The Income Tax Ordinance, 2001
Credit for tax collected or deducted.-
For the purposes of this Ordinance –
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
the amount of any tax collected under Division II of this
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.
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.
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
(words or (7)
omitted by Finance Bill 2006)
of section 153, subsection (4) of section 154,
sub-section (3) of
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.
A tax credit allowed under this section shall be applied in
accordance with sub-section (3) of section 4.
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