Income Tax Ordinance, 2001

CHAPTER-III

TAX ON TAXABLE INCOME PART X TAX CREDITS

Income Tax Ordinance, 2001 CHAPTER-III TAX ON TAXABLE INCOME PART X TAX CREDITS From: 2024-12-29 - To: 0000-00-00 1[***] __________________________________________________ 1- Section “65D” omitted by by Finance Act, 2021, dated 30-06-2021. Before omission read as: “65D. Tax credit for newly established industrial undertakings.- (1) Where a taxpayer being a company formed for establishing and operating a new industrial undertaking 2[including corporate dairy farming] sets up a new industrial undertaking 3[, including a corporate dairy farm] it shall be given a tax credit equal to 4[an amount as computed in sub-section (1A)] of the tax payable 5[including on account of minimum tax and final taxes payable under any of the provisions of this Ordinance] on the taxable income arising from such industrial undertaking for a period of five years beginning from the date of setting up or commencement of commercial production, whichever is later. 6[(1A) The amount of a person’s tax credit allowed under sub-section (1) for a tax year shall be computed according to the following formula, namely:- A x (B/C) where- A is the amount of tax assessed to the person for the tax year before allowance of any tax credit for the tax year; B is the equity raised through issuance of new shares for cash consideration; and C is the total amount invested in setting up the new industrial undertaking.] (2) Tax credit under this section shall be admissible where- (a) the company is incorporated and industrial undertaking is setup between the first day of July, 2011 and 30th day of June, 7[8[2021]]; (b) Industrial undertaking is managed by a company formed for operating the said industrial undertaking and registered under the Companies Ordinance, 1984 (XLVII of 1984) and having its registered office in Pakistan; (c) the industrial undertaking is not established by the splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from an industrial undertaking established in Pakistan at any time before 1st July 2011; and (d) the industrial undertaking is set up with 9[at least seventy per cent] equity 10[raised through issuance of new…