Lahore 22°C
Apportionment of deductions
(1) Subject to this Ordinance, where an expenditure expenditures, deductions and allowances relates to –
(a) the derivation of more than one head of income; or (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 expenditure 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 Board may make rules under section 237 for the purposes of apportioning deductions expenditures and allowances .
(a) the derivation of more than one head of income; or (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 expenditure 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 Board may make rules under section 237 for the purposes of apportioning deductions expenditures and allowances .
Amendment history (6)
- Substituted by the Finance Act, 2016.
- Inserted by the Finance Act, 2002.
- The words “Central Board of Revenue” substituted by the Finance Act, 2007.
- The figure “232” substituted by the Finance Act, 2002.
- Inserted by the Finance Act, 2016.
- Inserted by the Finance Act, 2003.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 138
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.