CAF-2 · Chapter 4 · Question 14 of 15
A debtor of Mr. Bashir directly paid Rs. 35,000 to Mr. Bashir's supplier to settle one of Mr. Bashir's business liabilities. The payment was made on Mr. Bashir's direct instructions. How will this Rs. 35,000 be treated under Section 69 of the Income Tax Ordinance, 2001?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) It will be treated as having been received by Bashir since it was applied on his behalf.
Explanation
Section 69 states that a person shall be treated as having received an amount if it is applied on behalf of the person or at the instruction of the person. Thus, it is treated as received by him.
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