Income Tax Rules 2002

INCOME TAX MANUAL
PART II
INCOME TAX RULES
2002
AMENDED UPTO SEPTEMBER, 2008
GOVERNMENT OF PAKISTAN
FEDERAL BOARD OF REVENUE
(REVENUE DIVISION)
….
INCOME TAX MANUAL
PART II
INCOME TAX RULES, 2002
AMENDED UPTO 30TH SEPTEMBER, 2008
Published by:
FACILITATION AND TAXPAYERS
EDUCATION WING
Income Tax Rules, 2002
Rules Arrangement of Rules Page
CHAPTER I
1. Short title, extent and commencement 1
2. Definitions 1
CHAPTER II
DETERMINATION OF INCOME
HEADS OF INCOME
PART – I
SALARY
3. Valuation of perquisites and benefits 5
4. Valuation of Accommodation 10
5. Valuation of conveyance 10
5A. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
5B. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
5C. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
5D. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
5E. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
6. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
6A. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
6B. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
6C. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
6D. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
7. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
8. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
9. Omitted due to substitution of “Part-I” vide SRO 668(I)/2006
dated 27.06.2006.
PART – II
INCOME FROM BUSINESS
10. Entertainment expenditure 11
11. Agricultural produce as raw materials 11
12. Particulars required to be furnished for claiming depreciation
deduction or initial allowance
12
amortization deduction
13. Apportionment of expenditures 13
CHAPTER III
PERSONS
14. Resident individual 16
CHAPTER IV
TAXATION OF
FOREIGN SOURCE INCOME OF RESIDENTS
15. Foreign income tax 17
16. Foreign tax credit 18
CHAPTER V
TAXATION OF NON-RESIDENTS
17. Application of Chapter 20
18. Income from royalties 20
19. Fees for technical services 21
19A. Certificate of Residence 21
19B. Certificate of payment of tax in Pakistan 24
19C. Certificate for tax sparing credit 27
19D. Application for initiation of Mutual Agreement 30
Procedure (MAP)
19E. Action by the Competent Authority of Pakistan on an
application received through the Competent Authority
31
of a treaty partner country
19F. Form of application for initiation of MAP Proceedings 33
19G. Form of Irrevocable Bank Guarantee 35
CHAPTER VI
TRANSFER PRICING
20. Application of this Chapter 39
21. Interpretation 39
22. International guidelines, etc. 39
23. Arm’s length standard 39
24. Comparable uncontrolled price method 40
25. Resale price method 40
26. Cost plus method 41
27. Profit split method 42
CHAPTER VII
RECORDS AND BOOKS OF ACCOUNTS
PART I
PRELIMINARY
28. Application of Chapter 43
PART II
BOOKS OF ACCOUNT PRESCRIBED
29. Books of account, documents and records to be maintained 44
30. In particular, and without prejudice to the generality of the
provisions of Rule 29, every taxpayer, other than companies,
deriving income chargeable under the head “Income from
business” shall issue and maintain the following minimum
books of account, documents and records
44
30A. Electronic tax register 47
31. Every taxpayer deriving income chargeable under the head
income from salary, property, capital gains or other sources
shall issue and maintain the following minimum documents
and records
48
PART-III
GENERAL INSTRUCTIONS ABOUT MAINTAINING BOOKS
OF ACCOUNTS, DOCUMENTS AND RECORDS
32. General form of books of accounts, documents and records 51
33. Books of account, documents and records to be kept at the
specified place
51
CHAPTER VIII
RETURNS, EMPLOYER’S CERTIFICATE, WEALTH
STATEMENT AND STATEMENT TO BE FILED BY
CERTAIN PERSONS
34. Return of income 52
35. Employer’s certificate in lieu of return of income 52
36. Wealth statement 53
37. Return to be furnished by a non-resident ship owner or
charterer
54
38. Return to be furnished by a non-resident aircraft owner or
charterer
54
39. Statement in lieu of Return of income 55
CHAPTER IX
CERTIFICATES, STATEMENTS AND PROCEDURE FOR
PAYMENT OF ADVANCE TAX
PART I
SECTION 159 CERTIFICATE
40. Exemption or lower rate certificate u/s 159 56
PART II
Collection or Deduction of Tax at Source
Division I
Employer’s Certificate
41. Omitted vide SRO 1062(I)/2007, dated 27.10.2007.
Division II
Certificate for Collection or Deduction of Tax (other than
from salary)
42. Certificate of collection or deduction of tax other than from
salary
60
Division III
Payment of Tax Collected or Deducted
43. Payment of Tax collected or deducted 61
Division IV
Annual and Quarterly Statements of Tax Collected or
Deducted
44. Annual statement of tax collected or deducted 61
45. Statement of tax deducted under the Sixth Schedule to the
Ordinance
62
46. Omitted due to substitution by S.R.O. 651(I)/2004, dated 30th
July, 2004.
47. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
48. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
49. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
50. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
51. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
52. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
53. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
54. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
55. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
56. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
57. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
58. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
59. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
60. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
61. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
62. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
63. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
64. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
65. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
66. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
66A. Omitted vide S.R.O. 641(I)/2005, dated 27.06.2005.
CHAPTER X
PRESCRIBED FORMS
67. Application of Chapter 77
68. Amended assessment notice 77
69. Section 140 notice 77
70. Section 145 certificate 77
71. Section 170 application 77
72. Section 175 authorization 77
CHAPTER XI
FURNISHING OF DOCUMENTS; SERVICE OF
DOCUMENTS; FORMS AND NOTICES
73. Furnishing of documents and returns etc 78
74. Service of documents electronically 80
75. Forms and notices 80
CHAPTER XII
APPEALS
76. Prescribed form of appeal to the Commissioner (Appeals) 81
77. Prescribed form for appeal to the Appellate Tribunal 83
78. Prescribed Form for reference to High Court 84
CHAPTER XIII
NATIONAL TAX NUMBER CARD
79. Application of Chapter 86
80. Application for National Tax Number Card 86
81. Decision on application for a National Tax Number Card 87
82. Cancellation of National Tax Number Card 87
83. Displaying and quoting of National Tax Number Card 88
CHAPTER XIV
REGISTRATION OF INCOME TAX PRACTITIONERS
84. Application of Chapter XIV 89
85. Application for registration as an income tax practitioner 89
86. Prescribed qualification for registration as an income tax
practitioner
89
87. Registration of income tax practitioners 91
88. Duration of registration 91
89. Cancellation of registration 91
90. Appeal to RCIT 93
CHAPTER XV
RECOGNISED PROVIDENT FUNDS, APPROVED
SUPERANNUATION FUNDS AND APPROVED GRATUITY
FUNDS
PART I
RECOGNISED PROVIDENT FUNDS
91. Application for recognition of provident fund 94
92. Decision on application 95
93. Withdrawal of recognition 95
94. Form of appeal in case of non-recognition or withdrawal of
recognition
95
95. Accounts required to be maintained by a recognized
provident fund
96
96. Time limit for submission of accounts kept outside Pakistan 99
97. Limit on contributions by employees 99
98. Limit on contributions by certain employees 99
99. Exclusion from total income of accumulated balances 99
100. Treatment of consideration for dealings with beneficial
interest
99
101. Treatment in certain cases where recognition is withdrawn 100
102. Investment of moneys of a recognized provident fund 100
103. Permitted withdrawals 100
104. Limits on withdrawals 102
105. Second withdrawals 104
106. Repayment of amounts withdrawn 104
107. Power to relax conditions 105
PART II
APPROVED SUPERANNUATION FUNDS
108. Application for approval of a superannuation fund 107
109. Returns, statements and other documents that may be
required to be furnished
107
110. Limits on contribution by the employer 108
111. Investment and deposit of moneys of superannuation fund 108
112. Treatment of consideration for dealings with beneficial
interest
108
113. Circumstances in which approval may be withdrawn 109
114. Form of appeal in case of refusal to approve or withdrawal of
approval
109
PART III
APPROVED GRATUITY FUNDS
115. Application for approval of a gratuity fund 110
116. Returns, statements and other documents that may be
required to be furnished
110
117. Limits on contribution by the employer 111
118. Investment of deposits of moneys of a gratuity fund 111
119. Treatment of consideration for dealings with beneficial
interest
111
120. Circumstances in which approval may be withdrawn 111
121. Form of appeal in case of refusal to approve or withdrawal of
approval
112
CHAPTER XVI
INCOME TAX RECOVERY RULES
PART I
122. Definitions 113
123. Form of notice of recovery to be issued by Commissioner 113
124. Mode of service of notice 114
125. Time limit for execution of the notice 114
126. Disposal of proceeds of execution 114
127. Determination of disputes 115
128. Exemption from attachment 115
129. Investigation by Commissioner 117
130. Removal of attachment on satisfaction or cancellation of
Certificate
117
131. Officer entitled to attach and sell 118
132. Adjournment or stoppage of sale 118
133. Defaulter not to mortgage, etc., any property 118
134. Prohibition against biding or purchase by officer 118
135. Assistance by police 118
PART II
ATTACHMENT AND SALE OF MOVABLE PROPERTY
136. Person authorized to act, etc. 119
137. Service of copy of warrant. 119
138. Attachment 119
139. Property in defaulter’s possession 119
140. Debts and shares, etc. 119
141. Share in movable property 120
142. Attachment of negotiable instrument 120
143. Attachment of property in custody of public officer 121
144. Attachment of property in partnership 121
145. Inventory 121
146. Attachment not to be excessive 121
147. Seizure between sunrise and sunset 121
148. Entry into building by officer, etc. 121
149. Sale 121
150. Issue of proclamation 121
151. Proclamation how made 122
152. Sale after fifteen days 122
153. Sale to be auction or by tender 122
154. Sale by public auction 122
155. Irregularity not to vitiate sale 123
156. Negotiable instruments or share in a corporation 123
157. Order for payment of coin or currency notes to the
Commissioner of Income-tax.
123
PART III
ATTACHMENT AND SALE OF IMMOVABLE PROPERTY
158. Attachment 124
159. Service of notice of attachment 124
160. Proclamation of attachment 124
161. Sale and proclamation of sales 124
162. Contents of proclamation 124
163. Mode of making proclamation 124
164. Time of sale 125
165. Sale to be by auction or by tender 125
166. Deposit by purchaser and re-sale in default 125
167. Procedure in default of payment 125
168. Amount recoverable from purchaser in default 125
169. Authority to bid 125
170. Application to set aside sale of immovable property on
deposit
125
171. Application to set aside sale of immovable property on ground
of non-service of notice or irregularity
126
172. Setting aside sale where defaulter has no saleable interest 126
173. Confirmation of sale 126
174. Return of purchase money in certain cases 127
175. Sale certificate 127
176. Postponement of sale to enable defaulter to raise amount due
under notice
127
177. Fresh proclamation before resale 127
178. Bid of co-sharer to have preference 127
PART IV
APPOINTMENT OF RECEIVER
179. Appointment of receiver for business 128
180. Appointment of receiver for immovable property 128
181. Power of receivers, etc. 128
182. Withdrawal of management 129
PART V
ARREST AND DETENTION OF THE DEFAULTER
183. Notice to show cause 130
184. Hearing 130
185. Custody pending hearing 130
186. Order of detention 131
187. Detention in and release from prison 131
188. Release 131
189. Release on ground of illness 132
190. Entry into dwelling house 132
191. Prohibition against arrest of woman or minor, etc. 132
PART VI
MISCELLANEOUS
192. Continuance of Notice 133
193. Procedure on death of defaulter 133
194. Appeal 133
195. Review 134
196. Recovery from surety 134
197. Receipt to be given 134
198. Subsistence allowance 134
199. Scale of allowance 134
200. Delivery of property in occupancy of defaulter 134
201. Delivery of property in occupancy of tenant 134
202. Resistance or obstruction to possession of immovable
property
134
203. Resistance or obstruction by defaulter 135
204. Resistance or obstruction by bonafide claimant 135
205. Dispossession by certificate holder or purchaser 135
206. Bonafide claimant to be restored to possession 135
207. Rules not applicable to transferee lite pendente 135
208. Delivery of movable property, debts and shares 135
209. Execution of documents and endorsement of negotiable
instruments
136
210. Forms 136
CHAPTER XVII
NON-PROFIT ORGANISATIONS
211. Procedure for the approval of a non-profit organization 142
212. Decision on application 146
213. Refusal to grant approval 146
214. Renewal of approval 149
215. Finalization of applications 150
216. Omitted vide SRO 667(I)/2006 dated 27.06.2006.
217. Power to withdraw approval 151
218. Appeal against a decision made under this rule 152
219. Institution granted approval before commencement of these
rules
154
220. Relaxation of requirements or conditions. 154
220A. Procedure for approval of a non–profit organization for
purpose of sub-clause (3) of clause (58) of Part I of the
Second Schedule.
154
220B Approval and appointment of certification agencies 165
CHAPTER XVIII
TAX CLEARANCE CERTIFICATE
221. Tax clearance certificate 168
222. Form of tax clearance certificate under section 145 169
223. Form of tax exemption certificate 170
CHAPTER XIX
MISCELLANEOUS
224. Conditions for approval of leasing company claiming
depreciation etc.
171
225. Recognized Association of Accountants for the purpose of
section 223
171
226. Appointment of valuers 171
227. Scale of remuneration, fees and allowances for a valuer 173
228. Valuation of assets 173
229. Filing of returns, statements and documents and issuance of
orders, notices through computers
175
230. Charges for various forms 176
231. Computation of export profits and tax attributable to export
sales
176
231A Procedure for issuance of advance ruling under section 206A 177
231B Withdrawal of application 178
231C Income tax alternate dispute resolution 180
232. Repeal and Savings 185
SCHEDULES
FIRST SCHEDULE
Part I Application for foreign tax credit 186
Part II Notice/letter under section 122 of the Income Tax Ordinance,
2001
187
Part III Notice under section 138(2) of the Income Tax Ordinance,
2001
188
Part IV Notice under section 140 read with rule 69 of the Income Tax
Rules, 2002
189
Part V Notice under section 145 of Income Tax Ordinance, 2001 and
rule 70 in respect of a person who is likely to leave Pakistan
permanently
190
Part VI Prescribed application for refund of tax 191
Part VII Application for certificate of exemption from deduction of tax
or deduction at a lower rate under section 159
192
Part VIII Reduce rate / exemption certificate 193
Part IX – Application for issuance of national tax number under
section 181 of the Income Tax Ordinance, 2001
194
Part X – Application for registration of income tax practitioner 197
Part XI – Notice under sub-section 4 of section 114 of the Income
Tax Ordinance, 2001
198
Part XII – Prescribed form for notice of demand in payment of tax due 199
Part XIII – Form of authorization (see rule 72/section 175) 200
SECOND SCHEDULE
Part I Return of total income/statement of final taxation 202
IT-I under the Income Tax Ordinance, 2001 (for Company)
Annex-
A
Depreciation, Initial Allowance and Amortization 203
Annex-
B
Carry forward and brought forward of Unabsorbed
Depreciation, Initial Allowance, Amortization and Business
Losses (Other than Speculation Business)
204
Annex-
C
Tax Already Paid Including Adjustments and with Return 205
Part II
IT-II
Return of total income/statement of final taxation under the
Income Tax Ordinance, 2001 (for Individual / AOP)
206
207
Annex-
A
Depreciation, Initial Allowance and Amortization 208
Annex-
B
Carry forward and brought forward of Unabsorbed
Depreciation, Initial Allowance, Amortization and Business
Losses (Other than Speculation Business)
209
Annex-
C
Tax Already Paid Including Adjustments and with Return 210
Part III Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Part IIIA Omitted vide S.R.O. 680(I)/2007, dated 05.07.2007.
Part IV Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Part V Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Part VA Wealth Statement. 224 –
225
Part VI Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IIA
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IIB
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IIC
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IID
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IIE
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IIF
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IIG
Omitted vide S.R.O. 680(I)/2007, dated 05.07.2007.
Annex
III
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IV
Omitted vide S.R.O. 680(I)/2007, dated 05.07.2007.
Annex
V
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
VI
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
VII
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
VIII
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
IX
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Annex
X
Omitted vide S.R.O. 680(I)/2007, dated 05.07.2007.
Annex
XI
Omitted vide S.R.O. 680(I)/2007, dated 05.07.2007.
Annex
XII
Omitted vide S.R.O. 785(I)/2007, dated 04.08.2007.
Part VII Certificate of Collection and Deduction of Tax. 249
Part VIII Annual Statement of Collection or Deduction of Income Tax
(other than from salary).
252
Part IX Annual Statement of Deduction of Income Tax from salary. 254
IT-3 Declaration by salaried persons. 255
To be submitted to the Employer by the Employee.
Part X Monthly Statement of Collection or Deduction of Income Tax
– Section 165(2)
261
Tax Rate Card – Tax Year 2008. 262
Part XI Statement of Deduction of Income Tax from Payment of
contributions to An Approved Superannuation Fund.
266
Part XII Statement Regarding Transfer of Property. 266
Part XIII Statement Regarding Sale of Motor Vehicle. 268
0
1
Income Tax Rules, 2002
CHAPTER-I
1. Short title and commencement. – (1) These rules may be called the
Income Tax Rules, 2002.
(2) They extend to the whole of Pakistan.
(3) They shall come into force on the first day of July, 2002; except
rules 3 to 9 which shall be applicable in respect of income earned on or after first
day of July, 2002, and other rules covered by the rule on “Saving”.
2. Definitions. – (1) In these rules, unless there is anything repugnant in the
subject or context, –
(a) 1[“Federal Board of Revenue” means the Federal Board
of Revenue, established under the Federal Board of
Revenue Act, 2007;]
Note: Notification No. S.R.O..1102(I)/91 (Oct 5, 1991) – the
reference “Board” wherever appearing in the Rules
includes a reference to “Regional Commissioners of
Tax” and “Commissioner of Tax”, as the case may be.
2[(aa) “Computerized Payment Receipt” means a computer
generated receipt issued by the State Bank of Pakistan
or the National Bank of Pakistan acknowledging
payment of tax;
(ab) “digital certificate” or “digital signatures” means a digital
certificate or digital signatures issued by an agency
approved by the 3[Federal Board of Revenue] to issue
such certificate or signatures;
(ac) “e-intermediary” means a person registered as,-
(i) Chartered Accountant with the Institute of
Chartered Accountants of Pakistan;
1 Substituted by the Finance Act, 2007. The substituted definition read as follows:
“Central Board of Revenue” means the Central Board of Revenue, established under the Central
Board of Revenue Act, 1924 (IV of 1924);
2 Inserted by SRO 516(I)/2006 1st June 2006
3 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
2
(ii) Cost and Management Accountant with the
Institute of Cost and Management Accountants of
Pakistan;]
(iii) a legal practitioner entitled to practice in any
Court in Pakistan;
(iv) a member of the Association of Chartered
Certified Accountants, UK; or
(v) an Income Tax Practitioners, registered with Tax
Bar affiliated with All Pakistan Tax Bar
Association.]
(b) “electronic transmission” means a facsimile or
electronic-mail transmission;
(c) “Ordinance” means Income Tax Ordinance, 2001 (XLIX
of 2001), where however, context so provides, Income
Tax Ordinance, 1979 (XXXI of 1979) till its relevance in a
particular context; 1[ ]
(d) “section” means section of the Ordinance 2[ ]
3[(e) “schedule” means a schedule to these rules] 4[; and]
5[(f) “transmission” means to transmit data through a
computer network.]
(2) All other expressions used but not defined in these rules shall
have the meaning assigned to them under the Income Tax Ordinance, 2001.
1 The word “and” omitted by S.R.O. 651(I)/2004, dated 30th July, 2004.
2 The word “and” omitted by S.R.O. 516(I)/2006, dated 1st June, 2006.
3 Added by S.R.O. 651(I)/2004, dated 30th July, 2004.
4 The word “and” inserted by S.R.O. 516(I)/2006, dated 1st June, 2006.
5 Added by S.R.O. 516(I)/2006, dated 1st June, 2006.
3
1[CHAPTER-II
DETERMINATION OF INCOME – HEADS OF INCOME]
1 Substituted by S.R.O. 609(I)/2002 dated 10.09.2002. The original Chapter II read as follows:
“CHAPTER II
DETERMINATION OF INCOME – HEADS OF INCOME
PART-1: SALARY
3. Valuation of perquisites and benefits. – For the purposes of computing the income
chargeable to tax under the head “Salary”, the value of perquisites and benefits includable in the
said income shall be taken as determined under these rules.
4. For the purpose of these rule:-
(a) “Basic salary” means any pay, wages or other remuneration provided to an
employee, excluding leave pay, payment in lieu of leave, overtime payment,
bonus, commission, fees, gratuity, work condition supplements or any other
allowances and perquisites referred to in sub-clauses (b) to (f) of sub-section (2)
of section 12, sub-section (3) of section 12 and section 14.
(b) “Salary” means “Salary” as defined in sub-section (2) of section 12 excluding the
exempt value of allowances, perquisites or benefits determined/ computed under
rules 5 and 9.
(c) “Unfurnished accommodation or housing” includes electric fans, built in
cupboards, cooking range and water heater.
“Furnished accommodation or housing” includes basic furniture and furnishing, appliances for
cooking, refrigeration and heating and cooling appliances in addition to the items available in
respect of ‘unfurnished accommodation or housing’.
5. House rent receivable in cash.- Where no accommodation or housing is provided
by the employer to an employee, whose salary is less than Rs. 600,000 in a year, the house rent
allowance receivable in cash exceeding 45% of the minimum of the time scale of the basic salary
shall be added to the income.
6. Valuation of perquisites. – (1) The value of motor vehicle for the purposes of sub-section
(3) of section 13 shall be determined as under:
(a) Where the motor vehicle is provided by an employer wholly for private use of the
employee ten percent of the cost to employer for acquiring the motor vehicle or, if
the motor vehicle is taken on lease by the employer, ten percent of the fair
market value of the motor vehicle at the commencement of the lease. The value
as determined at the time of commencement of lease shall be adopted for the
purpose of this rule on the transfer of the motor vehicle at any time under the
lease agreement.
(b) Where the motor vehicle is provided by an employer partly for private use of the
employee:
(i) Where the salary does not exceed
Rs. 600,000/-
5% of the basic salary.
(ii) Where the salary exceeds Rs.
600,000/
50% of the value determined
under clause (a).
(c) (i) Where motor vehicle is hired by the employer for private use by the
employee, the amount of hire charges paid by the employer shall be added
as income of the employee.
(ii) Where, however, salary is less than Rs. 600,000/-, addition shall be
restricted to 50% of the hire charges borne by the employer or 5% of the
basic salary whichever is higher.
7. Value of accommodation and housing.- (I) The value of accommodation or housing for
the purposes of sub-section (12) of section 13 shall be determined as under:-
(I) Where annual salary does not exceed Rs. 600,000/-,
For rent free un-furnished
accommodation.
Amount to be added to the
taxable income.
4
(i) Where the fair market rent
does not exceed 45% of the
minimum of the time scale
of the basic salary.
(ii) Where the fair market rent
exceeds 45% of the
minimum of the time scale
of the basic salary.
Nil.
The amount exceeding 45% of the
minimum of the time scale of the
basic salary subject to a maximum of
15% of the basic salary.
(ii) Where rent free furnished accommodation is provided, in addition to amount
determined under sub-clause (1), if any, an amount equal to 15% of the basic
salary shall be added to the taxable income.
(a) Where the annual salary exceeds Rs. 600,000/-.
(iii) For rent free unfurnished accommodation or housing
Accommodation or
housing with land area
In areas falling within the
limits of Metropolitan
Corporation, Municipal
Corporation, Cantonment
Board or the Islamabad
Capital Territory
Others
Upto 250 sq. yards Rs. 36,000/- Rs.24,000/-
Above 250 sq. yards
and upto 500 sq. yards
Rs. 96,000/- Rs.60,000/-
Above 500 sq. yards
and upto 1000 sq. yards
Rs. 180,000/- Rs.96,000/-
Above 1000 sq. yards
and upto 2000 sq. yards
Rs. 336,000/- Rs.180,000/-
Above 2000 sq. yards Rs. 420,000/- Rs.240,000/-
(iv) Where rent free furnished accommodation is provided, in addition to
amount determined under sub-clause (1), if any, an amount equal to
15% of the basic salary shall be added to the taxable income.
(c) Where the accommodation or housing is provided by the employer at a
concessional rate the value as determined under clause (a) or (b), as the
case may be, as reduced by the payment made by the employee for the
accommodation or housing.
(3) For the purpose of this rule and rule 5, where time scale of the basic salary is not
provided in the terms of employment, the basic salary would be taken instead of
minimum in time scale of the basic salary.
8. Free or concessional passage for travel abroad or within Pakistan.-Where free or
concessional passage for travel abroad or within Pakistan by an employer to an employee (including
members of his household and dependants), or where the expenditure incurred by the employee on
such travel by the employee is reimbursed by the employer, or where any allowance is granted by the
employer to the employee for in respect of such travel, there shall be included in the taxable income
of the employee.
Amount to be added to the
taxable income
(i) Where the provision of passage is in accordance with
the terms of employment of the employee.
(ii) Where the provision of passage is not in accordance
with the terms of employment of the employee.
Amount in excess of 15% of
salary.
The cost of the employer for
providing the passage.
9. Minor perquisites. – The provision by an employer to an employee of tea, coffee and other
similar refreshments at the employer’s business premises during the course of work shall not be
treated as salary of the employee.”
5
1[PART-I
SALARY
3. Valuation of perquisites, allowances and benefits.- For the purposes
of computing the income chargeable to tax under the head “salary”, the value of
all perquisites, allowances and benefits provided by the employer to the
employee shall be included in the said income in accordance with the rules 4 to 7.
1 Substituted by S.R.O. 668(I)/2006 dated 27th June, 2006. The Substituted Part I read as under:
“Part I
Salary
3. Valuation of perquisites, allowances benefits: – for the purpose of computing the
income chargeable to tax under the head “Salary”, the value of perquisites, allowances and benefits
includible in the said income shall be determined in accordance with the rule 4 to 9.
4. For the purpose of determining the value of perquisites, allowances and benefits under
rule:
(a) “annual value” of an accommodation means the sum for which the
accommodation might reasonably be expected to let from year to year;
(b) “basic salary” means the pay and allowances payable monthly or otherwise, but
does not include –
(i) dearness allowance or dearness pay unless it enters into the
computation of superannuation or retirement benefits of the employee
concerned;
(ii) employer’s contribution to a recognised provident fund or a fund to
which the Provident Funds Act, 1925 (XIX of 1925), applies and the
interest credited on the accumulated balance of an employee in such
fund;
(iii) allowances which are exempt from the payment of tax under any
provision of this Ordinance;
(iv) allowances and perquisites referred to in sub-clauses (b) to (f) of subsection
(2) of section 12, sub-section (3) of section 12, section 14; and
(v) allowances, perquisites, annuities and benefits referred to in rules 5 to
9;
(c) “salary” means remuneration or compensation for services rendered, paid or to
be paid at regular intervals and includes overseas, dearness or cost of living
allowance by whatever name it may be described, and bonus or commission
which is payable to an employee in accordance with the terms of his employment
as remuneration or compensation for services including any amount received by
an employee from any employment, whether of a revenue or capital nature,
including the amounts referred to in sub-section (2) of section 12, but does not
include the employer’s contribution to a recognized provident or superannuation
fund or gratuity fund or any other sum which does not enter into the computation
for pension or retirement benefits;
(d) “employee” includes a director of a company working whole-time for one
company
(e) “unfurnished accommodation or housing” includes electric fans, built in
cupboards, cooking range and water heater; and
6
(f) “furnished accommodation or housing” includes basic furniture and furnishing,
appliances for cooking, refrigeration and heating and cooling appliances in
addition to the items available in respect of “unfurnished accommodation or
housing”.
5. House rent allowances receivable in cash.- Where the house rent allowance is
receivable by the employee in cash, the amount, if any, by which the house rent allowance so
receivable exceeds forty-five per cent of the minimum of the time scale of the basic salary or the
basic salary where there is no time scale, shall be included in his income.
5A. Rent-free unfurnished accommodation.- Where rent-free accommodation is provided to
an employee, there shall be included, in the total income of such employee, an amount calculated as
under:-
Value of accommodation Amount to be included in the total income.
(a) Where the annual value of the accommodation
does not exceed an amount equal to forty-five
per cent of the minimum of the time scale of his
basic salary or the basic salary where there is
no time scale.
Nil
(b) Where the annual value of the accommodation
exceeds an amount equal to forty-five per cent
of the minimum of the time scale of his basic
salary or the basic salary where there is no
time scale.
The amount exceeding forty-five per cent of
the minimum of the time scale of his basic
salary or the basic salary where there is no
time scale, subject to a maximum of fifteen
percent of salary.
5B. Rent free furnished accommodation.- Where rent free furnished accommodation is
provided to the employee, an amount equal to ten percent of his salary over and above the amount
determined for inclusion under rule 5A shall be added to his income.
5C. Accommodation hired by the employee with rent payable by the employer.- Where
the accommodation is hired by the employee in his own name but the rent is payable by the
employer, the amount includable in the salary shall be determined under rule 5A or 5B, as the case
may be as reduced by any payment made by the employee for such accommodation.
5D. Accommodation provided at a concessional rate.- Where the accommodation is
provided to the employee, other than a person in the civil or military employment of the Government,
at a concessional rate, the difference between the rent actually paid by him and the amount
determined to be includible in an employee’s salary under rule 5A or 5B shall be added to his income.
5E. House rent allowance receivable in addition to accommodation, etc.- Where any
house rent allowance is receivable by the employee in addition to the benefits referred to in rules 5A,
5B, 5C or 5D, the whole amount of the allowance shall be added in his income in addition to the
amount computed under any of the said rules.
6. Conveyance allowance receivable in cash with no conveyance facility.- Where
neither any conveyance is provided by the employer nor any conveyance owned or maintained by the
employee is used by him in the performance of the duties of office held by him and conveyance
allowance is receivable by him in cash, the amount of such allowance exceeding Rs. 3600 or the
actual expenditure incurred by the employee, which ever is less, shall be included in his income.
6A. Motor vehicle provided exclusively for personal or private use.- Where a motor vehicle
is provided by the employer for the use of the employee exclusively for personal or private purposes,
there shall be included in the employee’s income an amount equal to7
(a) the sum actually expended by the employer on running and
maintenance of the motor vehicle (including normal depreciation,
where the motor vehicle is owned or the amount of rental where the
motor vehicle is hired by the employer) if the motor vehicle is used by
one employee; and
(b) the sum arrived at by dividing the amount as computed under sub-rule
(a) by the number of persons entitled to use the motor vehicle if the
motor vehicle is used by more than one employee.
6B. Additional conveyance allowance.- Where any conveyance allowance is receivable by
an employee in addition to the perquisite mentioned in rule 6A, the whole amount of such allowance
plus the amount determined under the rule 6A shall be included in his income.
6C. Motor vehicle used partly for personal and partly for business purposes.- Where the
motor vehicle is used by the employee partly for his personal and partly for business purposes, there
shall be included in his income,-
(a) where the motor vehicle is owned or hired by the employer and its running
(including hire and maintenance) costs are also borne by the employer and the
motor vehicle is used exclusively by one person, 50 per cent of the sum actually
expended on the running of the motor vehicle (including maintenance and normal
depreciation where the motor vehicle is owned or the amount of rental where it is
hired by the employer) or Rs.3600, whichever is the less;
(b) where the motor vehicle is owned or hired by the employer and its running
(including hire and maintenance) costs are also borne by the employer and the
motor vehicle is used by more than one person, the sum arrived at by dividing
the amount representing 50 per cent of the sum actually expended by the
employer on the running of the motor vehicle (including maintenance and normal
depreciation where the motor vehicle is owned or the amount of rental where it is
hired by the employer) by the number of such persons or Rs.2400, whichever is
the less;
(c) where the motor vehicle is owned or hired by the employer and its running cost is
borne by the employee, the amount, if any, by which the conveyance allowance
paid by the employer exceeds Rs.2400 or 7.5 per cent of the basic salary,
whichever of these two sums is the higher;
(d) where the motor vehicle is owned by the employee and its running (including hire
and maintenance) costs are also borne by him the amount by which the
conveyance allowance paid by the employer exceed Rs.3600 or 10 per cent of
the basic salary, whichever of these two sums is the higher; and
(e) where the motor vehicle is owned by the employee and its running (including hire
and maintenance) costs are borne by the employer, the amount, if any, by which
the conveyance allowance paid by the employer exceeds Rs.1200 or 2.5 per
cent of the basic salary, whichever of these two sums is the higher.
6D. Motor vehicle used exclusively for business purposes.- Where the motor vehicle is
used by the employee exclusively for business purposes, there shall be included in his income,-
(a) where the motor vehicle is owned or hired by the employer and its running
(including hire and maintenance) costs are also borne by him, the whole amount
of the conveyance allowance, if any, receivable by the employee;
(b) where the motor vehicle is owned or hired by the employer and its running
(including hire and maintenance) costs are borne by the employee, the amount, if
any, by which the conveyance allowance paid by the employer exceeds the
8
actual expenditure incurred by the employee on the running (including
maintenance) of the motor vehicle;
(c) where the motor vehicle is owned or hired by the employee and its running
(including maintenance) costs are borne by him, the amount, if any, by which the
conveyance allowance paid by the employer exceeds Rs.4800 or 10 per cent of
the basic salary, whichever of these two sums is the higher; and
(d) where the motor vehicle is owned by the employee and its running (including
maintenance) costs are borne by the employer, the amount, if any, by which the
conveyance allowance paid by the employer exceeds Rs.2400 or 7.5 per cent of
the basic salary, whichever of these two sums is the higher.
7. Provision of passage for travel.- (1) Where free or concessional passage for travel
abroad or within Pakistan is provided by the employer to an employee (including the members of his
household and dependants), there shall be included in the income of the employee-
(i) where the passage is provided in accordance with the terms of employment, an amount
equal to the sum by which the cash payment, if any, made by the employer exceeds the
actual expenditure on fare incurred by the employee; or
(ii) where the passage is not in accordance with the terms of employment, the whole of the
amount paid in cash, if any, or if no cash payment is made, the amount which would have
been expended by the employee had the free or concessional passage, as the cash may
be, not been provided by the employer:
Provided that where free or concessional passage for travel abroad is availed of by the
employee more than once in two years and more than once in three years for the members of his
household and dependants, the whole of the amount paid to him in cash, if any, for such additional
passage or if no cash payment is made the amount which would have been expended by him, had
the additional passage not been provided by the employer shall be included in his income.
(2) Where the transport is provided free of cost, or at the concessional rate, by an
undertaking engaged in the transport of passengers or the carriage of goods to any employee of the
undertaking (including the members of the household and dependants) in any conveyance owned or
chartered by the undertakings for the purpose of the transport of the passengers or carriage of goods,
nothing shall be added in his income.
8. Minor Perquisites.- The provision by an employer to an employee of tea, coffee and other
similar refreshment at the employer’s business premises during the course of work shall not be
treated as salary of employee.
9. Valuation of perquisites, allowances, benefits where salary is Rs.600,000 or more.-
(1) Where income chargeable under the head “Salary” of an employee including the value of
perquisites as determined under rule 4 to 8 is six hundred thousand rupees or more for any tax year,
the value of allowances perquisites and benefits shall be determined in accordance with sub rule (2 to
5) of this rule.
(2) Where any allowance or perquisite is receivable in cash, the whole of such
amount shall be included in the employee’s salary except house rent allowance receivable by the
employee in cash up to 45% of the minimum of the time scale of his basic salary or the basic salary
where there is no time scale subject to a maximum of two hundred seventy thousand rupees.
(3) Where any perquisite is receivable otherwise, than in cash, the amount
chargeable to the employee under the head “salary” for that year shall include the fair market value of
the perquisite, determined at time it is provided, except provision of housing or accommodation, and
provision of motor vehicle, as reduced by any amount paid by the employee for the perquisite.
9
(4) The value of accommodation or housing for the purposes of sub-section (12) of
section 13 shall be determined as under:
(a) Where free unfurnished accommodation or housing is provided to the employee,
the value for addition to the income shall be made on the following basis as
reduced by 45% of the minimum of the time scale of his basic salary or the basic
salary where there is no time scale, subject to a maximum of two hundred and
seventy thousand rupees.
Accommodation or
housing-
Value for areas falling
within the limits of
Metropolitan
Corporation, Municipal
Corporation,
Cantonment Board or
the Islamabad Capital
Territory.
Value for
other areas
With land area upto
250 sq. yards.
Rs.40,000 Rs.27,000
With land areas
exceeding 250 sq.
yards but not
exceeding 500 sq.
yards.
Rs.106,000 Rs.66,000
With land area
exceeding 500 sq.
yards but not
exceeding 1000 sq.
yards.
Rs.1,99,000 Rs.106,000
With land area
exceeding 1000 sq.
yards but not
exceeding 2000 sq.
yards.
Rs. 370,000 Rs.198,000
With land area
exceeding 2000 sq.
yards.
Rs.462,000 Rs.264,000
(b) Where free furnished accommodation is provided to the employee, the value for
addition to income shall be the amount determined under clause (a) of this subrule
as increased by and a further sum equal to 15 per cent of the said amount.
(5) The value of perquisite representing provision of a motor vehicle, for the purposes of subsection
(3) of section 13, shall be determined as under:-
(a) where the motor vehicle is provided by an employer wholly for private use of the
employee, 10% of the cost to the employer for acquiring the motor vehicle or the
fair market value of the vehicle at the commencement of lease, if the motor
vehicle is taken on lease by the employer;
(b) where the motor vehicle is provided by an employer partly for private use of the
employee, 5% of the cost to the employer for acquiring the motor vehicle or the
fair market value of the vehicle at the commencement of lease, if the motor
vehicle is taken on lease by the employer;
(c) where the motor vehicle is used by more than one employee, the amount as
determined in clause (a) or (b), as the case may be, divided by number of
employees using the motor vehicle;
where an employee makes any payment to the employer in respect of the use of motor vehicle, the
value of perquisite as determined under clause (a), (b) or (c) as reduced by the amount paid by him.]”
10
4. Valuation of Accommodation. – The value of accommodation provided
by an employer to the employee shall be taken equal to the amount that would
have been paid by the employer in case such accommodation was not provided.
Provided that the value taken for this purpose shall, in any case, not be less than
forty five percent of the minimum of the time scale of the basic salary or the basic
salary where there is no time scale 1[:]
2[Provided further that where House Rent Allowance is admissible @ thirty per
cent, the value taken for the purpose of this rule shall be an amount not less than
thirty per cent of minimum of the time scale of basic salary or the basic salary
where there is no time scale.]
5. Valuation of conveyance.- The value of conveyance provided by the
employer to the employee shall be taken equal to an amount as below: –
(i) Partly for personal and partly
for official use
5% of:
(a) the cost to the employer for
acquiring the motor vehicle; or,
(b) the fair market value of the
motor vehicle at the
commencement of the lease,
if the motor vehicle is taken
on lease by the employer;
(ii) For personal use only 10% of:
(a) the cost to the employer for
acquiring the motor vehicle; or,
(b) the fair market value of the motor
vehicle at the commencement of
the lease, if the motor vehicle is
taken on lease by the employer;
and
6. For the purpose of this part, “employee” includes a director of a
company.
7. These Rules shall be applicable for the salary income received after
thirtieth of June 2006].
3[ ]
4[ ]
1 Full stop substituted by SRO 716(I)/2008, dated 02.07.2008.
2 Added by SRO 716(I)/2008, dated 02.07.2008.
3 Rule “8” omitted due to substitution of “Part-I” vide SRO 668(I)/2006, dated 27.06.2006.
4 Rule “9” omitted due to substitution of “Part-I” vide SRO 668(I)/2006, dated 27.06.2006.
11
PART- II
INCOME FROM BUSINESS
10. Entertainment expenditure. – (1) For the purpose of clause (d) of
section 21, which provides for a limitation on the deduction of entertainment
expenditure, and subject to sub-rule (2), a deduction for entertainment
expenditure shall be limited to expenditure incurred by a person that satisfies the
conditions laid down in sub-section (1) of section 20 and which is –
(a) expenditure incurred outside Pakistan on entertainment
in connection with business transactions or where such
expenditure is allocated as head office expenditure;
(b) expenditure incurred in Pakistan on entertainment of
foreign customers and suppliers;
(c) expenditure incurred on entertainment of customers and
clients at the person’s business premises;
(d) expenditure incurred on entertainment at a meeting of
shareholders, agents, directors or employees; or
(e) expenditure incurred on entertainment at the opening of
branches.
(f) any other entertainment expenditure incurred on
refreshment to employees as per rule 9.
(2) A person shall be allowed a deduction under sub-rule (1) only for
expenditure incurred on the entertainment of persons related directly to the
person’s business.
(3) In this rule, “entertainment” means the provision of meals,
refreshments, and reasonable leisure facilities in accordance with the tradition of
business and subject to overall norms and customs of business in Pakistan.
11. Agricultural produce as raw materials. – (1) This rule applies to a
person who is a cultivator or receiver of agricultural produce as rent-in-kind and
who uses agricultural produce raised or received as raw materials in a business
the income from which is chargeable to tax under the head “Income from
Business”.
(2) In determining the amount of income of a person to whom this
section applies, the market value of any agricultural produce raised or received
as rent-in-kind by the person and used as raw materials in the person’s business
shall be allowed as a deduction.
12
(3) For the purposes of sub-rule (2), the market value of agricultural
produce shall be-
(a) where the agricultural produce is ordinarily sold in the
market in its raw state or after application of any process
ordinarily employed by a cultivator or receiver of
agricultural produce as rent-in-kind to render it fit to be
taken to market, the market price for the produce at the
time it is used as raw materials in the person’s business;
or
(b) in any other case, the sum of the following amounts,
namely:-
(i) the expenses of cultivation; and
(ii) the land revenue rent paid for the area in which
the produce is grown.
(4) No deduction shall be allowed for any expenditure incurred by a
person as cultivator or receiver of agricultural produce as rent-in-kind, other than
as specified in sub-rule (2).
12. Particulars required to be furnished for claiming depreciation
deduction or initial allowance amortisation deduction. – (1) The following
particulars shall be furnished by a taxpayer at the time of furnishing a return of
income for any tax year in order to claim a depreciation deduction under section
22, an initial allowance under section 23 or an amortisation deduction under
section 24 read with the Third Schedule to the Ordinance, namely: –
(a) a description of each depreciable asset and intangible in
respect of which a deduction is claimed;
(b) where a depreciable asset or intangible is used in the tax
year only partly in deriving income from business
chargeable to tax, the extent of such part use;
(c) Prior months for which in assets as in (b) are put to use
in deriving business income;
(d) if the depreciable asset or intangible was acquired in the
tax year, the date of acquisition;
(e) the written down value of each depreciable asset at the
beginning of the tax year computed in accordance with
sub-section (5) of section 22 and the cost of each
intangible as determined under sub-section (11) of
section 24;
13
(f) the amount of capital expenditure incurred in the tax
year on additions, alterations, improvements or
extensions in relation to any depreciable asset or
intangible and where the depreciable or amortisable
amount of such expenditure is limited under the
Ordinance, the lower amount shall also be stated;
(g) the total value of each depreciable asset for which a
depreciation deduction is allowable for the tax year (this
is the sum of the amounts specified in clauses (e) and
(f), less any initial allowance allowed for the asset in that
year;
(h) the prescribed rate of depreciation and initial allowance
(if any) for each depreciable asset or class of asset for
the tax year, and the normal useful life for each
intangible;
(i) the amount of depreciation deduction and initial
allowance (if any) for each depreciable asset for the year
and the amount of amortisation deduction for each
intangible for the year;
(j) the total depreciation deduction, initial allowance and
amortisation deduction allowed for the tax year; and
(k) the written down value of each depreciable asset and
the cost of intangible at the end of the tax year, and the
remaining normal useful life.
Explanation: Addition to intangible to be separately
shown.
(2) The following particulars shall be furnished by a taxpayer at the
time of furnishing a return of income for any tax year in which a depreciable asset
or intangible is disposed of in the year, namely:-
(a) the consideration received for the asset or intangible;
(b) the written down value of the asset or intangible
disposed of at the beginning of the tax year; and
(c) the excess or deficit of the consideration received in
relation to the written down value (i.e., clause (b) less
clause (a) or clause (a) less clause (b), as the case may
be).
13. Apportionment of expenditures.- (1) This rule applies for the purposes
of section 67, which provides for apportionment of expenditure incurred for more
than one purposes.
14
(2) Any expenditure that is incurred for a particular class or classes
of income shall be allocated to that class or classes, as the case may be.
(3) (a) Any common expenditure including financial expenses,
excluding relatable or attributable to the non-business
advances or loans and amount at (2); relatable to
business including presumptive and exempt income,
shall be allocated to each class of income according to
the following formula, namely:-
A x B/C
where –
A is the amount of the expenditure incurred;
B is the total amount gross receipts (without
deduction of expenditures) for the tax year for
the class of income; and
C is the total amount gross receipts (without
deduction of expenses) and net gains for the tax
year of all classes of income;
(b) where, however, there is net gain, brokerage,
commission and other income is to be taken and
turnover of such transactions is taken at these figures,
such income is to be compared with gross profit from
business for adopting figures for component “B” and “C”
of the formula at (a) above.
(4) Where expenditures are to be allocated among different classes
of income under sub-rule (3), consideration shall be given to the nature and
source of each class of income, on reasonable basis to earn each class of
income (particularly, in allocating selling expenses).
