Incentive Data

Exemption of Withholding Tax on Purchase of Building Materials.

Eleventh Schedule [See section 100D]

Rules for computation of profits and gains of builders and developers and tax payable thereon

7. Exemption from withholding of tax under sections 150 and 153.

(1) The provisions of section 153 shall not apply to builders and developers on

(a)the purchase of building material except steel and cement;

(b)services of plumbing, electrification, shuttering and other similar services other than those provided by companies.

(2) The provisions of section 150 shall not apply to payment of dividend exempt under sub-section (7) of section 100D.

Income Tax Ordinance, 2001, Amended upto 30th June, 2020

Chapter VI (Special Industries), Part II

[100D. Special provisions relating to builders and developers.

(7) Divided income paid to a person by a builder or developer being a company out of the profits and gains derived from a project shall be exempt from tax.


Income Tax Ordinance 2001, Sub-section 7 of the Eleventh Schedule and Sub-section 7 of Section 100D