Kamboh Associates — Business Expense & Deduction Specialist | 0328-4675162    
HomeIncome TaxNTNPricingBlogContactWhatsApp
HomeBlogDeductible Business Expenses

Deductible Business Expenses Pakistan 2026 — Allowed vs Disallowed

June 24, 2026Aitsaam Ali6 min readBusiness Owners

Har business expense tax-deductible nahi hoti — Income Tax Ordinance clearly define karta hai ke kya "allowable" hai aur kya "disallowed". Sahi expenses claim karna aapki taxable income kam karta hai, lekin galat claim FBR audit mein assessment amendment ka sabab ban sakta hai. Ye guide dono lists cover karta hai.

TL;DR

Section 20 ke tehat wholly-and-exclusively business expenses deductible hain (rent, salaries, utilities, professional fees). Section 21 ke tehat personal expenses, fines, aur bina proper invoice ke claims disallowed hoti hain.

Allowed Business Expenses — Section 20

Expense CategoryDeductible?
Office/Shop Rent✅ Haan
Employee Salaries & Wages✅ Haan
Utility Bills (Business Premises)✅ Haan
Professional Fees (Legal, Accounting)✅ Haan
Business Advertising & Marketing✅ Haan
Repairs & Maintenance✅ Haan
Business Travel✅ Haan
Insurance Premiums (Business Assets)✅ Haan
Depreciation on Fixed Assets✅ Haan (WDV method)

Disallowed Expenses — Section 21

Expense CategoryDeductible?
Personal/Domestic Expenses❌ Nahi
Capital Expenditure (direct expense ki tarah)❌ Nahi — sirf depreciation se
Fines aur Penalties❌ Nahi
Non-Business Entertainment❌ Nahi
Cash Expenses (bina bank record)❌ Nahi (thresholds ke upar)
Bina Proper Invoice/STRN ke Purchases❌ Nahi

"Wholly and Exclusively" Test: Expense ka business purpose ke liye hona zaroori hai. Mixed personal-business expense (jaise gaari jo business aur personal dono use ho) ka sirf business-use portion hi deductible hota hai.

Documentation Requirements

  • Har expense ka proper invoice/receipt rakho
  • Bank statement se payment proof match karo
  • Sales-tax-registered suppliers se STRN invoice lo (input tax credit ke liye bhi zaroori)
  • Bare cash expenses (bina bank trail) audit mein challenge ho sakte hain

Audit Risk: FBR audit mein sab se zyada disallow hone wali cheez wo expenses hoti hain jinke paas proper invoice ya bank record nahi hota. Har expense document karna future notices se bachne ka best tareeqa hai.

Kamboh Associates Se Expense Review

ServiceFee
Business Expense Categorization ReviewRs 3,000
Business Return Filing (With Full Deductions)Rs 5,000+
Bookkeeping (Monthly)Rs 5,000/month

Aksar Puchhe Gaye Sawal — Deductible Business Expenses

Kaunse business expenses tax deductible hain Pakistan mein?
Section 20 ke tehat, wo tamam expenses deductible hain jo "wholly and exclusively" business ke liye kharch hui hon — jaise rent, utilities, salaries, repairs, professional fees, advertising, aur business travel.
Kaunse expenses disallowed hote hain?
Section 21 ke tehat disallow hone wali expenses: personal/domestic kharcha, capital expenditure (bina depreciation ke), fines aur penalties, non-business entertainment, aur proper tax invoice ke bagair claim ki gayi expenses.
Business expense claim karne ke liye kya documentation chahiye?
Har expense ke liye proper invoice/receipt, bank statement se payment proof, aur agar sales-tax-registered supplier se hai toh uska STRN invoice zaroori hai. Cash expenses without proper documentation FBR audit mein disallow ho sakti hain.
Entertainment expenses kab deductible hoti hain?
Sirf genuine business-purpose entertainment (clients, business meetings ke doran) deductible hoti hai — wo bhi reasonable limits ke andar. Personal ya excessive entertainment expenses disallow ho jati hain.
Business expenses ki sahi categorization mein Kamboh Associates kya help karti hai?
Kamboh Associates aapke business records review kar ke sahi allowable expenses identify karti hai, documentation organize karti hai, aur return mein sahi tareeqe se claim karti hai — audit-proof filing ke liye. WhatsApp 0328-4675162.

Business Expenses Sahi Claim Karwao

Allowable expenses maximize karo, disallowance risk minimize karo — Kamboh Associates review karti hai.