(5) Where the allocation of expenditures is made in accordance with
sub-rule (3) a certificate by the Chartered Accountants or Cost and Management
Accountant stating the basis of allocation shall be accepted unless significant
variations are found; and where books are not required to be audited, the
reasonable basis based on the sub-rule (3) and (4) may be adopted which would
be accepted by Commissioner, unless variation is found. Significant variations
would be beyond the limits of 10 + in collection as in sub-rule (3) under any head
of account.
(8) In this rule. –
“class of income” means –
(a) Pakistan-source income chargeable under the head
“Salary”;
15
(b) foreign-source income chargeable under the head
“Salary”
(c) Pakistan-source income chargeable under the head
“Income from Property”;
(d) foreign-source income chargeable under the head
“Income from Property”;
(e) Pakistan-source income chargeable under the head
“Income from Business” (other than income subject to
section 19);
(f) foreign-source income chargeable under the head
“Income from Business” (other than income subject to
section 19);
(g) Pakistan-source income from a speculation business
chargeable under the head “Income from Business”;
(h) foreign-source income from a speculation business
chargeable under the head “Income from Business”;
(i) Pakistan-source income chargeable under the head
“Capital Gains”;
(j) foreign-source income chargeable under the head
“Capital Gains;
(k) Pakistan-source income chargeable under the head
“Income from Other Sources”
(l) foreign-source income chargeable under the head
“Income from Other Sources”
(m) income exempt from tax;
(n) chargeable to tax under section 5, 6 or 7; and
(o) amounts to which section 169 applies except proceed
realised from experts from which separate provision is
made as sub-rule (8); and
“common expenditure” means expenditure that is not clearly
allocable to any particular class or classes of income, such as
general administrative and other such allocable expenditures.
16
CHAPTER – III
PERSONS
14. Resident individual.- (1) This rule applies for the purposes of section
82, which provides for the determination of persons as resident individuals.
(2) The following rules apply for the purposes of clauses (a) and (b)
of section 82 in computing the number of days an individual is present in
Pakistan in a tax year, namely:-
(a) subject to clause (c), a part of a day that an individual is
present in Pakistan (including the day of arrival in, and
the day of departure from, Pakistan) counts as a whole
day of such presence;
(b) the following days in which an individual is wholly or
partly present in Pakistan count as a whole day of such
presence, namely:-
(i)
(ii)
(iii)
(iv)
a public holiday;
a day of leave, including sick leave;
a day that the individual’s activity in Pakistan is
interrupted because of a strike, lock-out or
delay in receipt of supplies; or
a holiday spent by the individual in Pakistan
before, during or after any activity in Pakistan;
and
(c) a day or part of a day where an individual is in Pakistan
solely by reason of being in transit between two different
places outside Pakistan does not count as a day present
in Pakistan.
17
CHAPTER – IV
TAXATION OF FOREIGN-SOURCE INCOME OF RESIDENTS
15. Foreign income tax.- (1) This rule applies for the purposes of sections
102 and 103, which provide resident persons with relief from international double
taxation.
(2) A foreign levy is a foreign income tax if the following conditions
are satisfied, namely:-
(a) the levy is a tax; and
(b) the tax is substantially equivalent to the income tax
imposed by the Ordinance.
(3) Subject to sub-rules (4) and (5), a foreign levy is a tax if it
requires a compulsory payment pursuant to the authority of the foreign country to
levy taxes.
(4) A penalty, fine, interest or similar obligation is not a tax for the
purposes of this Chapter.
(5) A foreign levy is not a tax to the extent that a person subject to
the levy receives or is entitled to receive, directly or indirectly, a specific
economic benefit from the foreign country in exchange for the payment pursuant
to the levy.
(6) Subject to sub-rule (7), a foreign tax is substantially equivalent to
the income tax imposed under the Ordinance if the following conditions are
satisfied, namely:-
(a) the tax is imposed in respect of events that would result
in the derivation of income, gains or profits under the
Ordinance; and
(b) the taxable amount is computed under the foreign tax by
subtracting from gross receipts any significant expenses
and the depreciation or amortization of capital costs
attributable to such receipts, or, where the tax is
imposed under the foreign law or any other basis;
(c) Dividend or interest income earned from foreign source,
on being so taken by the 1[FBR], may be treated to have
same character for the resident person, as it has under
the Ordinance.
1 The words “CBR” substituted by the Finance Act, 2007.
18
(7) The following foreign taxes are substantially equivalent to the
income tax imposed under the Ordinance, namely:-
(a) a withholding tax imposed on dividends, gross receipts
payable to non-resident persons as final tax; or
(b) tax on wages by withholding imposed as a final tax on
salary.
(8) In this rule,
(a) “economic benefit” includes –
(i) any property;
(ii) any service;
(iii) any fee or other payment;
(iv) any right to use, acquire or extract natural
resources, patents, or other property owned or
controlled by the foreign country; or
(i) any reduction or discharge or a contractual
obligation; and
(b) “specific economic benefit” means an economic benefit
that is not available on substantially the same terms –
(i) all persons subject to the income tax generally
imposed by the foreign country; or
(ii) if there is no generally imposed income tax, the
population of the country in general.
16. Foreign tax credit.- (1) This rule applies for the purposes of section 103,
which provides for the foreign tax credit.
(2) A resident taxpayer claiming a foreign tax credit for a tax year
shall submit an application for the credit with the taxpayer ‘s return of income for
that year.
(3) an application for a foreign tax credit shall be in the form as
specified in Part I of the First Schedule to these rules.
(4) Subject to sub-rule (5), an application for a foreign tax credit
shall be accompanied by the following documentation, namely:-
19
(a) where the tax has been deducted at source, a
declaration by the payer of the income that tax has been
deducted and a certified copy of the receipt that the
payer has received from the foreign tax authority for the
deducted tax; or
(b) in any other case, the original or a certified copy of the
receipt that the taxpayer has received from the foreign
tax authority for the tax paid.
(5) Where a resident taxpayer cannot obtain evidence of the
deduction of tax from the payer of income as required under clause (a) of subrule
(4), the Commissioner may accept such secondary evidence of the
deduction as is determined by him.
20
CHAPTER – V
TAXATION OF NON-RESIDENTS
17. Application of Chapter.- The rules in this Chapter apply for the
purposes of sub-clause (ii) of clause (a) of sub-section (2) of section 237, which
provides for the making of rules concerning the manner in, and procedure by,
which the income, profits and gains chargeable to tax, and the tax payable
thereon, under the Ordinance shall be determined in the case of non-resident
persons.
18. Income from royalties.- The income of a non-resident person by way of
royalty received from a resident person or a permanent establishment in Pakistan
of a non-resident person shall be –
(a) in the case a royalty received in pursuance of an
agreement made before the 8th day of March, 1980, or
an agreement made on or after the said date the
proposal in respect of which was approved by the
Government before the said date, the gross amount of
the royalty less the deductions allowed under section 40;
or
(b) in any other case, to which sub-section (2) of section 6
does not apply, the gross amount of the royalty less then
the following expenditure.
(i) any expenditure incurred in Pakistan to earn
such royalty, wherever paid;
(ii) any expenditure incurred outside Pakistan in
pursuance of such agreement not exceeding ten
percent of gross amount of royalty.
1[ ]
(c) in the case of royalty received in pursuance to any other
agreement, the gross amount of the royalty less the
following expenditures only, namely:–
(i) any expenditure incurred in Pakistan in earning
such income;
(ii) any expenditure incurred in Pakistan in respect
of any work done in pursuance of such
agreement; and
1
Proviso omitted by S.R.O. 590(I)/2004 dated 7th July, 2004. The omitted proviso read as follows:
“Provided that a non-resident may opt for taxation under sub-section (2) of section 6 of
Income Tax Ordinance, 2001, by filing a written declaration/ option within 15 days of the
commencement of contract. Such option shall remain operative till completion of the said contract.”
21
(iii) any expenditure incurred outside Pakistan in
respect of any work done in pursuance of such
agreement not exceeding ten per cent of the
gross amount of such royalty.
(d) The provisions of sub-rule (b) and (c) would not apply
where, royalty is covered by section 169.
19. Fees for technical services.- (1) The income of a non-resident person
by way of fees for technical services received from a resident person or a
permanent establishment in Pakistan of a non-resident person shall be –
(a) in the case of fees received in pursuance of an
agreement made before the 8th day of March, 1980, or
an agreement made on or after the said date the
proposal in respect of which was approved by the
Government before the said date only in such cases, the
gross amount of the fees less the deductions allowed
under section 40;
(b) in the case of fees received in pursuance of an
agreement made on or after 8th day of March, 1980 but
before the 4th day of May, 1981, the gross amount of the
fees less the deductions allowed under section 40 with a
maximum total deduction equal to twenty per cent of the
gross amount of such fees; or
(c) in any other case to which sub-section (2) of Section 5 of
the Income Tax Ordinance, 2001 does not apply, the
gross amount of royalty less the following perquisites.
(i) Any expenditure incurred in Pakistan to earn
such royalty, wherever paid.
(ii) Any expenditure incurred outside Pakistan in
pursuance of such agreement not exceeding ten
percent of gross amount of royalty.
Provided that a non-resident may opt for taxation under
section 6 of Income Tax Ordinance, 2001, by filing a
written declaration/ option within 15 days of the
commencement of contract. Such option shall remain
operative till completion of the said contract.
(d) Sub-rule (c) would not apply where the fee for technical
service is covered by the provisions of section 169.
1[19A. Certificate of Residence. (1) Where any person, resident in Pakistan,
seeks to obtain a certificate of residence from the Competent Authority of
Pakistan for its presentation before the tax authorities of another country with
1 Added by SRO 619(I)/2006 dated 08-06-2006.
22
which Pakistan has signed an Agreement for the Avoidance of Double Taxation
and Fiscal Evasion, for the purposes of obtaining tax credit or fiscal relief, the
person may submit an application in this behalf in the Form prescribed below,
namely :-
Form of Application for Obtaining
Certificate of Residence
To
The Competent Authority of Pakistan,
1[Federal Board of Revenue],
Constitution Avenue,
Islamabad.
Sir,
Whereas the applicant is resident in Pakistan by way of [INSERT: Entitlement to
residence………………………………….] in respect of the Tax year ending on
[INSERT: Date…………], and has earned [INSERT: Type/Head of
Income…………………….…………..] income in [INSERT: Name of the
country………………..], during the period [INSERT:
From…………….To……………….…]; and that Pakistan and [INSTERT: Name of
the other country ……………………..….] have signed an Agreement for the
Avoidance of Double Taxation and Fiscal Evasion, dated………………….., which
entitles the applicant to a reduced tax rate/tax credit/tax sparing credit/fiscal relief
in [INSERT: Name of the Country………………………….] upon issuance of a
Certificate of Residence by the Competent Authority of Pakistan, for which
purpose, all relevant particulars are as under, namely:-
1 Name / Nomenclature of the Applicant
2 Whether Individual, AOP or Company?
3 CNIC / Registration / Incorporation No
4 Address in Pakistan
5 Telephone / Fax / email address
6 National Tax Number
7 Income declared for the Tax Year
8 Name and Designation of Tax Authority to
which the Certificate is intended for
presentation
9 Type (s) / Particulars of Income Earned
Copies of the following documents in support of our claim are enclosed, namely:-
(1) Proof of earning of income in the foreign country;
(2) Copy of NIC;
(3) Copy of NTN Certificate;
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
23
(4) Copy of the Certificate of Incorporation (if applicable) ; and
(5) Copy of the Income Tax Return for the latest tax year (if applicable)
Verification
I________________________________________ son/daughter/wife of Mr.
_________________________________________solemnly declare that to the
best of my knowledge and belief, the information given in this application and the
annexures and statements accompanying it is correct.
2. I also declare that to the best of my knowledge, I have not concealed any fact
or information which could be relevant for deciding my application.
3. I further declare that I am making this application in my capacity as
(designation) and that I am competent to make this application and verify it.
Date___________________
Place __________________
Signatures: ………………..
Name: ……………………..
(2) The Competent Authority of Pakistan, if required, shall cause to call for a
report from the Commissioner concerned.
(3) The Commissioner after verifying all the relevant facts as stated by the
taxpayer in the application shall submit his report within fifteen days of the receipt
of the application by him.
(4) The Competent Authority of Pakistan shall decide upon the request of the
taxpayer and issue the Certificate of Residence as per the Form prescribed
below within forty five days of the submitting of the application, namely:-
Form of Certificate of Residence
Issued by the Competent Authority
[CERTIFICATE OF RESIDENCE FOR PRESENTATION BEFORE THE TAX
AUTHORITIES OF …..…IN RESPECT OF THE TAX YEAR ………]
I certify that Mr/Ms/M/s___________________________ is resident in Pakistan
by way of _______________________________________, and subject to taxes
in Pakistan covered in the Agreement for Avoidance of Double Taxation and
Fiscal Evasion between Pakistan and ……………….. The particulars relating to
his/her/its person, and the details of economic activities and tax paid in Pakistan
during the Tax Year are as under, namely:-
24
(a) Name ………………………………………………………………………………
(b) Address ……………………………………………………………………………
(i) Residence …………………………………………………………………….
(ii) Office …………………………………………………………………………..
(c) Telephone (Res) …………… (Off) ………………….. (Fax) …………………
(d) CNIC / Registration / Passport No.
(e) National Tax No.
(f) Personal Status ……………………………………………………………………
(g) Main sources of Income ………………………………………………………….
(h) Other sources (s) of income ……………………………………………………..
(i) Income Declared / Assessed for the Tax Year ………………………………..
(j) Total Tax Paid / Payable for the Tax Year …………………………………….
(k) LTU / RTO …………………………………………………………………………
THE COMPETENT AUTHORITY
Member (Direct Taxes)
(5) In respect of each tax year a separate application shall be submitted by the
taxpayer, and a separate Certificate shall be issued by the Competent Authority
of Pakistan.
(6)In case the Competent Authority of Pakistan decides not to issue a Certificate
of Residence, it shall communicate its decision along with reasons of rejection
thereof to the applicant taxpayer within forty five days of the submitting of the
application.]
19B. Certificate of payment of tax in Pakistan. (1) Where any person, nonresident
in Pakistan, seeks to obtain a certificate of payment of tax in Pakistan by
way of deduction, collection or otherwise, which attains finality or which is a final
tax under any provision of the Ordinance or that of the Agreement for the
Avoidance of Double Taxation and Fiscal Evasion between Pakistan and the
country of residence of the applicant taxpayer, for presentation before the tax
authorities of the country of his residence, the person may submit an application
to the Competent Authority of Pakistan in the Form prescribed below, namely:-
25
Form of Application for Obtaining Certificate
Of Payment of Tax in Pakistan
To
The Competent Authority of Pakistan,
1[Federal Board of Revenue],
Constitution Avenue,
Islamabad.
Sir,
Whereas the applicant was resident in [INSERT: Name of the
country……………………………………….], by reason of [INSERT: Nationality,
Incorporation, Situs of Management………………………], and thus non-resident
in Pakistan in respect of the Tax year ending on …………………..; and that
Pakistan and [INSTERT: Name of the country of residence ………………….]
have signed an Agreement for the Avoidance of Double Taxation and Fiscal
Evasion dated………………….., which entitles the applicant to a tax credit / fiscal
relief in respect of the tax paid in Pakistan, in the country of his residence upon
issuance of a Certificate of Payment of Tax Paid by the Competent Authority of
Pakistan. The relevant details in this regard are as under, namely:-
1 Name / Nomenclature of the Applicant
2 Country of Residence
3 Personal Status [Individual, AOP, Company]
4 Tax Year
5 Particulars / details of income earned in Pakistan
6 Total tax paid in Pakistan for the Tax Year
7 Has any appeal been filed against the imposition of
the aforementioned tax in Pakistan?
8 Have you applied or intend to apply for the refund or
adjustment of the tax paid against demand of any
other year?
Copies of the following documents in support of our claim are enclosed, namely:-
(i) Proof of income earned in Pakistan
(ii) Proof of tax paid in Pakistan
(iii) Proof of residence in the other country
Verification
I________________________________________ son/daughter/wife of Mr.
_________________________________________solemnly declare that to the
best of my knowledge and belief, the information given in this application and the
annexures and statements accompanying it is correct.
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
26
2. I also declare that to the best of my knowledge, I have not concealed any fact
or information which could be relevant for deciding my application.
3. I further declare that I am making this application in my capacity as
(designation) and that I am competent to make this application and verify it.
Date __________________
Place __________________ Signatures: ……………………
Name: …………………………..
(2) The Competent Authority of Pakistan, if required, shall cause to call for a
report from the Commissioner concerned.
(3) The Commissioner after verifying all the relevant facts as stated by the
taxpayer in the application shall submit his report within fifteen days of the receipt
of the application by him.
(4) The Competent Authority of Pakistan shall decide upon the request of the
taxpayer, and issue a certificate of payment of tax in Pakistan, as per the Form
prescribed below within forty five days of the submitting of the application,
namely:-
27
Form of Certificate of Payment of Tax in Pakistan
issued by the Competent Authority
[CERTIFICATE OF TAX PAID IN PAKISTAN FOR PRESENTATION BEFORE
THE TAX AUTHORITIES OF ……IN RESPECT OF THE TAX YEAR ………]
I certify that Mr/Ms/M/s…………………………………………..being non-resident
in Pakistan has paid income tax in Pakistan in respect of the Tax Year ending on
………………………as per the following details:-
1. Name: …………………………………………………………………………………
2. Address: ………………………………………………………………………………
(i). Residence …………………………………………………………………………
(ii) Office :…………………………………………………………………………
3.Telephone :(Res)………………(Off……………………(Fax)…………………..
4. National Tax No. (if any)
5. Personal Status ….……………………………………………………………..
6. Main Sources of Income: ………………………………………………………
7. Other Source(s) of Income: ……………………………………………………
8. Total income declared / assessed: ……………………………………………
9. Total tax paid during the year:..………………………………………………..
10. Tax Office: LTU / RTO : …………………………………………………………………..
Note: Average exchange rate prevalent during the year was US$ 1 = PKR
……..…………….
THE COMPETENT AUTHORITY
Member (Direct Taxes)
(5) After issuance of the certificate of payment of tax in Pakistan, the
Commissioner shall earmark the amount of tax covered by the certificate against
refund or adjustment in lieu of tax demand of the taxpayer in respect of any prior
or subsequent tax year, under any circumstances.
(6) In case the Competent Authority of Pakistan decides not to issue a certificate
of payment of tax in Pakistan, it shall communicate its decision along with the
reasons of rejection thereof to the applicant taxpayer within sixty days of the
submitting of the application at the available address in Pakistan.
19C. Certificate for tax sparing credit. Where any person, non-resident in
Pakistan, seeks to obtain a certificate for tax sparing credit in respect of income
earned through a permanent establishment situated in Pakistan, under a
provision, if any contained therein, of the Agreement for the Avoidance of Double
Taxation and Fiscal Evasion between Pakistan and the country of residence of
such taxpayer, may submit an application to the Competent Authority of Pakistan
in the Form prescribed below, namely:-
28
Form of Application for Obtaining Certificate
for Tax Sparing Credit
To
The Competent Authority of Pakistan,
1[Federal Board of Revenue],
Constitution Avenue,
Islamabad.
Sir,
Whereas the applicant was resident in [INSERT: Name of the
country……………………………………….], by reason of [INSERT: Nationality,
Incorporation, Situs of Management………………………], and thus non-resident
in Pakistan in respect of the Tax year ending on …………………..; and that
Pakistan and [INSTERT: Name of the country of residence ………………….]
have signed an Agreement for the Avoidance of Double Taxation and Fiscal
Evasion dated………………….., which entitles the applicant to a tax credit / fiscal
relief in respect of the tax paid in Pakistan, in the country of his residence upon
issuance of a Certificate of Payment of Tax Paid by the Competent Authority of
Pakistan. The relevant details in this regard are as under, namely:-
1 Name / Nomenclature of the
Applicant
2 Country of Residence
3 Personal Status [Individual, AOP,
Company]
4 Tax Year
5 Particulars / details of income
earned in Pakistan
6 Admitted tax liability paid / payable
in Pakistan
Total tax payable in Pakistan in
case tax incentives / fiscal benefits
would not have been allowed
Has any appeal been filed against
any order of any tax authority in
Pakistan?
7 Amount qualifying for normal tax
credit
8 Amount qualifying for tax sparing
credit
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
29
Copies of the following documents in support of our claim are enclosed, namely:-
(i) Proof of income earned in Pakistan
(ii) Proof of tax paid in Pakistan
(iii) Proof of residence in the other country
Verification
I________________________________________ son/daughter/wife of Mr.
_________________________________________solemnly declare that to the
best of my knowledge and belief, the information given in this application and the
annexures and statements accompanying it is correct.
2. I also declare that to the best of my knowledge, I have not concealed any fact
or information which could be relevant for deciding my application.
3. I further declare that I am making this application in my capacity as
(designation) and that I am competent to make this application and verify it.
Date__________________ Signature……………………
Place _________________ Name: …………………………
(2) The Competent Authority of Pakistan, if required, shall cause to call for a
report from the Commissioner concerned.
(3) The Commissioner after verifying all the relevant facts as stated by the
taxpayer in the application shall submit his report within fifteen days of the receipt
of the application by him.
(4) The Competent Authority of Pakistan shall decide upon the request of
the taxpayer, and issue a certificate for tax sparing credit, as per the Form
prescribed below within 45 days of the submitting of the application, namely:-
30
Form of Certificate for Tax Sparing
Credit issued by the Competent Authority
[CERTIFICATE FOR TAX SPARING CREDIT FOR PRESENTATION BEFORE
THE TAX AUTHORITIES OF ………IN RESPECT OF THE TAX YEAR ……]
I certify that Mr/Ms/M/s………………………………………….. being non-resident
in Pakistan has paid income tax in Pakistan in respect of the Tax Year ending on
………………………as per the following details:-
(a).Name :…………………………………………………………………………………
(b).Address :…………………………………………………………………………
(i). Residence :…………………………………………………………………………
(ii) Office :…………………………………………………………………………
(c).Telephone :(Res)………………(Off……………………(Fax)…………………..
(d). National Tax No. (if any)
(e) Personal Status ………………………………..………………………….……
(f) Main Sources of Income: ………………………………………………………
(g) Other Source(s) of Income: ……………………………………………………
(h) Total income declared / assessed: ……………………………………………
(i) Total tax paid during the year..……….………………………………………..
(j) Total amount of tax spared: ……………………………………………………
(k) Tax Office: LTU / RTO :…………………………………………………………………..
Note:- Average exchange rate prevalent during the year was US$ 1 = PKR
………………………
THE COMPETENT AUTHORITY
Member (Direct Taxes)
(5) In case the Competent Authority of Pakistan decides not to issue a
certificate for tax sparing credit, it shall communicate its decision along with the
reasons of rejection thereof to the applicant taxpayer within sixty days of the
submitting of the application at the available address in Pakistan].
1[ 2[19D]. Application for initiation of Mutual Agreement Procedure
(MAP).- (1) Where a resident taxpayer , or a Pakistani national residing abroad
is aggrieved by any action of the tax authorities of any country outside Pakistan
with which Pakistan has signed an Agreement for the Avoidance of Double
Taxation for the reason that, according to him, such action is not in accordance
with the terms of the agreement with such other country outside Pakistan, he
may make an application to the Competent Authority in Pakistan seeking to
invoke the provision of the Mutual Agreement Procedure, if any, provided therein,
in the Form prescribed in rule 3[19F].
1 Inserted by S.R.O. 714(I)/2006, dated 05.07.2006.
2 Rule 19AA renumbered by S.R.O. 1032(I)/2006 dated 03.10.2006.
3 The figure “19C” substituted by S.R.O. 1032(I)/2006, dated 03.10.2006.
31
(2) The Competent Authority of Pakistan upon satisfaction that,-
(a) the taxpayer has reasonable grounds to justify Competent
Authority” assistance;
(b) the application has been made within two years from the date of
notification of the cause of grievance; and
(c) the double taxation or other impending grievance is more than a
mere possibility;
shall cause to take up the matter with the Competent Authority of the country
concerned and endeavour to resolve the matter through consultative measures.
(3) In case the Competent Authority in Pakistan decides not to intervene in
the matter, it will inform the taxpayer applicant, within thirty days of the receipt of
the application, of its decision and grounds thereof in writing.
(4) If during the course of mutual agreement proceedings, the Competent
Authority of the other country requires any clarification, verification of facts, or
guarantees, that shall be communicated to the applicant taxpayer, and after the
receipt of the same shall be passed on to the Competent Authority of the other
country.
(5) At any time, if the terms and conditions of the impending resolution are
not satisfactory to the taxpayer, he may withdraw from the MAP proceedings and
pursue any right of appeal under the normal course available.
(6) The Competent Authority of Pakistan would communicate the outcome of
the Mutual Agreement Proceedings taken up with the other country to the
applicant taxpayer in writing.
1[19E]. Action by the Competent Authority of Pakistan on an application
received through the Competent Authority of a treaty partner country. (1)
Where a reference is received from the Competent Authority of a country outside
Pakistan under an agreement with that country with regard to any action taken by
any income-tax authority in Pakistan, the Competent Authority in Pakistan shall
call for a report from the Commissioner concerned and, if required, examine the
relevant records, and shall endeavour to arrive at a resolution of the case on
unilateral basis in terms of the liberal interpretation of the legal provisions
applicable.
(2) The Competent Authority of Pakistan shall entertain all such requests from
the Competent Authority of a treaty partner country that are about but not limited
to –
1 Rule “19B’ renumbered by S.R.O. 1032(I)/2006 dated 03.10.2006.
32
(a) tax demands that have arisen or are likely to arise as a result of
a tax audit, assessment or re-assessment proceedings, or a tax
appeal, or a review by a Commissioner of Income Tax of an
assessment or re-assessment proceedings on the grounds that it
is prejudicial to the interest of the revenue;
(b) withholding tax on income or other similar advance taxes that are
levied under the Ordinance; and.
(c) interpretation and application of any provision of the laws
governing the taxes covered in the relevant treaty as applicable
to the non-resident person.
(3) The Competent Authority of Pakistan may decline a MAP request made by
the Competent Authority of a treaty partner country, if it is not received within two
years from the date of notification of the order or notice giving rise to the cause of
grievance.
(4) In case the Competent Authority of Pakistan cannot resolve the matter
on unilateral basis, it would cause to communicate with the Competent Authority
of the other country, and both authorities would endeavor to resolve the matter
through a consultative process, and arrive at a mutually agreed settlement.
(5) If during the course of the mutual agreement proceedings, the
Competent Authority of Pakistan requires any clarification, verification of facts, or
an irrevocable bank guarantee, the same shall be communicated to the applicant
taxpayer, under intimation to the Competent Authority of the country through
which the reference for mutual agreement proceedings was received.
(6) Wherever required the Competent Authority of Pakistan shall give an
opportunity of being heard to the applicant taxpayer in person, through an
authorized representative or a counsel.
(7) The resolution arrived at under mutual agreement procedure, in
consultation with the competent authority of the country outside Pakistan, shall
be communicated, wherever necessary, to the Commissioner concerned, in
writing.
(8) During the pendency of the Mutual Agreement proceedings the
Competent Authority of Pakistan may, depending on the merits of each case,
direct the Commissioner concerned to put on hold the recovery proceedings of
any amount of tax, additional tax or penalty that may be outstanding against such
taxpayer, if the taxpayer furnishes, as security, an irrevocable Bank Guarantee
issued by any scheduled bank, or a Pakistani branch of a foreign bank approved
by the State Bank of Pakistan to carry out business of banking in Pakistan as
prescribed in rule 1[19G].
1 The figure “19D” renumbered by S.R.O. 1032(I)/2006 dated 03.10.2006.
33
(9) The amount of the irrevocable Bank Guarantee shall be equal to –
(a) the amount of tax, additional tax or penalty as has been imposed
through the order or notice that is the subject matter of MAP
proceedings; or
(b) if no amount has yet been imposed through an order or notice,
the amount determined by the Commissioner concerned.
(10) The Competent Authority of Pakistan shall endeavour to resolve or close
the case within a period of one year from the date on which it receives the
reference under the Mutual Agreement Procedure provision as contained in the
Agreement for Avoidance of Double Taxation between Pakistan and that other
state.
(11) The effect to the resolution arrived at under Mutual Agreement
Procedure shall be given by the Commissioner, notwithstanding any time
limitations contained in the Ordinance, within thirty days of receipt of the same, if
the taxpayer-
(a) gives his acceptance to the resolution delivered under the Mutual
Agreement Procedure; and
(b) withdraws his appeal, if any, pending on the issue which was the
subject matter for adjudication under Mutual Agreement
Procedure.
(12) The amount of tax, additional tax or penalty already determined shall be
recomputed in accordance with the decision taken under the Mutual Agreement
Procedure in the manner laid down in the Ordinance and the rules in such a way
that it does not contravene or negate the resolution arrived at.
(13) The Commissioner concerned shall draw-down upon the Bank
Guarantee as specified in sub-rule (8) in writing within ten days from the notice of
acceptance of MAP resolution given by the application in pursuance to the
issuance of the resolution or notification of closure of the MAP proceedings by
the Competent Authority of Pakistan.
1[19F]. Form of application for initiation of MAP Proceedings-. Application
under rule 19AA shall be submitted on the form prescribed as under:
1 Rule “19C” renumbered by S.R.O. 1032(I)/2006 dated 03.10.2006.
34
To
The Competent Authority of Pakistan,
1[Federal Board of Revenue],
Constitution Avenue,
Islamabad.
Sir,
Whereas the applicant is aggrieved by the action of the tax authority of
_______________________________________________ (name of the country)
in respect of the tax year ending on _________ for the reasons given hereunder,
the matter may kindly be taken up with the competent authority of
____________________________ (name of the country) under Article
__________________ of the _____________________________ (specify the
agreement) between Pakistan and ____________________________ (name of
the country). The relevant details in this regard are as under:-
Name of the applicant
Present and permanent address in
Pakistan
Residential status or nationality
CNIC and NTN
Entitlement to invoke MAP Proceedings
(Residence or Nationality)
Telephone No.
Name and designation of Tax Authority in
the foreign country (Treaty Partner)
Date of the notice or order giving rise to
the action
Is the order or action of the income-tax
authority of the country outside Pakistan
not in accordance with the agreement? If
so, the reasons thereof (attach separate
sheet if required).
Have you filed any appeal in the foreign
country against the order or notice giving
rise to the cause of grievance?
Copies of the following documents in support of our claim are enclosed, namely:-
(1) Order or Notice giving rise to the cause of grievance
(2) Computerized National Identity Card
(3) …………………………………………
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
35
Verification
I______________________________________ son/daughter/wife of Mr.
_______________________________________solemnly declare that to the
best of my knowledge and belief, the information given in this application and the
annexures and statements accompanying it is correct.
2. I also declare that to the best of my knowledge, I have not concealed any fact
or information which could be relevant for deciding my application.
3. I further declare that I am making this application in my capacity as
(designation) and that I am competent to make this application and verify it.
Date __________________
Place __________________ Signatures: ………………………
Name: ……………………………
1[19G]. Form of Irrevocable Bank Guarantee.- An irrevocable Bank Guarantee
shall be furnished in all cases, unless specifically exempted by the Competent
Authority of Pakistan, on the format as prescribed as under:
To
The President of Pakistan acting through and represented by
the Commissioner Income Tax [Enforcement],
[INSERT: LTU / RTO]
Government of Pakistan
[INSERT: City]
Bank Guarantee
Bank Guarantee as security for keeping the recovery of Tax Demand in
abeyance during the pendency of the proceedings of Mutual Agreement
Procedure (MAP) under the Agreement for Avoidance of Double Taxation
This Deed of Bank Guarantee made this ………….. day of ……………,
20………….., by [INSERT: Name and Address of Guaranteeing Bank]
(hereinafter called “the Bank”, which expression shall, unless excluded by or
repugnant to the context, include its successors and assignees) to the President
of Pakistan acting through and represented by the Commissioner Income Tax
(Enforcement) [INSERT: LTU/RTO], Government of Pakistan, [INSERT: City],
(hereinafter called “the Government”).
WHEREAS the Government has agreed that [INSERT: Name, Address,
and National Tax Number of the Taxpayer] (hereinafter called “the Taxpayer”,
which expression shall, unless excluded by or repugnant to the context, include
1 Rule “19D” renumbered by S.R.O. 1032(I)/2006 dated 03.10.2006.
36
its successors and assignees) shall furnish a Bank Guarantee in respect of a
demand of Rs. [INSERT: Amount of Tax in dispute] for the tax year(s)
………………., in lieu of which the recovery of any part of such demand shall not
be enforced until thirty days after the Commissioner receives written notice of the
MAP Agreement arrived at between the Competent Authorities of the
Governments of Pakistan and the [INSERT: Name of the Country]
AND WHEREAS THE Bank has, at the request of the Taxpayer, agreed
to execute these presents:
NOW THEREFORE THIS DEED WITNESSES AS FOLLOWS:
In consideration of the Government agreeing to treat the Taxpayer as not in
default for Rs. [INSERT: Amount of Tax in dispute, plus interest specified in
paragraph 1 below] for the tax year(s) ………………………,
1. The Bank irrevocably guarantees and undertakes, for the term provided
in paragraph 2 that the Bank shall indemnify and keep indemnified the
Government to the extent of the said sum of Rs [INSERT: Amount of Tax
in dispute] (Rupees [written text] and the recurring additional tax accruing
at the rate specified in the Ordinance. The Bank further guarantees and
undertakes that on advice from the Government that the Taxpayer has
failed and neglected to observe any of its obligations to the Government
with regard to the terms and conditions of any agreements between the
Taxpayer and the Government or between the Competent Authority of
Pakistan and that of the country on whose request MAP proceedings
were initiated that may underlie or subsequently cover and encompass
this Bank Guarantee, the decision of the Government as to whether any
amount should be paid out by the Bank to the Government hereunder
shall be final and binding.
2. The Bank further agrees that the guarantee herein contained shall
remain in full force and effect for a period of one year from the date
hereof or till [INSERT: date]; and if the Government, in case the MAP
proceedings are not finalized till the aforementioned date, does not
receive a renewal of this Bank Guarantee or a substitute Bank
Guarantee for the amounts of tax and interest in dispute prior to thirty
days before the expiration date of this Bank Guarantee, the Government
may instruct the Bank to pay the guaranteed amounts prior to expiration
of the Bank Guarantee.
Provided that, notwithstanding any other thing contained herein,
the liabilities of the Bank shall be limited to the maximum of the
guaranteed amount of Rs. [INSERT: Amount of tax in dispute] (Rupees
[INSERT: written text] ), as increased by interest pursuant to paragraph 1
during the term of this Bank Guarantee; and unless a claim in writing is
lodged with the Bank, or action to enforce the claim under the guarantee
is filed or initiated against the Bank, within six months from the date of
expiry of the guarantee period fixed hereunder or where such period is
37
extended under the terms of this guarantee from the date of such
extended period as the case may be, all the rights of the Government
under this guarantee shall be forfeited and the Bank shall be relieved
and discharged from liabilities hereunder.
3. The obligations of the Bank to the Government under this Bank
Guarantee will terminate on issuance of the Notification by the
Commissioner drawing down upon the bank guarantee upon the
occurrence of any of the following; namely:-
(i) the payment by the Bank or the taxpayer to the Government
of the guaranteed amounts;
(ii) the payment by the taxpayer to the Government of all
amounts owed, as agreed to by the Competent Authorities in
a MAP Agreement;
(iii) a MAP Agreement by the Competent Authorities proclaiming
that the Government will not seek to recover any part of the
previously-demanded amount; or
(iv) The taxpayer furnishes to the Government a fresh security
from the Bank, or a similar security from another Bank.
4. The guarantee herein contained shall not be discharged or affected by
any change in the constitution either of the taxpayer or of the Bank.
5. The Government shall have the fullest liberty without affecting the
guarantee to postpone for any time, or from time to time, any of the
powers exercisable by it against the taxpayer, or to either enforce or
forbear any of the terms and conditions under this guarantee or under
the Ordinance and the rules, and the Bank shall not be released from its
liabilities under this guarantee by any exercise by the government of the
liberty with reference to the matter aforesaid or by reasons of time being
given to the taxpayer, or by any other act of forbearance or enforcement
on the part of the Government, or by any indulgence by the Government
to the taxpayer, or by any other matter or thing whatsoever which under
the law relating to sureties would but for these provision have the effect
of so releasing the Bank from its such liability.
6. The Bank hereby agrees and undertakes that any claim which the Bank
may have against the taxpayer shall be subject and subordinate to the
prior payment and performance in full of all the obligations of the Bank
hereunder and the Bank will not without prior written consent of the
Government exercise any legal rights or remedies of any kind in respect
of any such payment or performance so long as the obligations of the
Bank hereunder remain owing and outstanding, regardless of the
insolvency, liquidation or bankruptcy of the taxpayer or otherwise
38
howsoever. The Bank will not counter claim or set off against its liabilities
to the Government hereunder any sum outstanding to the credit of the
Government with it.
7. This Bank Guarantee shall be governed by and construed in accordance
with the laws of the Islamic Republic of Pakistan (without regard to its
principles of conflict of laws).
8. The Bank undertakes not to revoke this guarantee during its currency
except with the prior consent of the Government in writing.
9. Notwithstanding anything hereinbefore contained liability of the Bank
under this guarantee is restricted to Rs. [INSERT: Amount of Tax in
dispute, plus interest specified in paragraph 1 above] (Rupees [written
text]) and is valid for the period(s) described in paragraph 2 above.
Unless a demand or claim under this guarantee is lodged with the Bank
on or before [INSERT: date, as established in paragraph 2 above], all
rights of the Government under the said guarantee shall be forfeited and
the Bank shall be relieved and discharged from all liabilities thereunder
whether or not this document shall have been returned to the Bank.
IN WITNESS WHEREOF, the Bank, through its duly authorized representative,
has set its hand stamp on this ………day of …… …………at ……………………
IN WITNESS WHEREOF, the Bank, through its duly authorized representative,
has set its hand stamp on this ………day of …… …………at ………………………
i. Witness For and on behalf of the Bank
Signature …………………… Signature.……………………
Name………………………… Name …………………………
Designation …………………
ii. Witness [Attorney per power of Attorney No…
Signature …………………… Date…………………….]
Name…………………………
39
CHAPTER – VI
TRANSFER PRICING
20. Application of this Chapter.- This chapter applies for the purposes of
section 108 mainly , which provide the Commissioner with the power to
distribute, apportion or allocate income, expenditures or tax credits between
associates in respect of transactions not made in accordance with the arm’s
length principle.
21. Interpretation.- (1) In this Chapter,
(a) “comparable uncontrolled transaction”, in relation to a
controlled transaction, means an uncontrolled
transaction that satisfies one of the following conditions,
namely:-
(i) the differences (if any) between the two
transactions or between persons undertaking
the transactions do not materially affect the price
in the open market, the resale price margin or
the cost plus mark up, as the case may be; or
(ii) if the differences referred to in sub-clause (i) do
materially affect the price in the open market,
the resale price margin or the cost plus mark up,
as the case may be, then reasonably accurate
adjustments can be made to eliminate the
material effects of such differences;
(b) “controlled transaction” means a transaction between
associates;
(c) “transaction” means any sale, assignment, lease,
license, loan, contribution, right to use property or
performance of services;
(d) “uncontrolled persons” means persons who are not
associates; and
(e) “uncontrolled transaction” means a transaction between
uncontrolled persons.
22. International guidelines, etc. Subject to the other rules in this Chapter,
the Commissioner, in applying this Chapter shall also be guided by international
standards, case law and guidelines issued by the various tax-related
internationally recognized organizations.
23. Arm’s length standard.- (1) In determining the income of a person from
a transaction with an associate, the standard to be applied by the Commissioner
40
shall be that of a person dealing at arm’s length with a person who is not an
associate (referred to as the “arm’s length standard”).
(2) A controlled transactions shall meet the arm’s length standard if
the result of the transaction is consistent with the result (referred to as the arm’s
length result”) that would have been realized if uncontrolled persons had
engaged in the same transaction under the same conditions.
(3) Subject to sub-rule (6), the following methods shall apply for the
purposes of determining an arm’s length result, namely:-
(a) the comparable uncontrolled price method;
(b) the resale price method;
(c) the cost plus method; or
(d) the profit split method.
(4) The method in clause (d) shall apply only where the methods in
clauses (a), (b) and (c) cannot be reliably applied.
(5) As between clauses (a), (b) and (c), the method that, having
regard to all the facts and circumstances, provides the most reliable measure of
the arm’s length result as in the opinion of Commissioner shall be applied.
(6) Where the arm’s length result cannot be reliably determined
under one of the methods in sub-rule (3), the Commissioner may use any
method provided it is consistent with the arm’s length standard.
24. Comparable uncontrolled price method.- The comparable
uncontrolled price method determines whether the amount charged in a
controlled transaction gives rise to an arm’s length result by reference to the
amount charged in a comparable uncontrolled transaction.
25. Resale price method.- (1) The resale price method determines whether
the amount charged in a controlled transaction gives rise to an arm’s length
result by reference to the resale gross margin realized in a comparable
uncontrolled transaction.
(2) The following steps shall apply in determining the arm’s length
result under the resale price method, namely:-
(a) determine the price that a product purchased from an
associate has been sold to a person who is not an
associate (referred to as the “resale price”); and
(b) from the resale price is subtracted a gross margin
(referred to as the “resale gross margin”) representing
41
the amount that covers the person’s selling and other
operating expenses and, in light of the functions
performed (taking into account assets used and risks
assumed), make an appropriate profit;
(c) from that amount is subtracted any other costs
associated with the purchase of the product, such as
customs duty; and
(d) the amount remaining is the arm’s length result.
(3) The resale price margin of a person in a controlled transaction
may be determined by reference to:-
(a) the resale price margin that the person earns on
products purchased and sold in a comparable
uncontrolled transaction; or
(b) the resale price margin that an independent person
earns in comparable uncontrolled transaction.
26. Cost plus method.- (1) The cost plus method determines whether the
amount charged in a controlled transaction gives rise to an arm’s length result by
reference to the cost plus mark up realised in a comparable uncontrolled
transaction.
(2) The following steps shall apply in determining the arm’s length
result under the cost plus method, namely:-
(a) determine the costs incurred by the person in a
controlled transaction; and
(b) to this amount is added a mark up (referred to as the
“cost plus mark up”) to make an appropriate profit in light
of the functions performed and market conditions; and
(c) the sum of the amounts referred to in clauses (a) and (b)
is the arm’s length result.
(3) The cost plus mark up of a person in a controlled transaction
may be determined by reference to:-
(a) the cost plus mark up that the person earns in a
comparable uncontrolled transaction; or
(b) the cost plus mark up that an independent person earns
in comparable uncontrolled transaction.
42
27. Profit split method.- (1) The profit split method may be applied where
transactions are so interrelated that the arm’s length result cannot be determined
on a separate basis.
(2) The profit split method determines the arm’s length result on the
basis that the associates form a firm and agree to divide profits in the manner
that independent persons would have agreed on the basis that they are dealing
with each other at arm’s length.
(3) The Commissioner may determine the division of profits on the
basis of a contribution analysis, a residual analysis or on any other basis as
appropriate having regard to the facts and circumstances.
(4) Under contribution analysis, the total profits from controlled
transactions shall be divided on the basis of the relative value of the functions
performed by each person participating in the controlled transactions.
(5) Under residual analysis, the total profits from controlled
transactions shall be divided as follows:-
(a) each person shall be allocated sufficient profit to provide
the person with a basic return appropriate for the type of
transactions in which the person is engaged; and
(b) any residual profit remaining after the allocation in
clause (a) shall be allocated on the basis of division
between independent persons determined having regard
to all the facts and circumstances.
(6) For the purposes of clause (a) of sub-rule (5), the basic return
shall be determined by reference to market returns achieved for similar types of
transactions by independent persons.
43
CHAPTER – VII
RECORDS AND BOOKS OF ACCOUNTS
PART-I
PRELIMINARY
28. Application of Chapter. – (1) The rules in this Chapter apply for the
purposes of section 174.
(2) The purpose of this Chapter is to prescribe the minimum level of
books of accounts, documents and records to be maintained by taxpayers.
(3) Nothing in this Chapter shall preclude a taxpayer accounting for
income chargeable under the head “Income from Business” from
(a) maintaining any books of account, documents or records
in addition to those prescribed in these rules;
(b) adding such further columns or particulars in the forms
prescribed in these rules for the taxpayer’s own
requirement; or
(c) maintaining the books of account, documents or records
in the manner prescribed keeping in view the nature of
the taxpayer’s business.
Interpretation. – In this Chapter –
(a) “legal practitioner” includes an advocate, pleader, tax
practitioner and advisor or consultant on income tax,
sales tax, customs, central excise or salt tax laws.
(b) “medical practitioner” includes a doctor, surgeon,
physician, dentist, psychiatrist, physiotherapist, tabib,
homeopath, vaid, veterinarian and any person practicing
medicine under any other name.
44
PART-II
BOOKS OF ACCOUNT PRESCRIBED
29. Books of account, documents and records to be maintained. – (1)
Every taxpayer deriving income chargeable under the head “Income from
business” shall maintain proper books of account, documents and records with
respect to –
(a) all sums of money received and expended by the
taxpayer and the matters in respect of which the receipt
and expenditure takes place;
(b) all sales and purchases of goods and all services
provided and obtained by the taxpayer;
(c) all assets of the taxpayer;
(d) all liabilities of the taxpayer; and
(e) in case of a taxpayer engaged in assembly, production,
processing, manufacturing, mining or like activities, all
items of cost relating to the utilization of materials, labour
and other inputs.
