinance, including any other law for the time being in force - (a) loss for the year; (b) the setting off of a loss of an earlier year; (c) exemption from tax; (d) the application of credits or rebates; or (e) the claiming of allowances or deductions (including depreciation and amortization deductions) no tax is payable or paid by the person for a tax year or the tax payable or paid by the person for a tax year is less than 7[the percentage as specified in column (3) of the Table in Division IX of Part-I of the First Schedule per cent] of the amount representing the person’s turnover from all sources for that year: 8[***] 9[Explanation.-For the purpose of this sub-section, the expression “tax payable or paid” does not include- (a) tax already paid or payable in respect of deemed income which is assessed as final discharge of the tax liability under section 169 or under any other provision of this Ordinance; and (b) tax payable or paid under section 4B 10[or 4C].] (2) Where this section applies: (a) the aggregate of the person’s turnover as defined in sub-section (3) for the tax year shall be treated as the income of the person for the year chargeable to tax 11[.] 11[Explanation.- For the removal of doubt, it is clarified that the definition of turnover covers receipts from all business activities in line with expression “ turnover from all sources” used in sub-section (1) including but not limited to receipts from sale of immoveable property where such receipt is taxable under the head Income from Business] (b) the person shall pay as income tax for the tax year (instead of the actual tax payable under this Ordinance), 12[minimum tax computed on the basis…