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Income Tax Ordinance, 2001
CHAPTER-III TAX ON TAXABLE INCOME PART IV HEAD OF INCOME: INCOME FROM BUSINESS Division III Deductions: Special Provisions
From: 2023-07-01 - To: 0000-00-00 1[29A. Provision regarding consumer loans.- (1) A 2[***] 3[non-banking finance company or the House Building Finance Corporation] shall be allowed a deduction, not exceeding three per cent of the income for the tax year, arising out of consumer loans for creation of a reserve to off-set bad debts arising out of such loans. (2) Where bad debt cannot be wholly set off against reserve, any amount of bad debt, exceeding the reserves shall be carried forward for adjustment against the reserve for the following years.] 4[Explanation.-In this section, “consumer loan” means a loan of money or its equivalent made by 5[***] a non-banking finance company or the House Building Finance Corporation to a debtor (consumer) and the loan is entered primarily for personal, family or household purposes and includes debts created by the use of a lender credit card or similar arrangement as well as insurance premium financing.] _________________________________________________________ 1-Inserted vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003) 2-The words “banking company or” omitted vide the Finance Act, 2009 (I of 2009 assented on 30th June, 2009) 3-Inserted vide the Finance Act, 2004 (II of 2004 assented on 30th June, 2004) 4-Added vide the Finance Act, 2004 (II of 2004 assented on 30th June, 2004) 5-The words “a banking company or” omitted vide the Finance Act, 2009 (I of 2009 assented on 30th June, 2009) From: 2009-07-01 - To: 2023-06-30 1[29A. Provision regarding consumer loans.- (1) A 2[***] 3[non-banking finance company or the House Building Finance Corporation] shall be allowed a deduction, not exceeding three per cent of the income for the tax year, arising out of consumer loans for creation of a reserve to off-set bad debts arising out of such loans. (2) Where bad debt cannot be wholly set off against reserve, any amount of bad debt, exceeding the reserves shall be carried forward for adjustment against the reserve for the following years.] 4[Explanation.-In this section, “consumer loan” means a loan of money or its equivalent made by 5[***] a non-banking finance company or the House Building Finance Corporation to a…
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