(2) If a taxpayer uses fiscal electronic cash register or computerized
accounting software, it may issue cash-memo/invoice/receipt generated by the
electronic cash register or computer.
(3) Duplicate copies and electronic or computer records of the cashmemo
/ invoice / receipt / patient-slip to be issued under this chapter, shall be
retained by the taxpayer and form part of the records to be maintained under this
chapter.
(4) The books of account, documents and records to be maintained
under this chapter shall be maintained for five years after the end of the tax year
to which they relate.
30. In particular, and without prejudice to the generality of the
provisions of Rule 29, every taxpayer, other than companies, deriving
income chargeable under the head “Income from business” shall issue and
maintain the following minimum books of account, documents and
records: – (1) Taxpayers with business income upto Rs. 200,000 and new
taxpayers deriving income from business (excluding taxpayers to whom subrules
(2), (3) or (4) apply):
(a) Serially numbered and dated cash-memo / invoice /
receipt for each transaction of sale or receipt containing
the following: –
45
(i) taxpayer’s name or the name of his business,
address, national tax number and sales tax
registration number, if any; and
(ii) the description, quantity and value of goods sold
or services rendered;
Provided that where each transaction does not exceed
Rs. 100, one or more cash-memos per day for all such
transactions may be maintained;
(b) Daily record of receipts, sales, payments, purchases and
expenses; a single entry in respect of daily receipts,
sales, purchases and different heads of expenses will
suffice; and
(c) Vouchers of purchases and expenses.
(2) Taxpayers with business income exceeding Rs. 200,000
(excluding taxpayers to whom sub-rules (1), (3) or (4) apply) and wholesalers,
distributors, dealers and commission agents:
(a) Serially numbered and dated cash-memo / invoice /
receipt for each transaction of sale or receipt containing
the following: –
(i) taxpayer’s name or the name of his business,
address, national tax number and sales tax
registration number, if any;
(ii) the description, quantity and value of goods sold
or services rendered; and
(iii) in case of a wholesaler, distributor, dealer and
commission agent, where a single transaction
exceeds Rs. 10,000, the name and address of
the customer;
Provided that where each transaction does not exceed Rs.
100, one or more cash-memos per day for all such transactions
may be maintained;
(b) Cash book and/or bank book or daily record of receipts,
sales, payments, purchases and expenses; a single
entry in respect of daily receipts, sales, purchases and
different heads of expenses will suffice;
46
(c) General ledger or annual summary of receipts, sales,
payments, purchases and expenses under distinctive
heads;
(d) Vouchers of purchases and expenses and where a
single transaction exceeds Rs. 10,000 with the name
and address of the payee; and
(e) Where the taxpayer deals in purchase and sale of
goods, quarterly inventory of stock-in-trade showing
description, quantity and value.
(3) Professionals (like medical practitioners, legal practitioners,
accountants, auditors, architects, engineers etc.): –
(a) Serially numbered and dated patient-slip / invoice /
receipt for each transaction of sale or receipt containing
the following: –
(i) taxpayer’s name or the name of his business or
profession, address, national tax number and
sales tax registration number, if any;
(ii) the description, quantity and value of medicines
supplied or details of treatment/ case/ services
rendered (confidential details are not required)
and amount charged; and
(iii) the name and address of the patient / client;
Provided that the condition of recording address of the
patient on the patient slip under this clause shall not apply to
general medical practitioners;
(b) Daily appointment and engagement diary in respect of
clients and patients:
(c) Provided that this clause shall not apply to general
medical practitioners;
(d) Daily record of receipts, sales, payments, purchases and
expenses; a single entry in respect of daily receipts,
sales, purchases and different heads of expenses will
suffice; and
(e) Vouchers of purchases and expenses.
(4) Manufacturers (with turnover exceeding Rs. 2.5 million):
47
(a) Serially numbered and dated cash-memo / invoice /
receipt for each transaction of sale or receipt containing
the following: –
(i) taxpayer’s name or the name of his business,
address, national tax number and sales tax
registration number, if any;
(ii) the description, quantity and, value of goods
sold;
(iii) where a single transaction exceeds Rs. 10,000
with the name and address of the customer;
(b) Cash book and/or bank book;
(c) Sales day book and sales ledger (where applicable);
(d) Purchases day book and purchase ledger (where
applicable);
(e) General ledger;
(f) Vouchers of purchases and expenses and where a
single transaction exceeds Rs. 10,000 with the name
and address of the payee; and
(g) Stock register of stock-in-trade (major raw materials and
finished goods) supported by gate in-ward and outward
records and quarterly inventory of all items of stock-intrade
including work-in-process showing description,
quantity and value.
1[30A. Electronic tax register.- A person required to use an electronic tax
register shall –
(a) install the electronic tax register (ETR) within seven days
of its authentication by Commissioner holding jurisdiction
over such case and obtain a register identification
number (RIN) for permanent affixture on the Electronic
tax register;
(b) use the electronic tax register to record only his own
sales and ensure that each sale is made through it and
print the receipt of each sale containing the information
in accordance with sub-rules(3) and (4) of rule 29 and
1 Inserted by SRO 895(I)/2008, dated 27.08.2008.
48
rule 30, and to deliver the original receipt to the
purchaser;
(c) in case of non availability for use of the electronic tax
register, the sales may be recorded with the use of a
substitute electronic tax register, duly authenticated by
the Commissioner;
(d) prepare a daily and a monthly Accounting report
containing the information as prescribed in Chapter VII
of these rules;
(e) ensure that the electronic tax register operates correctly
with particular regard to correct programming of the
names of goods and services and the correct allocation
of their tax rates;
(f) promptly report any malfunctioning of the electronic tax
register to the person responsible for its servicing;
(g) on demand by an authorized person, produce the
electronic tax register for inspection;
(h) ensure the inspection of the electronic tax register before
the authorized service management after six months;
(i) keep copies of electronic tax register reports for a period
of five years and produce the same for inspection by the
Commissioner whenever required to do so;
(j) safely keep the electronic tax register ledger in the
electronic tax register’s casing and produce it whenever
required by the Commissioner to do so; and
(k) ensure the inspection before further use of an electronic
register which has been or is suspected to have been
interfered or tempered with.]
31. Every taxpayer deriving income chargeable under the head income
from salary, property, capital gains or other sources shall issue and
maintain the following minimum documents and records: –
(1) Taxpayers deriving income from Salary:
Salary certificate indicating the amount of salary and tax
deducted there from.
(2) Taxpayers deriving income from property:
49
(a) Tenancy agreement, if executed;
(b) Tenancy termination agreement, if executed;
(c) Receipt for amount of rent received; and
(d) Evidence of deductions claimed in respect of premium
paid to insure the building, local rate, tax, charge or
cess, ground rent, profit/interest or share in rent on
money borrowed, expenditure on collecting the rent,
legal services and unpaid rent.
(3) Taxpayers deriving income from capital gains:
(a) Evidence of cost of acquiring the capital asset;
(b) Evidence of deduction for any other costs claimed; and
(c) Evidence in respect of consideration received on
disposal of the capital asset.
(4) Taxpayers deriving income from other sources:
(i) Dividends:
Dividend warrants.
(ii) Royalty:
Royalty agreement.
(iii) Profit on debt:
i. Evidence and detail of profit yielding debt;
ii. Evidence of profit on debt and tax deducted
thereon, like certificate in the prescribed form or
bank account statement; and
iii. Evidence of Zakat deducted, if any.
(iv) Ground rent, rent from the sub-lease of land or building,
income from the lease of any building together with plant
or machinery and consideration for vacating the
possession of a building or part thereof:
i. Lease agreement; and
ii. Lease termination agreement.
50
(v) Annuity or Pension:
Evidence of amount received.
(vi) Prize money on bond, winning from a raffle, lottery or
cross word puzzle:
Evidence of income and tax deducted thereon, like
certificate in the prescribed form.
(vii) Provision, use or exploitation of property:
Agreement.
(viii) Loan, advance, deposit or gift:
Evidence of mode of receipt of a loan, advance, deposit
or gift i.e., by a crossed cheque or through a banking
channel.
(ix) General:
Evidence of deduction for any other expenditure
claimed.
51
PART-III
GENERAL INSTRUCTIONS ABOUT MAINTAINING BOOKS OF ACCOUNTS,
DOCUMENTS AND RECORDS
32. General form of books of accounts, documents and records.- (1)
The books of accounts, records and other documents required to be maintained
by a taxpayer in accordance with this Chapter may be kept on electronic media,
provided sufficient steps have been taken to ensure the sanctity and safe
keeping of such accounts, documents and records.
(2) The books of accounts, documents and records required to be
maintained by a company in accordance with this Chapter shall be maintained in
accordance with international accounting standards and as required under the
Companies Ordinance, 1984.
33. Books of account, documents and records to be kept at the
specified place. – (1) The books of accounts, documents and records required
to be maintained by a taxpayer in accordance with this Chapter shall be kept at
the place where the taxpayer is carrying on the business or, where the business
is carried on in more places than one, at the principal place of business or at
each of such places if separate books of accounts are maintained in respect of
each place.
(2) Where a person derives income from sources other than from
business, the books of accounts, documents and records shall be kept at the
person’s place of residence or such other place as may be so declared by such
person.
(3) The place or places where the books of accounts, documents
and records are kept shall be clearly stated on the tax return form in the column
requiring the details of the records maintained.
52
CHAPTER – VIII
RETURNS, EMPLOYER’S CERTIFICATE, WEALTH STATEMENT AND
STATEMENT TO BE FILED BY CERTAIN PERSONS
1[34. Return of income.- (1) This rule shall apply to provide for the furnishing
of returns of income.
(2) A return of income as required to be furnished under section 114
shall be in the form specified in:
(a) Part-I (for companies);
(b) Part-II (for salaried / non-salaried individuals and
association of persons); and
of the Second Schedule to these rules.
(3) A return of income shall be verified in the manner specified in the
form.
(4) A return of income shall be accompanied by the following,
namely:-
(a) applicable documents;
(b) statements;
(c) certificates; and
(d) annexes;
as are specified in 2[ ] Part-VI of the Second Schedule.]
3[35. Employer’s certificate in lieu of return of income.- (1) This rule shall
1 Substituted by S.R.O. 651(I)/2004, dated 30th July, 2004. The original rule 34 read as follows:
34. Return of income.- (1) This rule and the rule numbers 35 and 36 shall apply for the
purposes of returns of income, certificate and wealth statement to be filed.
A[(2) A return of income as required to be furnished by a person under section 114
shall be in the form specified in Part-I (for companies) and Part-II (for individuals and association of
persons) of the Second Schedule to these rules.]
(3) A return of income shall be verified in the manner specified in the form.
B[(4) A return of income shall be accompanied by such documents, statements,
certificates and annexes as specified in Part VI of Second Schedule to these rules.]
A Earlier sub-rule (2) was substituted by SRO 861(I)/2003, dated 1st November, 2003. The original
sub-rule (2) read as follows:
“(2) A return of income as required to be furnished by a person under section 114
shall be in the form specified in Part I (for companies), II (for association of persons), III (for
individuals), and IV (salary certificate) of the Second Schedule to these rules.”
B Earlier sub-rule (4) was substituted by SRO 861(I)/2003, dated 1st November, 2003. The original
sub-rule (4) read as follows:
“(4) A return of income shall be accompanied by such documents, statements and
certificates as specified in the form, and in the Ordinance and these rules.”
2 The words “the annexures to” omitted by S.R.O. 1032(I)/2006, dated 03.10.2006.
3 Substituted by S.R.O. 651(I)/2004, dated 30th July, 2004. The original rule 35 read as follows:
35. Employer’s certificate in lieu of return of income.- (1) This rule shall apply to provide for
53
apply to provide for the furnishing of an employer’s certificate in lieu of return of
income.
(2) An employer’s certificate in lieu of return of income as required
under section 115 shall be in the form specified in Part III of the Second
Schedule.
(3) An employer’s certificate in lieu of return of income shall be
accompanied by the following, namely:-
(a) applicable documents;
(b) statements;
(c) certificates; and
(d) annexes;
as are specified in the annexures to Part VI of the Second Schedule.]
36. Wealth statement.- (1) This rule shall provide for the furnishing of a
wealth statement.
(2) A wealth statement shall be –
(a) in the form specified in Part 1[IV] of the Second
Schedule to these rules;
(b) verified in the manner specified in the form; and
(c) accompanied by such documents, statements and
certificates as specified in the form, and in the
Ordinance, these rules and circulars issued under the
Ordinance.
the furnishing of an employer’s statement instead of furnishing a return of income.
(2) An employer’s certificate that may be furnished by an employee instead of a
return of income shall be –
(a) in the form specified in Part A[III] of the Second Schedule;
(b) verified in the manner specified in the form; and
(c) accompanied by such documents, statements and certificates as
specified in the form, and in the Ordinance and these rules.
(3) A portion relating to certification of remuneration by employer shall be signed by
employer or his designated officer, and portion relating to the calculation of tax and any other income
shall be signed by the employee, as well. This certificate shall be filed signed both by employer or
employee, on the specified portion as stated. Where employee has any other source of income, other
than profit on debt, a return of income as prescribed under B[Part-III of the Second Schedule] shall be
filed and salary income shall be supported by the certificate.
A Earlier the figure “IV” was substituted by SRO 861(I)/2003 dated 1st November, 2003.
B Earlier the words “Part III of the First Schedule” were substituted by the SRO 861(I)/2003 dated 1st
November, 2003.
1 The figure “V” substituted by the S.R.O. 861(I)/2003 dated 1st November, 2003.
54
37. Return to be furnished by a non-resident ship owner or charterer.-
(1) This rule shall apply for the purposes of sections 143, which provides for the
furnishing of returns by non-resident ship owners or charterers.
(2) A return required to be furnished under section 143 shall be in
the following form, namely:-
Name
of
ship
Name
of
owner/
Charter
Dates of
arrival /
departure.
Receipts
for freight
and
passenger,
cargo
livestock
etc.
embarked
from
Pakistan.
Total freight
earned for
goods,
services
passengers
embarked
outside
Pakistan
Total in
respect
freight
received
in
Pakistan
embarked
outside
Pakistan
(whether
covered
by the tax
treaty.
Please
specify).
Tax
amount
on
earnings
as
Col:6.
Remarks
whether
containers
charges
and other
charges
separately
shown in
the Normal
Return of
income. If
received by
the agent or
assigned to
other
Person, in
that case
rent/lease
or
assignment
charges.
Challan
No date
of
payment
Remarks
1 2 3 4 5 6 7 8 9 10
Authorised/Representative
Signature________________________
Name___________________________
Designation______________________
Seal____________________________
Date____________________________
(3) A return required to be furnished under section 143 shall be
accompanied by such documents, statements and certificates as specified in the
form, and in the Ordinance, these rules and circulars issued under the
Ordinance.
(4) A return required to be furnished under section 143 may be
furnished by any of the methods specified in rules 73 and 74.
38. Return to be furnished by a non-resident aircraft owner or
charterer.- (1) This rule shall apply for the purposes of sections 144, which
provides for the furnishing of quarterly returns by non-resident aircraft owners or
charterers.
(2) A return required to be furnished under section 144 shall be in
the following form, namely:-
Name
of
Aircraft
Name
of
owner/
Charter
Dates
of
arrival.
Quarterly
receipts for
freight and
passenger,
cargo
livestock
etc.
Total freight
earned for
goods,
services
passengers
embarked
outside
Total in
respect
freight
received in
Pakistan
embarked
outside
Tax
amount
on
earnings
as Col:6.
Remarks
whether
containers
charges and
other
charges
separately
Challan
No.&
Date
of payment
REMARKS
55
embarked
from
Pakistan.
Pakistan Pakistan
(whether
covered by
the tax
treaty.
Please
specify.
shown in the
Normal
Return of
income if
received by
the agent or
assigned to
other
Person, in
that case
rent/lease or
assignment
charges.
1 2 3 4 5 6 7 8 9 10
Authorised/Representative
Signature________________________
Name___________________________
Designation______________________
Seal____________________________
Date____________________________
(3) A return required to be furnished under section 144 shall be
accompanied by such documents, statements and certificates as specified in the
form, and in the Ordinance, these rules and circulars issued under the
Ordinance.
(4) A return required to be furnished under section 144 may be
furnished in any of the methods specified in rules 73 and 74.
39. Statement in lieu of Return of income.- (1) Where in lieu of Return of
income statement is required to be filed namely incomes covered by sections 5,6
and 7 or where tax deduction is to be taken as a final discharge of tax liability u/s
169 a statement in the prescribed form shall be filed as prescribed in Part 1[IV] of
the Second Schedule to the Rules.
(2) Where a taxpayer has income from a source which does not
form part of total income and also income under any head of income given in
section 11 (except salary), Return is specifically required to be filed on a
prescribed statement as well as shall be filed.
1 The figure “V” substituted by S.R.O. 1032(I)/2006, dated 03.10.2006. Earlier the figure “VI” was
substituted by the S.R.O. 861(I)/2003 dated 1st November, 2003.
56
CHAPTER – IX
CERTIFICATES, STATEMENTS AND
PROCEDURE FOR PAYMENT OF ADVANCE TAX
PART I
SECTION 159 CERTIFICATE
40. Exemption or lower rate certificate u/s 159.- (1) An application for a
certificate under sub-section (1) of section 159 shall be made in the form
specified in Part-VII of the First Schedule to these rules.
(2) A certificate issued by the Commissioner under sub-section (1)
of section 159 shall be in the form specified in Part VIII of the First Schedule to
these rules.
57
1[PART II
Collection or Deduction of Tax at Source
1 Substituted by S.R.O. 641(I)/2005, dated 27.06.2005. The original Part II read as follows: –
“PART II
SALARY
Division I
Deduction of Tax
41. Tax deducted from salary. (1) Subject to sub-rule (2), every employer shall deduct tax
from a payment of salary at the rate specified in section 149 read with in the First Schedule to the
Income Tax Ordinance, 2001.
(2) The Commissioner may, upon application in writing by an employer (other than
the Government) and notwithstanding anything contained in these rules, permit an employer to pay
tax deducted from salary paid to employees in a lump sum for each employee every month based on
the average amount of tax deductible every month from such income and to furnish a reconciliation
statement at the end of the financial year in the prescribed form sub-rule 6.
(3) Where an employer has been granted permission under sub-rule (1), the
employer shall –
(a) compute the tax due on the income chargeable under the head
“Salary” for each employee and make any adjustments as necessary in
the deduction from salary for the month of June; and
(b) furnish a reconciliation statement to the Commissioner in the
prescribed form for each employee within fifteen days after the end of
the financial year.
(4) Where an employee leaves employment before the end of the financial year, the
adjustment referred to in clause (a) of sub-rule (3) shall be made, and the statement referred to in
clause (b) of sub-rule (3) shall be furnished, within fifteen days after termination of the employee’s
employment.
(5) Where an employer ceases to carry on business in a financial year, the
adjustment referred to in clause (a) of sub-rule (3) shall be made, and the statement referred to in
clause (b) of sub-rule (3) shall be furnished prior to ceasing business.
(6) The adjustments referred to in sub-rule (3) shall be made for each individual
employee and any excess recovered from one employee should not be adjusted against any short
recovery from another employee.
(7) A reconciliation statement shall be in the following form, namely:-
Reconciliation Statement of Tax Deducted from Salary for the year Ended 30th June, 20______
S.
No.
Name of
Employee
National Tax
Number
Designation Tax deducted from July
to May
Tax deducted
during June
Total tax
deducted.
1 2 3 4 5 6 7
Division II
Payment of Deducted Tax
42. Payment of tax deducted.- (1) All amounts deducted under section 149 by, or on behalf
of, the Government shall be paid to the credit of the Federal Government on the day the amount was
collected or deducted.
(2) Except where sub-rule (1) or (5) applies, all amounts deducted under section 149
in a month shall be paid to the credit of the Federal Government by remittance to the Government
Treasury, an authorised branch of the State Bank of Pakistan or the National Bank of Pakistan within
15 days from the end of the month.
(3) Where the annual salary paid by an employer to its employees for a tax year is
estimated to be less than 300,000 rupees per employee, the employer may apply to the
Commissioner for permission to pay tax deducted under section 149 on a quarterly basis, provided
the quarterly returns are regularly filed.
(4) An application under sub-rule (3) shall be made to the Commissioner in writing –
58
(a) specifying the reasons for the application;
(b) number of employees with less than 300,000 income; and
(c) total estimated tax deduction covered by such deferral of tax.
(5) Where the Commissioner grants an application under sub-rule (4), all amounts
deducted under section 149 in a quarter shall be paid to the credit of the Federal Government by
remittance to the Government Treasury, an authorised branch of the State Bank of Pakistan, or the
National Bank of Pakistan –
(a) for the quarter ending on the 30th day of September, by the 15th day of
October;
(b) for the quarter ending on the 31st day of December, by the 15th day of
January;
(c) for the quarter ending on the 31st day of March, by the 15th day of April;
and
(d) for the quarter ending on the 30th day of June, by 23rd day of June.
(6) The amount paid by 23rd day of June, for the quarter ending the 30th day of June
shall be based on the amount paid for the quarter ending the 31st day of March and the employer
shall make an adjustment based on actual salary paid for the quarter by the 31st day of July next
following.
(7) The payment of any amount to which this rule applies shall be accompanied by
an income tax challan.
(8) Blank copies of income tax challans may be obtained from the Commissioner.
(9) The prescribed income tax authorities for the purposes of submission of original
copies of income tax challans under this rule shall be specified by the Central Board of Revenue
through open circular from time to time.
Division III
Employer’s Certificate
A[43. Certificate of deduction of tax from salary. – (1) An employer shall issue to every
employee employed by the employer in a financial year a certificate of deduction of tax from salary in
the form specified in Part-III of Second Schedule to these rules within sixty days after the end of the
employee’s tax year.
(2) Where an employee leaves employment before the end of the financial year, the
employer shall issue to the employee a certificate of deduction of tax from salary for the period of
employment in the year within seven days after termination of the employee’s employment.
(3) An employer who ceases to carry on business in a financial year shall issue a
certificate of deduction of tax from salary to each employee prior to ceasing business.
(4) An employer who fails to issue a certificate of deduction of tax from salary as
required under sub-rules (1), (2) or (3) shall commit an offence punishable on conviction under clause
(c) of sub-section (1) of section 191.
(5) Where a certificate of deduction of tax from salary has been lost, stolen or
destroyed, the recipient of the certificate may request, in writing, that the issuer of the certificate issue
a duplicate certificate.
(6) Where a request has been made under sub-rule (5), the issuer of the certificate
shall comply with the request and the certificate so issued shall be clearly marked “duplicate”.
(7) The certificate of deduction of tax issued by an employer to an employee shall be
treated an “Employer’s Certificate in lieu of Return of Income” for the purposes of rule 35.]
A Earlier Rule 43 substituted by S.R.O. 651(I)/2004, dated 30th July, 2004.
B[ ]
B Earlier Rule 44 omitted by S.R.O. 651(I)/2004, dated 30th July, 2004.
C[ ]
C Earlier Rule 45 omitted by S.R.O. 651(I)/2004 dated 30th July, 2004.
D[46. Certificate issuing authorities – (1) An employer’s certificate in lieu of return of income
referred to in rule 43 shall, in the case of a Government employee, be prepared and issued to the
employee by59
Division I
Employer’s Certificate
1[ ]
(a) civil audit officers for all gazetted officers and others who draw their
pay from audit offices on separate bills and also for all pensioners who
draw their pensions from audit offices;
(b) chief accounts officer, Ministry of Foreign Affairs, for all gazetted
officers and others in the employment of the said Ministry;
(c) treasury officers for all gazetted officers and others who draw their pay
from treasuries on separate bills without countersignature and also for
all pensioners who draw their pensions from treasuries;
(d) heads of civil or military offices for all non-gazetted officers whose pay
is drawn on establishment bills or on bills countersigned by the head of
office;
(e) forest disbursing officers and Public Works Department disbursing
officers in cases where direct payment from treasuries is not made, for
themselves and their establishments;
(f) head postmasters for,–
(i) themselves, their gazetted subordinates and the
establishments of which the establishment pay bills are
prepared by them;
(ii) supervising and controlling gazetted officers of whose
headquarters post offices they are in-charge; and
(iii) pensioners drawing their pensions through post offices;
(g) head record clerks or account officer railway mail service, for
themselves and all the staff whose pay is drawn in their establishment
pay bills; and
(h) the disbursing officers in the case of the administrative and audit
officers;
(i) controllers of military accounts (including divisional military supply,
marine and field controllers) for all gazetted military officers under their
audit;
(j) disbursing officers in the military works department for themselves and
their establishments; or
(k) chief accounts officers or chief auditor of railways concerned for all
railway employees under their audit.
(2) An employer’s certificate in lieu of return of income referred to in rule 43 shall, in
any other case, be prepared and issued to the employee by,-
(a) the designated officer of the department under specific order,
(b) secretary of company;
(c) accounts officer authorized in this behalf for payment of salary;
(d) managing member or partner of an association of persons; or
employer; and”
D Earlier Substituted by S.R.O. 651(I)/2004, dated 30th July, 2004.
1 Omitted by SRO 1062(I)/2007, dated 27.10.2007. The omitted Rule 41 read as follows:
“41. Certificate of deduction of tax from salary.- (1) As required under sub-section (1) of section
164, any person responsible for deducting tax from salary under section 149 shall issue a certificate
to the person from whom tax has been deducted, in the form as set out in Part III of the Second
Schedule to these rules, within forty-five days after the end of the financial year.
(2) Where the employment of an employee ceases for any reason before the end of the
financial year, the certificate under sub-rule (1) shall be issued for the period of employment in that
year within seven days of the ceasing of the employment or at the time of making payment of final
settlement whichever is later.
60
Division II
Certificate for Collection or Deduction of Tax other than salary
42. Certificate of collection or deduction of tax 1[ ].- (1) As required under
sub-section (1) of section 164, any person responsible for-
(a) collecting tax under Division II of Part V of Chapter X of the
Ordinance;
(b) deducting tax from a payment under Division III of Part V of
Chapter X of the Ordinance, except in the case of salary;
(c) collecting or deducting tax under Chapter XII of the Ordinance; or
(d) deducting tax under the Sixth Schedule to the Ordinance,
shall issue a certificate to the person from whom tax has been collected or
deducted, in the form as set out in Part VII of the Second Schedule to these
rules, within fifteen days after the end of the financial year or discontinuation of
business etc.
(2) Where the person from whom tax has been collected or deducted
requests for the issuance of the certificate before the end of the financial year,
the certificate under sub-rule (1) shall be issued for the period in that year within
seven days of the request made.
(3) Where the certificate issued under sub-rule (1) or sub-rule (2) has
been lost, stolen or destroyed the recipient of the certificate may request, in
writing, to the issuer of the certificate to issue a duplicate thereof.
(4) Where a request has been made under sub-rule (3), the issuer of the
certificate shall comply with the request and the certificate so issued shall be
clearly marked “duplicate”.
(5) The certificate issued under sub-rule (1), (2) or sub-rule (3) shall be in
duplicate and serially numbered.
(3) Where the certificate issued under sub-rule (1) or (2) has been lost, stolen or destroyed
the recipient of the certificate may request, in writing, to the issuer of the certificate to issue a
duplicate thereof.
(4) Where a request has been made under sub-rule (3), the issuer of the certificate shall
comply with the request and the certificate so issued shall be clearly marked “duplicate”.
(5) The certificate issued under sub-rules (1), (2) or sub-rule (3) shall be in duplicate and
serially numbered.”
1 The words “(other than salary)” omitted by S.R.O. 1062(I)/2007, dated 27.10.2007.
61
Division III
Payment of Tax Collected or Deducted
43. Payment of tax collected or deducted.- As required under section 160 and
under the Sixth Schedule to the Ordinance, the tax collected or deducted under
Division II or Division III of Part V of Chapter X of the Ordinance, Chapter XII of
the Ordinance or Sixth Schedule to the Ordinance shall be paid to the
Commissioner by way of credit to the Federal Government,-
(a) where the tax has been collected or deducted by the Federal
Government or a Provincial Government on the day the tax was
collected or deducted; or
(b) where the tax has been collected or deducted by a person other
than the Federal Government or a Provincial Government, by
remittance to the Government Treasury or deposit in an
authorized branch of the State Bank of Pakistan or the National
Bank of Pakistan, within seven days from the end of each
fortnight.
Division IV
Annual and 1[Monthly] Statements of Tax Collected or Deducted
44. Annual statement of tax collected or deducted.- (1) An annual statement
required to be furnished under sub-section (1) of section 165 for a financial year
shall be in the form as set out in Part VIII and Part IX of the Second Schedule to
these rules.
2[(2) Pursuant to sub-section (2) of section 165, a person responsible
for collecting or deducting tax under Division II or Division III of Part V of Chapter
X of the Ordinance or under Chapter XII of the Ordinance shall furnish a monthly
statement within 3[twenty] days of the end of each month as set out in Part X of
the Second Schedule to these rules.]
(3) The statement referred to in sub-rule (2) shall be accompanied
by the evidence of deposit of tax collected or deducted to the credit of the
Federal Government.
1 The word “Quarterly” substituted by S.R.O. 1032(I)/2006, dated 03.10.2006.
2 Substituted by SRO 790(I)/206 dated 3rd August, 2006. The substituted sub-rule (2) read as under:
“(2) Pursuant to sub-section (2) of section 165, a person responsible for collecting or
deducting tax under Division II or Division III of Part V of Chapter X of the Ordinance or under
Chapter XII of the Ordinance shall furnish a quarterly statement for each period of three months
ending on the 30th day of September, 31st day of December, 31st day of March and 30th day of June,
within fifteen days of the end of the said period in the form as set out in Part X of the Second
Schedule to these rules.”
3 The word “ten” substituted by SRO 695(I)/2008 dated 26.06.2008. Earlier the word “fifteen” was
substituted by SRO 353(I)/2008, dated 03.04.2008.
62
(4) A person required to furnish the statements under sub-rule (1) or
(2) shall, wherever required by the Commissioner, furnish a reconciliation of the
amounts mentioned in the aforesaid annual and 1[monthly] statements with the
amounts mentioned in the return of income, statements, related annexes and
other documents submitted from time to time.
45. Statement of tax deducted under the Sixth Schedule to the Ordinance.-
The statement required to be furnished under sub-clause (b) of clause 11 of Part
II of the Sixth Schedule to the Ordinance for a financial year shall be in the form
as set out in Part XI of the Second Schedule to these rules.
2[ ]
3[ ]
1 The word “quarterly” substituted by S.R.O. 1032(I)/2006, dated 03.10.2006.
2 Omitted due to substitution by S.R.O. 651(I)/2004, dated 30th July, 2004.
3 Omitted by S.R.O. 641(I)/2005, dated 27.06.2005. The omitted Part III read as follows: –
“PART III
AMOUNTS SUBJECT TO ADVANCE TAX
(OTHER THAN SALARY)
Division I
Collection or Deduction of Tax
47. Collection or deduction of tax.- Every person obliged under the Ordinance to collect tax
from an amount or deduct tax from a payment shall collect or deduct the tax as specified in the
Ordinance.
48. Certificate of collection or deduction.- (1) This rule applies for the purposes of subsection
(1) of section 164, which obliges a person –
(a) collecting tax under Division II of Part V of Chapter X of the Ordinance;
(b) deducting tax from a payment under Division III of Part V of Chapter X
of the Ordinance except in the case of salary;
(c) collecting or deducting tax under Chapter XII; or
(2) deducting tax under the Sixth Schedule, to issue a certificate as specified in rule
50 to the person from whom tax has been collected or to whom the payment has been made.
(3) A certificate required to be furnished under sub-section (1) of section 164 (other
than in respect of the deduction of tax from salary and under sub-rule (2)) shall be in the form
specified under rules in this Division.
(4) Where a certificate issued under sub-section (1) of section 164 has been lost,
stolen or destroyed, the recipient of the certificate may request, in writing, that the issuer of the
certificate issue a duplicate certificate.
(5) Where a request has been made under sub-rule (5), the issuer of the certificate
shall comply with the request and the certificate so issued shall be clearly marked “duplicate”.
49. Certificate of collection / deduction of tax at source.- Certificate u/s 164 to issue to the
recipient payee or to the person who would receive credit for such tax deduction/ collection. The
certificate has to be serially numbered and issued in duplicate to the person
Certificate of Collection or Deduction of Tax
S. No. _____ Original/ Duplicate/ Triplicate Date of Issue __________
Certified that a sum of Rs _________________ (Amount of tax collected/ deducted in figures)
(_________________________________________(Amount in words)
on account income tax
has been collected/
deducted from ________________________________________________________
(Name & Address of the person whom tax collected/ deducted)
63
holding National Tax No. ________________________(if any) on ________________________
(Date of collection/ deduction) under section* ________________________(Specify section of
Income Tax Ordinance, 2001) on account of*________________________ (Specify nature) vide
________________________ (Particulars of LC, contract etc) on the value/ amount of
________________________ (Gross amount on which tax collected/ deducted in the matter of
collection of tax u/s 234, 235 and 236)
Date(s) of payment for which
tax deducted/ prior to which
deduction relate to/ prior to which
tax deposit relate to ________________________________________________(Amount
in words)
This is to further certify that
the tax collected/deducted
has been deposited in the ________________________(Main)
of ________________________
at ________________________(City)
on ________________________(Date of deposit)
vide challan/ treasury/ Voucher
No booked/ instrument entries through
(MAG, CNA etc, Pl. Specify A/C No)
in the Federal Government/
Income Tax Head of account.
Company/ office etc. collecting/ deducting the tax
Name ________________________
Address ________________________
________________________
NTN (if any) ________________________
Signature ______________________________
Name of authorised person ______________________________
Date ___________ Seal Designation ______________________________
(Key on the Back Page)
*Section on account of
148 Import of goods.
150 Dividend
154(1) Realisation of foreign exchange
proceeds on account of export of
goods.
151 Profit on debt. 154(2) Realisation of foreign exchange
proceeds on account of indenting
commission.
152(1) Royalty or fees for technical services
paid to non-resident.
154(3) Realisation of the proceeds on
account of sale of goods to an
exporters under an inland back-to
back letter of credit.
152(2) Other payments (specify) to nonresident
person excluding those
covered u/s 152(1), 149, 150, 153, 155
and 156.
155 Rent of immovable property etc.
64
153(1) Sale of goods/ rendering of services/
execution of contract by a resident
person.
156 Prize on a prize bond, winnings from
a raffle, lottery or cross word puzzle.
233 Brokerage or commission
234 Alongwith motor vehicle tax.
235 Electricity consumption
236 Telephone users.
153(3) Execution of a turnkey contract; a
contract or sub-contract for design,
construction or supply of plant and
equipment under a power project; a
contract or sub-contract under a
construction, assembly or installation
project in Pakistan, including a contract
for the supply of supervisory activities
in relation to such project; or any other
contract for construction or services
rendered, other than a contract to
which section 152 applies; by a nonresident
person.
Division II
Payment of Tax Collected or Deducted
50. Payment of tax collected or deducted.- (1) This rule applies for the purposes of section
160, which provides for –
(a) the payment of tax collected under Division II of Part V of Chapter X of
the Ordinance or deducted under Division III of Part V of Chapter X or
Chapter XII of the Ordinance;
(b) the payment of tax collected or deducted under Chapter XII of the
Ordinance; and
(2) the payment of tax deducted under the Sixth Schedule to the Ordinance.
(3) All amounts to which this rule applies that have been collected or deducted by, or
on behalf of, the Government shall be paid to the credit of the Federal Government on the day the
amount was collected or deducted.
(4) All amounts to which this rule applies (other than where sub-rule (2) applies) that
have been collected or deducted by a person shall be paid to the credit of the Federal Government by
remittance to the Government Treasury, an authorised branch of the State Bank of Pakistan or the
National Bank of Pakistan within one week from the date the amount was collected or deducted.
(5) The payment of any amount to which sub-rule (2) applies shall be accompanied
by an income tax challan and the statement in respect of sub-rule (2) as under:-
STATEMENT OF DEDUCTION MADE FROM PAYMENT OF
CONTRIBUTIONS TO AN APPROVED SUPERANNUATION FUND
In case where the trustees of an approved superannuation fund repay any contribution made by the
employer to an employee during his lifetime but not at or in connection with the termination of his
employment, or in lieu or in commutation of an annuity, they shall forthwith send to the a statement
giving the following particulars, namely.-
Name of
the
Employee
Address National
Tax
Number
The period for
which the
employer has
contributed to
the
supreannuation
fund.
The amount of
contributions
repaid.
The
average
of
deduction
of income
tax during
the
preceding
three
years.
Amount of
income tax
deducted
on
repayment.
Date of
deposit of
tax in
government
treasury.
Treasury
Challan
No.
Principal Interest
1 2 3 4 5 6 7 8 9 10
(6) Blank copies of income tax challans may be obtained from the Commissioner.
(7) The prescribed income tax authorities for the purposes of submission of original
65
copies of income tax challans under this rule shall be specified by the Central Board of Revenue
through open circular from time to time.
Division III
Quarterly, Six Monthly and Annual Statements
of Tax collected or Deducted
51. Section 165 statement, related forms and the time-frame.- (1) This rule applies for the
purposes of section 165, which provides for the furnishing of statements by persons –
(a) collecting tax under Division II of Part V of Chapter X of the Ordinance
or deducting tax under Division III of Part V of Chapter X of the
Ordinance; and
(b) collecting or deducting tax under Chapter XII of the Ordinance; or
(2) An annual statement required to be furnished under sub-section (1) of section
165 for a financial year shall be –
(a) in the form specified in the following rules; and
(b) furnished within two months after the end of the year.
(3) Pursuant to sub-section (2) of section 165 and in addition to the annual
statement referred to in sub-rule (2), a person required to collect tax under section 3[ ] 236, or deduct
3[or collect] tax under sections 149, 151, 152, 153, 154, 3[156A, 233 or 233A] shall furnish a
statement for each period of three months ending on the 30th day of September, 31st day of
December, 31st day of March and 30th day of June, within 15 days of the end of the period 3[and a
monthly statement under rule 66A within seven days of the end of each month].
(4) Pursuant to sub-section (2) of section 165 and in addition to the annual
statement referred to in sub-rule (2), the Collector of Customs required to collect tax under section
148 shall furnish a statement for each period of six months ending on the 31st day of December and
30th day of June, within 15 days of the end of the period.
(5) In case of dividend issued/ paid by the relevant company a statement in the prescribed
form shall be furnished within 60 days from declaration.
(6) Where –
(a) a person is required to furnish both quarterly and annual statements in
relation to tax collected or deducted; or
(b) a person is required to furnish both six monthly and annual statements
in relation to tax collected or deducted,
the annual statement shall include a reconciliation of the total amount paid, the total tax deducted or
collected, the amount where tax was not deducted or collected owing to the application of an
exemption certificate or where provision of the relevant section for deduction or collection was not
applicable or due to the amount being lower than threshold, tax was not deducted should be added
as part of the statement.
A[(7) The Commissioner may, on sufficient cause being shown, extend the date for the
delivery of any statement so, however, that no extension of time for a period or periods amounting in
all to more than fifteen days from the date specified in sub-rules (1), (2), (3), (4) and (5) shall be
allowed.]
A Earlier added by S.R.O. 590(I)/2004 dated 7th July, 2004
51A. B[Annual] statement under section 165 read with section 149 regarding salary during
the financial year.- A return under section 165 shall be furnished by every person responsible for
paying income chargeable under the head “Salary”, where the income so paid by him to any person
exceeds the maximum taxable limit, to the Commissioner having jurisdiction to such recipients, in the
following form and shall be verified in the manner indicated therein, namely:-
B Earlier the word “Quarterly” substituted by S.R.O. 590(I)/2004 dated 7th July, 2004.
66
Statement under section 165 read with section 149 of the
Income Tax Ordinance, 2001 for the year
From 1st July, _____ to 30th June _____
S.
No
Name of
Employee
National
Tax
Number
Address Appointment
or nature of
appointment
Pay, wages or
other
remuneration
including leave
pay, payment
in lieu of leave,
overtime
payment,
bonus,
commission
fees, gratuity or
work condition
supplement
(such as
unpleasant or
dangerous
working
conditions)
Perquisites
whether
convertible
to money
or not
Amount of any
allowance
including cost
of living,
subsistence
rent, utilities,
education,
entertainment
or travel
allowance, but
excluding any
allowance
solely
expended in
the
performance of
the employee’s
duties of
employment
Amount of any
expenditure
incurred by an
employee that
is paid or
reimubrsed by
the employer,
other than
expenditure
incurred on
behalf of the
employer in
the
performance of
the employee’s
duties of
employment.
1 2 3 4 5 6 7 8 9
Amount of any profits in lieu of or in addition to, salary or wages including any amount received.
As
consideration
for a
person’s
agreement to
enter into an
employment
relationship.
As consideration
for an
employee’s
agreement to
any conditions
of employment
or any changes
to the
employee’s
conditions of
employment.
On termination of
employment,
whether paid
voluntarily or
under an
agreement,
including any
compensation for
redundancy or
loss of
employment and
golden handshake
payments.
From a provident
or other fund, to
the extent to
which the amount
is not a
repayment of
contributions
made by the
employee to the
fund in respect of
which the
employee was
not entitled to a
deduction.
As
consideration
for an
employee’s
agreement to a
restrictive
convenant in
respect of any
past, present or
prospective
employment.
Any pension
or annuity,
or any
supplement
to a pension
or annuity.
Any amount
chargeable
to tax u/s 14
on account
of employee
share’s
scheme
10 11 12 13 14 15 16
Value of rent free accommodation or any concession in rent free accommodation
provided by the employer on account of
Remuneration
paid by
employer or
domestic and
personal
services
provided to the
employee
Rent free
unfurnished
accommodation
Rent free
furnished
accommodation
Accommodation
hired by employee
with rent payable
by employer
Accommodation
provided at a
concessional
rate.
Utilities Medical
hospitalization
fees, expenses
paid.
17 18 19 20 21 22 23
Value of free conveyance provided by the employer Employer’s contribution.
Conveyance
provided
exclusively for
personal or
priviate use.
Conveyance used
partly for personal
and partly for
business purpose.
Conveyance used
exclusively for
business
purposes.
Value of free of
concessional
passage provided by
the employer
Recognized
provided fund
Recognized
superannuation
fund
24 25 26 27 28 29
Interest credited to employer’s
account in a recognized
provided/ superannuation fund
Value of any benefit or annuity provided by the employer
free of cost or at a concessional rate, or any other sum
not included in the preceding columns such a food-free
or at concessional rate.
Amount but not paid given
full particulars with due date
and period for which
payable.
Total
30 31 32 33
Amount liable to tax
under the Income Tax
Ordinance, 2001.
Contribution to Contribution to provident or
superannuation fund, life insurance,
premium, other investments
Taxable
income
Tax
payable
Benevolent
fund
Group
insurance
34 35 36 37 38 39
67
Tax deducted and deposited to credit of Federal
Government.
Date on which deposited. Treasury Challan No. Remarks.
40 41 42 43
I _____________, certify that the above statement contains a complete list of the total amount paid to
(i) all person who were receiving or to whom the said amount was due on the 30th
day of June, 20_____.
(ii) all persons form whose salaries any tax was deducted during the year ended on
the 30th June, 20___, and that all the particulars furnished above are correct.
Date: _______________ Signature ________________________
Designation_______________________
c[51B. Quarterly statement under section 165 read with section 149 regarding salary.– A
statement under section 165 read with section 149 thereof, shall be furnished by every person
responsible for paying income chargeable under the head “Salary”, where the income so paid by him
to any person exceeds the maximum taxable limit, to the Commissioner having jurisdiction to such
recipients, in the following form and shall be verified in the manner indicated therein, namely:-
c Earlier inserted by S.R.O. 590(I)/2004 dated 7th July, 2004.
QUARTERLY STATEMENT OF DEDUCTION OF TAX ON INCOME CHARGEABLE UNDER THE
HEAD “SALARY”
Name and address of employer ______________________________________
______________________________________
National Tax Number of employer _____________________________________
Statement for the quarter ending ____________.
Amount of tax
deducted.
S.
No.
Name of
the
employee.
National
Tax
Number.
Appointment
or nature of
employment.
Total
amount of
salary,
wages,
annuities,
pension,
gratuity,
fees,
commission
and
allowances
of all kinds,
perquisites,
utilities, etc.
Net
amount
on
which
tax has
been
deducted.
During
the
month
Up to
and
including
the
month
Date on
which
deposited to
the credit of
Government
.
Challlan
No.
Remarks.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
I, ______________________, being the person responsible for paying the salary shown in
the above statement, do hereby declare that the above statement is complete and that the
particulars given therein are, correct.
Date: ______________ Signature: _____________________
Name of person responsible
for paying the salary
(if not the employer): __________________
Note:-
1. The total amount of salary, the net amount on which tax has been deducted and the
amount of tax deducted from the beginning of the financial year or from such month
after the 1st day of July as the employee entered the service of the employer should
be shown.
2. In the case of an employee who has left the service of the employer progressive
totals of the amount paid, etc., and the tax deducted should be shown up to the last
month of the each quarter.
68
3. The address of the former employer of a new employee and the address of the new
employer of an outgoing employee shall be given in the remarks column of the above
statement wherever practicable.]
