TAX ON TAXABLE
INCOME
Taxable income: (sec- 9) means (Total
income minus deductible allowances) the taxable income of a person during the
tax year after giving the credit of deductible allowances to the person for the
relevant year
.
Deductible allowances: (sec –60)
ii) Any zakat
paid by the person in a tax year under Zakat and Ushr Ordinance 1980.
iii) If the person is not able to claim zakat
paid under this section from his taxable income, the same cannot be refunded,
carried forward to a subsequent tax year or carried back to preceding tax year.
iv) Workers’
welfare fund (Chargeable
to manufacture having total income exceeding Rs 5 lacs)
v) Workers’
profit participation fund
Total Income
(sec –10) The total
income of a person for a tax year shall be the sum of the person’s income under
each of the income for the year.
Heads of Income:
(sec 11) Heads of income
are classified into following Five categories:
a) Salary
b) Income from property
c) Income from Business
d) Capital Gains
e) Income from Other sources
i)The
income of a person shall be the sum of the all amounts derived under the above
mentioned heads of income after giving the credit of deductible allowances as
allowed under this ordinance.
ii) If the total deductions allowed under this
Ordinance exceed the total income derived by a person under a head in that
year, the person shall be treated as sustaining a loss for that head for that
year. Loss for a head of income for a tax year shall be dealt in accordance
with sec 56 to 59. Loss under one head of income can be set off against other
head of income except capital loss and speculation loss.
iv) The income of non-resident person under a head of income shall be
computed by taking in to account only amount that are Pakistan source
income.
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