Income Tax
The System
The taxation of income is governed by the income ordinance
1979.and the procedure there of Are mainly contained in the income Tax
Rules.1982
Income Year and Assessment Year
The terms "income year" and "Assessment year" have the
following meaning.
-
The financial year (01 July to 30 June)
-
In special cases the Centeral Board of Revenue, may on its
or at the request of an assessee. Specify the period of twelve month ending
on any other date as the income year.
"Assessment year" means the period of twelve months beginning
on the 01 July next following the income year.
Scope of Income Chargeable to Tax
The total income of an assessee can be charged to tax
under any of the following heads.
-
Salary
-
Interest in securities.
-
Income from house property.
-
Income from business and profession.
-
Capital gains.
-
Income from other sources
Legal Status of the Assessee
An assessee under the Ordinance may have any of the following
status for charge of tax.
Individual
Association of persons (AOP)
Hindu undivided family (HUF)
Unregistered firm
Registered firm
Company (Public. etc.)
Tax on income of certain persons from dividends,
bank profits, etc.
Section 80B of the Ordinance specifies that gross amount
from certain sources received by resident and non-resident non company
assessees shall be deemed to be income of such assessees and tax deducted
or collected at source shall he deemed to be the final discharge of the
tax liability of such persons.
-
Dividend Income 10%
-
Prizes on prize bond and winnings from raffles ,lottery or
crossword puzzles 7.5%
-
Profit or interest on deposits or an account maintained with
any banking company domestic company or body corporate or
Finance society 10%
-
Profit or interest on bonds. certificates debentures or instruments
of every kind issued by a banking company or
Any other company 10%
-
Amount received on encashment of Bearer certificates of the
Government banking company financial institution a company ,a local authority
or a finance 2%
Foreign Exchange Bearer Certificate. 1%
Tax on income of certain contractors, importers and
suppliers
Rate
-
payment on account of supplies of Goods(other than below)
3.5%
-
payment on account of supplies of rice, cotton, cotton seeds
and edible oil 1.5%
-
payment on account of supplies or transportation of goods
through goods
-
transport vehicles 2%
-
payment on account of supplies of raw hides and skins ,cotton
lint, raw wool 1%
-
Payment on account of execution of contracts. 5%
-
Value of goods imported 5%
-
Lease money on account of octroi, duties, tolls, fee, or
other levies 5%
Income payable on payments
-
Execution of contracts other than mention below 6%
-
Execution of trunkey contracts 9.8%
-
Execution of contracts or sub contracts for designing supply
of plant and equipment and construction of power project 4%
Personal tax rates
-
Upto income of 100,000 10%
-
From 100,000 to 200,000 10,000+20%
-
From 200,001 to 300,000 30,000+30%
-
On Rs 300,001 and above 60,000+35%
Rates of tax for companies
Assessment year
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000 &
there after
|
Banking company
66
64
62
60
60
58
55
50
|
Public listed and Majority Govt owned Company
44
42
39
36
36
33
30
30
|
Other companies
55
52
49
46
46
43
40
35
|
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