52. Annual statements of tax deducted from dividends.- The six monthly and annual
statement to be furnished under section 165 by a resident company deduct tax from dividends paid
shall be in the following form and verified in the manner indicated therein, namely:-
ANNUALSTATEMENT OF TAX COLLECTED OR DEDUCTED UNDER SECTION 150 OF THE
INCOME TAX ORDINANCE, 2001
FOR YEAR ENDING 30TH JUNE, 200 ____
Name of the company ______________________________________________________________
Address _________________________________________________________________________
National Tax Number
S.
N
o
Name of
the
shareholde
r
Addre
ss
National
Tax
number
Number and
description of
share held by the
share-holder
Date of
declaration of
dividends /
Bonus shares
Nature of
dividends
/[bonus
shares] final /
interim
1 2 3 4 5 6 7
Amount of
dividend
[bonus
shares]
Amount
of tax
deducted
Date of
deposit to
government
treasury
Treasury
challan
No.
Remarks in case no or low tax is
deducted(Please specify the details of
the recipient, reasons for non
deduction or low tax with amount paid.
8 9 10 11 12
I, the Principal Officer of the Company, hereby certify that the above statement contains a
complete list of :-
(iii) the resident, non-resident shareholders which are companies and to whom a
dividend was distributed.
(iv) Other resident/non-resident shareholders of the company to whom a dividend or
aggregate dividend exceeding Rs.10,000 was or were distributed during the
period.
Signature of the Principal Officer ________________
Name _____________________________________
(2) The annual statements required to be furnished under sub-clause (1) shall be delivered
to the Commissioner with responsibility for assessing the company and any other officer authorized in
this behalf by the Central Board of Revenue.
53. (1) Quarterly and annual statements of tax deducted from profit on Bonds,
Certificates, Debentures, Securities, or Instruments.- The quarterly and annual statements to be
furnished under section 165 by a person deducting tax under clause (c) 3[or (d)]of sub-section (1) of
section 151 from profit paid by the person shall be in the following form, namely:-
QUARTERLY/ANNUAL STATEMENT OF DEDUCTION OF TAX UNDER SECTION 151(1)(c) 3[or
(d)] OF THE INCOME TAX ORDINANCE, 2001
FOR YEAR ENDED 30TH JUNE, 200________/FOR QUARTER ENDED ____
69
Nature of
payment.
Name of
recipient
Gross
amount paid
after zakat
but before
deduction of
tax (see
section 151)
Tax
deducted
and
deposited.
Date of
deposit of tax
into
Government
Treasury.
Treasury
Challan
No.
Any other mode
of transfer of
tax deduction to
the income tax
head of account
maintained in
the designated
bank. Please
specify and give
details.
Remarks in case
no tax or low tax is
deducted (Please
specify the details
of the recipient,
reasons for non
deduction or low
deduction of tax
with amount paid.
1 2 3 4 5 6 7 8
Bonds
Certificates
Debentures
Securities
Other instruments.
________________________________________________________________________________
Name of the company/Bank/Office making payment
Signature_________________________
Name & Designation________________
Address__________________________
Date_____________________________
National Tax No.
54. Quarterly and annual statements of tax deducted from profit on debt, brokerage,
commission or professional fees.- (1)The quarterly and annual statements to be furnished under
section 165:-
(a) by a person deducting tax under clause (a) or (b) of sub-section (1) of
section 151 from profit on debt paid by the person;
(b) by a person deducting tax under section 233 from brokerage or
commission paid by the person;
(c) by or on behalf of Government, a local authority, public company
(including a banking company), a foreign consultant or consortium
deducting tax under section 152 from professional fees,shall be in the
following form and verified in the manner indicated therein, namely:-
55. QUARTERLY / ANNUAL STATEMENT OF DEDUCTION OF TAX UNDER SECTION
151(1)(b) or (c), 152 or 233 OF THE INCOME TAX ORDINANCE 2001.-
FOR YEAR ENDED 30TH JUNE 20-__/FOR QUARTER ENDED ____
Name of the payer _________________________________________________________________
Address _________________________________________________________________________
National Tax Number ______________________________
S.
No
Name of the
payee
Address
.
National Tax
Number
Whether payee is
resident/ nonresident
Date of
payment
Profit on
debt
1 2 3 4 5 6 7
70
Nature of
payment
Professional
fees
Total
amount
Date of deposit
to Government
Treasury
Challan
Remarks in case no tax or low tax is
deducted(Please specify the details of the recipient,
reasons for non deduction or low deduction of tax
with amount paid & names of person(s).
Brokerage Commission
Agent
8 9 10 11 12 1
3
14
I,_____________________ of ______________________ hereby certify that the above
statement contains a complete list of persons to whom profit on debt /brokerage/ commission/
professional fee for the year/quarter months ended on _____.
Signature _________________________
Name ____________________________
Designation _______________________
State name of Government, local authority, public company, foreign contractor, consultant
or consortium.
(2) The payment exceeding the monetary limits for which statement is required to be
filed under sub-rule (1) shall be:-
(i) in the case of a non-resident person___________Nil
(ii) in the case of a resident person
(a) where the amounts paid are in the nature of profit on debt
Rs.1,000; and
(b) where amounts paid are other than profit on debt Rs.5,000.
56. Statement under section 153 regarding deduction of tax made from contractors,
suppliers etc. – Any person making deduction in accordance with the provisions of Section 153 shall
by the fifteenth day of each quarter send to the Income Tax Authorities specified under rule ______ a
quarterly statement in respect of payment made by him during the preceding quarter in the following
form, verified in the manner indicated therein, namely:-
STATEMENT OF DEDUCTION OF TAX MADE UNDER SECTION 153 OF INCOME TAX
ORDINANCE, 2001
Name of the
recipient
Address National Tax
Number
Nature of
payment
Contract
order No.
Date of
payment
Total amount payable before
deduction of tax
1 2 3 4 5 6 7
Total amount
payable before
deduction of tax
Amount paid
after deduction
of tax
Income tax
deducted and
deposited
Date of deposit of
tax to government
treasury
Treasury
Challan No.
Remarks if any amount paid
without deducing tax or low
rate mentioning amounts
7 8 9 10 11 12 13
57. Quarterly and annual statements of tax deducted from rent of immovable property .-
The quarterly and annual statements to be furnished under section 165 by a person deducting tax
under section 155 from payments of rent of immovable property shall be in the following form,
namely:-
71
QUARTERLY /ANNUAL STATEMENT OF DEDUCTION OF TAX UNDER SECTION 155 OF THE
INCOME TAX ORDINANCE 2001
FOR THE YEAR ENDED 30TH JUNE 20-__/FOR THE QUARTER ENDED ____
S.
No.
Name of
recipient
Address NTN Address
of
property
Amount
paid
before
deduction
of tax.
Amount
paid after
deduction
of tax.
Tax
deducted
and
deposited
treasury
Challan No.
& date.
Dates of
deposit/
transfer
through
Bank to
the NBP/
SBP in
federal
govt.
treasury.
Remarks in case
no/ low tax is
deducted
(Please specify
the details of the
recipient,
reasons for non
deduction or low
deduction of tax
with amount
paid.
1 2 3 4 5 6 7 8 9 10
Name of officer making payment_____________________ Signature________________________
Address: _______________________________________ Name and Designation_____________
NTN: ____________________________ Date: ___________________________
58. Quarterly and annual statements of tax deducted from payments to non-resident
persons .- The quarterly and annual statements to be furnished under section 165 by a person
deducting tax under section 152 from a payment made by the person to a non-resident person shall
be in the following form and verified in the manner indicated therein, namely:-
QUARTERLY/ANNUAL STATEMENT OF DEDUCTION OF TAX UNDER SECTION 152 OF THE
INCOME TAX ORDINANCE, 2001
FOR YEAR ENDED 30TH JUNE 20__/FOR QUARTER ENDED _____
Name and
address of
the nonresident
to
whom
payment
is made.
Nature of
payment.
Dates of
payment
Total
amount
paid
Challan
No.
Tax
deducted
and
deposited
Date of
deposit to
government
treasury
Treasury
Challan
No.
Remarks in case
no tax or low tax is
deducted (Please
specify the details
of the recipient,
reasons for non/
low deduction of
tax with amount
paid.
1 2 3 4 5 6 7 8 9
I _______________________________, hereby certify that the above statement contains a complete
list of persons from whom tax was deductible under section 152 of the Income Tax Ordinance, 2001),
during the year/quarter ending on ______200 _________.
Name and Address _________________________________ Signature_______________________
Date_______________________ Designation______________________
59. Annual statement of tax deducted from certain export payments.- The annual
statement to be furnished under section 165 by a person deducting tax under sub-sections (1) and (2)
of section 154 in respect of exporters shall be in the following form and verified in the manner
indicated therein, namely:-
ANNUAL STATEMENT OF DEDUCTION OF TAX UNDER SECTION 154 OF THE INCOME TAX
ORDINANCE, 2001
FOR YEAR ENDED 30TH JUNE, 20___/FOR THE QUARTER ENDED ____
S.
No.
Name and
address of
exporter
National
tax
number
Description
of items
exported
Amount
realized In
foreign
exchange
Date of
Payment
Total Amount
(in Rs) before
deduction of
tax
Tax
Deducted
and
deposited
chalan no.
Date of
deposit in
Govt.
Treasury
1 2 3 4 5 6 7 8 9
72
I, ______________ hereby certify that the above statement contains a complete list of
persons from whom tax was deductible under section 154 of the Income Tax Ordinance, 2001, during
the year ended on the 30th June, 20_____.
Name of the authorized dealer in foreign Signature_______________________
exchange________________________________________
Address_________________________________________ Dated__________________________
National Tax Number
60. Annual statement of tax deducted in relation to the sale of goods to exporters under
inland back to back letter of credit.- The annual statement to be furnished under section 165 by a
banking company deducting tax under sub-section (3) of section 154 from the proceeds of a sale of
goods to an exporter under an inland back-to-back letter of credit or other prescribed arrangement
shall be in the following form and verified in the manner indicated herein, namely:-
ANNUAL STATEMENT OF TAX DEDUCTED UNDER SECTION 154
OF THE INCOME TAX ORDINANCE, 2001
FOR YEAR ENDED 30TH JUNE, _________.
S.
No.
Name,
address
and
National
Tax
Number
of
supplier
of goods
to
exporter
Name,
address
and
National
Tax
Number
of
exporter
Description
of Items
supplied to
exporter
Amount
realised
through
back to
back LC
Date of
payment
Total
amount
before
deduction
of tax
Tax
deducted
and
deposited
Date of
deposit
in Govt.
Challan
No.
Remarks in
case no tax/
low tax is
deducted
(Please
specify the
details of the
recipient,
reasons for
non/ low
deduction of
tax with the
amount paid.
1 2 3 4 5 6 7 8 9 10
I, __________________ do hereby certify that the above statement contains a complete
and correct list of persons from whom tax was deductible under section 154 of the Income Tax
Ordinance, 2001 during the year ended on 30th June________
Name of authorized dealer in foreign Signature_______________________
Exchange ______________________________________ Name__________________________
Address _______________________________________ Dated __________________________
National Tax Number___________________
61. Annual statement of tax deducted from prize bonds, or winnings from a raffle, lottery
or cross-word puzzle.- The annual statement to be furnished under section 165 by a person
deducting tax under section 156 from a prize bond, or winnings from a raffle, lottery or crossword
puzzle paid by the person shall be in the following form and verified in the manner indicated therein,
namely:-
ANNUAL STATEMENT OF DEDUCTION OF TAX UNDER SECTION 156 OF THE INCOME TAX
ORDINANCE, 2001
FOR THE YEAR ENDED 30TH JUNE 20__
S.
No.
Name and
address of
recipient
Nature of
payment of
prize or
bonus, raffle,
lottery etc.
Dates of
payment
Total amount
payable
before
deduction of
tax.
Tax
deducted
and
deposited
with No. and
date.
Dates of
transfer to
NBP/SBP
income tax head
of account
through bank
transfer
Remarks in case no tax
deduction or low
deduction (Please
specify the details of the
recipient, reasons for
non deduction of low
deduction of tax with
amount paid.
1 2 3 4 5 6 7 8
73
I ______ hereby certify that the above statements contains a complete list of persons from whom tax
was deductible under section 156 of the Income Tax Ordinance, 2001 during the year ended 30th
June 20__.
Name of the payer _____________________________Signature____________________________
Address _____________________________________Designation__________________________
NTN _____________________________
62. Six monthly and annual statements of tax collected .- The six monthly and annual
statements to be furnished under section 165 by the Collector of Customs collecting tax under section
148 shall be in the following form and verified in the manner indicated therein, namely:-
SIX MONTHLY/ANNUAL STATEMENT OF TAX DEDUCTED UNDER SECTION 148 OF THE
INCOME TAX ORDINANCE, 2001
FOR YEAR ENDED 30TH JUNE, _________/FOR SIX MONTHS ENDED ____
S.
No.
Name &
address
of
Importer
National
Tax
Number
Description
of goods
Appraised
value of
goods
Amount
of
customs
duty &
Sales
tax etc.
Total
Value
of
goods
i. Amount
of tax
collected
ii. If no tax
has been
Collected
specify
reason of
exemption
Dates of
deposit
of tax
into
Govt.
Treasury
/ Bank
Bank/
Treasury
Challan
No.
Remarks
in case
no/ low
tax is
deducted
(Please
specify
the
details of
the
recipient,
amount
paid and
reasons
for non /
low
deductio
n of tax
1 2 3 4 5 6 7 8 9 10 11
I_____________________ hereby certify that the above statement contains a complete list
of importers who imported goods during the year/six months ended on _____ 20___.
Name and Designation ___________________________ Signature________________________
Office _________________________________________ Date____________________________
63. Quarterly and annual statements of collection of tax in relation to the issue or
clearance of certain financial instruments.- The quarterly and annual statements to be furnished
under section 165 by a person collecting tax under section 232 in relation to certain financial
instruments shall be in the following form and verified in the manner indicated therein, namely:-
74
QUARTERLY/ANNUAL STATEMENT OF TAX DEDUCTED UNDER SECTION 232 OF THE
INCOME TAX ORDINANCE, 2001
FOR YEAR ENDED 30TH JUNE, _________/FOR QUARTER ENDED ____
S.
No
Name
& code
No. of
Bank
Branch
Total
number of
financial
instruments
(TT’s,
DD’s,
DRFDRs,
issued
during the
quarter)
Total value
of all the
financial
instruments
issued
during the
quarter
Identifiable
number of
instruments
on which
tax has
been
collected.
Total value
of financial
instruments
on which
exempted
tax has
been
collected
u/s 232
(pleas
enclose)
Amount
of tax
collected
Date of
deposit of
tax into
government
treasury
with the
date
Any other
mode of
transfer of
tax –
collection
amount to
Challan
No. of
account in
the SBP or
bank
branch
designated
for the
purpose.
Please
specify
and give
details.
Remarks
in case
no/ low
tax is
deducted
(Please
specify
the
details of
the
recipient,
amount
reasons
for non/
low
deduction
of tax with
amount
and
names of
person(s).
1 2 3 4 5 6 7 8 9 10
I ________________ hereby certify that the above statement contains a complete list of persons from
whom tax was collectible under section 232 of the Income Tax Ordinance, 2001, during the
year/quarter ended on ____200______.
Name and Designation__________________________ Signature________________________
Bank Branch______________________ ___________ Date____________________________
Note: i) The statement shall be prepared date-wise, by each branch of the bank or collecting
institution.
ii) The statement shall be supplied to local or designated income tax office.
Signature ________________________
________________________
Designation of person
Paying interest/ profit
64. Quarterly and annual statements of tax collected in relation to motor vehicles.- The
quarterly and annual statements to be furnished under section 165 by a person collecting tax under
section 234 in relation to motor vehicles shall be in the following form and verified in the manner
indicated therein, namely:-
QUARTERLY/ANNUAL STATEMENT OF TAX COLLECTED UNDER SECTION 234 OF THE
INCOME TAX ORDINANCE, 2001
FOR YEAR FROM ENDED 30TH JUNE,___________/ FOR QUARTER ENDED ____
S.
No
Name
and
address
of
owner
Registration
No. of the
Motor
vehicle
Motor
vehicle
make/
model
engine
capacity
Year of
manufacture
Date of
first
registration
of the
vehicle in
Pakistan
Registered
capacity/
laden
weight of
the vehicle
Amount
of tax
deducted/
collected
and
deposited
Date of
deposit
in govt.
Treasury
Challan
No.
Remarks
in case
no/low tax
is
deducted
(Please
specify the
details of
the
recipient,
reasons
for non/
low
deduction
of tax with
amount
paid.
1 2 3 4 5 6 7 8 9 10
75
I, _____________hereby certify that the above statement contains a complete list of
persons from whom tax was collected under section 234 of the Income Tax Ordinance, 2001 for
year/quarter ended on ____,.
Name of motor vehicle tax collecting Signature________________________
Authority_____________________________________ Address_________________________
Dated ________________
National Tax Number
65. Quarterly and annual statements of tax deducted from commission or discount
allowed to petrol pump operators.- The quarterly and annual statements to be furnished under
section 165 by a person deducting tax under section 157 from commission or discount allowed by the
person to petrol pump operators shall be in the following form and verified in the manner indicated
therein, namely:-
QUARTERLY / ANNUAL STATEMENT OF TAX DEDUCTED UNDER SECTION 157 OF THE
INCOME TAX ORDINANCE, 2001
FOR THE YEAR ENDED 30TH JUNE___/FOR THE QUARTER ENDED ___
S.
No
Name &
Address
of Petrol
Pump
Operator
National
Tax
Number
Item
sold to
petrol
pump
operator
Date
of
sales
Amount
of sales
Commission
/ discount
allowed on
the sales
Income tax
collected
from
commission
/ discount
Dates
of
deposit
of tax
in SBP
/NBP &
Br.
Challan
No./
Receipt
No.
Any
other
mode of
transfer
of the
income
tax head
of
account
in the
designat
ed bank
Remarks
in case no
/ low tax is
deducted
(Please
specify the
details of
the
recipient,
reasons
for non/
low
deduction
of tax with
amount
paid.
1 2 3 4 5 6 7 8 9 10 11
I,_________________ do hereby certify that the above statement contains a complete and
correct list of persons from whom tax was collectable under section 157 of the Income Tax
Ordinance, 2001 during the year/quarter ended on _________.
Name of company/seller____________________________ Signature________________________
Address_________________________________________ Name___________________________
National Tax Number______________________________ Date_______________________
66. Quarterly and annual statements of tax collected with telephone bills.—The quarterly
and annual statements to be furnished under section 165 by a person collecting tax under section
236 shall be in the following form and verified in the manner indicated therein, namely:-
76
QUARTERLY/ANNUAL STATEMENT OF TAX COLLECTED UNDER SECTION 236 OF THE
INCOME TAX ORDINANCE, 2001
FOR YEAR ENDED ON THE ____/FOR QUARTER ENDED ___.
S.
NO
Name of
Subscriber
and
address
Phone
No.
NTN
and NIC
Number
Total
amount of
bills for
the
quarter
ending or
the year
or ended
30-6-
Bills
Amount
not
subjected
to tax
Advance
income
tax
collected
Date of
deposit of
tax in the
SBP/
NBP and
Branch
Challan
No.
Indicate
reasons
for noncollection
if any, i.e.,
subscriber
is (1)
Govt.
(2) a
Diplomat
or
(3) nontaxable
or
charitable
institution
Remarks in
case no/ low
tax is
deducted
(Please
specify the
details of the
recipient,
reasons for
non/ low
deduction of
tax with
amount paid.
1 2 3 4 5 6 7 8 9 10
I_____________________do hereby certify that the above statement contains a complete
and correct list of persons from whom tax was collected under section 236 of the Income Tax
Ordinance, 2001, for the year/quarter ended on _____.
Signature________________________________
Name and designation _____________________
Name of company ________________________
Address_________________________________
(Seal) __________________________________
Date ___________________________________
D[66A. Monthly statement of deduction of tax by registered stock exchange regarding
purchase of shares, sale of shares, trading of shares and financing of carry over trade (Badla)
in shares.- A statement under section 165 in respect of persons from whom tax has been deducted
under sub-section (1) of section 233A shall, on or before the 15th day of every month, be furnished to
the respective Commissioner of Income Tax in the following form and verified in the manner indicated
therein, namely: –
D Earlier inserted by S.R.O. 936(I)/2004, dated 24.11.2004.
Monthly statement of deduction of tax u/s 233A
Of the Income Tax Ordinance, 2001, for the
Month ending on the __________, 200 __.
S.No. Name of the Purchase of shares Sale of shares Badla
member /
broker
Amount Tax
collected
Amount Tax
collected
Investment Amount
of
markup
on
COT
Tax
collected
Date of
payment
into
government
treasury
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
I certify that the above statement contains complete information of tax deductible under
section 233A of the Income Tax Ordinance, 2001 (XLIX of 2001), during the month ending on the
____, 200 __.
Name of registered stock exchange : __________________________________
National tax number : _______________________________________________
Address : ________________________________________________________
Name and designation of person responsible : ___________________________
Signature _________________
Date _____________________
Seal._____________________”
77
CHAPTER X
PRESCRIBED FORMS
67. Application of Chapter.- This chapter prescribes forms to be used for
the purposes of the Ordinance.
68. Amended assessment notice. – An amended assessment order
related issue notice or / letter issued by the Commissioner under section 122
shall be in the manner or proforma specified in Part II of the First Schedule to
these rules.
69. Section 140 notice.- A notice issued by the Commissioner under
section 140 shall be in the form specified in Part IV of the First Schedule to these
rules.
70. Section 145 certificate.- A certificate issued by the Commissioner to the
Director of Immigration or immigration authority under section 145 shall be in the
form specified in Part V of the First Schedule to these rules.
71. Section 170 application.- (1) An application under section 170 for a
refund of tax shall be in the proforma specified in Part VI of the First Schedule to
these rules.
(2) The application shall be verified in the manner specified in the
form.
(3) The application shall be accompanied by such documents,
statements and certificates as specified in the form, and in the Ordinance and
these rules.
72. Section 175 authorization.- The authorization of a taxation officer for
the purposes of section 175 shall be in the manner specified in Part XIII of the
First Schedule to these rules.
78
CHAPTER – XI
FURNISHING OF DOCUMENTS; SERVICE OF DOCUMENTS;
FORMS AND NOTICES
73. Furnishing of documents and returns etc.- (1) This rule applies for the
purposes of furnishing of documents under the Ordinance or these rules.
(2) Except as provided in the Ordinance or these rules, any
application, statement or other document to be furnished to the Commissioner
shall be furnished in the following manner, namely:-
(a) by post or courier service;
(b) delivered by hand to the officer having jurisdiction over
the person or to such other officer as the Commissioner
may specify; or
1[(c) on computer or by electronic transmission using the
specified software in accordance with the specified
format or any other requirements including safety valve,
security and verification considerations as may be
specified by the 2[Federal Board of Revenue] from time
to time.]
3[(2A) In the case of a Company, electronic filing of income tax return
and withholding tax statements shall be mandatory from the first day of July 2007
onwards.]
4[(2B) In the case of a non-resident ship owner and aircraft owner or
charterer thereof, the electronic filing of the income tax return and application for
port clearance shall be mandatory from the 1st day of July 2008 onward.]
(3) A return, statement, certificate, application or other document
furnished by a person that includes the 5[digital] signature of the person or the
person’s 6[e-intermediary] shall be taken to be signed by that person.
(4) A person who furnishes a return, statement, certificate,
application or other document by electronic transmission which includes the
electronic signature of another person who has not consented to the inclusion of
the signature shall commit an offence punishable on conviction with a fine or
imprisonment not exceeding one year, or both.
1 Substituted by SRO 516(I)/2006 dated 1st June 2006. The substituted sub Rule read as under:
“On computer media or by electronic transmission in accordance with specified software or other
requirements of the Commissioner or Regional Commissioner as the case may be, also prescribing
safety valves and security and verification consideration.”
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
3 Inserted by SRO 708(I)/2007, dated 14.07.2007.
4 Inserted by SRO 695(I)/2008, dated 26.06.2008.
5 Substituted by SRO 516(I)/2006 dated 1st June 2006
6 Substituted by SRO 516(I)/2006 dated 1st June 2006
79
1[(5) An Electronic Income Tax Return filed under these rules shall be
deemed to be a return for the purposes of sub-section (2A) of section 114 of the
Ordinance; and]
2[(6) The e-intermediary shall get the authority letter in the manner
specified below, from the taxpayer and produce it before the concerned income
tax authority whenever demanded, namely:-
AUTHORITY LETTER
I/We ________________________s/o______________________ resident
of/having registered office at _________________________, holder of CNIC
No/company registration number ______________, solemnly declare that a
signed copy of the return/certificate/statement/document/annexure/etc have
been provided to my/our e-intermediary
Mr/Ms._________________________________________________
(Name & Address)
who is a Chartered Accountant / Cost and Management Accountant / a legal
practitioner entitled to practice in any civil Court in Pakistan/ a member of the
Association of Chartered Certified Accountants, UK/ ITP registered with Tax Bar
affiliated with All Pakistan Tax Bar Association of Pakistan. I/we further authorize
the said e-intermediary to transmit my/our return/certificate/statement/document/
annexure/etc to the designated officer of 3[Federal Board of Revenue].
(Signatures)
Name: __________________________
Address: ___________________________
(7) The return / certificate / statement / document / annexure / etc.
and all supporting documents of the taxpayers shall be retained by the eintermediary
who shall provide them to the taxation officer concerned whenever
demanded.]
1 Substituted by SRO 516(I)/2006 dated 1st June 2006. The substituted sub Rule read as under:
“In this section, “electronic signature” means the unique identification, in electronic form,
that is approved by the Commissioner or Regional Commissioner for use by the person or the
person’s representative.”
2 Inserted by SRO 516(I)/2006 dated 1st June 2006
3 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
80
74. Service of documents electronically.- (1) This rule applies for the
purposes of the service of documents under the Ordinance or these rules.
(2) Where a person has notified the Commissioner in writing of an
electronic address for service of documents under the Ordinance or rules, a
document required to be served on the person by the Commissioner or Regional
Commissioner shall be considered sufficiently served if sent to that address.
(3) For the purposes of sub-rule (2), a document is considered sent
to an electronic address if the sender receives –
(a) in the case of a message sent to a facsimile number,
confirmation from the sending facsimile machine that the
transmission is sent; 1[ ]
(b) in the case of a message sent to an electronic mail
address, confirmation from the server of the recipient
that the message has been received 2[;and]
(c) 3[from the Board a digitally signed e-mail acknowledging
the receipt of Electronic Income Tax Return.]
(4) In this rule –
(a) “document” means any notice, order or requisition under
the Ordinance; and
(b) “electronic address” means a facsimile number or
electronic mail address.
75. Forms and notices.- Any order, notice, assessment, computation or
other document required to be issued under the Ordinance or these rules may
be generated by computer and the order, notice, assessment, computation or
other document shall not require the signature of the taxation officer whose name
and designation is specified thereon.
1 The word “and” omitted vide SRO 516(I)/2006 dated 1st June, 2006
2 The word “and” added vide SRO 516(I)/2006 dated 1st June, 2006
3 Sub Rule C added vide SRO 516(I)/2006 dated 1st June, 2006.
81
CHAPTER XII
APPEALS
76. Prescribed form of appeal to the Commissioner (Appeals).- An
appeal under section 127 shall be in the following form and verified in the manner
indicated therein, namely:-
Form of Appeal to the Commissioner (Appeals)
FORM OF APPEAL
APPEAL NO.___________
APPEAL DATE__________
(For office use only)
To
THE COMMISSIONER
(APPEALS) ZONE________
Amount of appeal
fee paid
Date of payment of
appeal fee
– –
Amount of tax
demand based on
return of income.
Date of payment of. – –
Amount of tax levied additionally whether requirement
of tax payment for filing of appeal met or not? No Yes
National Tax Number Of Appellant – –
Tax Year Zone _______________________
Circle _______________________
Jurisdiction___________________
Name of Appellant
Appellants Status” Individual AOP Company Any other for appeals for AY
2002-2003
(Pl. encircle the appropriate box)
Address of Appellant
Name of Authorized
Representative (if any)
Status of
Representative
C
A
C&M
A
AD
V
IT
P
A
R
(Pl. encircle the
appropriate box)
Address to which the
Notice may be sent
Name of the
Commissioner (who
passed the order)
CIT Code
INCOME
DECLARED
ASSESSED
Signature of the official _____________________
Who received the appeal ___________________
Name __________________________________
(in capital letter)
Designation _____________________________
82
TAX ASSESSED
a) Income tax
b) Additional Tax
c) Penalty
d) Surcharge
e) Others
(g) Total
(i) Undisputed liability. This
shall not be less than the
tax due on the basis of
return.
(j) Disputed Tax Demand
General Guidelines
1. Indicate the section and subsection
of the Income Tax
Ordinance under which
appeal filed.
2. Where payment made on
more than one date please
give details on a separate
Sheet.
3. AOP: Association of
Persons
4. CMA: Cost & Management
Accountant.
5. ADV Advocate
6. AR: Authorized Representative
(k) Amount out of (j) paid ____________________
(l) Total amount of (i) and (k) paid ____________________
N.B. (i) The appeal should be filed in duplicate.
(ii) The appeal should be accompanied by the Notice of Demand and/or a copy of
the assessment appeal against, as the case may be.
GROUNDS OF APPEAL
(Attach separate sheets, if required)
1.
2.
3.
4._________________________________________________________________
BRIEF CLAIM IN APPEAL/ PAYER
VERIFICATION
1. I,__________________ S/o____________ the proprietor/partner/managing
director/member of M/s._______________ the appellant, do hereby declare that whatever
is stated above is true to the best of my knowledge and belief.
2. I am competent to file the appeal in my capacity as _______________________.
3. I further certify that a true copy of this form of appeal has been sent by Registered Post/
AD/ Courier service, or delivered to the concerned officer personally to the Commissioner/
Circle ________ Zone/ Jurisdiction _______ on _________ (date)
Signature of Appellant________________________
Name (in capital letters)________________________
NIC Number of person signing the appeal________________________
The form of appeal and verification form appended thereto shall be signed:-
(a) in case of an individual by the individual himself
(b) in case of a company by the principal officer.
(c) In case of AOP by member/partner.
________________________________________________________________________________
This portion is for official use
83
Appeal received by transfer Date appeal received In ward register No.
From Zone/Range by transfer
_______________________
Appeal transferred to Date of appeal Outward register No.
Zone/Range transferred out
_______________________
UDC/LDC/ Officer of Appeal Section _____________ CIT(Appeal) _______________
(Initial) (Initial)
APPEAL ACKNOWLEDGEMENT RECEIPT
Appeal Zone/ __________. ________________
City
National Tax No. Appeal No.________
Appellant” Name_____________________
Signature of Appellant Date of receipt of Signature, and name of receiving
Appeal Official
Designation_________________
77. Prescribed form for appeal to the Appellate Tribunal.- An appeal
under section 131 shall be in the following form and verified in the manner
indicated therein, namely:-
FORM OF APPEAL TO THE TRIBUNAL UNDER SECTION 131 OF
THE INCOME TAX ORDINANCE, 2001
No ___________ of 20
Appellant Vs
Respondent
Income Tax Office in which assessment
was made and one in which it is located.
Tax year to which the appeal relates.
Section of the Income Tax Ordinance, 2001
under which Commissioner
passed the order Commissioner (Appeals)
passing the appellate order.
Date of communication of the order appealed against
Address to which notices may be sent to the appellant.
Address to which notices may be sent to
the respondent.
Claim in appeal
84
GROUND OF APPEAL
__________________
Signed (Appellant)
___________________________
Signed
(Authorized Representative, if any)
VERIFICATION
I __________________The appellant, do hereby declare that what is stated above is true
to the best of my information and belief.
Verified to day, the ______________ day of ________________20____.
_________
Signed
(Appellant)
N.B.
1. The memorandum of appeal (including the Grounds of Appeal when filed on a
separate paper) must be in triplicate and should be accompanied by two copies
(at least one of which should be a certified copy) of the order appealed against
and two copies of the order of the Commissioner
2. The memorandum of appeal in the case of an appeal by the taxpayer must be
accompanied by a fee. The appeal fee must be credited in the Treasury or a
Branch of the National Bank of Pakistan or the State Bank of Pakistan and the
triplicate portion of the challan sent to the Tribunal with the memorandum of
appeal. The Appellate Tribunal will not accept cheques, hundies or other
negotiable instruments.
3. The memorandum of appeal should be set forth, concisely and under distinct
heads, the grounds of appeal without any argument or narrative and such
grounds should be numbered consecutively.
1[78. Prescribed Form for reference to High Court . An application under
sub-section (1) of section 133 to refer to the High Court any question of law shall
be in the following form, namely:—
1 Amended by S.R.O. 678(I)/2005, dated 04.07.2005. The original Rule 78 read as follows:
“78. Prescribed Form for reference application.- An application under sub-section (I) of
section 133 requiring the Tribunal to refer to the High Court any question of law shall be in the
following form, namely:-
85
FORM OF REFERENCE APPLICATION UNDER SECTION 133 OF THE INCOME
TAX ORDINANCE, 2001
Year
Before the High Court of _______________________.
Income Tax
Reference Application No._______________________________________of 20
APPELLANT………………………………………………………………………………
VERSUS
RESPONDENT
……………………………………………………………………..
Title and number of appeal which
gives rise to the reference __________________
________________________________________________________________
The applicant (s) state (s) as follows:—
1. That the appeal noted above was decided by the ____________ Bench of the
Income Tax Appellate Tribunal on ___________________
2. 2. That the order under sub-section (3) of section 132 of the income tax
Ordinance, 2001 was served on the applicant on ________________
3. That the facts which are admitted and/or found by the Tribunal, the determination
of the Tribunal and the question (s) of law which arises out of its order have been truly
stated in the attached statement of the case.
4. That the following questions of law arise out of the order of the
Tribunal :—
(1)
(2)
(3)
5. That the following documents are attached with this application:
(1) Statement of the case signed by the Appellant.
(2) Certified copy of the order of the Appellate Tribunal from which the
question(s) of law stated above arises.
(3) First Appellate Order (by the Commissioner (Appeals).
(4) Original assessment or other order.
6. That other document (s) or copies thereof, as specified below (the translation in
English of the document, where necessary are annexed with the statement of the case.
________________________
Signed
(Appellant)
________________________
Signed
(Authorized Representative, if any)
N.B:- 1. The application must be made in triplicate.
2. The application made by taxpayer must be accompanied by a fee of
one hundred rupees. The fee be deposited in the Treasury or a Branch
of the National Bank of Pakistan or the State Bank of Pakistan
alongwith the income tax challan (in quadruplicate) and one copy of
the challan be attached with the application.”
86
CHAPTER XIII
NATIONAL TAX NUMBER CARD
79. Application of Chapter. – The rules in this Chapter apply for the
purposes of section 181, which provides for the issuing of National Tax Number
Cards.
80. Application for National Tax Number Card.- (1) An application for a
National Tax Number Card shall be in the form specified in Part VIII of the First
Schedule to these rules and shall be accompanied by documentary evidence of
the applicant’s identity.
IN THE INCOME TAX APPELLATE TRIBUNAL
In the matter of the assessment of ____________name of the taxpayer.
R. A. No __________________of 20 (to be filled in by the office of the Tribunal).
________________________________________________________________________________
Appellant Vs Respondent .
The Income Tax Office in which assessment
was made name and number of appeal which
gives rise to the reference.
The applicant (s) state (s) as follows:-
1. that the appeal noted above was decided by the _______________Bench of the
Tribunal on __________________
2. that the notice of the order under sub-section (3) of section 132 of the Income
Tax ordinance, 2001 was served on the applicant on _____________
3. that the facts which are admitted and/or found by the Tribunal and which are
necessary for drawing up a statement of the case, are stated in the enclosure for
ready reference.
4. that the following questions of law arise out of the order of the Tribunal:-
(1)
(2)
(3)
5. that the applicant, therefore, requires under section 133 of the aforesaid
Ordinance that a statement of the case be drawn up and the question of law
referred to in paragraph 4 above be referred to the High Court.
6. that the documents or copies thereof, as specified below (the translation in
English of the documents, where necessary is annexed) be forwarded to the
High Court with the statement of the case.
_________
Signed (Appellant)
___________________________
Signed
(Authorized Representative, if any)
N.B:- 1. The application must be made in triplicate.
2. The application made by an taxpayer as the case may be must be accompanied by a fee of
one hundred rupees. The fee must be credited in the Treasury or a Branch of the National Bank of
Pakistan or the State Bank of Pakistan after obtaining a challan from the Commissioner and the
triplicate portion of the challan sent to the Tribunal with the application. The Appellate Tribunal will
not accept cheques, drafts, hundies or other negotiable instruments.”
87
(2) The following shall be provided as documentary evidence of an
applicant’s identity –
(a) in the case of an individual –
(i) NIC or a current passport; or
(ii) other documents with photo-identificationdriver’s
licence.
(b) in the case of a company other than a trust), the
certificate of incorporation or registration of the
company;
(c) In the case of a trust, the trust deed;
(d) In the case of a firm, the instrument of partnership; or
(e) In the case of an association of persons (other than a
firm), document(s). Detail of non-resident member to be
specified.
(3) An application for a National Tax Number Card shall be lodged
with the authority specified by the 1[FBR] through circular.
(a) by post or delivery by hand to the Commissioner having
jurisdiction over the applicant; or
(b) by inclusion with the applicant’s first return of income or
first employer’s statement furnished in lieu of a return of
income.
81. Decision on application for a National Tax Number Card.- (1) The
Commissioner shall make a decision on an application for a National Tax
Number Card within fifteen days of the application being properly lodged.
(2) Where the Commissioner decides not to grant an application for
a National Tax Number Card, the Commissioner shall give the applicant notice in
writing of the decision and the reasons for the decision.
82. Cancellation of National Tax Number Card.- (1) Where the
Commissioner decides that a National Tax Number Card was issued to a person
under an identity that was not the person’s true identity, the Commissioner may,
by notice in writing served on the person, cancel the card.
(2) The Commissioner shall set out in the notice the reasons for the
Commissioner’s decision to cancel the card.
1 The words “CBR” substituted by the Finance Act, 2007.
88
83. Displaying and quoting of National Tax Number Card.- (1) Every
person deriving income from business chargeable to tax who has been issued
with a National Tax Number Card shall display the person’s National Tax Number
at a conspicuous place at every place of business of the person.
(2) Every person referred to in sub-rule (1) shall quote the person’s
National Tax Number in the following circumstances, namely:-
(a) in all commercial transactions entered into by the
person;
(b) in cash memos issued under rule 30;
(c) in all returns, statements and other documents required
to be furnished under the Ordinance and in any
correspondence with the Commissioner; and
(d) in all documents relating to the person’s business on the
following matters, namely:-
(i) all new connections of utilities, including water,
gas, electricity and telephone;
(ii) the entering into a loan with a banking company
or financial institution;
(iii) the opening of letters of credit; and
(iv) the transfer of urban immovable property.
89
CHAPTER XIV
REGISTRATION OF INCOME TAX PRACTITIONERS
84. Application of Chapter XIV.- This chapter applies for the purposes of
section 223, which provides for the registration and regulation of income tax
practitioners.
85. Application for registration as an income tax practitioner.- (1) A
person satisfying the requirements in rule 86 and desiring to be registered as an
income tax practitioner shall make an application in the form specified in Part X
of the First Schedule to these rules.
(2) Every application under this rule shall be accompanied by –
(a) a Treasury receipt for five hundred rupees required to be
deposited as a non-refundable application fee in any
Government Treasury; and
(b) such documents, statements and certificates as
specified in the form.
86. Prescribed qualification for registration as an income tax
practitioner.- (1) For the purposes of the definition of “income tax practitioner” in
sub-section (11) of section 223, a person applying for registration as an income
tax practitioner shall:-
(a) possess one of the following qualifications, namely:-
(i) a degree in Law at least in the second division, a
degree in Commerce (with Income Tax Law and
Accounting or Higher Auditing as subjects or
parts of subjects, whether compulsory or
optional) or a degree in Business Administration
or Business Management (with Accounting and
Income Tax law as subjects or parts of subjects,
whether compulsory or optional) conferred by a
prescribed institution; or
(ii) a pass in a prescribed accounting examination.
(b) have worked for a continuous period of one year as an
apprentice under the supervision of a chartered
accountant, cost and management accountant, legal
practitioners entitled to practice in a civil court in
Pakistan 1[or] a registered income tax practitioner 2[and
1 Substituted for the word “and” by S.R.O. 67(I)/2003, dated 22nd January, 2003.
2 Substituted for the word “registered” by S.R.O. 67(I)/2003, dated 22nd January, 2003.
90
having been registered as a chartered accountant, cost
and management accountant, legal practitioner and
income tax practitioner] for a period of not less than ten
years.
(2) For the purposes of sub-clause (i) of clause (a) of sub-rule (1), a
degree conferred by a prescribed institution that is a foreign university or
institution shall only qualify if the degree is equivalent to a degree conferred by a
Pakistani university and is recognised as such by a Pakistani university.
(3) In this rule,
(a) “Institute of Chartered Accountants of Pakistan” means
the Institute of Chartered Accountants of Pakistan
constituted under the Chartered Accountants Ordinance,
1961;
(b) “foreign institution” means any institution in a foreign
country authorised to grant a degree under the laws of
the country;
(c) “foreign university” means any university in a foreign
country incorporated by law, or accredited or affiliated by
any association of universities or college in the country
or by any authority formed for that purpose under the
laws of that country;
(d) “prescribed accounting examination” means any of the
following examinations, namely:-
(i) an examination equivalent to the intermediate
examination conducted by the Institute of
Chartered Accountants of Pakistan;
(ii) an examination equivalent to the intermediate
examination conducted by any foreign institute
of chartered accountants and recognised by the
Institute of Chartered Accountants of Pakistan
as equivalent to its intermediate certificate;
(iii) an examination equivalent the final examination
conducted by the Association of Certified and
Corporate Accountants, London; or
(iv) Part-III of examination for Cost and
Management Accountants conducted by the
Institute of Cost and Management Accountants
under the Cost and Management Accountants
Act, 1966 (XIV of 1966); and
(v) Certified public accountants of USA.
91
(e) “prescribed institution” means a university incorporated
by any law in force in Pakistan or Azad Kashmir, a
foreign university or a foreign institution.
87. Registration of income tax practitioners.- (1) On receipt of an
application under rule 85, the Regional Commissioner may make such further
enquiries and call for such further information or evidence as may be considered
necessary.
(2) If the Regional Commissioner is satisfied that an applicant
qualifies to be registered as an income tax practitioner, the RCIT shall cause the
applicant’s name to be entered in a register to be maintained for the purpose in
the office.
(3) The name of a person entered on the register of income tax
practitioners shall be notified to the Commissioner and the Appellate Tribunal.
(4) The Regional Commissioner shall notify the applicant, in writing,
of the decision on the application.
(5) Where the RCIT decides to refuse an application for registration,
the notice referred to in sub-rule (4) shall include a statement of reasons for the
refusal.
88. Duration of registration.- Registration of a person as an Income Tax
Practitioner shall remain in force until any of the following occurs, namely:-
(a) the person surrenders the registration by notice in writing
to the Regional Commissioner of Income Tax.
(b) the person dies; or
(c) the person’s registration is terminated by the RCIT.
89. Cancellation of registration.- (1) Any person (including an income tax
authority) who considers that an income tax practitioner is guilty of misconduct in
a professional capacity may file a complaint in writing with the Commissioner.
(2) A complaint filed under sub-rule (1) shall be accompanied by
affidavits and other documents as necessary to sustain the complaint.
(3) On receipt of a complaint in writing under sub-rule (1), the
Commissioner shall fix a date, hour and place which shall be no later than twenty
one days from the receipt of the complaint for enquiry into the complaint.
(4) Within seven days of receipt of the complaint, the Commissioner
shall serve a notice of the complaint on the Income Tax Practitioner to whom the
complaint relates and such notice shall –
(a) inform the practitioner of the date, hour and place of the
enquiry; and
92
(b) be accompanied by a copy of the complaint and any
affidavits and other documents accompanying the
complaint.
(5) If, at the date fixed for enquiry, it appears that the notice and
accompanying documents referred to in sub-rule (4) have not been served as
provided for in that sub-rule, the Commissioner shall adjourn the enquiry to a
date then to be fixed and may direct that the notice and accompanying
documents shall be served by registered post or such other means as the
Commissioner sees fit.
(6) Not less than two days before the date or adjourned date fixed
for the enquiry, the income tax practitioner concerned shall file with the
Commissioner a signed explanation in writing and any affidavit in reply intended
to be used in the enquiry.
(7) On the date or adjourned date of the enquiry, the complainant
shall file any affidavits in reply intended to be used at the enquiry.
(8) The Commissioner may adjourn the enquiry from time to time to
a date and place to be fixed at the time of adjournment and may make such
orders and give such directions in regard to the enquiry and all matters relating
thereto as the Commissioner may think fit.
(9) On the date or adjourned date fixed for the enquiry, the
Commissioner may –
(a) hear and determine the complaint upon the affidavit and
other documents, if any, filed and may allow the
complainant and income tax practitioner to be crossexamined
on their affidavits; or
(b) hear and determine the complaint upon oral evidence.
(10) If the Commissioner decides to hear oral evidence, the
procedure generally and as far as practicable shall be that which is followed at
the hearing of suits by Civil Courts, provided that the record of oral evidence shall
be kept in such manner as the Commissioner may direct and, if a shorthand
writer is employed to take down evidence, the transcript of the writer’s notes shall
be a record of deposition of the witnesses.
(11) If the Commissioner decides that the income tax practitioner to
whom the complaint relates is guilty of professional misconduct, the
Commissioner shall cancel the practitioner’s registration.
