The Income Tax Ordinance, 2001

 

 

 

Section

 

168.  Credit for tax collected or deducted.-

 

(1)    For the purposes of this Ordinance  

 

(a)    the amount of any tax deducted from a payment under Division III of this Part or Chapter XII shall be treated as income derived by the person to whom the payment was made; and  

 

(b)    the amount of any tax collected under Division II of this Part or Chapter XII or deducted under Division III of this Part or Chapter XII shall be treated as tax paid by the person from whom the tax was collected or deducted.  

 

(2)    Subject to sub-sections (3) and (4), where an amount of tax has been collected from a person under Division II of this Part or Chapter XII or deducted from a payment made to a person under Division III of this Part or Chapter XII, the person shall be allowed a tax credit for that tax in computing the tax due by the person on the taxable income of the person for the tax year in which the tax was collected or deducted.  

 

(3)    No tax credit shall be allowed for any tax collected or deducted that is a final tax under sub-section (7) of section 148, clauses (a), (b) and (d) of subsection (1) of section 151, sub-section (1B) of section 152, sub-section (6) (words or (7) omitted by Finance Bill 2006) of section 153, subsection (4) of section 154, section 155, sub-section (3) of section 156, sub-section (2) of section 156A, section 233, clauses (a) and (b) of sub-section (1) of section 233A or sub-section (5) of section 234 or section 234A.  

 

(4)    A tax credit allowed under this section shall be applied in accordance with sub-section (3) of section 4.  

 

(5)    A tax credit or part of a tax credit allowed under this section for a tax year that is not able to be credited under sub-section (3) of section 4 for the year shall be refunded to the taxpayer in accordance with section 170.