ITO Section 7B | Tax on profit on debt.

ITO Section 7B

Tax on profit on debt.

(1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division III A of Part I of the First Schedule, on every person, other than a company, who receives a profit on debt from any person mentioned in clauses (a) to (d) of sub-section (1) of section 151.

(2) The tax imposed under sub-section (1) on a person, other than a company, who receives a profit on debt shall be computed by applying the relevant rate of tax to the gross amount of the profit on debt. 

[(3) This section shall not apply to a profit on debt that:

• (a) is exempt from tax under this Ordinance; or
• (b) exceeds  [five] million Rupees.]