Lahore 22°C
Consideration received
(1) The consideration received by a person on disposal of an asset shall be the total amount received by the person for the asset or the fair market value thereof, whichever is the higher , including the fair market value of any consideration received in kind determined at the time of disposal.
(2) Where an asset has been lost or destroyed by a person, the consideration received for the asset shall include any compensation, indemnity or damages received by the person under —
(a) an insurance policy, indemnity or other agreement;
(b) a settlement; or (c) a judicial decision.
(3) The consideration received for an asset treated as disposed of under sub-section (3) or (3A) of section 75 shall be the fair market value of the asset determined at the time it is applied to personal use or discarded or ceased to be used in business, as the case may be .
(4) The consideration received by a scheduled bank, financial institution, modaraba, or leasing company approved by the Commissioner (hereinafter referred to as a leasing company) in respect of an asset leased by the company to another person shall be the residual value received by the leasing company on maturity of the lease agreement subject to the condition that the residual value plus the amount realized during the term of the lease towards the cost of the asset is not less than the original cost of the asset.
(5) Where two or more assets are disposed of by a person in a single transaction and the consideration received for each asset is not specified, the total consideration received by the person shall be apportioned among the assets disposed of in proportion to their respective fair market values determined at the time of the transaction.
(6) Notwithstanding anything contained in this section, the Board may prescribe rules for determination of consideration received for any asset.
(2) Where an asset has been lost or destroyed by a person, the consideration received for the asset shall include any compensation, indemnity or damages received by the person under —
(a) an insurance policy, indemnity or other agreement;
(b) a settlement; or (c) a judicial decision.
(3) The consideration received for an asset treated as disposed of under sub-section (3) or (3A) of section 75 shall be the fair market value of the asset determined at the time it is applied to personal use or discarded or ceased to be used in business, as the case may be .
(4) The consideration received by a scheduled bank, financial institution, modaraba, or leasing company approved by the Commissioner (hereinafter referred to as a leasing company) in respect of an asset leased by the company to another person shall be the residual value received by the leasing company on maturity of the lease agreement subject to the condition that the residual value plus the amount realized during the term of the lease towards the cost of the asset is not less than the original cost of the asset.
(5) Where two or more assets are disposed of by a person in a single transaction and the consideration received for each asset is not specified, the total consideration received by the person shall be apportioned among the assets disposed of in proportion to their respective fair market values determined at the time of the transaction.
(6) Notwithstanding anything contained in this section, the Board may prescribe rules for determination of consideration received for any asset.
Amendment history (5)
- Sub-section (8A) added by the Finance Act, 2026.
- Added by the Finance Act, 2012.
- Inserted by the Finance Act, 2003.
- Explanation inserted by the Finance Act, 2026.
- Inserted by the Finance Act, 2018.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 146
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.