Section 48 of the Income Tax Ordinance, 2001 has exempted tax on support payment made to a spouse under an agreement to live apart from income tax obligations.
Issued by the Federal Board of Revenue (FBR) and updated up to June 30, 2021, this section acknowledges the unique circumstances where spouses may opt to live separately and ensures that support payments are not subject to taxation.
The text of Section 48 of the Income Tax Ordinance, 2001 succinctly outlines the provision:
“48. Support payments under an agreement to live apart.— Any income received by a spouse as support payment under an agreement to live apart shall be exempt from tax under this Ordinance.
(Disclaimer: The text of the 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.)”
Section 48 introduces a clear and unambiguous provision, ensuring that any income received by a spouse as support payment under an agreement to live apart is exempt from taxation under the Income Tax Ordinance, 2001.
The Finance Act, 2021, which brought amendments to the Income Tax Ordinance, 2001, did not alter the fundamental provision of Section 48. This reaffirms the stability and continuity of the tax relief granted for support payments in situations where spouses choose to live separately.
The disclaimer accompanying the text of Section 48 emphasizes the information’s informative nature and underscores the team’s efforts to provide accurate versions of the text while not assuming responsibility for errors or omissions.
This tax exemption is particularly noteworthy as it acknowledges the sensitivities surrounding family decisions, recognizing that spouses may enter into agreements to live apart for various reasons. By exempting support payments from taxation, the legislation aims to provide financial relief to spouses navigating such arrangements.
Tax experts commend Section 48 for its role in fostering a more compassionate and considerate approach within the tax system. This provision aligns with the broader societal recognition that family structures and living arrangements can vary significantly, and tax regulations should account for these diversities.
Section 48 of the Income Tax Ordinance, 2001 exemplifies a nuanced and compassionate perspective within taxation. By exempting support payments made under an agreement to live apart, the provision ensures that spouses navigating such circumstances receive financial relief. This aligns with the evolving understanding of diverse family dynamics and reflects a commitment to a tax system that considers the unique situations and choices made by individuals and families in Pakistan.
