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s. 8

General provisions relating to taxes imposed under sections 5, 6 and 7

Charge Of Tax

(1) Subject to this Ordinance, the tax imposed under Sections 5, 5A, 5AA, 6, 6A, 7, 7A, 7B and 7G shall be a final tax on the amount in respect of which the tax is imposed and—
(a) such amount shall not be chargeable to tax under any head of income in computing the taxable income of the person who derives it for any tax year;
(b) no deduction shall be allowable under this Ordinance for any expenditure incurred in deriving the amount;
(c) the amount shall not be reduced by —
(i) any deductible allowance; or (ii) the set off of any loss;
(d) the tax payable by a person under section 5, 5A, 5AA, 6, 6A, 7, 7A, 7B and 7G shall not be reduced by any tax credits allowed under this Ordinance; and (e) the liability of a person under section 5, 6 , 6A or 7 shall be discharged to the extent that —
(i) in the case of shipping and air transport income, the tax has been paid in accordance with section 143 or 144, as the case may be; or (ii) in any other case, the tax payable has been deducted at source under Division III of Part V of Chapter X . TAX ON TAXABLE INCOME PART I COMPUTATION OF TAXABLE INCOME
Amendment history (17)
  • Section 7G inserted by the Finance Act, 2026.
  • The expression “5, 6 and 7” substituted by the Finance Act, 2021.
  • The expression “5, 5AA, 6, 7, 7A and 7B” substituted by the Finance Act, 2022.
  • The expression “5, 5AA, 6,” substituted by the Finance Act, 2025.
  • The expression “7E” substituted by the Finance Act, 2026.
  • The expression ”5, [ ] [ ] [“, 5AA”] 6, 7, 7A [and 7B]”” substituted by the Finance Act, 2022.
  • The word “sections” substituted by the word “section”by the Finance Act, 2014.
  • The expression “5, [5A,[“, 5AA”] 6,” substituted by the Finance Act, 2025.
  • The expression “7A and 7B” substituted by the Finance Act, 2022.
  • The expression inserted by the Finance Act, 2025.
  • Colon substituted by the Finance Act, 2013.
  • Proviso omitted by the Finance Act, 2013. The omitted proviso
  • Inserted by the Finance Act, 2012.
  • Clause (b) substituted by the Finance Act, 2002. The substituted clause (b)
  • Clause (c) substituted by the Finance Act, 2002. The substituted clause (c)
  • Clause (d) substituted by the Finance Act, 2002. The substituted clause (d)
  • Clause (e) substituted by the Finance Act, 2002. The substituted clause (e)

Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.

Source FBR PDF page 45

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.