(12) The Commissioner shall give the complainant and the income
tax practitioner to whom the complaint relates notice, in writing, of the
Commissioner’s decision on the complaint.
93
90. Appeal to Regional Commissioner of Income Tax. The appeal against
the Commissioner’s decision lies with the Regional Commissioner of Income
Tax. However, the RCIT on filing of appeal may, pending decision of appeal,
allow the ITP to represent, provided such case is made at the time of filing of
appeal.
94
CHAPTER XV
RECOGNISED PROVIDENT FUNDS, APPROVED SUPERANNUATION
FUNDS AND APPROVED GRATUITY FUNDS
PART I
RECOGNISED PROVIDENT FUNDS
91. Application for recognition of provident fund.- (1) An application for
recognition of a provident fund shall be made, in writing, by the employer
maintaining the fund, setting out the following information, namely:-
(a) the employer’s name and the address of the employer’s
principal place of business;
(b) the name of all employees, whether in or outside
Pakistan subscribing to the fund;
(c) the place where the accounts of the fund are or will be
maintained; and
(d) where the fund is already in existence, a copy of the last
balance sheet of the fund and details of the investments
of the fund.
(2) A verification in the following form shall be annexed to the
application, namely:-
“We / I, the trustee(s) of the above named fund, do declare that
what is stated in the above application is true to the best of
our/my information and belief, and that the documents sent
herewith are the originals or true copies thereof.”
(3) Subject to sub-rule (4), the application shall be accompanied by
the following documents, namely:-
(a) the original of trust deed to be sighted by the
Commissioner;
(b) a copy of the trust deed to be retained by the
Commissioner; and
(c) the rules of the fund.
Provided that if the original of the trust deed cannot
conveniently be produced, the Commissioner may accept, in lieu
of the original, a true copy certified either by a Magistrate or in
any manner provided for in the Companies Rules, 1984, in which
case, an additional copy shall be furnished for retention by the
Commissioner.
95
(4) The application shall be lodged with the Commissioner
responsible for the area/ jurisdiction in which the accounts of the fund are kept,
or, if the accounts are kept outside Pakistan, lodged with the Commissioner
responsible for the area/ jurisdiction in which the local headquarters for the
employer are situated.
92. Decision on application.- (1) The Commissioner may make such
enquiries and call for such further information or evidence as the Commissioner
may consider necessary to decide the application.
(2) The Commissioner shall notify the applicant, in writing, of the
Commissioner’s decision on the application.
(3) Where the Commissioner decides to refuse an application under
rule, the notice referred to in sub-rule (2) shall include a statement of reasons for
the refusal.
(4) Subject to sub-rule (5), an order according recognition to a
provident fund shall take effect from the last day of the month in which the
application for recognition is received by the Commissioner or, at the request of
the employer, the last day of any later month in the same financial year.
93. Withdrawal of recognition.- Where the Commissioner decides to
withdraw recognition of a provident fund, the Commissioner shall notify the
applicant, in writing, of the Commissioner’s decision and such notice shall include
a statement of reasons for the withdrawal.
94. Form of appeal in case of non-recognition or withdrawal of
recognition.- (1) An appeal under sub-rule (1) of rule 12 of Part I of the Sixth
Schedule to the Ordinance to the Commissioner’s decision to refuse an
application for recognition or to withdraw recognition shall be in the following form
shall be verified in the manner indicated therein, namely:-
FORM OF APPEAL IN CASE OF NON-RECOGNITION OR
WTIHDRAWAL OF RECOGNITION
To
The 1[Federal Board of Revenue],
Islamabad/ Before the Commissioner (Appeals)
The petition of _____ employer(s) carrying on business, profession or
vocation______ at__________
Your petitioner(s) applied to/obtained sanction from the Commissioner under Part
I of the Sixth Schedule to the Income Tax Ordinance, 2001 for the recognition of the
provident fund maintained by him (them) for the benefit of his (their) employees. The
Commissioner has refused recognition/withdrawn recognition for the reason stated in his
order, dated ________, of which a copy is attached.
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
96
For the reasons set out below your petitioner(s) submit (s) that the fund should
be contained to be recognised and pray (s) that the 1[Federal Board of Revenue] may be
pleased to.
Accord recognition
Continue the recognition.
GROUND(s) OF APPEAL
(1)
(2)
(3)
(4)
(5)
I/We named above petition to declare that whatever is stated above is true to the
best of our information and belief .
Name_________________________
Signature______________________
Address_______________________
Date_________________________
(2) An appeal referred to in sub-rule (1) shall be accompanied by a
copy of a challan for Rs. 100/- paid in Government treasury.
95. Accounts required to be maintained by a recognised provident
fund.- (1) A recognised provident fund shall prepare accounts at intervals of not
more than twelve months.
(2) An account shall be maintained for each subscriber to the fund
and it shall include the particulars shown in the following form, namely:-
Account closed.
Date
Paid to employee
Lapsed to the employer
Or to fund
Recovery by employer
Name_______________ Date of joining Fund_______________
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
97
Annex
Contribution by the Employer
Month and
year.
Salary. By
employees
Normal Of contingent
nature,
Total in columns
3,4,5.
Total interest on the amount
shown in column 6.
1 2 3 4 5 6 7
Balance brought forward
July_________________________
August_______________________
June_________________________
Total:________________________
Exempt Not exempt
Employer’s
contribution not
exceeding statutory
limit.
Interest on sum in
Column 6 at % but not
exceeding statutory limit
Contribution Column
4+5 minus Column
8
Interest
Column 7
minus Column
9.
Additions to total
income 10 plus
Column 11.
Remarks.
8 9 10 11 12 13
Adjustment on account of temporary
Withdrawals account (Column 8 and 9 only).
Adjustment on account of non-payable
Withdrawals account Columns 10 and 11.
Total carried over.
If desired column 7 may be divided into sub-columns showing separately the
interest on columns and columns 4 and 5 respectively.
_________________________________________________________________________________________________________________________________________________________________
Non-payable withdrawals Account Temporary withdrawal Account
_________________________________________________________________________________________________________________________________________________________________
Amount Advance Repayment
_________________________________________________________________________________________________________________________________________________________________
July Balance brought
Forward__________________
July_____________________
August August___________________
June June_____________________
Total ___________________
(3) The trustees of a recognised provident fund shall furnish to the
Commissioner an abstract for the fund’s accounting period of the individual
account of each employee participating in the fund whose income under the head
“Salary” is Rs. 24,000 or more per annum.
(4) The abstract shall –
98
(a) be in the form prescribed in sub-rule (2), but shall show
only the total of the various columns thereof for fund’s
accounting period; and
(b) include an account of any temporary withdrawals by the
employees during the year and of the repayment thereof.
(5) The abstract shall be furnished by the trustees to the
Commissioner responsible for the area in which the accounts of the fund are kept
or to such jurisdiction or functional Division as the Commissioner may, in each
case, direct.
(6) Subject to rule, the abstract shall be furnished –
(a) in the case of a company, on or before the first day of
August next following the fund’s accounting period or
within fifteen days of the expiry of six months from the
end of the fund’s accounting period, whichever is later;
and
(b) in any other case –
(i) where the fund’s accounting period ends at any
time between the first day of July and the thirtyfirst
day of December (both days inclusive), on
or before the first day of August next following;
or
(ii) in any other case, on or before the first day of
October next following the end of the fund’s
accounting period.
(7) The account to be made under the provisions of sub-rule (1) of
rule 7 of Part I of the Sixth Schedule to the Ordinance shall show in respect of
each employee –
(a) the total salary paid to the employee during the period of
participation in the provident fund;
(b) the total contributions made by, or in respect of, the
employee;
(c) the total interest which has accrued thereon; and
(d) so far as may be, the percentage of the employee’s
salary in accordance with which contributions have been
made by the employer and the employee.
99
96. Time limit for submission of accounts kept outside Pakistan.- (1)
Where the accounts of a recognised provident fund are kept outside Pakistan,
certified copies of the accounts shall be supplied not later than the 15th
September in each year to a local representative of the employer in Pakistan.
(2) The Commissioner may, upon application in writing, fix a date
later than the 15th September as the date by which the certified copies shall be
supplied.
97. Limit on contribution by employers.- The Commissioner may relax the
limits fixed under clause (c ) of sub-rule (1) of rule 2 of Part I of the Sixth
Schedule to the Ordinance for contribution of an employer to the individual
account of an employee in any year provided that such contribution shall not
exceed the following limits, namely:-
(a) the employer’s aggregate contribution in any year
including the normal contribution to the individual
account of any one employee, whose salary does not
exceed Rs. 1000 per month, shall not exceed double the
amount of the contribution of the employee in that year;
and
(b) the amount of the periodical bonuses and other
contribution of a contingent nature which may be
credited by an employer in any year to the individual
account of any one employee shall not exceed the
amount of the contribution of the employee in that year.
98. Limit on contributions by certain employees.- Where an employee of
a company owns shares in the company with a voting power exceeding ten per
cent of the whole of such power, the sum of the exempted contributions of the
employee and employer to the recognised provident fund maintained by the
company shall not exceed Rs. 1000 in any month.
99. Exclusion from total income of accumulated balances.- For the
purpose of rule 4 of Part I of the Sixth Schedule to the Ordinance, the
accumulated balance due and becoming payable to an employee participating in
a recognised provident fund shall be exempt from income tax and shall be
excluded from the computation of total income.
100. Treatment of consideration for dealings with beneficial interest.- If
an employee assigns or creates a charge upon his beneficial interest in a
recognised provident fund, the Commissioner shall, on the fact of the assignment
or charge coming to his knowledge, give notice to the employee that if he does
not secure the cancellation of the assignment or charge within two months of the
date of receipt of the notice, the consideration received for such assignment or
charge shall be treated as salary received by him in the year in which the fact
became known to the Commissioner and shall be assessed accordingly.
100
101. Treatment in certain cases where recognition is withdrawn.- If the
Commissioner withdraws recognition from a recognized provident fund, the
balance to the credit of each employee at the end of the financial year prior to the
date of the withdrawal of recognition shall be paid to the employee free of tax at
the time when such employee receives the accumulated balance due to him and
the remainder of the accumulated balance due to him shall be liable to tax as if
the fund had never been recognized
102. Investment of moneys of a recognised provident fund.- (1) Where
the employer is not company as defined in clause (7) of section 2 of the
Companies Ordinance, 1984, the contributions made by employees after the
date of recognition of a provident fund and the interest on the accumulated
balance of such contribution shall be wholly invested either in securities of the
nature specified in clause (2)(b),(c),(d) or (e) of section 20 of the Trusts Act,
1882, and payable both in respect of capital and interest in Pakistan or in a Post
Office Savings Bank Account in Pakistan or deposited in National Savings,
Federal Government securities or deposits in NCBs or NBP, or, in the other
government securities, or any other established financial institutions including
mutual funds subject to maximum of 20% of such deposits or investment at any
time in the year.
(2) Where the employer is a company as defined in clause (7) of
section 2 of the Companies Ordinance, 1984, all moneys contributed to a
provident fund (whether by the company or by the employees or accruing by way
of interest or otherwise to such fund) shall be wholly invested in accordance with
the provisions of section 227 of the Companies Ordinance, 1984, or deposited or
invested as in sub-rule (1) or with the prior approval of the Commissioner, in
purchase of shares of a public limited company offered for sale inviting public
offer by the Federal Government so, however, that the securities and deposits in
which the contributions made by the employees after the date of recognition of a
provident fund and the interest on the accumulated balance on such
contributions are invested or deposited are payable in respect of capital, deposit
and interest in Pakistan.
103. Permitted withdrawals.- (1) Subject to these rules, withdrawals by
employees from accumulated balance may be allowed by the trustees of a
recognized provident fund in the following circumstances, namely:-
(a) to pay expenses in connection with the illness of a
subscriber or a member of his family;
1[(aa) to transfer the balance or a part thereof to an approved
pension fund, established under Voluntary Pension
System Rules, 2005;]
(b) to meet the expenditure on purchase of a motor cycle or
scooter provided that authenticated copies of documents
1 Inserted by SRO 815(I)/2008, dated 01.08.2008.
101
substantiating such purchase are deposited with the
trustees of the fund;
(c) to pay the overseas passage by reason of health or
education of a subscriber or a member of his family;
(d) to pay expenses in connection with marriages, funerals
or ceremonies, which, by the religion of the subscriber, it
is incumbent upon him to perform and in connection with
which it is obligatory that expenditure should be incurred;
(e) to pay expenses in connection with the performance of
Hajj by the subscriber;
(f) to meet the expenditure on building or purchasing a
house or a site for a house, provided that the documents
substantiating the building or purchase of such house, or
the purchase of such site, are deposited with the
trustees of the fund;
(g) to meet the expenditure on repairs, renovation or
extension of a residential house belonging to the
subscriber;
(h) to pay premiums on policies of insurance on the life of
the subscriber or of his wife provided that the policy is
assigned to the trustees of the fund or at their discretion
deposited with them and that the receipt granted by the
insurance company for the premiums is from time to time
handed over to the trustees for inspection by the
Commissioner;
(i) to purchase shares of a public limited company for
investment as per rules of this Chapter;
(j) in the case of a subscriber who has attained the age of
fifty years on the date on which withdrawal is permitted –
(i) subject to sub-rule (2), to meet the expenditure
on the purchase of a house or construction of a
house on land owned by him or a member of his
family anywhere in Pakistan;
(ii) subject to sub-rule (3), to meet expenditure on
the purchase of agricultural land from
Government;
(iii) to repay a loan taken from a financial institution,
provided that the subscriber shall, within a
period of two weeks from the date of withdrawal
102
produce satisfactory evidence before the
trustees to show that the advance has been
utilised for the purpose for which it was drawn
failing which the entire amount of withdrawal
together with interest accrued thereon shall forth
with become repayable to the fund in a lumpsum;
and
(iv) without assigning any reason; or
(k) in the case of an employee proceeding on leave
preparatory to retirement, at the discretion of the
trustees of the fees, without assigning any reason,
provided that where an employee rejoins duty on the
expiry of his leave, the amount withdrawn together with
the interest accruing thereon at the rate allowed by the
fund shall be repaid forthwith in to the fund in a lumpsum.
(2) The first instalment of a withdrawal under sub-clause (i) or
clause (j) of sub-rule (1) shall be allowed to be drawn only after an agreement
has been executed between the subscriber and the trustees of the fund to the
effect that the subscriber shall expend the full amount of the said advance
towards the purchase or the building of a houses as claimed at the earliest
possible opportunity and if the actual amount so expended is less than the
amount of permitted withdrawal the subscriber shall repay the difference into the
fund forthwith and further that if the said house is sold or otherwise alienated by
its owner to any other person while the subscriber is still in service, the
subscriber shall forthwith repay into the fund the entire amount of the withdrawal
together with interest accrued thereon in lump-sum.
(3) The first instalment of a withdrawal under sub-clause (ii) of
clause (j) of sub-rule (1) shall be allowed to be drawn only after an agreement
has been executed between the subscriber and the trustees of the fund to the
effect that the subscriber shall expend the full amount of the said advance
towards the purchase of the said piece of land at the earliest possible opportunity
and if the actual amount so expended is less than the amount of permitted
withdrawal the subscriber shall repay the difference into the fund forthwith and
further that if the said house is sold or otherwise alienated by its owner to any
other person while the subscriber is still in service, the subscriber shall forthwith
repay into the fund the entire amount of the withdrawal together with interest
accrued thereon in lump sum.
104. Limits on Withdrawals.- (1) Withdrawals permitted under these rules
shall not exceed the following limits, namely:-
(a) in the case of withdrawals permitted under clause (a), (b)
(c) or (d) of sub-rule (1) of rule 103, six months salary of
the subscriber or the total of accumulated balance to his
credit, whichever is the less;
103
1[(a)(a) in the case of withdrawals permitted under clause (aa) of
sub-rule (1) of rule 103, the accumulated balance to the
credit of subscriber;]
(b) in the case of withdrawals permitted under clause (d) of
sub-rule (1) of rule, six months salary of the subscriber
or twenty five thousand rupees or/ of the total of the
accumulated balance to his credit, whichever is the
lowest;
(c) in the case of withdrawals permitted under clause (f) or
(g) of sub-rule (1) of rule, thirty-six months salary of the
subscriber or the total of the accumulated balance to his
credit, whichever is the less;
(d) in the case of withdrawals permitted under clause (h) of
sub-rule (1) of rule, eighteen months salary of the
subscriber or the total of the accumulated balance to his
credit, whichever is the less, provided that this restriction
shall apply to each withdrawal and not to the total
withdrawal;
(e) in the case of withdrawals permitted under clause (i) of
sub-rule (1) of rule, six months salary of the subscriber
or ten thousand rupees or the total of the accumulated
balance to his credit, whichever is the lowest;
(f) in the case of withdrawals permitted under sub-clause
(i), (ii) and (iii) of clause (j) of sub-rule (1) of rule, twentyfour
months salary of the subscriber or eighty percent of
the total of the accumulated balance to his credit,
whichever is the less;
(g) in the case of withdrawals permitted under sub-clause
(iv) of clause (j) of sub-rule (1) of rule, sixty percent of
the total of the accumulated balance to the subscriber;
and
(h) in the case of withdrawals permitted under clause (k) of
sub-rule (1) of rule, ninety percent of the accumulated
balance to the subscriber.
(2) For the purpose of rule and this rule:-
(a) “accumulated balance” means the total of the
accumulations of exempted contributions and exempted
interest contained in the balance to the credit of the
employee at the time of withdrawals;
1 Inserted by SRO 815(I)/2008, dated 01.08.2008.
104
(b) “family” means the employee’s wife, legitimate children,
step children, parents, sisters and brothers who reside
with the employee and are wholly dependent on him;
and
(c) “salary” means the salary as defined in clause (h) of rule
14 of Part I of the Sixth Schedule to the Ordinance to
which the employee is entitled at the time when the
withdrawal is granted.
105. Second withdrawals.- (1) Save as provided in sub-rules (2), (3), (4) and
(5), no second withdrawal from a recognized provident fund shall be permitted
until the sum first withdrawn has been fully repaid.
(2) A withdrawal may be permitted for the purposes specified in
clause (h) of sub-rule (1) of rule 110, notwithstanding that the sum withdrawn for
any other purpose has not been repaid.
(3) Subsequent withdrawals for the purposes specified in clause (h)
of sub-rule (1) of rule 103 may be permitted, notwithstanding that the sum or
sums previously drawn for the same purpose has or have not been repaid.
(4) A withdrawal for any one of the purposes specified in sub-rule (1)
of rule 103 other than that specified in clause (a) of that sub-rule may be
permitted notwithstanding that the sum or sums withdrawn for the purposes of
clause (e) of sub-rule (1) has or have not been repaid.
(5) A withdrawal for any of the purposes specified in sub-rule (1) of
rule 103 other than those specified in clauses (f) and (h) of that sub-rule may be
permitted notwithstanding that the sum previously withdrawn for the purposes of
clause (d) of sub-rule (1) has not been repaid.
1[(6) Subsequent withdrawals for the purposes specified in clause
(aa) of sub-rule (1) of rule 103 shall be permitted.]
106. Repayment of amounts withdrawn.- (1) Where any withdrawal is
allowed for a purpose specified in clause 2[(aa),] (f), (h), (i), (j) or (k) of sub-rule
(1) of rule 103, the amount withdrawn need not be repaid.
(2) Subject to sub-rules (3) and (4), where a withdrawal is allowed
for a purpose other than those referred to in sub-rule (1), the amount withdrawn
shall be repaid in not more than forty-eight equal monthly instalments and shall
bear profit in accordance with the following, namely:-
1 Inserted by SRO 815(I)/2008, dated 01.08.2008.
2 Inserted by SRO 815(I)/2008, dated 01.08.2008.
105
(a) Withdrawals which are repaid in
not more than twelve monthly
instalments.
The rate of mark-up fixed by the
Federal Government under rule 3(b)
of Part-I of the Sixth Schedule to the
Ordinance payable in the form of one
additional instalment.
(b) Withdrawals which are repaid in
more than twelve but not more
than twenty-four monthly
instalments.
The rate of mark-up fixed by the
Federal Government under rule 3(b)
of Part-I of the Sixth Schedule to the
Ordinance payable in the form of two
additional instalments.
(c) Withdrawals which are repaid in
more than twenty-four but not more
than thirty-six monthly instalments.
The rate of mark-up fixed by the
Federal Government under rule 3(b) of
Part-I of the Sixth Schedule to the
Ordinance payable in the form of three
additional instalments.
(d) Withdrawals which are repaid in
more than thirty-six months
instalments.
The rate of mark-up fixed by the
Federal Government under rule 3(b) of
Part-I of the Sixth Schedule to the
Ordinance payable in the form of four
additional instalment.
(3) For the purposes of sub-rule (2) and at the discretion of the
trustees of the fund, profit may be recovered on the amount withdrawn or the
balance thereof outstanding from time to time at 1 per cent above the rate which
is payable for the time being on the balance in the fund to the credit of the
subscriber.
(4) Where an employee contributing to the fund elects not to receive
any profit accruing on his accumulated balance, no profit shall be charged on the
amount withdrawn by him from the fund.
(5) The employer shall deduct such instalments payable under subrule
(2) from the employee’s salary and pay them to the trustees commencing
from the second monthly payment made after the withdrawal or, in the case of an
employee on leave without pay, from the second monthly instalment after his
return to duty.
(6) In the case of default of repayment of instalments under subrules
(2) and (5), the Commissioner may at his discretion, order that the amount
of withdrawal or the amount outstanding shall be added to the total income of the
employee for the year in which the default occurs and the employee shall be
assessed accordingly.
107. Power to relax conditions.- Notwithstanding anything contained in rules
103, 104, 105 or 106, the Commissioner may in special circumstances to be
106
recorded in writing relax the conditions for withdrawals from and repayment to
the fund.
107
PART II
APPROVED SUPERANNUATION FUNDS
108. Application for approval of a superannuation fund.- (1) The
application required to be made under sub-rule (1) of rule 3 of Part II of the Sixth
Schedule to the Ordinance for approval of a superannuation fund shall contain
the following information, namely:-
(a) the employer’s name and the address of the employer’s
principal place of business;
(b) the classes and number of employees, whether in
Pakistan or outside Pakistan, entitled to the benefits of
the fund;
(c) the age of retirement prescribed in the fund’s
regulations;
(d) the place where the accounts of the fund are or will be
maintained; and
(e) where the fund is already in existence, details of
investments of the fund.
(2) A verification in the following form shall be annexed to the
application, namely:-
“We / I, the trustees of the above named fund, do declare that what
is stated in the application is true to the best of our/my information
and belief and that the documents sent herewith are the originals or
true copies thereof”.
109. Returns, statements and other documents that may be required to
be furnished.- The trustees of an approved superannuation fund and any
employer who contributes to an approved superannuation fund may be required
by notice, in writing, from the Commissioner under rule 8 of Part II of the Sixth
Schedule to the Ordinance to –
(a) furnish a return containing such particulars of
contributions as the notice may require;
(b) prepare and deliver a return containing –
(i) the name and place of residence of every
person in receipt of an annuity from the fund;
(ii) the amount of the annuity payable to each
annuitant;
108
(iii) particulars of every contribution (including
interest on contributions), if any, returned to the
employer or to employees; and
(iv) particulars of sums paid in commutation or in
lieu of annuities; and
(c) furnish a copy of the accounts of the fund to the last date
prior to such notice in which such amounts have been
made up together with such other information and
particulars as may be reasonably required with the
permission of the 1[Federal Board of Revenue].
110. Limits on contribution by the employer.- (1) The ordinary annual
contribution by the employer to an approved superannuation fund in respect of
any particular employee shall be made on a reasonable definite basis as may be
approved by the Commissioner with regard to the earnings, the contributions or
the number of members of the said fund so however that such contributions shall
not exceed twenty per cent of the employee’s salary for each year.
(2) Subject to any condition which the Commissioner may think fit to
specify under this rule, the amount to be allowed as a deduction on account of
initial contribution which an employer may make in respect of the past service of
an employee admitted to the benefits of a fund shall not exceed twenty per cent
of the employee’s salary for each year of his past services with the employer.
(3) Notwithstanding the provisions of sub-rules (1) and (2), an
employer may, with the prior approval of the Commissioner, make a special
contribution to an approved superannuation fund to meet the deficit in the fund, if
any.
111. Investment and deposit of moneys of superannuation fund.- All
moneys contributed to an approved superannuation fund and interest on the
accumulated balance of such contributions, if any, shall be utilised for making
payments under a scheme of insurance or a contract of annuity with the State
Life Insurance Corporation of Pakistan, an insurance company carrying on life
insurance business and registered under section 3 of the Insurance Act, 1938 (IV
of 1938), or the Pakistan Post Office Insurance Department having for its main
object the provision of annuities for the beneficiaries, or deposited or invested in
accordance with the provisions of sub-rule (1) of rule 102.
112. Treatment of consideration for dealings with beneficial interest.- If
an employee assigns or creates a charge upon his beneficial interest in an
approved superannuation fund, the Commissioner shall, on the fact of the
assignment or charge coming to his knowledge, give notice to the employee that
if he does not secure the cancellation of the assignment or charge within two
months of the date or receipt of the notice, the consideration received for such
assignment or charge shall be treated as salary received by him in the year in
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
109
which the fact became known to the Commissioner and shall be assessed
accordingly.
113. Circumstances in which approval may be withdrawn.- The
Commissioner may withdraw approval accorded under Part II of the Sixth
Schedule to the Ordinance in the case of a fund which ceases to satisfy the
requirements of the said Part or fails to fulfil the requirements of rules 110, 111
and 112.
114. Form of appeal in case of refusal to approve or withdrawal of
approval.- (1) An appeal under sub-rule (1) of rule 10 of Part II of the Sixth
Schedule to the Ordinance shall be in the following form and shall be verified in
the manner indicated therein, namely:-
FORM OF APPEAL IN CASE OF NON-APPROVAL
OR WITHDRAWAL OF APPROVAL
To
The 1[Federal Board of Revenue],
Islamabad.
The petition of _______________ employer(s) carrying on business, profession or vocation
_______________ at your petitioner(s) applied to/obtained sanction from the Commissioner under
Part II of the Sixth Schedule to the Income Tax Ordinance, 2001 for the approval of the
superannuation fund maintained him (them) for the benefit of his (their) employees. The
Commissioner has refused/—- withdrawn the approval for the reasons stated in his order, dated…. of
which a copy is attested.
For the reasons set out below your petition(s) submit(s) that the fund should be recognised
and pray(s) that the 2[Federal Board of Revenue] may be pleased to.
GROUNDS OF APPEAL
We/I………… the petitioner(s) named in the above petition do declare that stated therein is
true to the best of our/my information and belief.
Signature___________
Name______________
Address____________
(2) An appeal shall be accompanied by a copy of a challan for Rs.
100/- paid in the Government treasury.
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
110
Part III
APPROVED GRATUITY FUNDS
115. Application for approval of a gratuity fund.- (1) The application
required to be made under sub-rule (1) of rule 3 of Part III of the Sixth Schedule
to the Ordinance for approval of gratuity fund shall contain the following
information, namely:-
(a) the employer’s name and the address of employer’s
principal place of business;
(b) the classes and number of employees, whether in
Pakistan or outside Pakistan, entitled to the benefits of
the fund;
(c) the age of retirement prescribed in the fund’s
regulations;
(d) the minimum period of service prescribed in the fund’s
regulation as a condition of eligibility to receive the
gratuity in case of termination of employment;
(e) the place where the accounts of the fund are or will be
maintained; and
(f) where the fund is already in existence, details of
investments of the fund.
(2) A verification in the following form shall be annexed to the
application, namely:-
“We / I, the trustees of the above named fund, do
declare that what is stated that the application is true to
the best of our/my information and belief and that the
comments sent herewith are the original or true copies
thereof.”
116. Returns, statements and other documents that may be required to
be furnished.- The trustees of an approved gratuity fund and an employer who
contributes to an approved gratuity fund may be required by notice, in writing,
from the Commissioner under rule 7 of Part III of the Sixth Schedule to the
Ordinance to:-
(a) furnish a return containing such particulars of
contributions as the notice may require;
(b) prepare and deliver a return containing:
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(i) the name and place of residence of every
person in receipt of a gratuity from the fund; and
(ii) the amount of the gratuity paid to each
employee; and
(c) furnish a copy of the accounts of the fund to the last date
prior to such notice in which such accounts have been
made up together with such other information and
particulars as may be reasonably required with the
permission of the Commissioner.
117. Limits on contribution by the employer.- (1) The ordinary annual
contribution by the employer to an approval gratuity fund in respect of any
particular employee shall be made on a reasonable definite basis, as may be
approved by the Commissioner, with regard to the length of service of the
employee so however that such contribution shall not exceed salary of the
employee for the last month of each financial year.
(2) Subject to any condition which the Commissioner may think fit to
specify under this rule, the amount to be allowed as a deduction on account of
initial contribution which an employer may make in respect of the past services of
an employee admitted to the benefits of a fund shall not exceed salary of the
employee for the last month of each financial year during the course of his past
services with the employer.
(3) Notwithstanding the provisions of sub-rules (1) and (2), an
employee may, with the prior approval of the Commissioner, make a special
contribution to an approved gratuity fund to meet the deficit in the fund, if any.
118. Investment or deposits of moneys of a gratuity fund.- All money
contributed to an approved gratuity fund and interest on the accumulated
balances of such contributions shall be deposited or invested in accordance with
the provisions of 1[rule 102].
119. Treatment of consideration for dealings with beneficial interest.- If
an employee assigns or creates a charge upon his beneficial interest in an
approved gratuity fund, the Commissioner shall, on the fact of the assignment or
charge coming to his knowledge, give notice the employee that if he does not
secure the cancellation of the receipt of the notice, the consideration received for
such assignment of charge shall be treated as salary received by him in the year
in which the fact became know to the Commissioner and shall be assessed
accordingly.
120. Circumstances in which approval may be withdrawn.- The
Commissioner may withdraw approval awarded under Part III of the Sixth
1 Substituted for the words, brackets and letters “sub-rule (1) of rule 109” by S.R.O.. 590(I)/2004
dated 7th July, 2004.
112
Schedule to the Ordinance in the case of a fund which ceases to satisfy the
requirements of the said Part or fails to fulfil the requirements of rule.
121. Form of appeal in case of refusal to approve or withdrawal of
approval.- An appeal under sub-rule (1) of rule 9 of Part III of the Sixth Schedule
to the Ordinance shall be in the following form and shall be verified in the manner
indicated therein, namely:-
FORM OF APPEAL IN CASE OF NON-APPROVAL
OR WITHDRAWAL OF APPROVAL
To
The 1[Federal Board of Revenue],
Islamabad.
The petition of _______________ employer(s) carrying on business, profession or vocation
________________ at your petitioner(s) applied to/obtained sanction from the Commissioner under
Part III of the Sixth Schedule to the Income Tax Ordinance, 2001 for the approval of the gratuity fund
maintained …him (them) for the benefit of his (their) employees. The Commissioner has refused/—-
withdrawn the approval for the reasons stated in his order, dated…. Of which a copy is attested.
For the reasons set out below your petition(s) submit(s) that the fund should be recognised
and pray(s) that the 2 [Federal Board of Revenue] may be pleased to.
GROUNDS OF APPEAL
We/I………… the petitioner(s) named in the above petition do declare that stated therein is
true to the best of our/my information and belief.
Signature____________
Name_______________
Address_____________
(2) An appeal shall be accompanied by a copy of a challan for Rs.
100/- paid in the Government treasury.
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
113
CHAPTER XVI
INCOME TAX RECOVERY RULES
PART-I
122. Definitions.- For the purposes of rules, unless there is anything
repugnant in the subject or context,-
(a) “Tax Recovery” means recovery of debt due to the Federal
Government under the Income Tax Ordinance, 2001;
(b) “defaulter” means the tax payer mentioned in the notice;
(c) “execution”, in relation to a Notice, means steps taken for the
recovery of arrears under these rules;
(d) “officer” means a person authorized by the commissioner to
execute an order of attachment or sale under these rules; and
(e) “share in a corporation” includes stock, debenture stock, –
debentures or bonds.
(f) for the purpose of this Chapter, “Commissioner” means
Commissioner of Income Tax as defined under clause 13 of
section 2 and includes any taxation officer delegated powers by
the Commissioner to act, exercise powers and functions under
this Chapter, in respect of a taxpayer(s) by general or specific
orders, or under scheme of enforcement in the tax recovery
matters designed by the 1[FBR].
123. Form of notice of recovery to be issued by Commissioner.- (1) The
notice required to be served upon the assessee under sub section (2) of section
138 shall be in the following form, namely:-
NOTICE UNDER SECTION 138(2) OF THE INCOME TAX ORDINANCE, 2001.
Commissioner________
Dated ____________
To
M/s
National Tax Number _______________________
Whereas it is established that the sum of Rs. _______ which is due from
you on account of tax as per details given in the schedule below, is in arrear, you
are, hereby, required to pay these arrears of tax by _______ and produce
1 The words “CBR” substituted by the Finance Act, 2007.
114
necessary evidence to that effect before me at my office On _________ failing
which proceedings may be initiated under these rules to recover the said amount
by one or more of the following modes, namely:-
(a) attachment and sale of moveable or immovable property;
(b) appointment of receiver for the management of your moveable or
immovable property;
(c) your arrest and detention in person for a period not exceeding six
months.
I, in exercise of the powers vested in me under the Income Tax Rules
framed under section 138 of the Income Tax Ordinance, I hereby further direct
that you shall not sell, mortgage, charge, issue or otherwise deal with any
property belonging to except with my permission to that effect in writing,
Commissioner
Range ________Zone _____
SCHEDULE
Sr
No.
Assessment
year
Number in Demand and Collection
Register
Income
Tax
Penalty Additional
Tax
Surcharge Total
1 2 3 4 5 6 7 8
124. Mode of service of notice.- The notice referred to in rule 123 and other
notices under rules contained in this part shall be served as provided in section
218 of the Income Tax Ordinance, 2001.
125. Time limit for execution of the notice.- No step in execution of the notice
referred to in rule 123 shall be taken until the period specified in the said notice
has elapsed since the date of service of the notice.
Provided that if the Commissioner is satisfied that the defaulter is to
cancel, remove or dispose of the whole or any part of such of his moveable
property as would be liable to attachment in execution of a notice that the
realization of the amount of Notice would in consequence be delayed or
obstructed, he may at any time after the issue of the notice under rule direct, for
reasons to be recorded in writing, an attachment of the whole or part of such
property:
Provided further that if the defaulter whose property has been so
attached furnishes security to the satisfaction of the Commissioner, such
attachment shall be cancelled from the date on which such security is accepted
by the Commissioner.
126. Disposal of proceeds of execution.- Whenever assets are realized, by
sale or otherwise in execution of a Notice, they shall be disposed of in the
following manner, namely:-
(a) there shall be paid to the Commissioner the amount due
under the certificate in execution of which the assets
were realized ;and
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(b) the balance, if any, shall be paid to the defaulter.
127. Determination of disputes.- Except as otherwise expressly provided in
these rules, every question arising between the Commissioner and the defaulter
or their representatives, relating to the execution, discharge or satisfaction of a
Certificate duly filed under these rules, or relating to confirmation or setting aside
by an order under these rules of a sale held in execution of such Certificate, shall
be determined by order of the Commissioner before whom such question arise.
128. Exemption from attachment.- The following shall not be liable to
attachment and sale under these rules, namely:-
(a) the necessary wearing apparel, cooking vessels, beds
and bedding of the defaulter, his wife and children, and
such personal ornaments, as, in accordance with
religious usage, cannot be parted with by any women;
(b) tools of artisans, and, where the defaulter is an
agriculturist, his implements of husbandry and such
cattle and seed grain as may, in the opinion of the
Commissioner, be necessary to enable him to earn his
livelihood as such;
(c) houses and other buildings (with the materials and the
sites thereof and the land immediately appurtenant
thereto and necessary for their enjoyment) belonging to
an agriculturist and occupied by him;
(d) books of account;
(e) a mere right to sue for damages;
(f) any right of personal service ;
(g) stipends and gratuities allowed to a pensioner of the
Government, or payable out of any service family
pension fund notified in official Gazette by the Federal
Government or the Provincial Government in this behalf,
and political pensions;
(h) the wages of labourers and domestic servants, whether
payable in money or in kind;
(i) salary to the extent of the first hundred rupees and one
half of the remainder:
Provided that where such salary is the salary of the
servant of Government or servant of a railway or local
authority, and III whole or any part of the portion of such
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salary liable attachment has been under attachment,
whether continuously intermittently for a total period of
twenty four months, portion shall be exempt from
attachment until the expiry of further period of twelve
months and, where such attachment been made in
execution of one and the same certificate, shall be finally
exempt from attachment in execution of that notice;
(j) the pay and allowances of persons to whom the
Pakistan Act, 1952 (XXXIX of 1952), applies, or of
persons other than Commissioned Officers to whom the
Pakistan Navy Ordinance 1961 (XXXV of 1961), applies;
(k) all compulsory deposits and other sums in or derived
from fund to which the Provident Funds Act, 1925 (XIX
of 1925), the time being applies in so far as they are
declared by the , Act not to be liable to attachment;
(l) any allowance forming part of the emoluments of any
servant of Government or of any servant of a railway or
local authority which the appropriate Government may,
by notification in the official Gazette, declare to be
exempt from attachment, and any subsistence grant or
allowance made to any such servant while under
suspension.
(m) any expectancy of succession by survivorship or other
me contingent or possible right or interest; and
(n) a right to future maintenance.
Explanation 1.- The particulars mentioned in clause (g),
(h), (i),(j) and (l) are exempt from attachment or sale whether
before or they are actually payable, and in the case of salary
other t salary of a servant of the Government or a servant of
railway local authority the attachable portion thereof is exempt
from attachment until it is actually payable.
Explanation 2.-ln clauses (h) and (i), “Wages” or “salary”
means thetotA1 monthly emoluments, excluding any allowance
declared exempt from attachment under the provisions of clause
(I), derived by a person from his employment whether on duty or
on leave.
Explanation 3.-ln clause (I), “appropriate Government”
means.
(i) as respects any person in the service of the
Federal Government, or any servant of Railway
Board, a cantonment! authority or of the port
117
authority or a major port, the Federal
Government; and
(ii) as respect any person in the service of a
Provincial Government or a servant of any local
authority, the Provincial Government.
129. Investigation by Commissioner.-(I) Where any claim is preferred to, or
any objection is made to the attachment or sale of, any property in execution of a
Certificate on the ground that such property is not liable to such attachment or
sale, the Commissioner shall proceed to investigate the claim or objection:
Provided that no such investigation shall be made when the
Commissioner considers that the claim or objection was designedly or
unnecessarily delayed.
(2) Where the property to which the claim or objection relates has
been advertised for sale, the Commissioner ordering the sale may postpone it
during the investigation of the claim or objection, upon such terms as to security
or otherwise as the Commissioner may deem fit.
(3) The claimant or objector shall adduce evidence to show that at
the date on which the Notice was originally issued by the Commissioner for the
recovery of the arrears, he had some interest in, or was possessed of the
property in question.
(4) Where, upon the said investigation, the Commissioner is
satisfied that, for the reason stated in the claim or objection, such property was at
the said date in the possession of the defaulter or of some person in trust for him
or in the occupancy of a tenant or other person paying rent to him, or being in
the possession of the defaulter at the said date, it was so in his possession, not
on his own account or as his own property, but on account of or in trust for some
other person, the Commissioner shall make an order releasing the property,
wholly or to such extent as it was not it in possession of the defaulter on his own
account, from attachment or sale.
(5) Where the Commissioner is satisfied that the property was, at
that date, in the possession of the defaulter as his own property and not on
account of any other person, or was in possession of some other person in trust
for him or in the occupancy of a tenant or other person paying rent to him, the
Commissioner shall disallow the claim.
130. Removal of attachment on satisfaction or cancellation of
Certificate.- Where the amount due is paid to the Commissioner shall be
deemed to be withdrawn and, in case of immovable property, the withdrawal
shall, if the defaulter so desired, be proclaimed at his expense, and a copy of the
proclamation shall be affixed in manner provided by these rules for a
proclamation of sale of immovable property.
118
131. Officer entitled to attach and sell.- The attachment and sale of
immovable property may be made by such officer as the Commissioner may from
time to time direct.
132. Adjournment or stoppage of sale.- (I) The Commissioner may adjourn
sale hereunder to a specified day and hour; and the officer conducting any such
sale may adjourn the sale, recording his reasons for such adjournment:
Provided that, where the sale is made in or within the precincts of the
office Commissioner of Income Tax, the officer shall not adjourn the sale without
the of the Commissioner.
(2) Where a sale of immovable property is adjourned under sub-rule
(1) for a longer period than one calendar month, a fresh proclamation of sale
under rules shall be made unless the defaulter consents to waive it.
(3) Every sale shall be stopped if, before the lot is knocked down,
the amount tendered to the officer conducting the sale, or proof is given to his
satisfaction e amount has been paid to the Commissioner who ordered the sale.
133. Defaulter not to mortgage, etc., any property..-Where a notice has
been served on a defaulter under rule 123 the defaulter or his representative in
interest shall not sell, mortgage, charge, lease or otherwise deal with any
property belonging to him except with the permission of the Commissioner.
134. Prohibition against biding or purchase by officer.-No officer or other
person having any duty to perform in connection with any sale under these rules
shall, either directly or indirectly, bid for, acquire or attempt to acquire any
interest in the property sold.
135. Assistance by police.- Any officer authorized to attach or sell any
property or to arrest the defaulter or charged with any duty to be performed under
these rules, may apply to the officer-in-charge of the nearest police station for
such assistance as may be necessary in the discharge of his duties.
119
PART-II
ATTACHMENT AND SALE OF MOVABLE PROPERTY ATTACHMENT
136. Person authorized to act, etc.- (l) The Commissioner may authorize
any person to execute an order of attachment or sale under the rules in this part
and in Part III and, where he does not so authorize any person references, in the
said rules to “officer”, so far as may be, be construed . references to the
Commissioner.
(2) Except as otherwise provided in these rules, when any movable
property is to be attached, the officer shall be furnished by the Commissioner
with a warrant in writing and signed with his name specifying the name’ of the
defaulter and the amount to be realized.
137. Service of copy of warrant.- The officer shall cause a copy of the
warrant to be served on the defaulter.
138. Attachment.- If, after service of the copy of warrant, the amount is not
paid forthwith, the officer shall proceed to attach the movable property of the
defaulter.
Provided that the standing crops of the agricultural produce lying in the
field stored in or near the dwelling house of the defaulter or stored on the land
owned or cultivated by the defaulter, which represents the agricultural produce of
the land owned, leased or cultivated by the defaulter, shall not be attached.
139. Property in defaulter’s possession.- Where the property to be
attached is movable property in the possession of the defaulter, the attachment
shall be made by actual seizure and the officer shall keep the property in his own
custody or in the custody of one of his subordinates and shall be responsible for
due custody thereof.
Provided that when the property seized is subject to speedy and natural
decay or when the expense of keeping it in custody is likely to exceed its value,
the officer may sell it at once.
140. Debts and shares, etc.- (l) In the case ofa)
a debt not secured by a negotiable instrument,
b) a share in a corporation, or
c) other movable property not in the possession of the
defaulter except property deposited in, or in the custody
of, any court,
the attachment shall be made by a written order, prohibiting,-
120
i) in the case of the debt, the creditor from
recovering the debt and the debtor from making
payment thereof until the further order or the
Commissioner;
ii) in the case of the share, the person in whose
name the share may be standing from
transferring the same or receiving any dividend
thereon; and
iii) in the case of other movable property except as
aforesaid, the person in possession of the same
from giving it over to the defaulter .
(2) A copy of such order shall be affixed on some conspicuous part
of the office of the Commissioner, and another copy shall be sent, in the case of
the debt, to the debtor, in the case of the share in a corporation, to the proper
officer of the corporation and in the case of other movable property (except as
aforesaid), to the person in possession of the same.
(3) A debtor prohibited under clause (i) of sub-rule (1) shall, on
receipt of order of the Commissioner, pay the amount of his debt to the
Commissioner, and such payment shall discharge him as effectually as payment
to the party entitled to receive the same.
(4) Where the execution of a document or the endorsement of the
defaulter in whose name a negotiable instrument or a share ‘in a corporation is
standing is required to transfer such negotiable instrument or share, the
Commissioner ‘such other officer as he may authorize in this behalf may execute
such document or make such endorsement as may be necessary, and such
execution or endorsement have the effect as an execution or endorsement by the
defaulter.
(5) Until the transfer of such negotiable instrument or share, the
Commissioner or any other officer authorized by him in this behalf may receive
any interest or dividend due thereon and sign a receipt for the same. Any receipt
so signed shall be as valid and effectual for all purposes as if the same had been
signed by the defaulter himself.
141. Share in movable property.- Where the property to be attached
consists of the share or interest of the defaulter in movable property belonging to
him and another as co-owners, the attachment shall be made by a notice to the
defaulter prohibiting him from transferring such share or interest or subjecting
same to a charge in any manner .
142 Attachment of negotiable instrument.- Where the property is a liable
instrument not deposited in a Court, nor in the custody of a public officer, the
attachment shall be made by actual seizure, and the instrument shall be brought
before the Commissioner and held subject to this orders.
121
143. Attachment of property in custody of public officer.- Where the
property to be attached is in the custody of any public officer, the attachment be
made by a notice to such officer requesting that such property and any interest or
dividend becoming payable thereon may be held subject to the further s of the
Commissioner by whom the notice is issued.
