LAW Under Section 12(7) of the Income Tax Ordinance, 2001, if an employee (a) is paid salary in arrears, and (b) as a result of this arrear payment, he is chargeable to tax at higher rates of tax than would have been applicable if the amount had been paid in the tax year in which services were rendered the employee can elect for the amount to be taxed at the rate that would have been […]
Category: Income Tax
LAW Under Section 12(2)(e)(iii) of the Income Tax Ordinance, 2001, Salary includes any amount received on termination of employment including any compensation for redundancy or loss of employment and golden handshake payments Under Section 12(6) of the Income Tax Ordinance, 2001, an employee who has received such payment can elect for the amount to be taxed at an average rate of the three preceding years, which will be computed by dividing the total tax payable […]
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 He / she holds a NADRA CNIC for disabled persons 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 […]
LAW Under Clause 2 of Part III of the Second Schedule to the Income Tax Ordinance, 2001, the tax payable by a person shall be reduced by 40% of tax payable on salary income if the following conditions are fulfilled He/she is be a full time teacher or a researcher; He/she is 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 […]
A taxpayer (an individual) is entitled to 50% reduction in tax liability. Further more 40% reduction in tax liability is applicable on full time teachers or researchers in non-profit education or research institution duly recognized by: Higher Education Commission; A Board of Education recognized by Higher Education Commission; or A University recognized by Higher Education Commission; or Government training and research institutions.