The advance tax rates on motor vehicle registration and purchase from manufactures for year 2021/2022 shall be:–
(more…)Tag: FBR
FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.
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How depreciation deduction allowed for tax calculation
How depreciation deduction allowed for tax calculation is explained by the Federal Board of Revenue (FBR) through updated version of the Income Tax Ordinance, 2001, which incorporates amendments introduced through the Finance Act, 2021.
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Expenditures not allowed against business income
Section 21 of Income Tax Ordinance, 2001 highlights expenditures and deductions, which are not allowed under business income.
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FBR redefines Tier-1 retailers for integration
The Federal Board of Revenue (FBR) has redefined Tier-1 retailers, making it mandatory for them to integrate sales data on a real-time basis.
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Tax law allows deductions against business income
KARACHI: Income Tax Ordinance, 2001 has allowed certain deductions against income from business for calculation of tax liability.
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FBR reduces sales tax rate on petrol to 10.77%
In a move aimed at providing relief to consumers, the Federal Board of Revenue (FBR) has announced a reduction in the sales tax rate on the supply of petrol. The new rate, effective immediately, is set at 10.77%, down from the previous rate of 16.40%.
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Tax treatment of income from speculation business
Section 19 of Income Tax Ordinance, 2001 explains speculation business and tax treatment of income from this business.
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Tax evaders may be arrested without warrant
KARACHI: The tax authorities have powers to arrest tax evaders without warrants for concealment of income or assets.
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Taxation on income from business under updated law
Section 18 of Income Tax Ordinance, 2001 has explained the incomes derived from various types of transactions including sales of goods shall be taxed under income from business.
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Non-adjustable amounts received in relation to buildings
Section 16 of Income Tax Ordinance, 2001 explains the non-adjustable amounts received in relation to buildings.
The Federal Board of Revenue (FBR) issued the updated Income Tax Ordinance, 2001 up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 16 of Income Tax Ordinance, 2001:
Section 16. Non-adjustable amounts received in relation to buildings.— (1) Where the owner of a building receives from a tenant an amount which is not adjustable against the rent payable by the tenant, the amount shall be treated as rent chargeable to tax under the head “Income from Property” in the tax year in which it was received and the following nine tax years in equal proportion.
(2) Where an amount hereinafter referred to as the “earlier amount” referred to in sub-section (1) is refunded by the owner to the tenant on termination of the tenancy before the expiry of ten years, no portion of the amount shall be allocated to the tax year in which it is refunded or to any subsequent tax year except as provided for in sub-section (3).
(3) Where the circumstances specified in sub-section (2) occur and the owner lets out the building or part thereof to another person hereinafter referred to as the “succeeding tenant” and receives from the succeeding tenant any amount hereinafter referred to as the “succeeding amount” which is not adjustable against the rent payable by the succeeding tenant, the succeeding amount as reduced by such portion of the earlier amount as was charged to tax shall be treated as rent chargeable to tax under the head “Income from Property” as specified in sub-section (1).
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