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

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

Aug. 14, 2025

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.

3 Comments

Ovais Mubeen

Nice blog

Laeeq Ahmed

Good !

Umair Mubeen

Good morning

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