DEPRECIATION: DEDUCTIONS

In computing the income under the head “Income from other sources”, the following allowances and deductions shall be made, namely:

1. Profit on debt chargeable to tax under the head “income from other sources” shall be allowed a deduction for any Zakat paid by the person on the profit under the Zakat and Ushr Ordinance, 1980.

Any expenditure (not being in the nature of capital expenditure or personal expenses of the taxpayer) laid out or expended wholly and exclusive for the purposes of earning such income.”

The provision of section 21 shall apply in determining the deductions allowed to a person under this section in the same manner as they apply in determining the deduction allowed in computing the income of the person chargeable to tax under the head income from business.

4. Depreciation allowance for any plant, machinery or building. 5. Initial allowance for any plant or machinery.

Notes

1. No deduction shall be allowed to a person Dfa Ho under this section to the extent that the expenditure is deductible in computing the income of the person under another head of income.

2. Expenditure is of a capital nature if it has a normal useful life of more than one year.