144. Attachment of property in partnership.- (1) Where the property to be
attached consists of an interest of the defaulter, being a partner, in the
partnership property, the Commissioner may make an order charging the of such
partner in the partnership property and profits, with payment of amount due
under the notice, and may, by the same or a subsequent, appoint a receiver of
the share of such partner in the profits, whether already declared or accruing,
and of any other money which may become due to in respect of the partnership,
and direct maintenance or rendition of accounts and inquiries and make an order
for the sale of such interest or such order as the circumstances of the case may
require.
(2) The other partners shall be at liberty at any time to redeem the
interest charged or; in the case of a sale being directed, to purchase the same.
145. Inventory.- In the case of attachment of movable property by actual
seizure the officer shall, after attachment of the property prepare an inventory of
all the property attached, specifying in it the place where it is lodged or kept, and
shall forward the same to the Commissioner and deliver a copy thereof to the
defaulter.
146. Attachment not to be excessive.- The attachment by seizure shall not
be excessive, that is to say, the property attached shall be as nearly as possible
proportionate to the amount specified in the warrant.
147. Seizure between sunrise and sunset.- Attachment by seizure shall be
made after sunrise and before sunset and not otherwise.
148. Entry into building by officer, etc.- The officer may break open any
inner or other door or window of any building and enter any building in order to
seize any movable property if the officer has reasonable grounds to believe” that
such building contains movable property liable to seizure under the warrant and
the officer has notified his authority and intention of breaking open if admission is
not given. He shall, however, give all reasonable opportunity to women withdraw.
149. Sale.- The Commissioner may direct that any movable property attached
under these rules or such portion thereof as may seem necessary to satisfy the
certificate shall be sold.
150. Issue of proclamation.- When any sale of movable property is ordered
by the Commissioner, he shall issue a proclamation of the intended sale
specifying the time and place of sale and whether the sale is subject to
confirmation or not.
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151. Proclamation how made.-(l) The proclamation shall be made by the
beat of drum or other customary mode, and the contents of the proclamation
shall be explained in the language of the district-
(a) in the case of property attached by actual seizure-
(i) in the village in which the property was seized
or, if the property was seized in a town or city,
then, in the locality in which it was seized; and
(ii) at such other places as the Commissioner of
Tax may direct; and
(b) in the case of property attached otherwise than by actual
seizure. in such places, if any, as the Commissioner may
direct.
(2) A copy of the proclamation shall also be affixed at a conspicuous
place in the office of the Commissioner.
(3) Where the Commissioner so directs, such proclamation may also
be published in one or two newspapers.
152. Sale after fifteen days.- Except where the property is subject to speedy
and natural decay or when the expense of keeping it in custody is likely to
exceed its value, no sale of movable property under these rules shall, without the
consent in writing of the defaulter, take place until after the expiry of at least
fifteen days from the date on which a copy of the proclamation of sale was
affixed in the office of the Commissioner.
153. Sale to be by auction or by tender.- The property shall be sold by
public auction or by tender, in one or more lots, as the officer may consider
advisable and, if the amount to be realized by sale may be satisfied by the sale of
a portion of the property, the sale shall be only with respect to that portion of the
property.
154. Sale by public auction.- (I) Where movable property is sold by public
on, the price of each lot shall be paid at the time of sale or as soon thereafter the
officer holding the sale directs and in default of payment the property shall with
be re-sold.
(2) On payment of the purchase money, the officer holding the sale
shall grant to the purchaser a certificate specifying the property purchased, the
price paid he name of the purchaser, and the sale shall thereupon become
absolute.
(3) Where the movable property to be sold is a share in goods
belonging to defaulter and a co-owner, and two or more persons, of whom one is
123
such co-owner, respectively bid the same sum for such property or for any lot,
the bid of co-owner shall have preference.
155. Irregularity not to vitiate sale.- Any error or irregularity in publishing or
conducting the sale of movable property shall not vitiate the sale if provisions of
these rules have been substantially complied with.
156. Negotiable instruments or share in a corporation.- Notwithstanding
anything contained in these rules, where the property to be sold negotiable
instrument or a share in a corporation, the Commissioner instead of directing the
sale to be made by public auction, authorize the sale of such instrument or share
through a broker .
157. Order for payment of coin or currency notes to the Commissioner
of Income-tax.- Where the property attached is current coin or currency notes,
the Commissioner may, at any time during the continuance of the attachment,
direct that such coin or notes, or a part thereof sufficient to satisfy the Notice, be
paid over to the Commissioner.
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PART-III
ATTACHMENT AND SALE OF IMMOVABLE PROPERTY ATTACHMENT
158. Attachment.- Attachment of the immovable property of the defaulter be
made by an order prohibiting the defaulter from transferring or subjecting the
property to a charge in any manner and prohibiting all persons from taking any
benefit under such transfer or charge.
159. Service of notice of attachment.- A copy of the order of attachment be
served on the defaulter.
160. Proclamation of attachment.- The order of attachment shall be aimed
at some place on or adjacent to the property attached by beat of drum or
customary mode, and a copy of the order shall be affixed at a conspicuous of the
property and also at a conspicuous place of the office of the Commissioner.
161. Sale and proclamation of sales.- (I) The Commissioner of Tax may
direct that any immovable property which has been attached, or such portion of
as may seem necessary to satisfy the notice, shall be sold.
(2) Where any immovable property is ordered to be sold, the
Commissioner shall cause a proclamation of the intended sale to be made in the
language of the district.
162. Contents of proclamation.-(I) A proclamation of sale of immovable
property shall be drawn up after service of notice to the defaulter, and shall state
time and place of sale and also specify-
(a) the location of the property to be sold;
(b) as fairly and accurately as possible the revenue or rent,
if any, assessed upon the property or any part thereof;
and
(c) the amount for the recovery of which the sale is ordered.
(2) The proclamation may also specify any other thing which the
Commissioner considers material for a purchaser to know in order to judge the’
nature and value of the property.
163. Mode of making proclamation.-(I) Every proclamation for the sale of
immovable property shall be made at some place on or near such property by
beat of drum or other customary mode, and a copy of the proclamation shall be
affixed at a conspicuous place of the property and also at a conspicuous. of the
office of the Commissioner.
(2) Where the Commissioner so directs, such proclamation may be
published in one or two newspapers.
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(3) Where the property is divided into lots for the purpose of being
sold, separately, it shall not be necessary to make a separate proclamation for
each lot, unless proper notice of the sale cannot, in the opinion of the
Commissioner, otherwise be given.
164. Time of sale.- No sale of immovable property under these rules shall,
without the consent in writing of the defaulter, take place until after tile expiration
of at least thirty days from the date on which a copy of the proclamation of sale
has been affixed on the property or in the office of the Commissioner, whichever
is later.
165. Sale to be by auction or by tender.-The sale shall be made by public
auction or by tender to the highest bidder and shall be subject to confirmation by
the Commissioner.
166. Deposit by purchaser and re-sale in default.-(I) On every sale of
immovable property, the person declared to be the purchaser shall pay,
immediately after such declaration, a deposit of twenty-five per cent of the
amount of his purchase money to the officer conducting the sale; and in default
of such deposit the property shall forthwith be resold.
(2) The full amount of purchase money payable shall be paid by the
purchaser to the Commissioner on or before the fifteenth day from the date of the
sale of the property.
167. Procedure in default of payment.- In default of payment within the
period mentioned in rule 166 twenty per cent of deposit made under sub-rule (1)
of that rule shall be forfeited and the rest shall be kept as deposit to be dealt with
as mentioned in rule 168 and the property shall be re-sold and the defaulting
purchaser shall forfeit all claims to the property or to any part of the sum for
which it may be subsequently sold except to such sums as may be found
refundable to him under rule 168.
168. Amount recoverable from purchaser in default.-Any deficiency of
price which may happen on a re-sale by reason of the purchaser’s default
including all expenses attending such re-sale, shall be recoverable from the
defaulting purchaser up to the maximum of eighty per cent of the deposit made
by him under sub-rule (1) of rule 173 and kept as a deposit under rule 166 and if
there is any surplus after meeting the deficiency the same shall be refunded to
the defaulting purchaser .
169. Authority to bid.- All persons bidding at the sale shall be required to
declare if they are bidding on their own behalf, or on behalf of their principals
and, in the latter case, they shall be required to deposit their authority, and in
default their bids shall be rejected.
170. Application to set aside sale of immovable property on deposit.-
Where immovable property has been sold in execution of a Certificate, the
defaulter, or any person whose interests are affected by the sale, may, at any
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within thirty days from the date of the sale, apply to the Commissioner to set
aside the sale, on his depositing-
(a) for payment to the Commissioner, the amount specified
in the proclamation of sale as that for the recovery of
which the sale was ordered with interest thereon at the
rate of eight per cent per annum, calculated from the
date of proclamation of sale to the date when the deposit
is made; and
(b) for payment to the purchaser, as penalty, a sum equal to
ten per cent of the purchase money.
(2) Where a person makes an application under rule 171 for setting aside
the sale of his immovable property, he shall not, unless he withdraws that
application, be entitled to make or prosecute an application under this rule.
171. Application to set aside sale of immovable property on ground of
non-service of notice or irregularity .-Where immovable property has been in
execution of a notice, the Commissioner of Income Tax, the defaulter, or any
person whose interests are affected by the sale, may, at any time within thirty
days from the date of the sale, apply to the Commissioner to set aside the sale of
the immovable property on the ground that notice was not served on the
defaulter to pay the arrears as required by these rules or on the ground of a
material irregularity in publishing or conducting the sale:
provided that-
(a) no sale shall be set aside on any such ground unless the
Commissioner is satisfied on the basis of evidence,
produced before him that the applicant has sustained
loss by reason of the non-service or irregularity; and
(b) an application made by a defaulter under this rule shall
be disallowed unless he deposits the amount
recoverable from him in execution of the notice.
172. Setting aside sale where defaulter has no saleable interest.- At time
within thirty days of the sale, the purchaser may apply to the Commissioner to set
aside the sale on the ground that the defaulter had no saleable interest in the
property sold.
173. Confirmation of sale.-(l) Where no application is made for setting the
sale under the foregoing rules or where such an application is made and owed by
the Commissioner, he shall, if the full amount of the purchase money has been
paid, make an order confirming the sale, and upon the sale shall become
absolute.
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(2) Where such application is made and allowed, and where, in the
case of application made to set aside the sale on deposit of the amount and
penalty interest, the deposit is made within thirty days from the date of sale, the
Commissioner shall make an order setting aside the sale.
Provided that no such order shall be made unless notice of the
application has been given to the persons affected thereby.
174. Return of purchase money in certain cases.-Where a sale of
immovable property is set aside, any money paid or deposited by the purchaser
on account of the purchase, together with the penalty, if any, deposited for
payment to the purchaser, shall be paid to the purchaser .
175. Sale certificate.- (I) Where a sale of immovable property has become
absolute, the Commissioner shall grant a certificate specifying the property sold,
and the name of the person who at the time of sale was declared to be the
purchaser .
(2) Such certificate shall state the date on which the sale become
absolute.
176. Postponement of sale to enable defaulter to raise amount due under
notice.-(I) Where an order for the sale of immovable property has been made
and the defaulter satisfies the Commissioner of Tax that there is reason to
believe that the amount of the notice may be raised by mortgage or lease or
private sale of such property, or some part thereof, or of any other immovable
property of the defaulter, the Commissioner of Tax may, on the application of the
defaulter, postpone the sale of the property specified in the order for sale, on
such terms and for such period as he thinks proper, to enable the defaulter to
raise the amount.
(2) In such case, the Commissioner shall grant a certificate to the
defaulter authorizing him, within a period to be mentioned therein and
notwithstanding anything contained in these rules, to make the proposed
mortgage, lease or sale:
Provided that all money payable under such mortgage, lease or sale
shall be paid, not to the defaulter, but to the Commissioner:
Provided further that no mortgage, lease or sale under this rule shall
become absolute until it has been confirmed by the Commissioner.
177. Fresh proclamation before resale.- Every re-sale of immovable
property, in default of payment of the purchase money within the period allowed
for such payment, shall be made after the issue of a fresh proclamation in the
manner and for the period herein-before provided for the sale.
178. Bid of co-sharer to have preference.- Where the property sold is a
share of undivided immovable property and two or more persons, of whom one is
a co-sharer, respectively bid the same sum for such property or for any lot, the
bid of the co-sharer shall have preference.
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PART-IV
APPOINTMENT OF RECEIVER
179. Appointment of receiver for business.- (I) Where the property of
Defaulter consists of a business, the Commissioner may attach the business and
appoint a person as receiver to manage the business.
(2) Attachment of a business under this rule shall be made by an
order prohibiting the defaulter from transferring or subjecting the business to a
charge in any manner and prohibiting all persons from taking any benefit under
such transfer or charge and intimating that the business has been attached under
this rule. A copy of the order of attachment shall be served on the defaulter and
another copy shall be affixed on a conspicuous part of the premises in which the
business is carried on and at a conspicuous place in the office of the
Commissioner.
(3) Where the Commissioner so directs, such order shall also be
published in a newspaper.
180. Appointment of receiver for immovable property.- Where immovable
property is attached, the Commissioner may, instead of directing sale of the
property, appoint a person as receiver to manage such property.
181. Power of receivers, etc.- (1) Where it appears to the Commissioner to
be just and convenient, the Officer may by order-
(a) remove any person from the possession or custody of
the property;
(b) commit the same to the possession, custody or
management of the receiver; and
(c) confer upon the receiver all such powers, as to bringing
and defending suits and for the realization,
management, protection, preservation and improvement
of the property, the collection of the rents and profits
thereof, the application and disposal of such rents and
profits, and the execution of documents as the owner
himself has or such of those powers as the
Commissioner thinks fit:
Provided that nothing in this rule shall authorize the
Commissioner to remove from the possession or custody of
property any person whom any party to recovery proceedings
has not a present right so to remove.
(2) The Commissioner may by general or special order fix the
amount to be paid as remuneration for the services of the receiver.
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(3) Every receiver appointed by the Commissioner shall-
(a) furnish such security, if any, as the Commissioner thinks
fit, to account duly for what he shall receive in respect of
the property;
(b) submit his accounts at such periods and in such form as
the Commissioner directs;
(c) pay the amount due from him as the Commissioner of
Income directs; and
(d) be responsible for any loss occasioned to the property
by his willful default or gross negligence.
(4) The profits or rents and profits, of such business or other
property, “after defraying the expenses of management, be adjusted towards
discharge arrears, and the balance, if any, shall be paid to the defaulter.
182. Withdrawal of management.- The attachment and management under
this part may be withdrawn at any time at the discretion of the Commissioner, or
if the arrears are discharged by receipt of such profits and rents or are otherwise
paid.
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PART-V
ARREST AND DETENTION OF THE DEFAULTER
183. Notice to show cause.- (1) No order for the arrest and detention in civil
prison of a defaulter shall be made unless the Commissioner has issued and
served a notice upon the defaulter, calling upon him to appear before him on the
date specified in the notice and to show cause why he should not be committed
to the civil prison, and unless the Commissioner, for reasons to be recorded in
writing, is satisfied-
(a) that the defaulter, with the object or effect of obstructing
the execution of the Certificate has, after the receipt of
the Certificate in the office of the Commissioner,
dishonestly transferred, concealed or removed any part
of his property, or
(b) that the defaulter has, or has had since the receipt of the
notice in the office of the Commissioner, the means to
pay the arrears or some substantial part thereof and
refuses or neglects or has refused or neglected to pay
the same.
(2) Notwithstanding anything contained in sub-rule (1) a warrant for
the arrest of the defaulter may be issued by the Commissioner, if he is satisfied,
by affidavit or otherwise, that, with the object or effect of delaying the execution
of the notice, the defaulter is likely to abscond or leave the local limits of the
jurisdiction of the Commissioner.
(3) Where appearance is not made in compliance to a notice issued
and served under sub-rule (1), the Commissioner may issue a warrant for the
arrest of the defaulter .
(4) Every person arrested in pursuance of a warrant of arrest under
sub- rule (2) or sub-rule (3) shall be brought before the Commissioner as soon as
practicable and in any event within twenty-four hours of his arrest, exclusively the
time required for the journey:
Provided that if the defaulter pays the amount entered in the warrant ii
arrest as due to the officer arresting him, such officer shall at once
release him.
184. Hearing.- When a defaulter appears before the Commissioner in
compliance to a notice to show cause or is brought before the Commissioner
under rule 183 the Commissioner shall give the defaulter an opportunity of
showing cause why he should not be committed to the civil prison.
185. Custody pending hearing.- Pending the conclusion of the inquiry, the
Commissioner may order the defaulter to be detained in the custody of such
officer as the Commissioner of Income Tax may think fit or release him on his
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furnishing security to the satisfaction of the Commissioner for his appearance
when required.
186. Order of detention.- (1) Upon the conclusion of the inquiry, the
Commissioner may make an order for the detention of the defaulter in the civil
prison and shall in that event cause him to be arrested if he is not, already under
arrest:
Provided that in order to give the defaulter an opportunity of satisfying
the arrears, the Commissioner may, before making the order of detention leave
the defaulter in the custody of the officer arresting him or of any other officer for
specified period not exceeding fifteen days, or release him on his furnishing
security to the satisfaction of the Commissioner for his appearance at the
expiration of the specified period if the arrears are not so satisfied.
(2) When the Commissioner does not make an order of detention under
sub-rule (1), he shall, if the defaulter is under arrest, direct his release.
187. Detention in and release from prison.- (1) Every person detained the
civil prison in execution of a Certificate may be so detained-
(a) where the Certificate is for a demand of an amount
exceeding twenty five thousands, for a period of six
months, and
(b) in any other case for a period of six weeks:
Provided that he shall be released from such detention-
(i) on the amount mentioned in the warrant for his
detention being paid to the Officer-in-charge of
the civil prison, or
(ii) on the request of the Commissioner who has
issued the notice or of the Commissioner on any
ground other than the grounds mentioned in rule
193(1) and 196:
Provided further that where he is to be released
on the request of the Commissioner, he shall not be
released without the order of the Commissioner.
(2) A defaulter released from detention under this rule shall not,
merely by of his release, be discharged from his liability for the arrears; but he
shall liable to be re-arrested under the notice in execution of which he was
detained in the civil prison.
188. Release.-(I) The Commissioner may order the release of a defaulter who
has been arrested in execution of a notice upon being satisfied that he has
disclosed the whole of his property and has placed it at the disposal of
Commissioner and that he has not committed any act in bad faith.
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(2) If the Commissioner has ground for believing the disclosure made
defaulter under sub-rule (1) to have been untrue, he may order the re-arrest of
the defaulter in execution of the notice but the period of his detention in the
prison shall not in the aggregate exceed that authorized by rule 187.
189. Release on ground of illness.- (1) At any time after a warrant for the of
a defaulter has been issued, the Commissioner may cancel it on ground of the
serious illness of the defaulter .
(2) Where a defaulter has been arrested, the Commissioner may
him if, in the opinion of the Commissioner of Tax, he is not in a fit state of to be
detained in the civil prison.
(3) Where a defaulter has been committed to the civil prison, he may
be, therefrom by the Commissioner on the ground of the existence of any
infectious or contagious disease or on the ground of his suffering from any
illness;
(4) A defaulter released under this rule may be re-arrested, but the
period detention in the civil prison shall not in the aggregate exceed that
authorized by rule 164.
190. Entry into dwelling house.- For the purpose of making an arrest under
these rules,-
(a) no dwelling house shall be entered after sunset and
before sunrise;
(b) no outer door of a dwelling house shall be broken open
unless such dwelling house or a portion thereof is in the
occupancy of the defaulter and he or any other occupant
of the house refuses or in any way prevents access
thereto; but, when the person executing any such
warrant has duly gained access to any dwelling house,
he may break open the door or any room or apartment if
he bas reason to believe that the defaulter is likely to be
found there; and
(c) no room, which is in the actual occupancy of a woman
who, according to the custom of the country, does not
appear in public shall be entered into unless the officer
authorized to make the arrest has given notice to her
that she is at liberty to withdraw and has given her
reasonable time and facility for withdrawing.
191. Prohibition against arrest of woman or minor, etc.- The
Commissioner shall not order the arrest or detention in the civil prison of-
(a) a woman, or
(b) any person who, in his opinion, is a minor or of unsound
mind.
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PART-VI
MISCELLANEOUS
192. Continuance of Notice.- No notice shall cease to be in force by reason
of the death of the defaulter.
193. Procedure on death of defaulter.- If, at any time after the issue of a
Notice to the Commissioner, the defaulter dies, the proceedings under these
rules (except arrest and detention) may be continued against the legal
representative of the defaulter who shall be liable to pay out of the estate of the
deceased person to the extent to which the estate is capable of meeting the
arrears demand and the provisions of these rules shall be apply as if the legal
representative were the defaulter .
194. Appeal.- (1) An appeal from any order passed by the Commissioner or
taxation officer under these rules shall lie to the Regional Commissioner where
Commissioner himself acts to executes the purpose of in this Chapter; and to be
Commissioner if under delegated powers any taxation officer or authority acts
and executes the purposes of this Part.
(2) Every appeal under this rule shall be presented within thirty days
from the date of the order appealed against.
(3) The appellate authority (hereinafter referred to as “the authority”)
after hearing the party or his representative may admit the appeal for hearing or
reject it summarily if he is of the opinion that the appeal is without any substance.
(4) Where the appeal is admitted for hearing under sub-rule (3), the
authority hearing appeal shall fix a date for hearing of which notice shall be given
to the other party.
(5) If, on the date of hearing, no step is taken on behalf of either
party, the authority hearing appeal may forthwith take up the appeal for ex-parte
disposal or dismiss it for default, as the case may be:
Provided that the appeal may be adjourned to some other date for
hearing on sufficient cause being shown by either party by an application in that
behalf.
(6) After hearing both the parties or their representatives or when
the appeal is taken up for ex-parte hearing the appellant or his representative,
the authority hearing appeal may pass any such order as may appear to him,
confirming, modifying or reversing the order of the Commissioner or remanding
the case for fresh decision in the light of directions that he may like to give not
inconsistent with these rules, after setting aside the order of the Commissioner.
(7) Pending the decision of any appeal, execution of the Certificate
may be stayed if the appellate authority so directs, but not otherwise.
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195. Review .- Any order passed under these rules may, after notice to all
persons interested, be reviewed by the officer who made the order, or by his
successor in office, on account of any mistake apparent from the record.
196. Recovery from surety.- Where any person has under these rules e
surety for the amount due by the defaulter, he may be proceeded against r these
rules as if he were the defaulter .
197. Receipt to be given.- If any amount is received by any officer or other
person in pursuance of these rules, he shall issue a receipt of the amount so
received.
198. Subsistence allowance.- (1) When a defaulter is arrested or; detained
in the civil prison, the sum payable for the subsistence of the defaulter from the
definition or of arrest until he is released shall be borne by the Commissioner.
199. The sum under rule 198, shall be calculated on the scale fixed by the
Provincial Government for the subsistence of judgement-debtors arrested in
execution of a of a civil court.
200. Delivery of property in occupancy of defaulter.-Where the immovable
property sold is in the occupancy of the defaulter or of some person on his , or of
some person claiming under a title created by the defaulter subsequently to the
attachment of such property and a certificate in respect thereof has been made,
the Commissioner shall, on the application of the purchaser, order delivery to be
made by putting such purchaser or any person whom he may appoint to receive
delivery on his behalf in possession of the property, and, if be, by removing any
person who refuses to vacate the same.
201. Delivery of property in occupancy of tenant.- Where the immovable
property sold is in the occupancy of a tenant or other person entitled to occupy
the same and a certificate in respect thereof has been granted, the
Commissioner shall, on the application of the purchaser, order delivery to be
made by affixing a copy of the certificate of sale at some conspicuous place on
the property, and proclaiming to the occupant by beat of drum or other customary
mode, at some convenient place that the interest of the defaulter has been
transferred to the purchaser .
202. Resistance or obstruction to possession of immovable property.-(l)
Where the holder of a certificate for the possession of immovable property or the
purchaser of any such property sold in execution of a Certificate is resisted.
obstructed by any person in obtaining possession of the property, he may make
an application to the Commissioner complaining of such resistance or
obstruction.
(2) The Commissioner shall fix a day for investigating the matter and
shall summon the party against whom the application is made to appear and
answer the same.
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203. Resistance or obstruction by defaulter.- Where the Commissioner is
satisfied that the resistance or obstruction was occasioned without any just cause
by the defaulter or by some other person at his instigation, he shall direct that the
applicant be put into possession of the property, and where the applicant is still
resisted or obstructed in obtaining possession, the Commissioner may also, at the
instance of the applicant, order the defaulter, or any person acting at his
instigation, to be detained in the civil prison for a term which may extend to thirty days.
204. Resistance or obstruction by bona fide Claimant.- Where the
Commissioner is satisfied that the resistance or obstruction was occasioned by
any person (other than the defaulter) claiming in good faith to be in possession of
the property on his own account of some person other than the defaulter, the
Commissioner shall make an order dismissing the application.
205. Dispossession by certificate holder or purchaser .-(1) Where any
person other than defaulter is dispossessed of immovable property by the holder
of a certificate for the possession of such property or where on such property has
been sold in execution of a Certificate, by the purchaser thereof, he may make
an application to the Commissioner complaining of such dispossession.
(2) The Commissioner shall fix a day for investigating the matter and
shall summon the party against whom the application is made to appear and
answer the same.
206. Bona fide claimant to be restored to possession.- Where the
Commissioner is satisfied that the applicant was in possession of the property on
his own account or on account of some person other than defaulter, he shall
direct that the applicant be put into possession of the property.
207. Rules not applicable to transferee lite pendente.- Nothing in rules 211
and 205 shall apply to resistance or obstruction in execution of a certificate for
the possession of immovable property by a person to whom the defaulter has
transferred the property after the institution of the proceedings in which the order
was passed or to the dispossession of any such person.
208. Delivery of movable property, debts and shares.- (1) Where the
property sold is movable property of which actual seizure has been made, it shall
be delivered to the purchaser .
(2) Where the property sold is movable property in the possession of
some person other than the defaulter, the delivery thereof to the purchaser shall
be made by giving notice to the person in possession prohibiting him from
delivering possession of the property to any person except the purchaser.
(3) Where the property sold is a debt not secured by a negotiable
instrument or is a share in a corporation, the delivery thereof shall be made by a
written order of the Commissioner prohibiting the creditor from receiving the debt
or any, rest thereon, and the debtor from making payment thereof to any person
except the purchaser, or prohibiting the person in whose name the share may be
standing from making any transfer of the share to any person except the, chaser,
136
or receiving payment of any dividend or interest thereon, and the manager,
secretary, or other proper officer of the corporation from permitting any such
transfer or making any such payment to any person except the purchaser .
209. Execution of documents and endorsement of negotiable
instruments.- Where any endorsement or execution of document is required to
transfer a negotiable instrument or any share to a purchaser under these rules,
such document shall be executed or endorsement shall be made by the
Commissioner.
210. Forms.- Any notice, warrant of attachment, warrant of arrest, sale
proclamation, sale certificate or order to be issued under these rules, shall be
issued in such form as the Board may from time to time direct, and any defect or
deficiency in form unless it adversely effects the interest of the parties, shall not
vitiate the proceedings taken or initiated.
137
1[CHAPTER XVII
1 Substituted by S.R.O. 541(I)/2003, dated 13TH June, 2003. The substituted Chapter XVII read as
follows:
“CHAPTER XVII
NON-PROFIT ORGANISATIONS
211. Procedure for the approval of a non-profit organisation. – (1) An institution, fund, trust,
society or any other organisation established in Pakistan for religious or a charitable and community
services purposes requiring approval of the Commissioner under clause (36) of section 2 of the
Income Tax Ordinance, 2001, shall make an application to the Commissioner in the following form,
namely —
APPLICATION FOR A RULING FOR THE PURPOSES OF SUB-SECTION (36) OF SECTION 2 OF
THE INCOME TAX ORDINANCE, 2001
To
The Commissioner (As per jurisdiction specified)
_________(City)
Dear Sir.
With reference to clause (36) of section 2 of the Income Tax Ordinance, 2001, the
undersigned hereby applies, on behalf of __________ (State the name of the institution, fund, trust,
society or organization) for its approval for the purpose of the said clause for the tax year ending
________.
Necessary particulars are set out below, in the schedule to this application.
The following documents required under sub-rule (2) of rule are enclosed –
(i) ______________________
(ii) ______________________
(iii) ______________________
(iv) ______________________
(v) ______________________
(vi) ______________________
(vii) ______________________
Yours faithfully,
Signature_____________________
Name in block letters____________
Designation ___________________
Application must be signed either by the President or the Secretary of the Institution or by a Trustee
of the Institution/Trust or any other organization.
SCHEDULE
PARTICULARS
1. Name of the Institution/Fund/Trust/Society/ organization (in block
letters)_______________________________________________________
2. Full address of the Institution/Fund/Trust/Society/ organization (in block
letters)_______________________________________________________
3. Date of registration of the Institution/Fund/Trust/Society/ organization
___________________________________________________________
4. Its aims and objects.
(a)
(b)
(c)
(d)
5. Whether the Institution/Trust has been registered under the Societies
Registration Act, 1860 or the Voluntary Social Welfare Agencies (Registration
and Control) Ordinance, 1961 or any other law or established in pursuance of a
Trust Deed. Please give/state the law and the number and date of registration
____________________________.
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6. Whether the Trust Deed/ Constitution /Rules and Regulations/ Memorandum of
Association in conforms to the provisions of sub-rule (1) of rule 220..If so, please
give the number of Article/ Clause/ Rule for each provision.
7. Whether the Institution Fund/Trust/ Organization ensures for the benefit of the
general public or a particular community or class or persons only (give full
details).
8. The number of members of the institution on the date of application.
9. Accounting year of the institution/Trust commence on ________and ends on
________.
10. The following books of accounts are being regularly maintained by the institution
and are open for inspection without that any hindrance to the general public.
Signature_____________________________
Name in block letters____________________
Designation___________________________
(2) An application under sub-rule (1) shall be accompanied by –
(a) a duly attested copy of the constitution, memorandum and articles of
association, rules, regulations or bye-laws, as the case may be, of the
institution, fund, trust or society specifying the aims and objects for
which it is established.
(b) in case of a trust, the original registered trust deed, together with duly
attested copy thereof;
(c) in the case of a society or agency where registration of the institution
has been made under the Societies Registration Act, 1860 (XXI of
1860), the Voluntary Social Welfare Agencies (Registration and
Control) Ordinance, 1961 (XLVI of 1961), or under any other law as
applicable, the original registration certificate of the society or agency,
together with a duly attested copy thereof;
(d) duly attested copies of the balance-sheet and of revenue accounts of
the institution, fund, trust, society or organisation as audited by a
chartered accountant for the year immediately preceding the year in
which the application is made; where application is made for the
renewal, the following requirements may be met.
(e) the names and addresses of the President, Secretary, Treasurer,
Manager and other office bearers, Trustees or organisation , as the
case may be, of the institution, fund, trust or society, and indicating
clearly their family relationships, if any, with each other; and
(f) duly attested copies of the balance sheet and of revenue accounts, as
audited by a qualified accountant for the year immediately preceding
the year in which application is made. The qualified accountant
means:-
a. A retired officer of the government not below grade-18 or
Bank Manager, provided its receipts and expenditure pass
through the bank accounts for non-profit organisation with
annual receipts upto Rs. 0.5 million.
b. A cost and management accountant for those with annual
receipts upto 3 million.
c. A chartered accountant for any amount of annual receipts.
(g) a detailed report with regard to the performance of the institution for
achieving its aims and objects during the three income years preceding
the application duly evaluated, certified and rated by an independent
agency approved by an authority designated by the Government of
Pakistan for this purpose or till that authority is established, under
arrangements made by the Central Board of Revenue.
212. Decision on application.- (1) On receipt of an application under rule 211, the
Commissioner may make such inquiries or call for such further information as the Commissioner may
139
deem necessary and after completion of formalities may approve the institution, fund, trust, society or
organisation for the purpose of clause (37) of section 2 of the Income Tax Ordinance, 2001.
(2) An approval granted under sub-rule (1) shall be
(a) notified in the official gazette;
(b) subject to such conditions as the Commissioner may specify in the
approval; and
(c) valid until the 31st day of December of the calendar year next following the
calendar year in which the approval is granted.
213. Refusal to grant approval.- (1) The approval shall not be granted if the constitution,
memorandum or articles of association, rules, regulations or bye-laws, or trust deed, as the case may
be, specifying the aim and objects of the institution, fund, trust or society do not provide –
(a) for the audit of the annual accounts of the institution, fund, trust or
society every year by a qualified accountant as specified in clause (f)
of sub-rule (2) of rule 218 wherever applicable.
(b) where the institution, fund or society is registered under the Societies
Registration Act, 1860 (XXI of 1860), the Voluntary Social Welfare
(Registration Control) Ordinance, 1961 (XLVI of 1961), or any other
law in substitution thereof, for the quorum of a meeting of the members
of the body in which the control of the affairs of the institution vest,
being not less than four or one-third of the total number of the
members of such body, whichever is greater;
(c) where the institution is a Trust as defined in the Trust Act, 1882 (II of
1882), for the quorum of a meeting of the members of the body in
which the control of the affairs of the trust vests, being not less than
three or one-third of the total number of the members of such a body,
whichever is greater;
(d) for the transfer of its assets, in the event of its dissolution, after
meeting all liabilities, if any, to another institution, fund, trust, society or
organisation which is an approved non-profit organisation, intimation of
such transfer to be given to the Commissioner within three months of
the dissolution;
(e) for the utilisation of its money, property or income or any part thereof
solely for promoting its objects;
(f) for prohibiting any portion of its money, property or income being paid
or transferred directly by way of dividend bonus or profit to any of its
members or the relative or relatives of a member or members;
(g) for the accounts of the institution being kept in a scheduled bank or in
a post office or national savings organisation, National Bank of
Pakistan or National Commercialised Banks.
(h) for prohibiting the making of any changes in the constitution,
memorandum or articles of association, rules, regulations, or by-laws,
or trust deed, as the case may be, without the prior approval of the
Commissioner; or
(i) for restricting the money validly set a part or not utilised to 25 per cent
of the income including surplus worked out of amount donations made
to it. In case, accounting period closes within three months of the
commencement of activities, the Commissioner can relax this condition
upto 50% of the amount, provided that certificate that the amounts so
in excess of the said limit have been invested in Government securities
or in the financial institutions including NIT Units or any mutual funds
registered with State Bank of Pakistan or Securities Exchange
Commission of Pakistan subject to the condition, that such deposit/
investment in or through the financial institution(s) shall not exceed
1/3rd of the surplus at the end of the year as mentioned.
(2) The Commissioner may refuse to approve the institution, fund, trust, society or
organisation if the Commissioner is satisfied that the institution, fund, trust or society –
(a) has been or is being used for personal gain of any particular person or
a group of persons;
140
(b) has been propagating the view of a particular political party;
(c) has been or is being managed in a manner calculated to personally
benefit its members or their families; or
(d) has not or will not be able to achieve its declared aims and objects in
view of its set up, administrative or otherwise as evaluated and
certified by an independent rating agency.
(3) The Commissioner shall notify the applicant, in writing, of the Commissioner’s
decision to refuse the approval.
(4) The notice referred to in sub-rule (2) shall include a statement of reasons for the
refusal.
214. Renewal of approval.- (1) An institution, fund, trust, society or organisation that has been
approved as a non-profit organisation may renew the approval by application in the following in the
following form, namely:-
APPLICATION FOR RENEWAL OF APPROVAL FOR THE PURPOSES OF CLAUSE (37) OF
SECTION 2 OF THE INCOME TAX ORDINANCE, 2001
To
The Secretary
Central Board of Revenue
Islamabad.
I, the undersigned, hereby apply for the renewal of approval ___________ name of
institution/ fund/ trust/ society/ organization) for the year ending 31st December, 20 ____.
The ____________________ (name of institution/ fund/ trust/ society/ organization) was
ruled a non-profit organization by the Commissioner vide Notification No _______________ dated
_____________.
It is hereby certified that —
(a) the Constitution/Trust Deed/Rules and Regulations/Memorandum and
Articles of Association, previously filed with the Commissioner, have
remained unchanged.
(2) An application for renewal of approval under sub-rule (1) shall be furnished within
six months after the expiry of the validity of the ruling last issued and such application shall be
accompanied by such documents and instruments as are specified in sub-rule (2) of rule 211.
(3) The Commissioner shall grant an application for renewal of approval where the
Commissioner is satisfied that the institution, fund, trust or society –
(a) complied with the provisions of clause (h) of sub-rule (1) of rule 213;
(b) did not suffer any one or more of the disqualification specified in subrule
(2) of rule 213;
(c) complied with the provisions of rule 216; and
(d) otherwise satisfied the requirements for certification as a non-profit
organisation in the preceding three years.
(4) The Commissioner shall refuse an application for renewal of a approval for any
year if the institution, fund, trust or society did not enjoy approval for the calendar year immediately
preceding the year in which the renewal application is made under this rule.
(5) The renewal of approval shall be valid up to the 31st December of the second
calendar year following the calendar year in which the approval is granted, provided that subsequent
renewals will be for a period extending upto three years depending on the rating agency’s report and
audit results.
(6) The renewal of approval of an institution, fund, trust, society or organisation shall
be –
(a) notified in the Official Gazette; and
(b) subject to such conditions as the Commissioner may specify in the
renewal of approval..
(7) The Commissioner shall notify the applicant, in writing, of the Commissioner’s
decision to refuse an application to renew the approval.
(8) The notice referred to in sub-rule (7) shall include a statement of reasons for the
refusal.
141
215. Finalisation of applications.- The Commissioner shall finalise applications under rules
211 and 214 within two months of receipt of the application.
216. Annual accounts.- An institution, fund, trust or society that has been approved under rule
212 or whose approval has been renewed under rule 214 shall, by the 30th of January each year,
submit to the Commissioner, in respect of the preceding calendar year:-
(a) a copy of the statement of audited accounts, as mentioned in clause
(a) of sub-rule (1) of rule 214;
(b) a statement of income and donations received and moneys paid;
(c) a list of donees and beneficiaries with full addresses; and
(d) a statement showing the money set apart or kept un-utilised with
reasons thereof.
217. Power to withdraw approval.- (1) The Commissioner may, at any time, withdraw an
approval granted earlier, if the institution, fund, trust society or organisation fails to comply with the
provisions of rule 216 or 219 and is satisfied that
(a) the said institution, fund, trust or society has failed to fully utilise its
income and the donations received by it for achieving the purpose for
which it was established;
(b) the reason for setting apart, or for not utilising, the money referred to in
clause (c) of rule 216 is not valid; or
(2) No approval shall be withdrawn under sub-rule (1) unless the institution, fund,
trust, society or organisation has had an opportunity to show cause against the action proposed to be
taken.
(3) Where the Commissioner decides to withdraw an approval under sub-rule (1),
the Commissioner shall give the institution, fund, trust or society notice, in writing, of the decision
including a statement of reasons for the decision.
218. Appeal against a decision made under this rule.- An institution, fund, trust or society
dissatisfied with –
(a) a decision to refuse an application made under rule 211 or 214; or
(b) a decision to withdraw an approval,
may lodge an appeal in the following form with the Commissioner (Appeals), namely:-
GROUNDS OF APPEAL
We/I_________ the petitioner(s) named in the above petition do declare that what is stated
therein is true to the best of our/my information and belief.
Date………200
Signature_________________________
Name ___________________________
Address _________________________
PARTICULARS
Name of the Institution/ Fund/ Trust/ Society (in block letters).
1. Full address of the Institution/ Fund/ Trust/ Society (in block letters)
2. Date of establishment of the Institution/ Fund/ Trust/ Society.
3. Its aims and objects
(a)
(b)
(c)
(d)
4. Whether the Institution/Fund/Trust/Society has been registered under the Societies
Registration Act, 1860, or under the Voluntary Social Welfare Agencies (Registration and Control)
142
NON-PROFIT ORGANISATIONS
211. Procedure for the approval of a non-profit organization. – (1) An
institution, fund, trust, society or any other non-profit organization (hereinafter
referred to in this Chapter as organisation) established in Pakistan for religious,
educational, charitable, welfare or development purposes or for the promotion of
an amateur sport requiring approval of the Commissioner under clause (36) of
section 2 of the Ordinance, shall make an application to the Commissioner in the
following form, namely: –
APPLICATION FOR APPROVAL FOR THE PURPOSES OF
CLAUSE (36) OF SECTION 2 OF THE INCOME TAX ORDINANCE, 2001
To,
The Commissioner of Income Tax,
__________Zone,
_________(City).
1. With reference to clause (36) of section 2 of the Income Tax Ordinance,
2001 (XLIX of 2001), I the undersigned, hereby apply, on behalf of __________
(name of the organization) for its approval for the purposes of the said clause for
the tax year ending on ________.
2. Necessary particulars are set out below, and in the schedule to this
application.
3. The following documents required under sub-rule (2) of rule 211 of the
Income Tax Rules, 2002, are enclosed.
Ordinance, 1961, or any other law in substitution thereof or established in pursuance of a Trust Deed.
Please give its number and date.
6. Whether the Trust Deed/Constitution/Rules and Regulations/ Memorandum of Association
contain the provisions of sub-rule (3) of rule 41. If so, please give the number of Article/ Clause/ Rule
for each provision.
7. Whether the Trust Deed/ Constitution/ Fund/ Trust ensures for the benefit of the general
public or a particular community or class or persons only (give full details).
8. The number of members of the institution on the date of application.
Signature _______________________
Name __________________________
(Block Letter)
Designation ______________________
219. Institution granted approval before commencement of these rules.- The approval
granted prior to the commencement of these rules to an institution, fund, trust or society shall be
deemed to have been withdrawn unless an application in the manner laid down in rule 221 is made
on behalf of such institution, fund, trust or society for calendar year 2002 within the time specified
before June 2003.
220 Relaxation of requirements or conditions.- The Commissioner, as the case may be, may
relax or modify any of the requirements or conditions of this rule, in any individual case, if it is
satisfied that the requirements or conditions could not be fulfilled by the applicant for reasonable
cause.”
143
(i) ______________________
(ii) ______________________
(iii) ______________________
(iv) ______________________
(v) ______________________
Signature________________________
Name (in block letters)______________
Designation ______________________
Application must be signed either by the President or the Secretary of the
organization or by a Trustee, of the trust.
SCHEDULE
PARTICULARS
1. Name of the organization (in block letters) ________________________
__________________________________________________________
2. Full address of the organization (in block letters) ___________________
__________________________________________________________
3. Date of registration of the organization ___________________________
4. Its aims and objects.
(a) ____________________________________________________
(b) ____________________________________________________
(c) ____________________________________________________
(d) ____________________________________________________
5. Whether the organisation has been registered under the Societies
Registration Act, 1860 (XXI of 1860), or the Voluntary Social Welfare
Agencies (Registration and Control) Ordinance, 1961 (XLVI of 1961), or
any other law in substitution thereof relating to the registration of welfare
organisation or established in pursuance of a Trust Deed. Please
give/state the law and the number and date of registration
______________________.
6. Whether constitution, memorandum and articles of association, trust
deed, rules and regulations or bye-laws, as the case may be, conform(s)
to the provisions of sub-rule (1) of rule 213. If so, please give the number
of Article/ Clause/ Rule etc., for each provision.
7. Whether the organization ensures for the benefit of the general public or
a particular community or class of persons only (give full details).
8. The number of members /trustees of the organization on the date of
application.
9. Accounting year of the organisation commences on ___________and
ends on ___________.
144
10. The following books of accounts are being regularly maintained by the
organization and are open for inspection without any hindrance to the
general public.
i) _______________________________
ii) _______________________________
iii) _______________________________
Signature_______________________
Name (in block letters)____________
Designation_____________________
(2) An application under sub-rule (1) shall be accompanied by –
(a) a duly attested copy of the constitution, memorandum
and articles of association, rules and regulations or byelaws,
as the case may be, of the organisation specifying
the aims and objects for which it is established;
(b) a certified copy of the registered trust deed, in case of a
Trust;
(c) a certified copy of certificate of registration in the case of
an organisation registered under the Societies
Registration Act, 1860 (XXI of 1860), the Voluntary
Social Welfare Agencies (Registration and Control)
Ordinance, 1961 (XLVI of 1961), or under any other law
in substitution thereof relating to the registration of
welfare organisation as applicable;
(d) duly attested copies of the balance sheet and of revenue
accounts of the organisation as audited by a “qualified
accountant” for the year immediately preceding the year
in which the application is made;
(e) the names and addresses of the promoters, directors,
trustees, president, secretary, treasurer, manager and
other office bearers, as the case may be, of the
organisation, and indicating clearly their family
relationships, if any, with each other;
(f) for the purposes of clause (d), “qualified accountant”
means, –
(i) a retired audit, accounts, treasury or taxation
officer of the Government not below BPS-17 or a
bank manager, where the annual receipts of the
organisation do not exceed Rs. 0.5 million;
145
1[ ]
2[(iii) in other cases, a Chartered Accountant as
defined under the Chartered accountants
Ordinance, 1960 (X of 1960) or a Cost and
Management accountant as defined under the
Cost and Management Accountants Act, 1966
(XIV of 1966) or a firm of Chartered Accountants
as defined under the Chartered Accountants
Ordinance, 1960 (X of 1960) or a firm of Cost
and Management Accountants as defined under
the Cost and Management Accountants Act,
1966 (XIV of 1966);]
(g) a detailed report with regard to the performance of the
organisation for achieving its aims and objects during the
3[preceding financial year] preceding the date on which
application is made, duly evaluated and certified by an
independent certification agency approved by an
authority designated by the Government of Pakistan for
this purpose or, till that authority is established, under
arrangements made by the 4[or Commissioner of Income
Tax] 5[:]
6[Provided that till the approval of two such
agencies, the applicant organization shall have an option
to get its performance appraised by 7[Director-General,
Regional Tax Office or Large Taxpayers Unit]:
Provided further that 8[Director-General or
Officers of Regional Tax Office or Large Taxpayer Unit],
shall apply the same parameters on applicant
organizations for the purpose of aforesaid evaluation as
1 Omitted by SRO 774(I)/2006 dated 29th July, 2006. The omitted sub-clause (ii) read as under:
“(ii) a Cost and Management Accountant for those where the annual receipts of the
organisation exceed Rs.0.5 million but do not exceed Rs. 3.0 million; and”
2 Substituted by SRO 774(I)/2006 dated 29th July, 2006. The substituted sub-clause (iii) is read as
under:
“(ii) in other cases, a Chartered Accountant.
