Income Tax ordinance,1979- PakSearch.com

(i) does not exceed Rs. 2500.	Nil
(ii) exceeds Rs. 2500 but does not exceed Rs. 4000	Rs. 150
(iii) exceeds Rs. 4000 but does not exceed Rs. 6000	Rs. 300
(iv) exceeds Rs. 6000 but does not exceed Rs. 7500	Rs. 400
(v) exceeds Rs. 7500	Rs. 500

(i) does not exceed Rs. 2500.	Nil
(ii) exceeds Rs. 2500 but does not exceed Rs. 5,000	Rs. 250
(iii) exceeds Rs. 5,000 but does not exceed Rs. 10,000	Rs. 500
(iv) exceeds Rs. 10,000 but does not exceed Rs. 20,000	Rs. 1000
(v) exceeds Rs. 20,000 but does not exceed Rs. 30,000	Rs. 2000
(vi) exceeds Rs. 30,000	Rs. 3000

N. The rates of collection of income tax under Sub-section (7H) of section 50.	Ten per cent of The amount of Commission or Discount,";

"Explanation.- For the removal of doubt, it is hereby declared that the term "total income" referred to in this paragraph does not include income to which section 80C or section 80CC applies.

D.

E. Rate of super tax for purposes of deduction under sub-section (3) of section 50,-
(i)

A.
B. In respect of the income year relevant to the assessment year commencing on or after the first day of July, 1990,-

[….]

(c) where the total income of any person (,not being a person whose total income consists of, or includes, any income chargeable under the head 'Salary' and such income constitutes more than fifty per cent of the total income) does not exceed one hundred thousand rupees and the return of total income qualifies for acceptance under a scheme of self assessment made under sub-section (1) of section 59 for that year, the amount of surcharge payable shall be three hundred rupee:
.Provided that no surcharge under this sub-paragraph shall be payable for the assessment year commencing on, or after, the first day of July, 2002

(d) any individual, unregistered firm, association of persons and Hindu undivided family shall pay surcharge, in addition to the amount specified in sub-paragraph (c), equal to ten per cent of the amount of income tax payable not being the amount of presumptive income tax payable under section 80B, 80C, or 80CC:
Provided that no surcharge under this sub-paragraph shall be payable for the assessment year commencing on, or after, the first day of July, 2002

Provided that no surcharge shall be payable by an assessee for any assessment year beginning on or after the first day of July, 1999, where his total income consists of, or includes, any income chargeable under the head "salary" and such income constitutes more than fifty per cent of his total income.

A. Notwithstanding anything contained in this Schedule [ ],-

(1) where the assessee is a cooperative society, the tax shall be payable at the rates specified in paragraph A of Part I, or paragraph A of Part V of this Schedule relevant to the rates of public companies, whichever treatment is more beneficial to the assessee;

(2) Tax rebate at the rate of five per cent shall be allowed in the case of a person other than a company who-
(i) derives income chargeable under the head " Income from business or profession"; and
(ii) issues to the customers, for each transaction of sale or receipt, a cash memo with his name, or the name of his business and address, National Tax Number and serial number of the memo printed thereon.

(2A) where an assessee,-
(a) being a company registered under the Companies Act, 1913 (VII of 1913), and having its registered office in Pakistan, repatriates to Pakistan any income chargeable to tax under the head 'Income from business or profession' in any income year which has been derived by it from a construction work executed by it outside Pakistan, no super tax shall be payable by it on such income;

(b) not being a company, who is resident in Pakistan, repatriates in any income year any income earned abroad by way of fees for any technical or consultancy service rendered outside Pakistan, he shall be entitled to a rebate equal to thirty per cent of income-tax or super-tax payable on the
income so repatriated:

Provided that-
(i) such income is received in Pakistan in accordance with the law for the time being in force for regulating payments and dealings in foreign exchange; and
(ii) where the assessee is a registered firm, super-tax payable by it shall be reduced by an amount calculated on the basis of the income tax payable on its total income if it were the total income of an un-registered firm as does not exceed the said super tax;

(2B) no super tax shall be payable by a registered firm in respect of the income, profits and gains derived by it from the exercise of a profession if such income, profits and gains depend wholly or mainly on the professional qualifications of its partners who are prevented by any law for the time being in force or by convention or rules or regulations of the professional association, society or similar body of which they are members to constitute themselves into a corporate body with a limited liability which can be registered as a company under the Companies Act, 1913 (VII of 1913), unless such profession consists wholly or mainly in the making of contracts on behalf of other persons or the giving to other persons of advice of a commercial nature in connection with the making of contracts;

(2C) Where the total income of an assessee includes any profits and gains derived from import of goods or wholesale business the tax payable by him in respect of such import or wholesale shall be reduced by an amount equal to five per cent of the said tax, if he furnishes complete details of sales indicating the amount of sales and the names , National Tax Number and full addresses of the purchasers.

