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Initial Allowance and Annual Allowance in Law

As per Lawkidunya Capital Allowances consist of an initial allowance and annual allowance. Initial allowance is fixed at the rate of 20% based on the original cost of the asset at the time when the capital expenditure is incurred. While annual allowance is a flat rate given every year based on the original cost of the asset.

Section 23 ITO Initial Allowance in Income Tax Ordinance

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