Provided that an organization may also choose to engage auditors prescribed for
organization with higher receipts; and”
3 The words “three financial years” substituted by S.R.O. 608(I)/2005, dated 13th June, 2005.
4 The words “Central Board of Revenue” substituted by S.R.O. 608(I)/2005, dated 13th June, 2005.
5 Full substituted by S.R.O. 1015(I)/2003, dated 5th November, 2003.
6 Added by S.R.O. 1015(I)/2003, dated 5th November, 2003.
7 The letters ‘CBR” substituted by S.R.O. 707(I)/2007, dated 14.07.2007.
8 The letters and words “CBR or its officers’ substituted by S.R.O. 707(I)/2007, dated 14.07.2007.
146
are approved by the 1[FBR] to be applied by the
certification agency.]
212. Decision on application. – (1) On receipt of an application under rule
211, the Commissioner may make such inquiries or call for such further
information as the Commissioner may deem necessary and after completion of
formalities may approve the organization for the purpose of clause (36) of section
2 of the Ordinance.
(2) An approval granted under sub-rule (1) shall be –
(a) notified in the official Gazette; 2[and]
(b) subject to such conditions as the Commissioner may
specify in the approval.3[ ]
4[ ]
213. Refusal to grant approval. – (1) The approval shall not be granted if the
constitution, memorandum and articles of association, trust deed, rules and
regulations or bye-laws, as the case may be, specifying the aims and objects of
the organization do(es) not provide –
(a) for the audit of the annual accounts of the organisation
every year by a qualified accountant as specified in
clause (f) of sub-rule (2) of rule 211;
(b) where the organisation is registered under the Societies
Registration Act, 1860 (XXI of 1860), the Voluntary
Social Welfare (Registration Control) Ordinance, 1961
(XLVI of 1961), or any other law in substitution thereof
relating to the registration of welfare organisation, for the
quorum of a meeting of the members of the body in
which the control of the affairs of the organisation vests,
being not less than four or one-third of the total number
of the members of such body, whichever is greater;
(c) where the organisation is a Trust as defined in the Trust
Act, 1882 (II of 1882), for the quorum of a meeting of the
members of the body in which the control of the affairs of
the trust vests, being not less than three or one-third of
1 The words “CBR” substituted by the Finance Act, 2007.
2 The word “and” added by SRO 667(I)/2006 dated 27th June, 2006
3 The word “and” Omitted by SRO 667(I)/2006 dated 27th June, 2006
4 Clause “c” Omitted by SRO 667(I)/2006 dated 27th June, 2006. The Omitted clause “(c)” read as
under:
“(c) valid until the 30th day of June of the tax year next following the tax year in which
the approval is granted.”
147
the total number of the members of such a body,
whichever is greater;
(d) for the transfer of its assets, in the event of its
dissolution, after meeting all liabilities, if any, to another
organisation which is an approved non-profit
organisation, within three months of the dissolution
under intimation to the Commissioner;
(e) for the utilisation of its money, property or income or any
part thereof solely for promoting its objects;
(f) for prohibiting any portion of its money, property or
income being paid or transferred directly by way of
dividend, bonus or profit to any of its members or the
relative or relatives of a member or members;
(g) for the maintenance of accounts of the organisation
being kept in a scheduled bank or in a post office or
national savings organisation, National Bank of Pakistan
or nationalised commercial banks;
(h) for prohibiting the making of any changes in the
constitution, memorandum and articles of association,
trust deed, rules and regulations or bye-laws, as the
case may be, without the prior approval of the
Commissioner:
Provided this clause will have effect only in cases where
the approval is granted; and
1[(i) for restricting the surpluses or monies validly set apart,
excluding restricted funds, upto twenty-five per cent of
the total income of the year:
1 Substituted by SRO 774(I)/2006 dated 29th July, 2006. The Substituted clause “(i)” read as under:
“(i) for restricting the moneys validly set apart or not utilised upto twenty-five per cent
of the income including surplus worked out of the amount from donations made
to it. In case, accounting period closes within three months of the
commencement of activities, the Commissioner can relax this condition upto fifty
per cent of the amount:
Provided that a certificate to the effect that the amounts so in excess of
the said limit have been invested in Government securities or in the scheduled
banks including NIT Units or any mutual funds registered with State Bank of
Pakistan or Securities Exchange Commission of Pakistan is produced:
Provided further that such deposit or investment in or through the
scheduled banks shall not exceed one-third of the surplus at the end of the year.”
148
Provided that such surpluses or monies set
apart are invested in Government securities, NIT
units, a collective investment scheme authorized
or registered under the Non-Banking Finance
Companies (Establishment and Regulation)
Rules, 2003, mutual fund, a real estate
investment trust approved and authorized under
the Real Estate Investment Trust Rules, 2006,
or scheduled banks:
Explanation: For the purpose of this rule,
“restricted funds” mean any fund received by the
organization but could not be spent and treated
as revenue during year due to any obligation
placed by the donor.]
(2) The Commissioner may refuse to approve the organisation if the
Commissioner is satisfied that the organisation –
(a) has been or is being used for personal gain of any
particular person or a group of persons;
(b) has been propagating the view of a particular political
party or a religious sect;
(c) has been or is being managed in a manner calculated to
personally benefit its members or their families; or
(d) has not been or will not be able to achieve its declared
aims and objects in view of its set up, administration or
otherwise as evaluated and certified by an independent
certification agency.
(3) The Commissioner shall notify the applicant, in writing, the
decision to refuse the approval.
(4) The notice referred to in sub-rule (3) shall include a statement of
reasons for the refusal.
149
1[214. Validity of the approval.- The approval granted under rule 212 will
1 Substituted by SRO 667(I)/2006 dated 27th June, 2006. The substituted rule “214” read as under:
“214. Renewal of approval. – (1) An organisation that has been approved as a non-profit
organisation may apply for renewal of approval to the Commissioner concerned through an
application in the following form, namely: –
APPLICATION FOR RENEWAL OF APPROVAL FOR THE PURPOSES OF
CLAUSE (36) OF SECTION 2 OF THE INCOME TAX ORDINANCE, 2001.
To,
The Commissioner of Income Tax,
_________ Zone,
________(City).
I, the undersigned, hereby apply for the renewal of approval of ___________ (name of the
Organization) for the tax year ending on ___________.
2. The ____________________ (name of the Organization) was approved as a Non-Profit
Organization by the Commissioner vide Notification No ________________ dated _____________.
3. It is hereby certified that:-
(b) constitution, memorandum and articles of association, trust deed, rules
and regulations or bye-laws, as the case may be, previously filed with
the Commissioner, have remained unchanged;
(c) the disqualification mentioned in sub-rule (1) of rule 213 do not apply to
the organization;
(d) the organization has fully complied with the provisions of Rule 213; and
(e) the information given above and in the attached Schedule is correct.
Signature________________________
Name (in block letters)______________
Designation______________________
SCHEDULE
Particulars
1. Name of the organization (in block letters) ___________________________________________
____________________________________________________________________________
2. Full address of the organization (in block letters) ______________________________________
_____________________________________________________________________________
3. Date of registration of the organization _________________________
4. Its aims and objects
(a) ____________________________________________________
(b) ____________________________________________________
(c) ____________________________________________________
(d) ____________________________________________________
5. Date of approval granted under clause (36) of section 2 the Income Tax Ordinance, 2001.
6. Whether the constitution, memorandum and articles of association, trust deed, rules and
regulations or bye-laws, as the case may be, conform(s) to the provisions of sub-rule (1) of rule
213. If so, please give the number.
7. Whether the organization ensures for the benefit of the general public or a particular community
or class of persons only (give full details).
8. The number of members/ trustees of the organization on the date of application.
9. Accounting year of the organization commences on __________ and ends on ___________.
10. The following books of accounts are being regularly maintained by the institution and are open
for inspection without any hindrance to the general public.
(i) ________________________
(ii) ________________________
(iii) ________________________
Signature ________________________
Name (in block letters)______________
Designation ______________________
Application must be singed either by the President or the Secretary of the organisation or by a
Trustee of the Trust.
150
remain in force for the subsequent years unless withdrawn under rule 217.
215. Finalisation of applications. – The Commissioner shall finalise
applications under rules 211 and 214 within two months of their receipt.
1[ ]
(2) An application for renewal of approval under sub-rule (1) shall be furnished within
six months after the expiry of the validity of the approval last granted and such application shall be
accompanied by such documents and instruments as are specified in sub-rule (2) of rule 211 A[:]
A Earlier full stop substituted by S.R.O. 1015(I)/2003, dated 5th November, 2003.
B[Provided that notwithstanding anything contained herein, for the
purposes of this rule, clause (g) of sub-rule (2) of rule 211 shall take effect from
July 1, 2004.]
BEarlier added by S.R.O. 1015(I)/2003, dated 5th November, 2003.
(3) The Commissioner may renew the approval where the Commissioner is satisfied
that the organisation –
(a) complied with the provisions of clause (h) of sub-rule (1) of rule 213;
(b) did not suffer any one or more of the disqualification(s) specified in
sub-rule (2) of rule 213;
(c) complied with the provisions of rule 216; and
(f) otherwise satisfied the requirements for renewal of approval in the
preceding three years.
(4) The Commissioner shall refuse an application for renewal of an approval for any
year if the organisation did not enjoy approval for the tax year immediately preceding the year in
which the renewal application is made under this rule.
(5) The first renewal of approval shall be valid up to the 30th day of June of the
second tax year following the tax year in which renewal of the approval is granted, provided that
subsequent renewals will be for a period extending upto three years depending on an independent
certification agency’s report and audit results.
(6) The renewal of approval of an organisation shall be –
(a) notified in the official Gazette; and
(b) subject to such conditions as the Commissioner may specify in the
renewal of approval.
(7) The Commissioner shall notify the applicant, in writing, the decision to refuse an
application to renew the approval.
(8) The notification referred to in sub-rule (7) shall include a statement of reasons for
the refusal. “
1 Omitted by SRO 667(I)/2006 dated 27th June, 2006. The Omitted Rule 216 is read as under:
“216. Annual accounts. – An organisation that has been approved under rule 212 or whose
approval has been renewed under rule 214 shall, by the 31st day of July each year, submit to the
Commissioner and to the concerned certification agency, in respect of the preceding tax year: –
(a) a copy of the statement of audited accounts, as mentioned in clause
(d) of sub-rule (2) of rule 211;
(b) a statement of income and donations received and moneys paid;
151
1[217. Power to withdraw approval.- (1) The Commissioner may, at any time,
withdraw approval granted under rule 212, if he is satisfied that-
(a) the constitution, memorandum and articles of association, trust
deed, rules and regulations or bye-laws, as the case may be,
specifying the aims and objects of the organization do(es) not
provide for prohibiting the making of any changes in the
constitution, memorandum and articles of association, trust
deed, rules, regulations and bye-laws without prior approval of
the Commissioner;
(b) the organization has-
(i) been or is being used for personal gain of any particular
person or a group of persons as specified in clause (a)
of sub-rule (2) of rule 213;
(ii) been propagating the view of a particular political party
or a religious sect as specified in clause (b) of sub-rule
(2) of rule 213;
(iii) been or is being managed in a manner calculated to
personally benefit its members or their families as
specified in clause (c) of sub-rule (2) of rule 213; or
(iv) not been or will not be able to achieve its declared aims
and objects in view of its set up, administration or
(c) a list of donees and beneficiaries with full addresses; and
(d) a statement showing the money set apart or kept un-utilised with
reasons thereof.”
1 Substituted by SRO 667(I)/2006 dated 27th June, 2006. The substituted Rule 217 read as under:
“217. Power to withdraw approval. – (1) The Commissioner may, at any time, withdraw an
approval granted earlier, if the organisation fails to comply with the provisions of rule 216 or 219
and is satisfied that –
(a) the said organisation has failed to fully utilise its income and the
donations received by it for achieving the purpose for which it was
established; and
(b) the reason for setting apart, or for not utilising, the money referred to in
clause (d) of rule 216 is not valid.
The Commissioner shall also supply a copy of the order withdrawing the approval to the concerned
certification agency.
(2) No approval shall be withdrawn under sub-rule (1) unless the organisation has
had an opportunity to show cause against the action proposed to be taken.
(3) Where the Commissioner decides to withdraw an approval under sub-rule (1),
the Commissioner shall intimate the organisation and certification agency, in writing, of the decision
including a statement of reasons for the decision.”
152
otherwise as evaluated and certified by an independent
certification agency as specified in clause (d) of sub-rule
(2) of rule 213;
(v) failed to give valid reasons for setting apart, or not
utilizing, or accumulating surpluses, excluding
1[restricted] funds, in excess of twenty five percent of the
income for the year.
(vi) failed to file the return of income supported with following
documents;
(a) the statement of audited balance sheet and
statement of accounts as mentioned in clause
(d) of sub-rule (2) of rule 211;
(b) statement showing names and addresses of the
persons from whom donations, contributions,
subscriptions etc exceeding Rs. 5,000/- have
been received during the tax year;
(c) statement showing the names and addresses of
donees and beneficiaries etc to whom
payments, services etc exceeding Rs. 5,000/-
have been made during the tax year; and
(d) statement showing the money set apart or kept
un-utilized with reasons thereof;
(vii) failed to provide a detailed performance evaluation
report in terms of clause (g) of sub-rule (2) of rule 211,
after every three years;
(2) Approval shall not be withdrawn under sub-rule (1) unless the
organization has had an opportunity to show cause against the action proposed
to be taken.
(3) Where the Commissioner decides to withdraw approval under sub-rule
(1), he shall intimate the organization, in writing, of the decision including a
statement of reasons for the decision.]
218. Appeal against a decision of Commissioner. – An organisation
dissatisfied with –
(a) a decision to refuse an application made under rule 211
or 214; or
1 The word “unrestricted” substituted by S.R.O. 21(I)/2007, dated 05.01.2007.
153
(b) a decision to withdraw an approval under rule 217,
may lodge an appeal in the following form with the Regional Commissioner of
Income Tax concerned, namely: –
GROUNDS OF APPEAL
(i) _________________________________________________
(ii) _________________________________________________
(iii) _________________________________________________
(iv) _________________________________________________
(v) _________________________________________________
We / I _________ the appellant(s) named in the above appeal do declare
that what is stated therein is true to the best of our/my information and belief.
Dated………20____
Signature________________________
Name ___________________________
Address _________________________
PARTICULARS
1. Name of the organization (in block letters). _______________________
__________________________________________________________
2. Full address of the organization (in block letters) __________________.
__________________________________________________________
3. Date of establishment of the organization _________________________
4. Its aims and objects
(a) _______________________________________________________
(b) _______________________________________________________
(b) _______________________________________________________
(d) _______________________________________________________
5. Whether the organisation has been registered under the Societies
Registration Act, 1860 (XXI of 1860), or the Voluntary Social Welfare
Agencies (Registration and Control) Ordinance, 1961 (XLVI of 1961), or
any other law in substitution thereof relating to the registration of welfare
organisation or established in pursuance of a Trust Deed. Please
give/state the law and the number and date of registration __________.
6. Whether constitution, memorandum and articles of association, trust
deed, rules and regulations or bye-laws, as the case may be, conform(s)
to the provisions of sub-rule (1) of rule 213. If so, please give the number
of Article/ Clause/ Rule etc., for each provision.
7. Whether the organization ensures for the benefit of the general public or
a particular community or class of persons only (give full details).
8. The number of members/ trustees of the organization on the date of
application.
Signature _______________________
Name (in block letters) _____________
Designation______________________
154
219. Organisation granted approval before commencement of these
rules. – The approval granted prior to the commencement of these rules to an
organisation shall be deemed to have been withdrawn unless an application in
the manner laid down in rule 214 is made on behalf of such organisation for 1[and
upto calendar year 2003 by the 30th day of June 2004].
220. Relaxation of requirements or conditions. – The Commissioner may
relax or modify any of the requirements or conditions of this chapter, in any
individual case, if he is satisfied that the requirements or conditions could not be
fulfilled by the applicant for reasonable cause.
220A. Procedure for approval 2[ ] for purpose of sub-clause (3) of clause
(58) of Part I of the Second Schedule. – (1) An organization established in
Pakistan requiring the approval of the 3[Regional Commissioner of Income Tax]
under sub-clause (3) of clause (58) of Part I of the Second Schedule to the
Ordinance, shall;
(a) make an application to the 4[Regional Commissioner of
Income Tax] in Form I annexed to this rule;
(b) the application shall be accompanied by —
(i) a duly attested copy of the constitution,
memorandum and articles of association, rules
and regulations or bye-laws, as the case may
be, of the organisation specifying the aims and
objects for which organisation is established;
(ii) a certified copy of the registered trust deed, in
case of a Trust;
(iii) a certified copy of the certificate of registration in
the case of an organization registered under the
Societies Registration Act, 1860 (XXI of 1860),
or the Voluntary Social Welfare Agencies
(Registration and Control) Ordinance, 1961
(XLVI of 1961), or under any other law in
substitution thereof relating to the registration of
welfare organizations as applicable;
(iv) duly attested copies of balance sheets and of
revenue accounts of organization as audited by
1 The words and figures “calendar year 2002 by the 30th day of June, 2003” substituted by S.R.O.
1015(I)/2003, dated 5th November, 2003.
2 The words “of a non–profit organization” omitted by S.R.O. 595(I)/2005 dated 02.06.2005
3 The words “Central Board Revenue” substituted by SRO 880(I)/2006 dated 25-08-2006.
4 The word “Board” substituted by SRO 880(I)/2006 dated 25-08-2006.
155
a “qualified accountant” for the three years
immediately preceding the tax year in which the
application is made;
(v) the names and addresses of the promoters,
directors, trustees, president, secretary,
treasurer, manager and other office bearers, as
the case may be, of the organization and
indicating clearly their family relationships, if
any, with each other; and
(vi) a detailed report with regard to the performance
of the organization, for achieving its aims and
objects during the three financial years
immediately preceding the date of the
application duly evaluated and certified by an
independent certification agency approved 1[and
appointed by the 2[Federal Board of Revenue]].
3[Provided that the 4[Director-General,
Regional Tax Office or Large Taxpayers Unit]
shall also receive applications for performance
appraisal and certification of applicant
organizations till at least two such agencies
have been appointed:
Provided further that 5[Director-General
or Officers of Regional Tax Office or Large
Taxpayer Unit] shall apply the same parameters
on applicant organizations for the purpose of
aforesaid evaluation as are approved by the
6[FBR] to be applied by the certification agency.]
(2) (a) On receipt of an application for registration under this rule,
the 7[Regional Commissioner of Income Tax], subject to the requirements and
conditions specified in sub-rule (3) and after such inquiry as it may deem
necessary, grant approval to the organization if —
1 The words “by an authority designated by the Government of Pakistan for this purpose or till that
authority is established, under arrangements made by the Central Board of Revenue” substituted
by S.R.O. 1015(I)/2003, dated 5th November, 2003.
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
3 Added by S.R.O. 1015(I)/2003, 5th November, 2003.
4 The letters “CBR” substituted by S.R.O. 707(I)/2007, dated 14.07.2007.
5 The letters and words “CBR or its officers” substituted by S.R.O. 707(I)/2007, dated 14.07.2007.
6 The words “CBR” substituted by the Finance Act, 2007.
7 The words “Central Board of Revenue” substituted by SRO 880(I)/2006 dated 25-08-2006.
156
(i) the organization has been formed for the
purpose of establishing hospitals or providing
education or for community welfare or
development;
(ii) it has operated and functioned anywhere in
Pakistan, for a period of not less than three
years and has complied with minimum
acceptable standards of internal governance,
accountability, transparency and efficiency
prescribed by any law for the time being in force;
(iii) its area of operation is wholly within Pakistan;
and
(iv) its books of accounts are maintained regularly
and in accordance with the generally accepted
accounting principles and satisfactory
arrangements exist for their inspection by
interested members of the public.
(b) The approval shall be notified in the official Gazette.
1[(c) The approval granted under rule 220A(2) will remain in
force for subsequent years unless withdrawn under sub
rule (7) of rule 220A.]
(d) For the purposes of this rule, “qualified accountant” has
the same meaning as assigned to it in clause (f) of subrule
(2) of rule 211.
(3) Approval shall not be granted to an organization if the 2[Regional
Commissioner of Income Tax] is satisfied that —
(a) any of the requirements or conditions specified in subrules
(1) and (2) has not been fulfilled; or
(b) the organization has been or is being used or is likely to
be used for personal gains of any particular person or a
group of persons; or
(c) the organization has been or is likely to be used for
propagating the views of a particular political party or a
religious sect; or
1 Clause (c) substituted by SRO 880(I)/2006 dated 25 August, 2006. The substituted clause (c) is
read as under:
“(c) The approval shall be valid for the tax year in which the approval is granted and
for two tax years next following.”
2 The word Central Board of Revenue substituted by SRO 880(I)/2006 dated 25 August, 2006
157
(d) the organization has not been or will not be able to
achieve its declared aims and objects in view of its set
up, administration or otherwise as evaluated and
certified by an independent certification agency; or
(e) the constitution, memorandum and articles of
association, trust deed, rules and regulations or byelaws,
as the case may be, specifying the aims and
objects of the organization do(es) not provide-
(i) for audit of the annual accounts of the
organization, every year by a “qualified
accountant”;
(ii) for the transfer of its assets, in the event of its
dissolution, after meeting all liabilities, if any, to
an organization approved under this rule or rule
212 within three months of the dissolution under
intimation to the 1[Regional Commissioner of
Income Tax.]
(iii) for the regular maintenance of books of
accounts in accordance with the generally
accepted accounting principles and for their
inspection by the interested members of the
public, without any hindrance, at all reasonable
times;
(iv) for the utilization of its money, property or
income or any part thereof solely for promoting
the objects specified in sub-clause (i) of clause
(a) of sub-rule (2);
(v) for the maintenance of accounts of the
organisation being kept in a scheduled bank or
in a post office or national savings organisation,
National Bank of Pakistan or nationalised
commercial banks;
(vi) for prohibiting the making of any changes in the
constitution, memorandum and articles of
association, trust deed, rules and regulations or
bye-laws, as the case may be, without the prior
approval of the 2[Federal Board of Revenue];
and
1 The word Central Board of Revenue is substituted by SRO 880(I)/2006 dated 25-08-2006
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
158
1[(vii) for restricting the surpluses or monies validly set
apart, excluding restricted funds, up-to twentyfive
per cent of the total income of the year:
Provided that such surpluses or monies validly
set apart are invested in Government securities,
NIT units, a collective investment scheme
authorized or registered under the Non-Banking
Finance Companies (Establishment and
Regulation) Rules, 2003, mutual fund, a real
estate investment trust approved and authorized
under the Real Estate Investment Trust Rules,
2006, or scheduled banks:
Explanation: For the purpose of this rule,
“restricted funds” mean any fund received by the
organization but could not be spent and treated
as revenue during year due to any obligation
placed by the donor.]
2[ ]
1 Sub-clause (vii) substituted by SRO 880(I)/2006 dated 25-08-2006 The substituted sub-clause is
read as under:
(vii) for restricting the moneys validly set apart or not utilized upto twenty five per cent of the
income unless otherwise authorized by the Central Board of Revenue and for the investment of all
funds in excess of the said limit, in Government securities or in the scheduled banks including NIT
Units or any mutual funds registered with State Bank of Pakistan or Securities Exchange
Commission of Pakistan is produced:
Provided further that such deposit or investment in or through the
scheduled banks shall not exceed one-third of the surplus at the end of
the year.
2 Sub-rule 4 omitted by SRO 880(I)/2006 dated 25-08-2006. The omitted sub-rule read as under:
“(4) (a) The approval granted under sub-rule (2) may be renewed upon an
application made by the organization in Form II annexed to this rule,
within three months of the expiry of the validity of the approval last
granted where such application is accompanied by such documents
and instruments as are specified in clause (b) of sub-rule (1) and the
Central Board of Revenue is satisfied, after such inquiry as it may
consider necessary, that a genuine organization existed in the
preceding year that complied with at all times, all the provisions of this
rule and did not suffer any one or more of the requirements, conditions
or disqualification specified in this rule.
(b) The organization seeking renewal of approval shall furnish, along with
the renewal application, the following documents and particulars
pertaining to each of three tax years immediately preceding the tax
year in which the said application is made, namely: –
159
1[ ]
2[ ]
3[(7) (1) The Regional Commissioner may, at any time, withdraw
approval granted under rule 220A(2), if he is satisfied that-
(a) the constitution, memorandum and articles of association, trust
deed, rules and regulations or bye-laws, as the case may be, specifying
the aims and objects of the organization do not provide for prohibiting the
making of any changes in the constitution, memorandum and articles of
association, trust deed, rules, regulations and bye-laws without prior
approval of the Regional Commissioner;
(b) the organization has-
(i) been or is being used for personal gain of any particular
person or a group of persons;
(i) a copy of the returns of income filed and the assessment
orders, if any;
(ii) a copy of the audited accounts and balance sheet and the
auditor’s report;”
(iii) a statement of income and donations received and moneys
paid;
(iv) a statement showing the money set apart or kept unutilized
with reasons thereof;
(v) the names and addresses of the promoters, directors,
trustees, president, secretary, treasurer, manager and other
office-bearers, as the case may be, of the organization and
indicating clearly their family relationships, if any, with each
other;
(vi) a copy of the annual report in respect of the activities and
performance of the organization;
1 Sub-rule 5 omitted by SRO 880(I)/2006 dated 25-08-2006 The omitted sub-rule is read as under:
“(5) Renewal shall not be granted if the organization did not enjoy approval in respect
of the tax year immediately preceding the year for which renewal application is made under this
rule.”
2 Sub-rule 6 omitted by SRO880(I)/2006 dated 25-08-2006 The omitted sub-rule is read as under:
“(6) Renewal granted under this rule shall be valid for the tax year in which the
application of renewal is filed and two tax years next following.”
3 Sub-rule 7 substituted by SRO 880(I)/2006 dated 25-08-2006 The substituted sub-rule 7 read as
under:
“(7) The Central Board of Revenue may, at any time withdraw the approval earlier
granted, if the organization fails to comply with any of the provisions of this rule.”
160
(ii) been propagating the view of a particular political party
or a religious sect;
(iii) been or is being managed in a manner calculated to
personally benefit its members or their families; or
(iv) has not been, or will not be, able to achieve its declared
aims and objects in view of its set up, administration or
otherwise as evaluated and certified by an independent
certification agency;
(v) failed to give valid reasons for setting apart, or not
utilizing, or accumulating surpluses, excluding
1[restricted] funds, in excess of twenty five per cent of
the income for the year;
(vi) failed to file the return of income supported with the
following documents namely:-
(a) the statement of audited balance sheet and
statement of accounts;
(b) statement showing names and addresses
of the persons from whom donations,
contributions, subscriptions etc exceeding
five thousand rupees have been received
during the tax year;
(c) statement showing the names and
addresses of donees and beneficiaries etc
to whom payments, services etc exceeding
five thousand have been made during the
tax year; and
(d) statement showing the money set apart or
kept un-utilized with reasons thereof; and
(e) a detailed performance evaluation report in
terms of sub-clause (vi) of clause (b) of
sub-rule (1) of rule 220(A), after every three
years.
(2) approval shall not be withdrawn under sub-rule (1) unless the
organization has had an opportunity to show cause against the
action proposed to be taken; and.
1 The word “unrestricted” substituted by S.R.O. 21(I)/2007, dated 05.01.2007.
161
(3) where the Regional Commissioner decides to withdraw an
approval under sub-rule (1), he shall intimate the organization, in
writing, of the decision including a statement of reasons for the
decision.]
1[ ]
(9) The 2[Regional Commissioner of Income Tax] may relax or
modify any of the requirement(s) or condition(s) of this rule in any individual case,
if it is satisfied that the requirement(s) or condition(s) could not be fulfilled by the
applicant for reasonable cause.
(10) The approval granted prior to the commencement of these rules
to an organisation shall be deemed to have been withdrawn unless an
application in the manner laid down in sub-rule (4) is made on behalf of such
organisation for calendar year 3[2003 by the 30th June, 2004].
Form-1
[See rule 220A(1)(a)]
Application for Approval under clause (58) of Second Schedule to the Income
Tax Ordinance, 2001
To,
4[The Regional Commissioner of Income Tax]
With reference to clause (58) of the Second Schedule to the Income Tax
Ordinance, 2001 (XLIX of 2001), I, the undersigned, hereby apply, on behalf of
_______________ (name of the organisation) for its approval for the purposes
of the said clause for the tax year ending on _______.
2. Necessary particulars are set out below, and in the schedule to this
application.
1 Sub-rule 8 omitted by SRO 880(I)/2006 dated 25-08-2006 The omitted sub-rule is read as under:
“(8) The approval granted under sub-rule (2) and the renewal of approval granted
under sub-rule (4) shall not be refused or approval once granted or renewed shall not be withdrawn
under sub-rule (7) unless the institution has an opportunity to show cause against the action
proposed to be taken.”
2 The word Board substituted by SRO 880(I)/2006 dated 25-08-2006
3 The words and figures “2002 by the 30th June, 2003” substituted by S.R.O. 1015(I)/2003 dated 5th
November, 2003.
4 The word Secretary, Central Board of Revenue, substituted by SRO 880(I)/2006 dated 25-08-2006.
162
3. The following documents required under clause (b) of sub-rule 1 of Rule
220A are enclosed.
(i) ___________________________________
(ii) ___________________________________
(iii) ___________________________________
(iv) ___________________________________
(v) ___________________________________
Signature___________________________
Name (in block letters) _________________
Designation _________________________
Application must be singed either by the President or the Secretary of the
organization or by a Trustee of the Trust.
SCHEDULE
Particulars
1. Name of the Organization (in block letters) ________________________
__________________________________________________________
2. Full address of the organization (in block letters) __________________.
__________________________________________________________
3. Date of registration of the organization ___________________________
4. Its aims and objects
(a) _______________________________________________________
(b) _______________________________________________________
(c) _______________________________________________________
5. Where the organization has been registered under the Societies
Registration Act, 1860 (XXI of 1860), or the Voluntary Social Welfare
Agencies (Registration and Control) Ordinance, 1961 (XLVI of 1961), or
any other law or established in pursuance of a Trust Deed. Please give/
state the law, the number and date of Registration ____________.
6. Whether the constitution, memorandum and articles of association, trust
deed, rules and regulations or bye-laws, conforms to the provisions of
sub-rules (2) and (3) of rule 220A. If so, please give the number of
article/ clause/ rule for each provision.
7. Whether the organization ensures for the benefit of the general public or
a particular community or class of persons only (give full details).
8. The number of members/ trustees of the organization on the date of
application.
9. Accounting year of the organization commences on _____ and ends on
_______________.
163
10. The following books of accounts are being regularly maintained by the
institution and are open for inspection without any hindrance to the
general public.
(i) _____________________________
(ii) _____________________________
(iii) _____________________________
Signature________________________
Name (in block letters)______________
Designation ______________________
1[ ]
1 Form- II omitted by SRO 880(I)/2006 dated 25-08-2006.The omitted Form- II read as under:
“Form-II
[See rule 220A(4)(a)]
Application for renewal of approval under clause 58 of the Second Schedule to the Income Tax
Ordinance, 2001.
To,
The Secretary,
Central Board of Revenue,
Islamabad.
I, the undersigned, hereby apply for the renewal of approval of __________ (Name of
organisation) for the tax year ending on ____________ .
2. The ____________________ (name of the Organisation) was approved by the Board vide
Notification No. _________ dated _________.
3. It is hereby certified that
(a) constitution, memorandum and articles of association, trust deed, rules and
regulations or bye-laws, previously filed with the Central Board of Revenue, have
remained unchanged;
(b) the disqualification mentioned in the sub-rule (3) of rule 220A do not apply in the case
of the organisation;
(c) the organisation has fully complied with the provisions of sub-rule (4) of rule 220A; and
(d) the information given above and in the attached Schedule is correct.
4. The annual report of the organisation’s performance or activities in the immediately
preceding years is enclosed.
Signature ________________________
Name (in block letters)______________
Designation______________________
164
Note. – In the Schedule attached to the application the following information is to be submitted,
namely: –
(a) a copy of the statement of the audited accounts, the balance sheet and
the auditors reports;
(b) a statement of income and donations received and moneys paid;
(c) a list of the donees and beneficiaries, with full addresses;
(d) a statement showing the money set apart or kept unutilised with
reasons thereof; and
(e) the names and addresses of the promoters, directors, trustees,
president, secretary, treasurer, manager and other, as the case may
be, of the organisation and indicating clearly their family relationships,
if any, with each other.
SCHEDULE
Particulars
1. Name of the organization (in block letters) ___________________________________________
2. Full address of the organization (in block letters)
____________________________________________________________________________
3. Date of registration of the organization _____________________________.
4. Its aims and objects
(a) _______________________________________________________
(b) _______________________________________________________
(c) _______________________________________________________
5. Date of approval granted under clause (58) of Second Schedule to the Income Tax Ordinance,
2001.
6. Whether the constitution, memorandum and articles of association trust deed, rules and
regulations or bye-laws conforms to the provisions of sub-rule (4) of rule 220A. If so, please
attach documents and instruments as are specified in clause (b) of sub-rule (1) of rule 220A.
7. Whether the organization ensures for the benefit of the general public or a particular community
or class of persons only (give full details).
8. The number of members/ trustees of the on the date of application.
9. Accounting year of the organization commences on __________ and ends on ___________.
10. The following books of accounts are being regularly maintained by the institution and are open
for inspection without any hindrance to the general public.
(i) ________________________
(ii) ________________________
(iii) ________________________
Signature________________________
Name (in block letters)______________
165
Application must be singed either by the President or the Secretary of the
institution or by a Trustee of the Institution/ Trust.”]
1[220B. Approval and appointment of certification agencies.- (1)
Whereas rules 211 and 220A, both inclusive, provide for performance evaluation
of non-profit organizations with regard to their aims and objectives during the last
three years by approved independent certification agencies, the procedure given
in the following sub-rules shall apply in respect of approval and appointment of
such certification agencies.
(2) The Chairman, 2[Federal Board of Revenue], shall, in his
discretion, constitute a Committee for approval and appointment of certification
agencies, hereinafter referred to as the Committee, comprising of not less than
three members. The Chairman, 3[Federal Board of Revenue] shall also designate
a member of the Committee to serve as its Chairman. All nominations to the
Committee shall be ex-officio. One third of the membership or two members of
the Committee, whichever is larger, shall constitute the quorum for meetings of
the Committee.
(3) An application for approval and appointment as a certification
agency shall be placed before the Committee.
(4) The Committee shall consider the application on its own merit
and decide through a majority vote. The Chairman of the Committee shall caste a
vote only in case of a tie.
(5) In its deliberations on the application, the Committee shall
consider, inter alia, the following criteria, for approval and appointment of
certification agency, namely: –
(a) Demonstrated and established eminence, credibility and
stature of the governing body of such organization that
brings respect and credibility to the organization and its
work;
(b) understanding of the organization, essentially the senior
management and program staff, of the parameters of
evaluation as approved by the 4[Federal Board of
Revenue];
Designation______________________”
1 Inserted by S.R.O. 745(I)/2004, dated 30th August, 2004.
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
3 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
4 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
166
(c) human resource, quantity as well as quality, available
with the organization to conduct professional, objective
and transparent evaluations of non-profit organizations;
(d) financial resources available with the organization for
meeting the costs incurred on such evaluations;
(e) organizational understanding and experience of working
with the non-profit organizations;
(f) experience of evaluating non-profit organizations or
social programs;
(g) systems put in place by the organization to conduct
evaluation and award of certification; and
(h) monitoring mechanisms to ensure transparency and
objectivity.
(6) The Committee may call for any document, report and statement
from the organization concerned to assess the capacity of the organization to
undertake professional, objective and transparent evaluation as per the criteria
specified in sub-rule (5). The Committee may also interview the managerial and
program staff of the organization to assess their level of experience,
understanding and professionalism.
(7) In no case, however, the committee shall decide to authorize an
organization which-
(a) is not registered in Pakistan under any of the relevant
laws;
(b) does not specifically prohibit distribution of profit, if any,
to its members or staff;
(c) is controlled in part or wholly by the Federal
Government, Provincial Government or a local
Government; and
(d) in its other programmes create a conflict of interest in
evaluating non-profit organizations.
Explanation.- A grant-making organization would have a
conflict of interest if it undertakes evaluation and
certification of its grant-recipient or potentialrecipient
organizations. Similarly, a capacity building
organization, evaluating non-profit organizations
whose capacity it has built or may build in future,
would be in a conflict of interest situation.
167
(8) An application received by the Committee may be decided upon
within a period of three months from the date of the receipt of such application.
(9) An applicant adversely affected by any decision of the
Committee may file an appeal before the Member (Direct Taxes), 1[Federal
Board of Revenue], within thirty days of the service of the decision upon the
application.
(10) The approval and appointment of an organization as a
certification agency shall be notified in the official Gazette.
(11) An approval and appointment granted under this rule shall be for
a period of three years and thereafter the Committee shall complete such reevaluation
and its decision within three months, during which the certification
agency shall continue to function as a legitimate certification agency.
(12) In case of any change in the status of an approved and
appointed certification agency that may adversely affect its functioning as such
an agency or in case of any violation of the standards of professionalism,
transparency, integrity or objectivity coming to the knowledge of the Committee,
the Committee may, after due inquiry and after providing proper opportunity of
being heard to the agency withdraw such approval and appointment at any time.]
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
168
CHAPTER – XVIII
TAX CLEARANCE CERTIFICATE
221. Tax clearance certificate.- (1) A person leaving Pakistan permanently
may apply to the Commissioner for a tax clearance certificate referred to in subsection
(3) of section 145 where –
(a) the person has satisfied all income tax liabilities; or
(b) the person has made arrangements to the satisfaction of
Commissioner for payment of income tax liabilities.
(2) An application referred to in sub-rule (1) shall be in the following
form, namely:-
APPLICATION FOR A CERTIFICATE
UNDER SECTION 145 OF THE
INCOME TAX ORDINANCE, 2001
(Not for tourists who have earned no income from Pakistan source and have
come on tourist visa and stay is not more than 90 days in a tax year.
To
The Commissioner,
_____________ Zone
_____________(City)
Sir,
I request that an Tax Clearance Certificate under section 145 of the
Income Tax Ordinance, 2001, be granted to me. I give below necessary
particulars:-
1. Name of applicant_____________________________________
(in block letters)
2. Domicile ____________________________________________
3. Present address______________________________________
4. Address in Home Country ______________________________
5. Nature of business, professions or vocation ________________
In Pakistan (if visit to Pakistan was made only as a tourist and no
income was earned during the period of stay in Pakistan, it
should be so stated).
6. Place(s) at which the business, profession or vocation is or was
carried on ______________
169
7. Name and address of employers of the ____________________
Applicant (in case the applicant is representing a firm or a
company, the name and address of the company or firm should
be stated here.
8. Name of the Commissioner, if any, where last assessment of the
applicant was made ___________________________________
9. Date of arrival in Pakistan_______________________________
10. Probable date of departure______________________________
11. Destination__________________________________________
12. Mode of travel (by air/sea/land) __________________________
Place _____________________ Date_____________________
13. Made the payment of tax with the evidence.
14. Guarantee as per rule 158 is enclosed.
Date _____________20 Yours faithfully,
Signature
(3) An application referred to in clause (b) of sub-rule (1) shall be
accompanied by a certificate of guarantee of the applicant’s employer or
business associate in the following form, namely:-
GUARANTEE CERTIFICATE TO BE FURNISHED BY
EMPLOYER OR BUSINESS ASSOCIATE OF THE APPLICANT
1. Certified that ________ (Name in block letters) is our employee/ representative/ associate.
2. (i) Certified that _______ (give name) is leaving Pakistan and tax demand of
Rs_____ is outstanding him. The assessment is pending resulting in tax
liability.
(ii) A cheque for the amount of tax due along with the computation of income is
enclosed
(iii) We undertake to pay the tax liability, if any, when determined
Address _________________ Signature________________
Associates _______________ Designation______________
Seal of the business
Strike out whichever is in applicable.
222. Form of tax clearance certificate under section 145.- For the
purposes of sub-section (3) of section 145, a tax clearance certificate shall be in
the following form, namely:-
170
COUNTERFOIL OF TAX CLEARANCE
CERTIFICIATE UNDER SECTION
TAX CLEARANCE CERTIFICATE UNDER
SECTION 145 OF THE INCOME TAX
ORDINANCE
Book No________Serial No.___________
Name_____________________________ Book No.______ Serial No._______
Address___________________________ Income Tax Office
Nationality________________________ Date___________
Nature of business profession or vocation
Pakistan __________________________
Date of arrival in Pakistan_____________
Date of departure____________________
Destination_________________________
Certificate valid _________________
Initials of
_______________________
Commissioner
______________________________________
Signature/ left hand thumb impression of
Applicant/or person receiving the Certificate on
behalf of the applicant.
This is to certify that _____ of ______ has no
liabilities has made satisfactory arrangement for
his/ her liabilities under the Income Tax
Ordinance, 2001 or the Income Tax Ordinance,
1979).
This Certificate is valid
_______________________
Commissioner
______________________________________
Signature/ left hand thumb impression of
Applicant/ or person receiving the Certificate on
behalf of the applicant.
223. Form of tax exemption certificate.- On receipt of an application under
rule 229, the Commissioner shall issue an exemption certificate under of section
in the following form, namely:-
COUNTERFOIL OF TAX EXEMPTION
CERTIFICATE UNDER SECTION 149
Book No.______ Serial No.____________
Name _____________________________
Address____________________________
Nationality_________________________
Nature of business, profession or vocation
Pakistan___________________________
Date of departure ___________________
Destination ________________________
Probable date of return to Pakistan_______
Certificate valid up to _________________
_______________________
Initials of Commissioner
______________________________________
Signature/left hand thumb impression of
Applicant/or person receiving the Certificate on
behalf of the applicant.
TAX EXEMPTION CERTIFICATE UNDER
SECTION 149 OF THE INCOME TAX
ORDINANCE, 2001
Book No.________ Serial No._______________
_______________________
Commissioner
Zone_______Jurisdiction
______________________________________
Signature/left hand thumb impression of
Applicant/or person receiving the Certificate on
behalf of the applicant.
(i) they have not spent more than 90 days at a time in Pakistan; and
(ii) they have not spent more than 90 days in any financial year in
Pakistan.
(iii) passengers travelling by a pilgrim ship which sails direct from a
Port in Pakistan to Jeddah.
171
CHAPTER – XIX
MISCELLANEOUS
224. Conditions for approval of leasing company claiming depreciation
etc.- The following conditions shall be fulfilled by a modaraba or by leasing
company to claim expenditure on depreciation on the leases under this rule,
namely:-
(i) the leasing company is engaged principally in the business of
leasing of assets and has been issued a licence by the Security
and Exchange Commission of Pakistan to operate under the
terms and conditions specified therein; and
(ii) the leasing company modaraba doing leasing business
undertakes that where a motor vehicle is given on lease, the
purchase value thereof shall be restricted to the amount
specified in the Third Schedule to the Ordinance for the
purposes of claiming depreciation or the expenditure on such
lease.
225. Recognized Associations of Accountants for the purpose of section
The following bodies are recognized by the Board as associations of accountants
for the purpose of section 223, namely:-
(a) The Institute of Chartered Accountants in England and
Wales;
(b) The Institute of Chartered Accountants in Scotland;
(c) The Institute of Chartered Accountants in Ireland;
(d) The Society of Incorporated Accountants and Auditors,
London; and
(e) The Association of 1[Chartered] Certified Accountants,
United Kingdom.
226. Appointment of valuers.- (1) A person desiring to be appointed as a
valuer for the purposes of section 222 shall make an application to the
Commissioner in duplicate setting out the fact or facts by virtue of which the
person claims to be qualified for such appointment.
