The rent received by a person during a tax year shall be charged under income from property. The tax on income from property shall be charged under Section 15 of Income Tax Ordinance, 2001.
(more…)Author: Faisal Shahnawaz
-
KIBOR rates on July 23, 2021
The State Bank of Pakistan (SBP) has released the Karachi Interbank Offered Rates (KIBOR) for various tenors on Friday, July 23, 2021, providing a crucial snapshot of the prevailing borrowing costs in the interbank market.
KIBOR serves as a benchmark interest rate that signifies the average interest rates at which banks in Pakistan offer unsecured funds to one another in the interbank market. The rates announced by the SBP on July 23, 2021, are as follows:
Tenor Bid Offer 1 – Week 6.94 7.44 2 – Week 6.97 7.47 1 – Month 7.02 7.52 3 – Month 7.13 7.38 6 – Month 7.34 7.59 9 – Month 7.44 7.94 1 – Year 7.53 8.03 These rates provide a snapshot of the current cost of borrowing for different tenors in the interbank market. Financial institutions, businesses, and investors use KIBOR as a crucial reference point to assess prevailing market interest rates. The rates can significantly impact the pricing of various financial products, such as loans and deposits.
The transparency offered by the SBP in releasing these rates aligns with its commitment to maintaining openness in the financial markets and providing essential information for economic analysis.
Market analysts are expected to closely scrutinize these rates to gain insights into the prevailing economic conditions and make informed decisions. The KIBOR rates released by the SBP offer valuable data for financial planning and risk management.
It is essential to note that the rates mentioned represent bid and offer rates for each tenor and are provided in percentage points. The SBP’s commitment to transparency is highlighted through the release of these rates, allowing individuals, businesses, and financial institutions to make well-informed financial decisions.
Interested parties seeking further details are encouraged to visit the State Bank of Pakistan’s official website or reach out to relevant authorities. However, it is crucial to acknowledge that these rates are subject to change based on market conditions, and individuals and institutions are advised to verify the latest rates before making any financial decisions.
The SBP’s dedication to timely rate disclosures ensures that stakeholders can access accurate and up-to-date information for effective financial planning and decision-making.
-
SBP issues customers exchange rates for July 23
KARACHI: The State Bank of Pakistan (SBP) on Friday issued customers’ exchange rates. The exchange rate is on the basis of weighted average rates of commercial banks.
The SBP said the data compiled and disseminated for information only.
These exchange rates are estimates that quoted by various commercial banks to their clients.
The banks provide their indicative exchange rates for commercial transactions with customers.
CURRENCY BUYING SELLING AED 44.1785 44.2727 AUD 119.5072 119.7599 CAD 128.9981 129.2658 CHF 176.2356 176.6018 CNY 25.0840 25.1346 EUR 190.8872 191.3032 GBP 223.0152 223.4961 JPY 1.4701 1.4734 SAR 43.2355 43.3261 USD 162.1309 162.4942 -
Rupee depreciates by 84 paisas in interbank
KARACHI: The Pak Rupee ended down by 84 paisas against the dollar on Friday. The local currency fell due to higher demand of the foreign currency after Eid holidays.
The rupee closed at Rs162.32 to the dollar in interbank foreign exchange market. The local unit previously closed at Rs161.48 in last trading on July 19, 2021.
The market opened after three holidays. It observed holidays from July 20, 2021 to July 22, 2021 on account of Eid ul Adha.
The experts said the rupee fell to nine months low against the dollar. The rupee lost value around Rs4.78 against the dollar since July 01, 2021.
-
Salary income explained by tax ordinance
KARACHI: Section 12 of Income Tax Ordinance, 2001 explained the salary income for imposition of tax. Any amount received as salary by employees from employers is chargeable to tax.
(more…) -
Heads of income for imposition of tax
KARACHI: Section 11 of Income Tax Ordinance, 2001 deals with identifying categories of income. These incomes are chargeable to tax. The Federal Board of Revenue (FBR) issued the updated Income Tax Ordinance, 2001. The Ordinance incorporated amendments brought through Finance Act, 2021.
(more…) -
TikTok blocked in Pakistan due to immoral content
Islamabad – In a decisive move on Wednesday, the Pakistan Telecommunication Authority (PTA) blocked access to the popular social media application TikTok, citing the platform’s consistent failure to prevent the dissemination of immoral content.
(more…) -
Tax on builders, developers under Section 7C, 7D
ISLAMABAD: Section 7C and Section 7D of Income Tax Ordinance, 2001 deal with tax on income of builders and developers.
(more…) -
Tax on profit on debt under Section 7B
The Federal Board of Revenue (FBR) has introduced a pivotal addition to the Income Tax Ordinance, 2001, with the incorporation of Section 7B. This section specifically addresses the taxation of profit on debt derived by individuals or non-corporate entities.
(more…) -
Tax on shipping, air transport income of non-residents
ISLAMABAD: Section 7 of Income Tax Ordinance, 2001 deals with tax chargeability on shipping, air transport income of non-residents.
The Federal Board of Revenue (FBR) issued the updated Income Tax Ordinance, 2001. The Ordinance incorporated amendments brought through Finance Act, 2021.
Section 7: Tax on shipping and air transport income of a non-resident person.— (1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division V of Part I of the First Schedule, on every non-resident person carrying on the business of operating ships or aircrafts as the owner or charterer thereof in respect of –
(a) the gross amount received or receivable (whether in or out of Pakistan) for the carriage of passengers, livestock, mail or goods embarked in Pakistan; and
(b) the gross amount received or receivable in Pakistan for the carriage of passengers, livestock, mail or goods embarked outside Pakistan.
(2) The tax imposed under sub-section (1) on a non-resident person shall be computed by applying the relevant rate of tax to the gross amount referred to in sub-section (1).
(3) This section shall not apply to any amounts exempt from tax under this Ordinance.
Section 7A. Tax on shipping of a resident person.—(1) In the case of any resident person engaged in the business of shipping, a presumptive income tax shall be charged in the following manner, namely:—
(a) ships and all floating crafts including tugs, dredgers, survey vessels and other specialized craft purchased or bare-boat chartered and flying Pakistan flag shall pay tonnage tax of an amount equivalent to one US $ per gross registered tonnage per annum;
(b) ships, vessels and all floating crafts including tugs, dredgers, survey vessels and other specialized craft not registered in Pakistan and hired under any charter other than bare-boat charter shall pay tonnage tax of an amount equivalent to fifteen US cents per ton of gross registered tonnage per chartered voyage provided that such tax shall not exceed one US $ per ton of gross registered tonnage per annum:
Explanation.—For the purpose of this section, the expression “equivalent amount” means the rupee equivalent of a US dollar according to the exchange rate prevalent on the first day of December in the case of a company and the first day of September in other cases in the relevant assessment year; and
(c) A Pakistan resident ship owning company registered with the Securities and Exchange Commission of Pakistan after the 15th day of November, 2019 and having its own sea worthy vessel registered under Pakistan Flag shall pay tonnage tax of an amount equivalent to seventy five US Cents per ton of gross registered tonnage per annum.
(2) The provisions of this section shall not be applicable after the 30thJune, 2030.”
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)