Salary codes explained for tax returns

Salary codes explained for tax returns

ISLAMABAD: Federal Board of Revenue (FBR) has explained codes to be used for entering the tax deducted at source under the head of salary.

An employer deducts income tax from salary of taxable income of an employee under section 149 of Income Tax Ordinance, 2001.

Many salaried persons are confused at the time of filing annual income tax return regarding entering the adjustable amount that was deducted from salary at source.

The FBR said that tax deducted at source from salary is to be entered under ‘adjustable tax regime’ against any of the following relevant code:

01. 6402001 for salary of federal government employees under section 149

02. 6402002 for salary of provincial government employees under section 149

03. 6402003 for salary of corporate sector employees under section 149

04. 6402004 for salary of other employees under section 149.

The FBR further explained that medical allowance is to be entered in second column against code 1049 under salary.

The FBR also explained regarding declaration of pension received from ex-employer. The tax body said that pension is to be entered in second column against code 1099 under the head of salary.

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