(2D) Where an assessee, being an individual and resident in Pakistan, incurs any personal expenditure on legal [ ] services and furnishes alongwith his return of total income the receipts bearing names , National Tax Number and complete addresses of the [ ] legal practitioners, a rebate in tax computed at the average rate of tax shall be allowed to him on the total amount of such receipts.

(2E) Where an assessee, incurs any expenditure on education of his dependent children, the tax payable by him shall be reduced by five per cent of such expenditure, subject to the conditions that:-
(i) the educational expense does not exceed Rs. 30,000 per annum per child; and
(ii) the receipt of such expense bears National Tax Number of the educational institution.

(3) where a person, not being a company, is not resident in Pakistan, the tax, including super tax payable by him or on his behalf on his total 'income shall be an amount equal to-
(a) the income-tax which would be payable on his total income at the rate of twenty per cent or the income tax which would be payable on his total income if it were the total income of the person resident in Pakistan, whichever is the greater; plus
(b) the super-tax which would be payable on his total income if it were the total income of the person resident in Pakistan:

Provided that any such person may, on the first occasion subsequent to the thirty-first day of March, 1956, on which he is, under this Ordinance or the repealed Act, assessable for any year by notice in writing given to the Deputy Commissi-oner before the thirtieth day of September in the year of assessment declare (such declaration being final and being applicable to all assessments thereafter) that the tax, payable by him or on his behalf on his total income shall be determined with reference to his total world income, and thereupon such tax shall be an amount bearing to the total amount of tax, which would have been payable on his total world income had it been his total income, the same proportion as his total income bears to his total world income:

Provided further that where any such person satisfies the Deputy Commissioner that he was prevented by sufficient cause from making such declaration on the first occasion on which he became assessable and his failure to make such declarat-ion has not resulted in reducing his liability to tax for any year, the Deputy Commissioner may, with the previous approval of the Inspecting Additional Commissioner, allow such person to make the declaration at any time on or after the expiry of the period specified, and such declaration shall have effect in relation to the assessment for the year in which the declarat-ion is made (if such assessment has not been completed before such declaration) and all assessments thereafter [ . ]

Explanation.- For the removal of doubt, it is hereby declared that the term "total income" referred to in this sub-paragraph does not include income to which sections 80B, 80C and 80CC apply; and

(4) where the total income of an assessee includes any income chargeable under the head 'Capital gains' (hereinafter referred to as the said income), the tax including super tax payable by him on his total income shall be-
(a) where the said income has arisen as a result of disposal by the assessee of his capital assets after not more than twelve months from the date of their acquisition by him-income tax and super tax payable on the total income (including the said income);

(b) where the said income consists of capital gains which have arisen on account of the disposal by the assessee of his capital assets after twelve months from the date of their acquisition by him-
(i) in the case of a company or a firm registered under section 68 (including a firm treated as a registered firm under sub- clause (ii) of clause (b) of sub-section (1) of section 69)-

(1) income tax and super tax payable on the total income, as reduced by the said income had such reduced income been the total income, plus

(2) income tax at the rate of twenty five per cent on the whole amount of the said income;
(ii) in the case of other assessee income tax payable on-

(1) the total income, as reduced by the said income had such reduced income been the total income, plus

(2) the amount of the said income as reduced by-

(i) an amount equal to sixty per cent of the amount of the said income, or

(ii) five thousand rupees, whichever is the greater:

Provided that as respects the assessments for the years ending on the thirtieth day of June, 1981; income tax and super tax shall, subject to the other provisions of this Ordinance, be payable on the total income as reduced by the said income.

B.- As used in this Schedule,-
(1) "industrial undertaking" means an undertaking which is set up or commenced in Pakistan on or after the 14th day of August, 1947, and which employs (i) ten or more persons in Pakistan and involves the use of electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agency; or (ii) twenty or more persons in Pakistan and does not involve the use of electrical energy or any other form of energy which is mechanic-ally transmitted and is not generated by human or animal agency and which is-

(i) engaged in-
(a) the manufacture of goods or materials or the subjection of goods or materials to any process, which substantially changes their original condition;

(b) ship-building;

(c) generation, transformation, conversion, transmission or distribution of electrical energy, or the supply of hydraulic power; or

(d) the working of any mine, oil-well or other source of mineral deposits not being an undertaking to which the Fifth Schedule applies; or
(ii) any other industrial undertaking which may be approved by the Central Board of Revenue for the purposes of this clause;

(2) "public company" means-
(a) a company in which not less than fifty per cent of the shares are held by the Government;

(b) a company whose shares were the subject of dealings in a registered stock exchange in Pakistan at any time during the income year and remained listed on the stock exchange till the close of that year; or

(c) a trust formed by or under any law for the time being in force;

(3) "registered firm" means a firm registered under section 68 or a firm treated as a registered firm under sub-clause (ii) of clause (b) of sub-section (1) of section 69;

4.

