Income Tax Ordinance, 2001

CHAPTER-IV

COMMON RULES PART I GENERAL

From: 2023-07-01 - To: 0000-00-00 67. Apportionment of deductions.- (1) Subject to this Ordinance, where an 1[expenditures, deductions and allowances] relates to - (a) the derivation of more than one head of income; or 2[(ab) derivation of income comprising of taxable income and any class of income to which sub-sections (4) and (5) of section 4 apply, or;] (b) the derivation of income chargeable to tax under a head of income and to some other purpose, the 3[expenditures, deductions and allowances] shall be apportioned on any reasonable basis taking account of the relative nature and size of the activities to which the amount relates. (2) The 4[Board] may make rules under section 5[237] for the purposes of apportioning deductions 6[expenditures and allowances]. __________________________________________________________________ 1-Substituted for the word “expenditure” vide the Finance Act, 2016 (XXIX of 2016) 2-Inserted vide the Finance Ordinance, 2002 (XXVII of 2002 promulgated on 15th June, 2002) 3-Substituted for the word “expenditure” vide the Finance Act, 2016 (XXIX of 2016) 4-The words “Central Board of Revenue” substituted vide the Finance Act, 2007 (IV of 2007 assented on 30th June, 2007) 5-Substituted for the figure “232” vide the Finance Act, 2002 (XXVII of 2002 promulgated on 15th June, 2002) 6-Inserted vide the Finance Act, 2016 (XXIX of 2016) From: 2016-07-01 - To: 2023-06-30 67. Apportionment of deductions.- (1) Subject to this Ordinance, where an 1[expenditures, deductions and allowances] relates to - (a) the derivation of more than one head of income; or 2[(ab) derivation of income comprising of taxable income and any class of income to which sub-sections (4) and (5) of section 4 apply, or;] (b) the derivation of income chargeable to tax under a head of income and to some other purpose, the 3[expenditures, deductions and allowances] shall be apportioned on any reasonable basis taking account of the relative nature and size of the activities to which the amount relates. (2) The 4[Board] may make rules under section 5[237] for the purposes of apportioning deductions 6[expenditures and allowances].…