Written by Akhter Syed in Taxation Section 169 of the Income Tax Ordinance, 2001, outlines the treatment of final taxes, restrictions on deductions and refunds, and adjustments for taxpayers filing returns. The Federal Board of Revenue (FBR) has outlined rules governing tax collected or deducted as a final tax under Section 169 of the Income Tax Ordinance, 2001, for Tax Year 2027. According to the ordinance, updated up to June 30, 2026, Tax Year 2027 covers the period from July 1, 2026, to June 30, 2027. Section 169 applies to specified income streams on which tax collected or deducted is treated as a final tax, including certain transactions covered by sections 152, 152A, 154A, 154B, 156, 156A and 236Z. Under the provision, income subject to final taxation is excluded from the computation of taxable income under the relevant heads. Taxpayers cannot claim deductions for expenditure incurred to earn that income, apply deductible allowances or set off losses against it. The tax deducted also cannot be reduced by tax credits available under the ordinance. Refunds of final tax collected or deducted are generally not allowed unless the amount collected exceeds the tax liability prescribed under the ordinance. Where tax has not been deducted or has been deducted at a lower rate than required, the shortfall may be…