The bill seeks to replace the existing Section 59B on group relief with a new section. 

The main feature of group relief under this section are summarized here under:

1. A subsidiary would be able to surrender its assessed loss for a tax year, excluding brought forward losses and capital losses, in favour of its holding company or between subsidiaries of its holding company subject to condition that the holding company if listed on a registered stock exchange in Pakistan  would be required to acquire at least 55% or more of the share capital of the subsidiary,  or  at least 75% or more of the share capital of the subsidiary, if it is not a public listed company.
2. The loss surrender would be set-off against business income of the holding or the subsidiary company in the year of surrender and subsequent two years if:

-   the ownership of share capital of the subsidiary company to the extent of 55% or 75% is  continued for five years;
-   the companies in the group are not engaged in trading;
-   the holding company, if a private limited company, will get itself listed within three years from the year in which loss is claimed;
-   the group would be incorporated under the Companies Ordinance, 1984;
-   the surrender and the claim of loss will be on the approval of the Board of Directors of the respective companies;
-   the subsidiary will need to continue the same business during the above referred period of three years;
-   the account of the group companies are prepared and audited by a Chartered Accountants in the same way as are prescribed for listed companies; and
-   the group companies observe the Code of Corporate Governance as provided in the Companies Ordinance, 1984.

1. Any loss surrendered but not adjusted during the period of three year will be carried forward by the subsidiary company in accordance with the provisions of Section 57 i.e. for a total of six years from the year in the loss was first computed.
2. If in any year during the period of five years, the holding company reduces its holding below the minimum required holding, the holding company would be required to offer the amount of profit on which tax has not been paid due to set-off of losses surrendered.