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 from any employment exercised in Pakistan wherever paid;
– Salary paid by, or on behalf of, the Federal Government, a Provincial Government, or a local Government in Pakistan, wherever the employment is exercised;
– Dividend paid by Resident Company;
– Profit on debt paid by a Resident Person;
– Property or rental Income from the lease of immovable property in Pakistan;
– Pension or annuity paid or payable by a Resident or permanent establishment of a Non-Resident.
The FBR also defined foreign source Income as any Income, which is not a Pakistan source Income.