(5) "total world income" includes all income, profits and gains wherever accruing or arising except any income which is not includible in the total income of an assessee.

A. Notwithstanding anything contained in this Schedule, except Part IV, in the case of a company, not being a modaraba, the rates of income tax on total income excluding such part of total income to which paragraph D and E of F or sections 80BB,80C,80CC or 80CD: apply, shall be as under:-

(1) in respect of the assessment year commencing on the first day of July 1992,-

(2) in respect of the assessment year commencing on or after the first day of July, 1993, as set out in the table below:-

(3) in respect of any assessment year commencing on or after the first day of july, 1999 and thereafter,-

(a) in case of a banking company	50%
(b) in case of a public company other than a banking company	35%
(c) in case of any other company	45%.";

B. In the case of a modaraba in respect of any assessment year commencing on or after the first day of July, 1993, the rate of income tax shall be 25 per cent of total income excluding such part of total income to which paragraph D and E or section 80C or 80CC applies :

Provided that, for any assessment year commencing on or after the first day of July, 1993, and ending on or before the thirtieth day of June, 1995, this paragraph shall have effect as if for the figure "25" the figure "12.5" was substituted:

Provided further that in case of the total income of a modaraba becoming chargeable to tax for the first time in any assessment year commencing on or after the first day of July, 1994, the rate of income tax in the case of such modaraba for such assessment year and the assessment year next following shall be 12.5 per cent of total income.

C. No super tax and surcharge shall be payable by a company in respect of any assessment year beginning on or after the first day of July, 1992.

D. The rates of income tax in respect of the amount representing income from dividends declared or distributed by a Pakistani company or a modaraba shall be as under:-

Provided that rates of tax as specified in clause (b) and clause (c) shall be reduced to 7.5% in case of dividends declared or distributed on shares of a company set up for power generation and transmission line projects.

Provided further that notwithstanding anything contained in this paragraph, the rate of tax in respect of dividend income received upto thirtieth June, 2001 by a company carrying on insurance business shall be the same as specified in paragraph A."

E. The rates of income tax on the amount representing the face value of any bonus shares or the amount of any bonus issued by the company, with a view to increasing its paid-up capital-

B. In the case of every local authority, on the whole of the total income.	12.5 per cent of the income.
C. In the case of every registered firm,-
(1) Where the total income does not exceed Rs. 30,000.	Nil.
(2) Where the total income exceeds Rs. 30,000 but does not exceed Rs. 80,000.	5 per cent of the amount exceeding Rs. 30,000.
(3) Where the total income exceeds Rs. 80,000 but does not exceed Rs. 130,000.	Rs. 2,500 plus 10 per cent of the amount exceeding Rs. 80,000.
(4) Where the total income exceeds Rs. 130,000 but does not exceed Rs. 180,000.	Rs. 7,500 plus 15 per cent of the amount exceeding Rs. 130,000.
(5) Where the total income exceeds Rs. 180,000.	Rs. 15,000 plus 25 per cent of the amount exceeding Rs. 180,000.

(a) in the case of a banking company;	66 per cent
(b) in the case of a public company other than a banking company; and	44 per cent
(c) in the case of any other company.	55 per cent

Assessment Year	Banking Company	Public Company other than a banking Company	Other Company
1993-94	64 per cent	42 per cent	52 per cent
1994-95	62 per cent	39 per cent	49 per cent
1995-96	60 per cent	36 per cent	46 per cent
1996-97	60 per cent	36 per cent	46 per cent
1997-98	58 per cent	33 per cent	43 per cent
1998-99	58 per cent	33 per cent	43 per cent"; and

Assessment Year	Banking Company	Public Company	Other Company
1998-99	55%	30%	35%

(a) in the case of a banking company;	58 per cent
(b) in the case of a public company other than a banking comapny; and	33 per cent
(c) in the case of any other company.	43 per cent

(a) Where such dividends are received by a public company other than the dividend received upto thirtieth June, 2001 by a public company carrying on insurance business	5 per cent of such amount.
(b) where such dividends are received by a body corporate referred to in sub-clause (c) of clause (16) of section 2 or a foreign association declared to be a company under sub-clause (e) of clause (16) of section 2.	15 per cent of such amount.
(c) in other cases.	20 per cent of such amount :

(a) Where a company which issued bonus shares or the bonus is a public company.	10 per cent of such amount.
(b) in other cases.	15 per cent of such amount.