The Federal Board of Revenue has amended Banking Schedule of the Income Tax Ordinance 2001 and also made it mandatory for the salaried taxpayer whose income is more than Rs 500,000 to file wealth statement.
In budget (2008-09), the provisions of section 115 of the Income Tax Ordinance, 2001 are proposed to be amended so as to ensure filing of wealth statement by a salaried taxpayer whose income is more than Rs 500,000 even if he is not required to file a return of income.
The provisions of 7th Schedule (Banking Schedule) of the Income Tax Ordinance 2001 allowing deduction on account of non-performing loans as per prudential regulation issued by the SBP are proposed to be deleted. From the next financial year such deductions would be allowed under sections 29 and 29A of the Income Tax Ordinance, 2001.
Under the Finance Bill (2008-2009), the proposed amendment in the Seventh Schedule of Ordinance says, "the accumulated loss under the head "Income from Business" (not being speculation business losses) of an amalgamating banking company or banking companies shall be set off or carried forward against the business profits and gains of the amalgamated company and vice versa, up to a period of six tax years immediately succeeding the tax year in which the loss was first computed in the case of amalgamated banking company or amalgamating banking company or companies."
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