Jul 13

FBR categorizes heads of income for tax collection

ISLAMABAD: The Federal Board of Revenue (FBR) has categorized five heads of income for the purpose of tax collection from individuals and corporate entities on their incomes and profits. The FBR said that under the Income Tax Ordinance, 2001, all incomes are broadly divided into following five heads of Income: Salary; Income from property; Income […]

by admin

Jul 12

Definitions, Taxation

FBR explains Pakistan source of income

ISLAMABAD: Federal Board of Revenue (FBR) has defined Pakistan source of income for collection of income tax. Pakistan source of income is defined in section 101 of the Income Tax Ordinance, 2001, which caters for Incomes under different heads and situations. Some of the common Pakistan source Incomes are as under: -Salary received or receivable […]

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What is provisional assessment of taxable income?

Mar 24

Definitions

What is provisional assessment of taxable income?

A provisional assessment is calculation of tax due on a person who has failed to file income tax return for a tax year. A commissioner of Inland Revenue of Federal Board of Revenue (FBR) has been empowered to make provisional assessment of such person under Income Tax Ordinance, 2001. According to Tenth Schedule of Income […]

by Anjum Shah

Mar 7

Definitions

Computation of taxable income defined

Income Tax Ordinance, 2001 has explained procedure for computation of taxable income. The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained COMPUTATION OF TAXABLE INCOME under Sections 9, 10 and 11 of the ordinance. 9. Taxable income.—The taxable income of a person for a […]

by Anjum Shah

E-intermediary defined by Income Tax Rules

Mar 3

Definitions

E-intermediary defined by Income Tax Rules

E-intermediary is explained as a person or a firm appointed on behalf of another person or a firm to get the job done. The Income Tax Rules, 2002 updated up to September 08, 2020 issued by the Federal Board of Revenue (FBR) explained “e-intermediary” as a person registered as,- (i) Chartered Accountant with the Institute […]

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What is ‘start up’ under income tax ordinance?

Mar 2

Definitions

What is ‘start up’ under income tax ordinance?

Income Tax Ordinance, 2001 has defined the meaning of ‘start up’ for the purpose of levying income tax. The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), defined ‘startup’ as: (i) a business of a resident individual, AOP or a company that commenced on or […]

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Small company defined by income tax ordinance

Mar 2

Definitions

Small company defined by income tax ordinance

Income Tax Ordinance, 2001 has defined the meaning of ‘small company for the purpose of levying income tax. The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained ‘small company as a company registered on or after the first day of July, 2005, under the […]

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‘Salary’ explained for determination of income tax

Feb 28

Definitions

‘Salary’ explained for determination of income tax

Income Tax Ordinance, 2001 has defined the meaning of salary for the purpose of determining income of a paid employee. The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) defined the salary as : (1) Any salary received by an employee in a tax year, […]

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What is royalty under Income Tax Ordinance?

Feb 28

Definitions

What is royalty under Income Tax Ordinance?

Income Tax Ordinance, 2001 has defined the meaning of royalty paid by companies for use of rights. The Income Tax Ordinance, 2001 up dated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), defined the meaning of ‘royalty’ as any amount paid or payable, however described or computed, whether periodical or […]

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ITO explains principal officer of company

Feb 28

Definitions

ITO explains principal officer of company

Income Tax Ordinance (ITO), 2001 has explained principal officer of a company for the purpose or apply law and rules for the purpose of income tax payment. The Income Tax Ordinance, 2001 updated up to June 30, 2001 issued by the Federal Board of Revenue (FBR) defined ‘principal officer’ with reference to a company or […]

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