Exemption to judges of superior courts under Income Tax Ordinance 2001

Exemption to judges of superior courts under Income Tax Ordinance 2001

Income Tax Ordinance, 2001 has granted various exemption to judges of superior courts on their earnings, according to official sources.

The government of Pakistan has announced that judges of the Supreme Court of Pakistan and judges of high courts will be granted significant tax exemptions on various benefits, allowances, and perquisites under the Income Tax Ordinance, 2001. This move aims to provide judges with certain financial incentives and recognize their service to the country’s judicial system.

The exemption granted by the government applies to a range of benefits and allowances received by these distinguished members of the judiciary. These exemptions are designed to ensure that the judges’ financial security and well-being are adequately safeguarded, recognizing the importance of their role in upholding the rule of law and justice in the country.

The specific categories of benefits and allowances that judges of the Supreme Court of Pakistan and high courts are now exempt from include:

1. Perquisites and Benefits Derived from the Use of Official Cars: Judges are now exempt from paying taxes on perquisites and benefits related to the use of official cars maintained at government expense. This provision is expected to ease the financial burden on judges and ensure their convenience in fulfilling their duties.

2. Superior Judicial Allowance: Judges of the Supreme Court of Pakistan and high courts will not be taxed on the superior judicial allowance, which is a significant part of their compensation.

3. Transfer Allowance: Judges of high courts are also eligible for a transfer allowance, which will now be exempt from taxation. This exemption is meant to support judges in meeting the financial demands of transferring to different locations as required by their roles.

In addition to these allowances, the following perquisites of judges will also be exempt from taxation, both during their service and upon retirement:

1. Services of a Driver and an Orderly: Judges of the Supreme Court and high courts are entitled to the services of a driver and an orderly, which will not be subject to taxation.

2. Free Local Telephone Calls: Judges will be allowed to make up to 1000 free local telephone calls per month without incurring taxes.

3. Utilities: Judges will be provided with 1000 units of electricity, 25 hm3 of gas, and free water supply each month. These will not be taxed.

4. Petrol Allowance: Judges will receive 200 liters of petrol per month, which will also be tax-exempt.

Furthermore, in the unfortunate event of a judge’s passing during their service, the tax exemption on benefits and perquisites provided to their widow, as mentioned in sub-clause (2), will also apply to the widow. This compassionate provision recognizes the sacrifices made by the families of judges in the service of justice.

The government’s decision to grant these exemptions under the Income Tax Ordinance, 2001, reflects its commitment to supporting and honoring the members of the superior judiciary in Pakistan. It is intended to provide financial relief to judges and their families, ensuring their well-being during and after their service. This move is expected to enhance the morale and financial security of the judicial officers, ultimately benefiting the overall justice system in the country.

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