📂 Income Tax

If profit on debt exceeds Rs. 5 million, where should it be recorded?

📅 Feb 21, 2026
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🔄 Updated Feb 21, 2026
If profit on debt exceeds Rs. 5 million, where should it be recorded?
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Section 7B. Tax on Profit on Debt - Income Tax Ordinance, 2001

Legal Reference: Section 7B(3) – This section does not apply to profit on debt that:
(a) is exempt from tax under this Ordinance, or
(b) profit on debt exceeds Rs. 5 million.
Note: Profit on debt exceeding Rs. 5 million falls under the Normal Tax Regime and is excluded from the Fixed Tax Regime.
Tax deducted on profit on debt exceeding Rs. 5 million is treated as Adjustable.
Recording Procedure:
- Go to the Other sources tab and open the receipts / deductions menu.
- Locate profit on Debt with code 500312 — use this code to record profit on debt exceeding Rs. 5 million.
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Umair Mubeen
Income & Sales Tax Consultant · Karachi, Pakistan
Certified tax consultant with 5+ years experience helping salaried individuals, freelancers, and businesses navigate FBR compliance under ITO 2001.
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