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4) No Deduction Shall Be Allowed For Any Expenditure Incurred by An Employee in Deriving Amounts Chargeable To Tax Under The Head Salary

The document discusses taxation rules for employee benefits and salaries in Pakistan. It states that no tax deductions can be claimed for expenses incurred to earn salary income. It also specifies that the taxable salary amount for employees includes the cost of household services provided by employers, as well as the fair market value of utilities, less any payments made by the employee.

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Asad Ibrahim Khan
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21 views

4) No Deduction Shall Be Allowed For Any Expenditure Incurred by An Employee in Deriving Amounts Chargeable To Tax Under The Head Salary

The document discusses taxation rules for employee benefits and salaries in Pakistan. It states that no tax deductions can be claimed for expenses incurred to earn salary income. It also specifies that the taxable salary amount for employees includes the cost of household services provided by employers, as well as the fair market value of utilities, less any payments made by the employee.

Uploaded by

Asad Ibrahim Khan
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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4) No deduction shall be allowed for any expenditure incurred by an employee in deriving amounts chargeable to tax under the head

Salary.

(5) Where, in a tax year, the services of a housekeeper, driver, gardener or other domestic assistant is provided by an employer to an employee, the amount chargeable to tax to the employee under the head Salary for that year shall include the total salary paid to the domestic assistant such house keeper, driver, gardener or other domestic assistant in that year for services rendered to the employee, as reduced by any payment made to the employer for such services.

(6) Where, in a tax year, utilities are provided by an employer to an employee, the amount chargeable to tax to the employee under the head Salary for that year shall include the fair market value of the utilities provided, as reduced by any payment made by the employee for the utilities.

1. Where the taxable income does not exceed Rs.350,000 0% 2. Where the taxable income exceeds Rs.350,000 but does not exceed Rs.400,000 1.50% 3. Where the taxable income exceeds Rs.400,000 but does not exceed Rs.450,000 2.50% 4. Where the taxable income exceeds Rs.450,000 but does not exceed Rs.550,000 3.50% 5. Where the taxable income exceeds Rs.550,000 but does not exceed Rs.650,000 4.50%

6 . Where the taxable income exceeds Rs.650,000 but does not exceed Rs.750,000 6.00% 7. Where the taxable income exceeds Rs.750,000 but does not exceed Rs.900,000 7.50% 8. Where the taxable income exceeds Rs.900,000 but does not exceed Rs.1,050,000 9.00% 9. Where the taxable income exceeds Rs.1,050,000 but does not exceed Rs.1,200,000 10.00% 10. Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs.1,450,000 11.00%

11.

Where the taxable income exceeds Rs.1,450,000 but does not exceed Rs.1,700,000 12.50% 12. Where the taxable income exceeds Rs.1,700,000 but does not exceed Rs.1,950,000 14.00% 13. Where the taxable income exceeds Rs.1,950,000 but does not exceed Rs.2,250,000 15.00% 14. Where the taxable income exceeds Rs.2,250,000 but does not exceed Rs.2,850,000 16.00% 15. Where the taxable income exceeds Rs.2,850,000 but does not exceed Rs.3,550,000 17.50%

16. Where the taxable income exceeds Rs.3,550,000 but does not exceed s.4,550,000 18.50% 17. Where the taxable income exceeds Rs.4,550,000. 20.00%]

Where the taxable income in a tax year, of a taxpayer aged 60 years or more on the first day of that tax year does not exceed one million rupees, his tax liability on such income shall be reduced by 50%. The tax payable by a full time teacher or a researcher, employed in a non profit education or research institution duly recognized by Higher Education Commission, a Board of Education or a University recognized by the Higher Education Commission, including government training and research institution, shall be reduced by an amount equal to 75% of tax payable on his income from salary.

(1) The rent received or receivable by a person 1[for] a tax year, other than rent exempt from tax under this Ordinance, shall be chargeable to tax in that year under the head Income from Property (4) Subject to sub-section (5), where the rent received or receivable by a person is less than the fair market rent for the property, the person shall be treated as having derived the fair market rent for the period the property is let on rent in the tax year.

(7) the provisions of sub-section (1), shall not apply in respect of a taxpayer who (i) is an individual or association of persons; (ii) derives income chargeable to tax under this section not exceeding Rs. 150,000 in a tax year; and (iii) does not derive taxable income under any other head.]

The rate of tax to be paid under section 15, in the case of individual and association of persons, shall be (1) Where the gross amount of rent does not exceed Rs.150,000. Nil. (2) Where the gross amount of rent exceeds Rs.150,000 but does not exceed Rs.400,000. 5 % of the gross amount exceeding Rs.150,000. (3) Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs.1,000,000. Rs.12,500 plus 7.5 % of the gross amount exceeding Rs.400,000. (4) Where the gross amount of rent exceeds Rs.1,000,000. Rs.57,500 plus 10 per cent of the gross amount exceeding Rs.1,000,000.

(1) (2)

(3)

Where the gross amount of rent does not exceed Rs.400,000. 5 per cent of the gross amount of rent. Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs.1,000,000. Rs.20,000 plus 7.5 per cent of the gross amount of rent exceeding Rs.400,000. Where the gross amount of rent exceeds Rs.1,000,000. Rs.65,000 plus 10 per cent of the gross amount of rent exceeding Rs.1,000,000.

Thank you.

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