This document defines income from property and rent under the Income Tax Ordinance 2001. It states that income from immovable property other than agricultural land is considered income from property. Rent is defined as any amount received for the use or occupation of land or buildings. Income from rent is taxable under the head "Income from Property" unless the taxpayer derives income less than Rs. 150,000 from property in a tax year and does not have other taxable income.

1. TOPIC: INCOME FROM
PROPERTY
HASEEB AHMED – L1F15BBAM0274

2. WHAT IS PROPERTY?
• PROPERTY MEANS AN IMMOVABLE PROPERTY, OTHER THAN
AGRICULTURAL LAND FROM WHICH THE INCOME DERIVED IS
“AGRICULTURAL INCOME”.
• IT INCLUDES LAND CONTAINING NATURAL RESOURCES AND
INCOME FROM LEASE OF SUCH LAND SHALL BE RENTAL INCOME OF
PROPERTY.

3. WHAT IS RENT?
• ANY AMOUNT RECEIVED OR RECEIVABLE BY THE OWNER OF LAND
OR A BUILDING AS CONSIDERATION FOR THE USE OR
OCCUPATION.
• IN RESPECT OF THE LEASE OF A BUILDING TOGETHER WITH PLANT
AND MACHINERY AND SUCH RENT SHALL BE CHARGEABLE TO TAX
UNDER THE HEAD ―INCOME FROM OTHER SOURCES‖.

4. SECTION 15 OF THE INCOME TAX ORDINANCE 2001
THE RENT RECEIVED OR RECEIVABLE BY A PERSON [FOR] A TAX
YEAR, OTHER THAN RENT EXEMPT FROM TAX UNDER THIS
ORDINANCE, SHALL BE CHARGEABLE TO TAX IN THAT YEAR
UNDER THE HEAD ―INCOME FROM PROPERTY.

5. SUBJECT TO SUB-SECTION (5),
• WHERE THE RENT RECEIVED OR RECEIVABLE BY A PERSON IS LESS
THAN THE FAIR MARKET RENT FOR THE PROPERTY, THE PERSON
SHALL BE TREATED AS HAVING DERIVED THE FAIR MARKET RENT
FOR THE PERIOD THE PROPERTY IS LET ON RENT IN THE TAX YEAR
• SUB-SECTION (4) SHALL NOT APPLY WHERE THE FAIR MARKET
RENT IS INCLUDED IN THE INCOME OF THE LESSEE CHARGEABLE TO
TAX UNDER THE HEAD “SALARY”.

6. THE PROVISIONS OF SUB-SECTION (1), SHALL
NOT APPLY IN RESPECT OF A TAXPAYER
WHO-
• DERIVES INCOME CHARGEABLE TO TAX UNDER THIS SECTION NOT
EXCEEDING RS. 150,000 IN A TAX YEAR; AND
• DOES NOT DERIVE TAXABLE INCOME UNDER ANY OTHER HEAD.

7. TRANSFERS OF ASSETS
• FOR THE PURPOSES OF THIS ORDINANCE, WHERE THERE HAS BEEN
A TRANSFER OF AN ASSET BUT THE ASSET REMAINS THE PROPERTY
OF THE TRANSFEROR,
• ANY INCOME ARISING FROM THE ASSET SHALL BE TREATED AS THE
INCOME OF THE TRANSFEROR.

8. THANK YOU!