Principles of Taxation of Associations of Persons Section 92
Principles of Taxation of Associations of Persons Section 92: Finance Act, 2024 — Explanation regarding Important Amendments made in the Income Tax Ordinance, 2001
Important amendments made in Income Tax Ordinance, 2001 (“the Ordinance”) through Finance Act, 2024 are explained in the subsequent paragraphs.
Principles of Taxation of Associations of Persons Section 92
Prior to the Finance Act, 2024, share of a member of an association of persons [AOP] was exempt from tax where the AOP has paid tax on its income.
Through the Finance Act, 2024, a second proviso has been added in sub-section (I) of section 92, to provide that share of a member of an AOP shall not be exempt where the turnover of the AOP is three hundred million rupees or more and the AOP has not filed with the return, financial statements duly audited by a firm of Chartered Accountants as defined under the Chartered Accountants Ordinance, 1961 or audited by a firm of Cost and Management Accountants as defined under the Cost and Management Accountants Act, 1966.
Read full text of Explanation of Finance Act, 2024 Amendments made in the Income Tax Ordinance, 2001 for more updates on taxes from FBR click here.
