Tax Reduction for Disabled Taxpayer

Print This Post Print This Post

LAW

Under Clause 1B of Part I of the First Schedule to the Income Tax Ordinance, 2001, an individual taxpayer is entitled to 50% reduction in tax liability if he fulfills the following conditions

  1. He / she holds a NADRA CNIC for disabled persons
  2. The taxable income in the tax year (excluding income on which deduction of tax is final) is Rs. 1,000,000/- or less

 

PROCESS

To claim this reduction while filing income tax return in Iris

(i) click ‘Tax Chargeable / Payments’ on the left of the screen

(ii) click ‘Tax Reductions’

(iii) Enter the amount of Tax Reduction for Disabled Taxpayer against code 9304 in the third column titled ‘Amount’

If the amount entered against the code is greater than the reduction allowed as per law, Iris will automatically reduce it to the allowable amount on pressing ‘Calculate’

If a taxpayer fulfills all the above criteria and Iris does not calculate Tax Reduction for Disabled Taxpayer, this might mean that the taxpayer’s profile is not updated. In such case, an email should be sent to helpline@fbr.gov.pk along with a scanned copy of CNIC (both sides).

Post Rating
[Total: 5 Average: 5]

2 comments on Tax Reduction for Disabled Taxpayer

    1. Yes, you are eligible for reduction in tax liability if you fulfill the criteria laid down in the Clause IB of the Division I of Part I of First Schedule to the Income Tax Ordinance 2001.

Leave a Reply

Your email address will not be published. Required fields are marked *

three × five =