(2) For the purpose of sub-rule (1) a person qualified for
appointment as a valuer means a person who:-
(a) holds a degree or equivalent qualification in civil
engineering or mechanical engineering or mechanical
and electrical engineering from any University
1 Inserted by S.R.O. 590(I)/2004 dated 7th July, 2004.
172
incorporated under any law for the time being or
accredited or affiliated by any association of universities
or college in force in Pakistan and Azad Kashmir or a
like degree or qualification conferred by any foreign
university incorporated by law of that country and
recognized by a Pakistani University;
(b) holds an internationally recognized qualification in
architecture equivalent to or comparable with the
Associate-ship of Royal Institute of British Architects;
(c) having successfully completed a diploma course in
architecture or civil engineering or mechanical
engineering or mechanical and electrical engineering or
automobile engineering from a recognized institution has
worked with a qualified architect or engineer or in a
Government or quasi-Government department for a
period of three years;
(d) has held the insurance surveyor certificate issued by the
department of Insurance for a period of five years;
(e) has retired after putting in satisfactory service in the
Income Tax Department or the Customs Department or
judiciary or in a revenue collecting agency of the
Government for period of not less than ten years in a
post or posts in a grade not less than Grade 17; or
(f) for the purpose of valuation of such assets as require
specialized knowledge not available to persons qualified
under clauses (a), (b), (c), (d) and (e) of this sub-rule,
any person, who is in the opinion of the Commissioner is
fit to be appointed as a valuer.
(3) Notwithstanding anything contained in sub-rule (2), no person
shall qualify for appointment as a valuer if the person –
(a) has been dismissed or removed from Government
service;
(b) is an undischarged insolvent;
(c) has been convicted of any offence under any law or has
been found guilty of misconduct in his professional
capacity which, in the opinion of the Commissioner,
renders him unfit to e registered as a valuer; or
(d) has been representing taxpayers before income tax
authorities
173
(4) On receipt of an application under sub-rule (1), the
Commissioner may make such inquiries or call for such further information or
evidence as may be deemed necessary.
(5) If the Commissioner is satisfied that A person should be
appointed as a valuer for the purposes of section 222, the Commissioner shall
notify the person in writing of the decision.
(6) Where the Commissioner decides to refuse an application under
this rule, the Commissioner shall give the applicant notice, in writing, of the
decision including a statement of reasons for the decision.
(7) The appointment of a valuer may be terminated by the
Commissioner at his discretion at any time without assigning any reason and
without any compensation.
227. Scale of remuneration, fees and allowances for a valuer. – (1) A
valuer appointed under section 222 shall not be paid any retention fee but would
be entitled to remuneration at the following scale:-
Rs
Where the value of assets does not exceed 100,000 .. 500
Where the value of assets exceeds Rs 1 lac but does
not exceed Rs 299,999 .. .. 1,000
Where the value of assets exceeds Rs 300,000 but does not
exceed Rs 499,999 .. .. .. 1,500
Where the value of assets exceeds Rs 500,000 but does not
exceed Rs 1,499,999 .. .. .. 2,500
Where the value of assets exceeds Rs 1,500,000 but does not
exceed Rs 1,999,999 .. .. .. 5,000
Where the value of assets exceeds Rs 1,999,999 . 10,000
(2) In addition to remuneration at the scale prescribed under subrule
(I), a valuer shall be entitled to following fee and allowance –
(a) a fee of Rs 100 per day in the event of attendance
before the Appellate Tribunal in connection with the
valuation made in any case; and
(b) travelling expenses to which a Government servant in
Grade 17 is entitled.
228. Valuation of assets.- (1) The valuation of immovable property for the
purposes of section 111 of the Income Tax Ordinance 2001, shall be taken to be-
(a) in the case of open plot, the value determined by the
development authority or government agency on the
174
basis of the auction price in respect of similar plots in the
area where the plot in question is situated;
(b) in the case of properties given on rent, the value equal to
ten years capitalized value assessed on the annual
rental value;
(c) in the case of agricultural land, the value equal to the
average sale price of the sales recorded in the revenue
record of the estate in which the land is situated for the
relevant period/ time; or
(d) in any other case, the value determined by the District
Officer (Revenue) or provincial authority authorized in
this behalf for the purposes of stamp duty.
(2) For the purposes of section 111 and subject to sub-rule (2), the
value of motor cars and jeeps shall be determined in the following manner,
namely:-
(a) the value of the new imported car or jeep shall be the
C.I.F. value of such car or the jeep, as the case may be,
plus the amount of all charges, customs-duty, sales tax,
levies octroi, fees and other duties and taxes leviable
thereon and the costs incurred till its registration;
(b) the value of a new car or jeep purchased from the
manufacturer or assembler or dealer in Pakistan, shall
be the price paid by the purchaser, including the amount
of all charges, customs-duty, sales tax and other taxes,
levies, octroi, fees and all other duties and taxes leviable
thereon and the costs incurred till its registration;
(c) the value of used car or jeep imported into Pakistan shall
be the import price adopted by the customs authorities
for the purposes of levy of customs-duty plus freight,
insurance and all other charges, sales tax, levies, octroi,
fees and other duties and taxes leviable thereon and the
costs incurred till its registration;
(d) the value of a car or jeep specified in clause (a), (b) and
(c) at the time of its acquisition shall be the value
computed in the manner specified in the clause (a) (b) or
(c), as the case may be, as reduced by a sum equal to
ten per cent of the said clause for each successive year,
up to a maximum of five years; or
(e) The value of a used car or jeep purchased by an
assessee locally shall be taken to be the original cost of
the car or the jeep determined in the manner specified in
175
clause (a), (b) or (c) , as the case may be, as reduced by
an amount equal to ten per cent for every year following
the year in which it was imported or purchased from a
manufacturer.
(3) In no case shall the value be determined at an amount less than
fifty per cent of the value determined in accordance with clause (a), (b) or (c) or
the purchase price whichever is more.
(4) For the purposes of section 61, the value of any property
donated to a non-profit organization shall be determined in the following manner,
namely:-
(a) the value of articles or goods imported into Pakistan
shall be the value determined for the purposes of levy of
customs duty and the amount of such duty and sales
tax, levies, fees, octroi and other duties, taxes or
charges leviable thereon and paid by the donor;
(b) the value of articles and goods manufactured in Pakistan
shall be the price as recorded in the purchase vouchers
and the taxes, levies and charges leviable thereon and
paid by the donor;
(c) the value of articles and goods which have been
previously used in Pakistan and in respect of which
depreciation has been allowed, the written down value,
on the relevant date as determined by the
Commissioner;
(d) the value of a motor vehicle shall be the value as
determined in accordance with rule, and
(e) the value of articles or goods other than those specified
above, shall be the fair market value as determined by
the Commissioner.
229. Filing of returns, statements and documents and issuance of
orders, notices through computers.- (1) Notwithstanding anything contained in
these rules taxpayer or any person responsible for furnishing the prescribed
statements or returns may furnish such statement or return, on computer media
and in such language, program arrangement and data formats and
representations which are compatible with those of the Income Tax Department
and any other technical specification as the RCIT or Committees may prescribe;
accompanied by a certificate in the following form and duly signed by the person
authorized to sign such statement or return or the department may issue notice
orders, or communication or production of documents in appeals or courts taken
through computers or scanning images duly certified, namely:-
176
CERTIFICATE
I,_______________ S/o_____________ do hereby certify that the data
and information contained in the enclosed disk, diskette, tape or cartridge or
scanning image or electric communication is complete, correct and true to the
best of my knowledge and belief.
I, further certify that the return of income contained in the aforementioned
media have been duly verified and affirmed to be true by the respective
assessees.
Signature________________________
Name___________________________
(in block letters)
Designation______________________
Date____________________________
(2) Notwithstanding anything contained in these rules, any order
required to be made or notice to be issued or assessment or computation made,
or document required to be prepared or issued under the Ordinance may be
generated through the computer system and no such order, notice, assessment,
computer document shall require the signature of the concerned officer whose
name and designation is specified on the aforementioned documents.
230. Charges for various forms.-The following forms shall be provided after
30th June, 2002 on payment as mentioned against each:-
Form Charge
(i) Form of return of total income. Rupees Five each.
(ii) Form of Wealth statement under
section 116 of the Income Tax Rupees Five each.
Ordinance.
231. Computation of export profits and tax attributable to export sales.-
(1) Where a taxpayer exports any goods manufactured in Pakistan, the
taxpayer’s profits attributable to export sales of such goods shall be computed in
the manner specified hereunder:-
(a) where a taxpayer maintains separate accounts of the
business of export of goods manufactured in Pakistan,
the profits of the export business shall be taken to be
such amount as may be determined by the
Commissioner in accordance with the provisions of
Ordinance on the basis of such accounts; or
(b) in other cases, the profits of such business shall be
taken to be an amount which bears to the total profits of
the business of the assessee from the sale of goods, the
177
same proportion as the export sales of goods
manufactured in Pakistan hear to the total sales of
goods.
(2) Where the total income of a taxpayer includes any profit from the
export of goods manufactured in Pakistan, the tax attributable to such profits
shall be an amount which bears to the tax payable on the income the same
proportion as such profits bear to the total income.
(3) In this rule, unless there is anything repugnant in the subject or
context:-
(a) “export sales” means the fob price of the goods
exported;
(b) “total profits” means:-
(i) the aggregate of export sales as determined
under clause (a); and
(ii) the ex-factory price of goods sold in Pakistan,
where the goods exported out of Pakistan were
manufactured by the exporter; or
(iii) the ex-godown price of goods sold in Pakistan,
in other cases.
1[231A. Procedure for issuance of advance ruling under section 206A. – (1)
A non-resident person desiring an advance ruling under section 206A of the
Ordinance, 2001 (XLIX of 2001) shall make an application to the 2[Federal Board
of Revenue] in the following form set out in the Schedule below.
(2) The application under sub-rule (1) shall be considered by a
Committee consisting of the following members, namely: –
(a) Chairman, 3[Federal Board of Revenue] – Chairman
(b) Member (Direct Taxes), 4[FBR] – Member
(c) 5[Solicitor General], Law, Justice – Member
and Human Rights Division.
1 Inserted by S.R.O. 130(I)/2004 dated 27th February, 2004
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
3 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
4 The words “CBR” substituted by the Finance Act, 2007.
5 The words “Additional Secretary” substituted by SRO 756(I)/2008, dated 15.07.2008.
178
(3) The Committee may obtain comments of the Commissioner of
Income Tax concerned and, if it considers necessary, advice of a legal expert on
the application and decide the issue, as it may deem appropriate, in a joint sitting
or through circulation amongst its members.
(4) Advance ruling for the purposes of this rule means determination
by the Committee in relation to the transaction which has been undertaken or is
proposed to be undertaken by a non-resident person the question of law
specified in the application.
(5) The advance ruling shall be binding on the Commissioner only in
respect of the specific transaction on which such advance ruling is issued. The
advance ruling shall continue to remain in force unless there is a change in facts
or in the law on the basis of which the advance ruling was pronounced.
(6) The copy of the advance ruling pronounced by the 1[Federal
Board of Revenue] shall be provided to the applicant and to the Commissioner of
Income Tax having jurisdiction over the case.
(7) Notwithstanding anything contained in this rule, the advance
ruling shall cease to be binding on the Commissioner, if it is subsequently found
to have been obtained by fraud or misrepresentation of facts about the nature of
the transaction on which advance ruling was issued.
(8) An application filed under this rule shall be disposed of not later
than ninety days of its receipt.
231B. Withdrawal of application. – The applicant may withdraw the application
made under rule 231A at any time before the advance ruling is issued.
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
179
SCHEDULE
[See sub-rule (1)]
Application for advance ruling under section 206A
of the Income Tax Ordinance, 2001
To
The Chairman,
1[Federal Board of Revenue],
Islamabad.
Dear Sir,
The undersigned being duly authorized hereby apply on behalf of
_________________(name of the non-resident person) for advance ruling under
section 206A of the Income Tax Ordinance, 2001 (XLIX of 2001).
Necessary details of the transaction are set out below and in the
Annexure to this application.
The following documents as required under rule 231A of Income Tax
Rules, 2002 are enclosed: –
(a) ____________________________
(b) ____________________________
(c) ____________________________
(d) ____________________________
(e) ____________________________
Yours faithfully,
Signature ________________________
Name (In block letters) _____________
Designation ______________________
ANNEXURE
[See paragraph 2 of the Schedule]
(1) Name of the non-resident person (in block letters) __________________
(2) Permanent address and telephone and fax numbers of the non-resident
person (in block letters) __________________________________________
(3) Address in Pakistan _________________________________________
(4) Telephone No. __________________ Fax No. ____________________
(5) Country of Origin ____________________________________________
(6) National Tax Number ________________________________________
(7) The following is the statement of the relevant facts of the transaction
having bearing on the question(s) on which the advance ruling is
required (please annex extra sheet, if required):
1 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
180
(8) Statement containing the applicant’s interpretation of law or facts, as the
case may be, in respect of the question(s) on which advance ruling is
required (please annex extra sheet, if required) is as follows:-
(9) The undersigned, solemnly declare that:-
(a) full and true particulars of the transaction relevant for the purposes of
advance ruling applied for have been disclosed and no material
aspect affecting the determination of the application of the Income
Tax Ordinance, 2001, in this behalf has been withheld; and
(b) that the above issue(s) is/ are not pending before any Income Tax
Authority, Appellate Tribunal or Court for adjudication.
Yours faithfully,
Signature ________________________
Name (In block letters) _____________
Designation ______________________
Address in Pakistan _______________
Telephone No. ___________________
Fax No. ________________________.]
1[231C. Income tax 2[ ] alternative dispute resolution.- (1) This rule shall
apply to all cases of disputes brought or specified for resolution under section
134A.
(2) In this rule, unless there is anything repugnant in the subject or
context, –
(a) “applicant” means a person or a class of persons who has
brought a dispute for resolution under section 134A;
(b) “Board” means the 3[Federal Board of Revenue].
(c) “Committee” means a Committee constituted under subsection
(2) of section 134A; and
(d) “dispute” means any matter of income tax pertaining to
liability of income tax, admissibility of refund, waiver or
fixation of penalty or fine, relaxation of any period or
procedural and technical condition as specified in subsection
(1) of section 134A.
1 Inserted by S.R.O. 748(I)/2004, dated 30th August, 2004.
2 The word “alternate substituted by S.R.O. 1032(I)/2006, dated 03.10.2006.
3 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
181
(3) Any person or class of persons interested for resolution of any
dispute under section 134A shall submit a written application for alternative
dispute resolution to the Board in the form as set out in the Schedule below.
(4) The Board, after examination of the contents of an application by
a taxpayer and facts stated therein and on satisfaction that the application may
be referred to a Committee for the resolution of the hardship or dispute, shall
constitute a Committee consisting of the following members, namely:-
(a) the Director General, Large Taxpayers Unit or
Commissioner, Medium Taxpayers Unit or any other
Commissioner or officer of the Income Tax Department
nominated by the Board;
(b) a Fellow of Chartered Accountants, registered with the
Institute of Chartered Accountants of Pakistan or an
Associate of Cost and Management Accountant, an
advocate of High Court or Income Tax Practitioner 1[ ]; and
(c) a reputable taxpayer.
(5) The Board may appoint one of the members of the Committee to
be its Chairman.
(6) An application filed under this rule may be disposed of by the
Committee within thirty days of its constitution:
Provided that the time so specified may, if requested by the
Chairman of the Committee for reasons to be recorded in the request, be
extended by the Board to such extent and subject to such conditions and
limitations as it may deem proper.
(7) The Chairman of the Committee shall be responsible for deciding
the procedure to be followed by the Committee which may inter-alia, include the
following, namely:-
(a) to decide about the place of sitting of the Committee;
(b) to specify date and time for conducting proceedings by
the Committee;
(c) to supervise the proceedings of the Committee;
(d) to issue notices by courier or registered post or
electronic mail to the applicant;
1 The words “having at least twenty-five reported cases in a reputed journal to his credit” omitted by
S.R.O. 679(I)/2005, dated 04.07.2005.
182
(e) to requisition and produce relevant records or witnesses
from the Commissioner or other concerned quarters;
(f) to ensure attendance of the applicant for hearing either
in person or through an advocate, representative or a tax
consultant;
(g) to consolidate recommendations of the Committee and
submission of a conclusive report to the Board; and
(h) for any other matter covered under these rules.
(8) The Committee may conduct inquiry, seek expert opinion, direct
any officer of income tax or any other person to conduct an audit and make
recommendations to the Committee in respect of dispute or hardship.
(9) The Committee may determine the issue and may thereafter
seek further information or data or expert opinion or make or cause to be made
such inquiries or audit as it may deem fit, to formulate its recommendations in
respect of any matter specified in sub-section (1) of section 134A.
(10) The applicant may withdraw the application made under sub-rule
(3) of these rules at any time before the Committee submits its recommendations
to the Board.
1[ ]
(12) The Chairman of the Committee shall send a copy of the
recommendations of the Committee to the Board, applicant and the concerned
Commissioner, simultaneously.
(13) The Board on its own motion or on the request of the applicant,
may refer back the recommendations of the Committee for rectification of any
mistake apparent from record or for reconsideration of the facts or law, as the
case may be, not considered earlier by the Committee.
(14) The Committee after rectification of the mistake or
reconsideration of the facts or law as aforesaid shall furnish to the Board its fresh
or amended recommendation within such period as specified by the Board.
(15) The Board, after examining the recommendations of the
Committee shall finally decide the dispute or hardship and make such orders as it
may deem fit for the resolution of the dispute or hardship 2[, within ninety days of
1 Omitted by S.R.O. 213(I)/2005, dated 3rd March, 2005. The omitted sub-rule (11) read as follows:
(11) The applicant shall pay members of the Committee, other than public servant,
remuneration covering traveling allowance and daily allowance. The extent and amount of
remuneration and the manner of payment thereof shall be decided by the Chairman of the Committee
under intimation to the applicant.
2 Inserted by SRO 771(I)/2008 dated 21.07.2008.
183
receipt of such recommendations,] under intimation to the applicant, Chairman of
the Committee and the concerned Commissioner:
Provided that the resolution reached by the taxpayer and the
Board shall not bind them for tax year not covered by the agreement. Any such
resolution shall not be used as precedent, except as provided in the agreement.
(16) The copy of order passed by the Board shall be provided to the
applicant and to the Commissioner having jurisdiction over the case for
modification of all decisions, orders and judgements passed in respect of the said
dispute or hardship, within such period as may be specified by the Board in the
order.
(17) On receipt of the Board’s order as aforesaid, the concerned
Commissioner shall implement the order in such manner and within such period
as may be specified by the Board in the order.
(18) Notwithstanding any thing contained in this rule an order passed
by the Board shall cease to exist if it is subsequently found to have been
obtained by fraud or misrepresentation of facts about the nature of dispute or
hardship on which the said order was passed and all decisions, orders and
judgements modified under the said order shall deemed to be re modified.
184
THE SCHEDULE
[See sub-rule (3)]
Application for 1[alternative] dispute resolution
under section 134A of the Income Tax Ordinance, 2001
To
The Chairman,
2[Federal Board of Revenue],
Islamabad
Dear Sir,
The undersigned being duly authorized hereby apply
_________________ (name and address of the applicant) for dispute or hardship
resolution under section 134A of the Income Tax Ordinance, 2001 (XLIX of
2001).
2. Necessary details of the dispute or hardship are set out below and in the
annexure to this application.
3. A request is made to constitute a Committee as provided under sub-rule
(4) of rule 231C of Income Tax Rules, 2002.
4. The following documents as are necessary for the resolution of the
dispute or hardship are enclosed.
(a) _______________________________________________________
(b) _______________________________________________________
(c) _______________________________________________________
Yours faithfully,
Signature _________________
Name ____________________
(in block letters)
NTN _____________________
Address __________________
Date _____________________
Annexure
[See paragraph 2 of the Schedule]
(1) Name of the applicant ____________________________________________
(in block letters)
(2) National tax number ____________________________________________
(3) Address of the applicant _________________________________________
(4) Telephone Number _______________ Fax Number ___________________
1[(4A) Tax year to which the dispute or hardship relates _________________.]
1 The word “alternate” substituted by S.R.O. 1032(I)/2006, dated 03.10.2006.
2 The words “Central Board of Revenue” substituted by the Finance Act, 2007.
185
(5) The Commissioner with whom a dispute has arisen
___________________________
(6) The following is the statement of the relevant facts and law with respect to
dispute or hardship having bearing on the question(s) on which the resolution
is required (Please annex extra sheet, if required):-
(7) Statement containing the applicant’s interpretation of law or facts, as the
case may be, in respect of question(s) on which resolution is required
(Please annex extra sheet, if required) is as follows:-
(8) The extent or the amount of tax which the applicant agrees to pay, if any.
(9) The undersigned, solemnly declare that,-
(a) full and true particulars of the dispute or hardship for the purposes
of resolution have been disclosed and no material aspect affecting
the determination of the application filed under the Income Tax
Ordinance 2001, in this behalf has been withheld;
(b) that the above issue(s) is/are pending before ____________
(name of the appellate forum, ITAT or court)/ not pending before
any forum, ITAT, High Court or Supreme Court of Pakistan for
adjudication 2[ . ]
3[ ]
Yours faithfully,
Signature _________________
Name ____________________
(in block letters)
Designation _______________
Date ____________________.]
232. Repeal and Savings.- (1) The following rules as in force before the
commencement of these rules are hereby repealed, namely Income Tax Rules,
1982;
(2A) Notwithstanding anything contained in sub-rule (1), rules 190 to
198, 201, 201D, 201F, 202(C), 202D, 202E, 202F of Income Tax Rules, 1982
shall stand repealed on the first day of July, 2003; and
(2B) Any proceedings including proceedings under part IX (Chapters
A, B, C, D, E & F) initiated, or any action taken or initiated, or approval sought,
under Income Tax Rules, 1982 prior to 01.07.2002; such proceedings, action, or
approval sought shall be completed under the Income Tax Rules, 1982 and to
that extent Income Tax Rules, 2002 would not apply.”
1 Inserted by S.R.O. 679(I)/2005, dated 04.07.2005.
2 The semicolon and word “and” substituted by S.R.O. 679(I)/2005, dated 04.07.2005.
3 Omitted by S.R.O. 679(I)/2005, dated 04.07.2005. The omitted sub-clause (c) read as follows:
“(c) I shall pay the remuneration of the members, other than a public servant, of the
Committee to the extent as the Chairman of the Committee may decide.”
186
PART-I OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the ____________
APPLICATION FOR FOREIGN TAX CREDIT
The application for a foreign tax credit required to be furnished under the
rules shall be in the following form, namely:-
Application for relief in respect of tax paid in another country.- An
application for relief by way of credit against Pakistan tax for tax paid by a person
resident in an tax year in Pakistan shall be made in the following form, namely:-
APPLICATION FOR UNILATERAL RELIEF UNDER SECTION 103 OF THE INCOME
TAX ORDINANCE, 2001
To
The Commissioner
I, _______________ of ___________ hereby declare that I have paid taxes on
income by deduction or otherwise in the territory of ________ amounting to ________ in
respect of income from sources therein for the tax year ending ________ amounting to
________ and that Pakistan tax amounting to Rs ________ is also payable on the said
income.
2. I further declare that I was resident in Pakistan for the period on the basis of
which the doubly taxed income stated above is assessable in Pakistan.
3. I now apply for relief by way of tax credit amounting to Rs _________ under
section 103 of the Income Tax Ordinance, 2001. My net income from all source to which
the ordinance applies during the tax year ending on __________ 20_____ amounted to
Rs _________ only, as shown in my return of income attached herewith/already
submitted.
Signature_____________________________
Name________________________________
Address______________________________
Dated_____________ 20______ National Tax Number
187
PART II OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the _______
Notice/ letter under section 122 of the Income tax Ordinance, 2001
(See rule 1[68])
NTN/TRN. ______________________________
Name: ______________________________
Address: ______________________________
Tax year: ______________________________
Dated:____________
Dear Sirs,
Whereas I consider necessary that the assessment order treated as issued
under section 120 or issued under section 121 or amended assessment u/s 122(3) needs
alteration or and to make addition to income by amended or further amended assessment
of amended assessment under section 122 for imposition of the correct amount of tax for
the tax year……..,, as in my opinion, Income Tax Return/Statement and documents
relating to the income and tax filed under the relevant provisions of this Ordinance,
2. In view of situation above, amended assessment or further assessment is
necessary u/s 122, and for that the tax year, examination of books of account/ record is
necessary. I therefore require you to produce or cause to be produced at my office on the
date and time mentioned below, the following accounts/documents on which you have
relied your return of income, so that correct income may be determined and proper tax be
imposed.
3. Please note that in case you or your authorized representative duly authorized to
represent you in the assessment proceedings fails to attend the office/produce the
documents/accounts mentioned above, assessment may be framed ex-parte which may
also entail further legal punitive actions in accordance with law.
Name ______________________________
Signature____________________________
Code No.____________________________
of the Commissioner
1 The figure “62” substituted by S.R.O. 310(I)/2007, dated 05.04.2007.
188
PART III OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the ____________
NOTICE UNDER SECTION 138(2) OF THE INCOME TAX ORDINANCE, 2001.
National Tax Number _______________________
Commissioner
Dated ____________
To
M/s __________________________
__________________________
__________________________
Dear Sir,
Whereas it is established that the sum of Rs. _______ which is due from you on
account of tax as per details given in the schedule below, is in arrear, you are, hereby,
required to pay these arrears of tax by _______ and produce necessary evidence to that
effect before me at my office On _________ failing which proceedings may be initiated
under these rules to recover the said amount by one or more of the following modes,
namely:-
(a) attachment and sale of moveable or immovable property;
(b) appointment of receiver for the management of your moveable or immovable
property;
(c) your arrest and detention in person for a period not exceeding six months.
I, in exercise of the powers vested in me under the Income Tax Rules framed
under section 138 of the Income Tax Ordinance, hereby further direct that you shall not
sell, mortgage, charge, issue or otherwise deal with any property belonging to except with
my permission to that effect in writing,
Commissioner
Range ________Zone _____
SCHEDULE
Sr
No.
Assessment
year(s)
Number in
Demand
and
Collection
Register
Income
Tax
Penalty Additional
Tax
Surcharge Total
1 2 3 4 5 6 7 8
189
PART IV OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the ____________
Notice u/s 140 read with rule 69 of Income Tax Rules, 2002.
Recovery of Tax.
M/s/ Mr.___________________
Dear Sir,
Whereas, the undersigned is empowered to issue this notice and has reasons to
believe that in respect of Mr. ______a tax defaulter/ tax payer for Rs._______;
(i) You are owing to this taxpayer money, amount, debt or may at a future
date/ month owe to him.
(ii) You hold money on behalf of the taxpayer/ defaulter.
(iii) You are holding money on some other person’s behalf for payment to
the above named taxpayer defaulter.
(iv) You hold authority of some other person to pay money to him or
defaulter.
2. And whereas, an amount of Rs.______ is tax due outstanding against the
person, and whereas the taxpayer has not paid the same amount in time, therefore, under
the provisions of section 148, you are required to remit or send the money to the
undersigned through pay order/ D. Draft or through banking transfer or cheque for
payment to the government, treasury under Income tax head of account. Please take
notice that:
(i) Any tax paid in lieu of and on behalf defaulter in pursuance of this notice
shall be treated as having been paid under the authority of tax payer
concerned – section 140(6).
(ii) In case of failure to comply, the said amount shall be recovered from
you, and all the provisions relating to tax recovery u/s 160, 161, 162 and
163 shall apply for effecting recovery of such amount from you.
(iii) In case of default, additional tax u/s 205 shall also be charged and
prosecution proceedings shall also be launched.
3. Since law provides for such mode of recovery, and payment shall be taken as
made by the taxpayer to the government.
N.B. This notice requires the payment to the extent shown in the notice out of any
amount due or due to be paid as mentioned at 1(I to iv).
Given under my hand and seal
Commissioner
190
PART V OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the ____________
Notice u/s 145 of Income Tax Ordinance, 2001 and rule 70 in respect of a person
who is likely to leave Pakistan permanently.
The Director of Immigration,
Airport/ Seaport.
Incharge Immigration Department,
Airports/Seaport.
(See section 145 of the Income Tax Ordinance, 2001) on collection of tax from
person leaving Pakistan.
Sir,
Whereas section 145 of the Income Tax Ordinance, 2001 empowers the
undersigned to issue this certificate of outstanding tax demand and there are reasons to
believe that Mr.________NTN_______has to pay tax/government dues of Rs._______, or
based on the Return of income filed and the amended assessment made for which notice
has been issued, a tax demand is likely to be raised, for which he has not made
satisfactory arrangement for tax payment, and is likely to leave Pakistan permanently,
therefore, you are required under section 145 not to allow Mr./Mrs.____ to leave the
country, till he has discharged tax liability by way of making payment of tax by prescribed
challan in the NBP/SBP and produces a copy of challan bearing date of payment of the
amount after issuance of this certificate, or, produces from the undersigned withdrawal of
the certificate/notice, or makes payment of tax through pay order/demand draft or bank
cheque in favour of income tax department.
The certificate issued under my signature and seal is not to be disputed and
would be valid till it is modified or withdrawn by the undersigned.
Commissioner
N.B This certificate shall be withdrawn in case in the matter of pending amended
assessment, proper arrangement are made for the payment of tax. This
certificate shall be withdrawn immediately.
191
PART VI OF FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the ____________
(See Rule 71)
Prescribed application for refund of tax.- An application for refund of tax under section
170 shall be made in the following form, namely:-
The Commissioner
__________ (Zone)
__________ (City)
Dear Sir,
I,
____________________________________________________________________ of
_______________________________________________________________________
hereby declare
a. that my total income computed in accordance with the provisions of Income
Tax Ordinance, 2001 (XLIV of 2001), during the year ending on
______________ being the income year for the assessment for the year
ending on the ________________ amounted to Rs. _______________.
b. That the total tax chargeable in respect of such total income is Rs.
______________.
c. That the total amount of tax paid is Rs. ______________.
I, therefore, request that a refund of Rs. ________________ may be allowed to
me.
Yours faithfully ______________________
Signature __________________________
NTN ______________________________
Address ___________________________
I hereby declare that I am resident/ non-resident* and that what is in this
application is correct.
Date ___________________ Signature
_________________
* Delete whichever is in applicable.
192
PART VII OF THE FIRST SCHEDCULE
Government of Pakistan
Department of Income Tax
Office of the ____________
Application for Certificate of Exemption from deduction of tax or
deduction at a lower rate under section — (1) An application for a certificate
under the section 152 shall be made in the following from, namely:-
APPLICATION FOR CERTIFICATE UNDER SECTION 159 OF THE INCOME TAX ORDINANCE,
2001
The Commissioner
I______________ of ___________ hereby declare that I am entitled to nil/ reduce rate
withholding tax certificate, on the following basis, in accordance with the provisions of the Income Tax
Ordinance, 2001 for the tax year____
(i) was less than the minimum liable to tax;
(i) amounted to Rs________ on which tax is chargeable at the rate of ___________
(ii) is under the Agreement for Avoidance of Double Taxation signed by the
Government of Pakistan with the Government of ________ the country of my
residence, not liable to Pakistan tax/chargeable to Pakistan at the rate of_______
(iii) was held exempt under clause ____ of the Second Schedule or is exempt under
clause _____ of the Second Schedule.
(iv) that income is not likely to be chargeable to tax in view of tax credits or
unabsorbed losses, or
(v) or, in any case, since advance tax u/s 147 has been duly paid already, or
(vi) the goods imported are for manufacturing purposes at own factory/mills/unit.
(vii) For any other reasons (to be specified).
I, therefore, request that certificate may be issued to the person responsible for paying
profit on securities/dividends/royalties/other amounts particulars of which are given in the Schedule
annexed thereto, or to a person responsible for collecting tax at source, authorizing him not to deduct
tax at the rate of _________at the time of payment of such amount or to exempt from withholding tax
at source.
Signature______________________
Name_________________________
Nationality_____________________
Address_______________________
Date__________________ ______
National Tax Number (if any)
I, hereby declare that I am resident/non-resident in Pakistan and that what is stated in the
application is correct.
Signature______________________
Name________________________
Address______________________
Dated__________
(2) An application under sub-rule (1) in respect of income derived from sources
within Pakistan (other than pensions paid by or on behalf of the Government of Pakistan) in
accordance with the provisions of an agreement having effect under section 107 by a person resident
in the territory with the Government of which the agreement is made shall be accompanied by further
information in the following form, namely:-
193
PART VIII OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the ____________
Reduce rate/ exemption certificate:
Form for certificate of exemption from deduction or deduction of tax at a
lower rate-. (1) On an application made under rule 40, the Commissioner of Income Tax
may, subject to the conditions laid down in sub-rule (2), give a certificate authorizing the
person making the application to receive income specified in Part V of Chapter X without
deduction of tax or after deduction of tax at a rate specified therein, in the following form,
namely:-
Book No____________ Voucher No____________ Book No_________
Voucher No.__________
Counterfoil of certificate under proviso Certificate under
to section -of the Income Tax Section 159 of the Income Tax
Ordinance,__________________ Ordinance, 2001______________
1. Date Income Tax Office
2. Person to whom given. Circle______Zone_________
3. Person to whom addressed. ________________________
4. Rate of deduction sanctioned. Date____________20______
5. Description of income, nature To
of payment or description of
asset/property subject matter
in this certificate.
.
I hereby authorise you to deduct the tax at the rate of_____
Initials of the Commissioner
*Date on which certificate revised___20. 2. The income in this case is
exempt under the Income Tax
Ordinance, 2001.
*If the certificate is cancelled or revised the facts should be *Strike out whichever is stated in this
column giving cross references. inapplicable.
Remarks 3. This authorization will
Remain in force until the
Date it is cancelled by
me.
Initials of the____________________
Commissioner Commissioner of
Income Tax
Description of Securities
Payments.
(1) The certificate referred to in sub-rule (1) shall be issued only if the Commissioner of Income Tax
is satisfied that the person concerned –
(i) has furnished such return of returns of income as became due, if any, on or
before the date on which the application under rule – is made; and
(ii) is not in default or deemed to be in default in respect of any tax (including
advance tax under section 147 or tax payable under section 137).
194
PART IX OF THE FIRST SCHEDULE
Application for issuance of National Tax Number under section 181 of Income Tax
Ordinance, 2001
For Companies
Name of
Business (Please type in capital letters)
Business
Address
Phone No. (Res) ________________ (Bus) ________________ Fax ________________
Principal
Business
Activity
Manufacturer Importer Exporter Distributor Wholesaler Retailer Services Others
Description of Business ____________________________________________________
Principal place of business (address) __________________________________________
Company Type
Public Limited Private Limited Non-Resident Others
If yes please specify
Registration/Incorporation Number
Please attach attested copy of documents
Date of Registration/ Incorporation. _________________________________
Residential Status Resident Non-Resident
Old NTN (If any)
Particulars of Partners/ Directors
Name
_______________________________________________________________________
NTN NIC.No.
Name
_______________________________________________________________________
NTN NIC.No.
Name
_______________________________________________________________________
NTN NIC.No.
Name
_______________________________________________________________________
NTN NIC.No.
Name
_______________________________________________________________________
NTN NIC.No.
1. Use additional sheet if required (2) Please
attach attested copies of NICs.
I, the undersigned solemnly declare that to the best of my knowledge and belief the
information given above is correct and complete.
195
Name ______________________ Signature of the Principal Officer/ Managing Partner ______________________
Designation _________________ Office Seal _______________________ Date ______________________
Note: Please make sure that all information is correctly filled-in and required
documents are attached, especially the photocopies of NICs of all the partners/
directors and incorporation/ registration certificate. All documents should be
attested by Class-I gazetted officer or an officer of the Bank. NTN certificate will
not be issued if incomplete form is sent. In case the applicant is a Registered
Firm or a Company, its application shall not be entertained unless accompanies
by applications of individual partners/ directors who do not have an NTN.
For Individuals & AOPs
Category
(Please tick one) Salaried Individual Business Individual AOP
Name of
Applicant (Please type in capital letters)
Principal
Business
Activity
Manufacturer Importer Exporter Distributor Wholesaler Retailer Services Others
Description of Business ____________________________________________________
NIC No. Sex Male Female
Old NTN (if any)
Nationality Pakistani Non-Pakistani Residential Status Resident Non-Resident
Passport No. ________________________(For foreign nationals only. Attach photocopy)
Address_________________________________________________________________
________________________________________________________________
Business________________________________________________________________
Address_________________________________________________________________
Phone No. (Res) ________________ (Bus) _________________ Fax _______________
NTN of Employer
Name of Employer
Address of Employer
Particulars of Members (In case of AOP)
Name
_______________________________________________________________________
NTN NIC.No.
Name
_______________________________________________________________________
NTN NIC.No.
Name
_______________________________________________________________________
NTN NIC.No.
196
Name
_______________________________________________________________________
NTN NIC.No.
Name
_______________________________________________________________________
NTN NIC.No.
2. Use additional sheet if required (2) Please attach attested copies of NICs.
I, the undersigned solemnly declare that to the best of my knowledge and belief the
information given above is correct and complete.
Date _______________ Signature of Applicant
Note: Please make sure that all information is correctly filled-in and photocopy of NICs
duly attested by Class-I gazetted officer or an officer of the Bank is attached
(Photocopies of NICs of all Partners/ Members in case of AOP, HUF, URF). NTN
certificate will not be issued if incomplete form is sent. In case the applicant is an
AOP, URF or HUF its application shall not be entertained unless accompanies by
applications of individual Partners/ Members who do not have an NTN.
197
PART X OF THE FIRST SCHEDULE
Application for registration of Income Tax Practitioner
To
The Regional Commissioner
Of Income Tax,
___________ Region,
___________(City).
___________ (Jurisdiction)
Dear Sir,
With reference to section 223 of the Income Tax Ordinance, 2002, I, the undersigned,
hereby apply for registration as an Income Tax Practitioner within the meaning of the said section.
Necessary particulars are as below:-
1. Name (in block letters)__________________________________________________;
2. Father’s name (in block letters) ___________________________________________;
3. Residential address:
a. ________________________________________________________________;
b. ________________________________________________________________;
4. Date of birth _________________________________________________________;
5. Academic/ professional qualifications on the basis of which registration has been
sought ___________;
6. Present occupation ____________________________________________________;
7. Particulars of Chartered Accountant/ Cost and Management Accountant/ Income Tax
Practitioner with whom apprenticeship was completed and the period and dates of
apprenticeship.
I hereby declare on solemn affirmation that whatever information has been given above is
correct to the best of my knowledge.
It is further affirmed that—
a. I have not been dismissed or removed from service;
b. I am not an undischarged insolvent;
c. I have not been disqualified to represent an income tax assessee by a Commissioner
of Income Tax or any authority empowered to take disciplinary action against lawyers
or registered accountants;
d. A period of two years elapsed since I resigned from service after having been
employed in the Income Tax Department for two years or more;
e. I have not been convicted of any offence connected with any income tax proceeding
under the Income Tax Ordinance, 2001, or the repealed Income Tax Ordinance, 1979
and Income Tax Act, 1922; and
f. I have not been convicted of any offence under the Pakistan Penal Code.
Yours faithfully____________________________
Signature _______________________________
Name of the Applicant______________________
Office Address ___________________________
Date____________________________________
198
PART XI OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Notice under sub-section 4 of section 114 of the Income tax Ordinance, 2001.
NTN/TRN. ________________________________
Name: ___________________________________
Address: _________________________________
Assessment year:___________________________
Dated: ___________________________________
Dear Sir,
1. You have not furnished a return of income for the tax year_____ required to be
filed under clause – of sub-section 1 of section 114 of the Income Tax Ordinance,
2001,
You are, hereby, required to furnish on or before _______ a Return of Income for
the said tax year, in the prescribed form and verified in the prescribed manner. A
copy of the return of Income is enclosed.
2. Please note that failure to comply with any of the terms of this notice may result
in an ex-parte assessment under sub-section 1 of section 121 of the said
Ordinance, and may also render you liable to a penalty under sub-section 1 of
section 182, or, prosecution under section 191 of the said Ordinance or both.
Commissioner /
Taxation Officer
199
PART XII OF THE FIRST SCHEDULE
Prescribed Form for Notice of Demand in payment of tax due – Notice of
demand required to be served upon the taxpayers under section 137(2) shall be
in the following form, namely:-
Government of Pakistan
Department of Income Tax
Office of the ____________
NOTICE OF DEMAND UNDER SECTION 137(2) OF THE INCOME TAX ORDINANCE, 2001.
N.T.No. – –
Tax Year_______ _________
Income Year ____________
To _______________
_______________
Dear Sir/Madam
As a result of order passed u/s ________ in your case for the tax year _______ whereby
your total income has been determined at Rs.____ and an amount of Rs __________(Rupees
___________) has been determined to be payable/refundable as specified below.-
(a) Income Tax Rs __________________________
(b) Additional Tax u/s Rs __________________________
(c) Penalty u/s Rs __________________________
(d) Others Rs __________________________
__________________________
Total Rs __________________________
(2) You are requested to make the payment of the above amount on or before
________ but not later than 1[15] days from the date of issue of the order in the National Bank of
Pakistan/State Bank of Pakistan/Treasury Office/Sub-Treasury Office/ Sub-Treasury Office.
(3) If you intend appeal the assessment, you may file an appeal:
(i) under section 127/section 131 of the said Ordinance to the
Commissioner of Income Tax (Appeals), Zone _______ /Income Tax
Appellate Tribunal within thirty days of the receipt of this notice/sixty
days of the date on which order appealed against is communicated to
you, or
(ii) file revision u/s 135 within 90 days of the receipt of this notice before
the Commissioner of Income Tax.
(4) Please note that by timely payment of your tax liability you can avoid:
(i) mandatory levy of additional tax under section 205 @ 18%
per annum; penalty under section 183, and/or
(ii) proceedings under 138(2).
(5) Copy of the order on which demand/refund is based is enclosed.
Date_____________
Seal Signature of the
Taxation Authority/
Commissioner of Income Tax
1 The figure “30” substituted by SRO 755(I)/2008, dated 15.07.2008. Earlier the figure “15” was
substituted by SRO 612(I)/2006 dated 02.06.2006.
200
PART-XIII OF THE FIRST SCHEDULE
Government of Pakistan
Department of Income Tax
Office of the ____________
Form of authorisation (see Rule 72 Section 175)
In pursuance of and as empowered under section 175 and to carry out the
purpose and objects of the Section, M/s. ________________________________ and Ms.
_________________________________ Taxation Officers and/ or M/s.
__________________________________ valuer(s) is/ are authorised with regard to the
tax related matters of M/s. ___________________________, to enter any premises and
to have full and free access to any place, accounts, documents or computer, and to
impound or to take extracts or copy of such material and/ or examine and prepare notes,
details of inventory and its valuation, or computer disc of information or floppies from
harddisc or inventory of any article found at the place. The officer(s) authorised shall
handover a copy of inventory of goods and material to the persons available on premises
and/ or put/ affix on the conspicuous place in case of refusal of such person to receive or
accept. In the later situation, may also send such copy through registered post/ courier
service as early as possible. The taxation officer may keep in mind the enquiry/
investigation, audit relating to tax issues only.
Commissioner
201
SECOND SCHEDULE
(See rules 34, 35, 36, and 39)
202
1[PART-I
N°
1 Taxpayer’s Name NTN
Reg/Inc No.
2 Bussiness Name Tax Year
3 Business Address City Res. Status Resident Non-Resident
4 Principal Activity Code Revised N°
5 Representative NTN Assessed N°
6 NTN Top 10 Share Holders’ Names % NTN Top 10 Share Holders’ Names %
Remaining Share Holders
Total 100%
Items Code Code
7 Net Sales 3101 93 Capital 8699
8 Gross Domestic Sales 31011 94 Paid-up Capital 8621
9 Domestic Commission/Brokerage 31021 95 Reserves 8641
10 Gross Exports 31012 96 Accumulated Profits 8661
11 Foreign Commission/Brokerage 31022 97 Surplus on Revaluation 8671
12 Rebates/Duty Drawbacks 3107 98 Long Term Liabilities 8799
13 Cost of Sales 3116 99 Long Term Loans 8701
14 Local Raw Material/ Components 310411 100 Deferred Liabilities 8711
15 Imported Raw Material/ Components 310421 101 Current Liabilities 8899
16 Salaries,Wages 311101 102 Trade & Other Payables 8801
17 Power 311102 103 Short Term Loans 8821
18 Fuel 311103 104 Other Liabilities 8901
19 Stores/Spares 311106 105 Total Capital & Liabilities 8999
20 Insurance 311107 Code
21 Repair & Maintenance 311108 106 Fixed Assets 8199
22 Other Expenses 311118 107 Land 8101
23 Accounting Amortization 3114 108 Building 8111
24 Accounting Depreciation 3115 109 Plant & Machinery 812101
25 Opening Stock 3117 110 Capital Work-in-Progress 8181
26 Finished Goods Purchases (Local) 310412 111 Motor Vehicles 8131
27 Finished Goods Purchases (Imports) 310422 112 Office Equipment 812109
28 Closing Stock 3118 113 Furniture & Fixtures 812103
29 Gross Profit/ (Loss) 3119 114 Current Assets 8299
30 Gross Receipts 3139 115 Investments 8251
31 Markup/ Interest (for Financial Institutions) 31311 116 Cash & Cash Equivalents 8201
32 Leasing 31312 117 Stock in Trade/Stores/Spares 8221
33 Oil & Gas Exploration 31313 118 Trade Receivables 8231
34 Telecommunication 31314 119 Advances/Deposits/Prepayments/Other Receivables 8241
35 Insurance 31315 120 Intangible assets 8401
36 Accounting Gain on Disposal of Intangibles 3135 121 Other Assets 8402
37 Accounting Gain on Disposal of Assets 3136 122 Total Assets 8499
38 Other Revenues/ Fee/ Charges for Services etc. 3131 Code Rate Code
39 Management, Administrative, Selling & Financial expenses 3189 123 Imports 64011 5% 65011
40 Rent/ Rates/ Taxes 3141 124 64012 1% 65012
41 Salaries & Wages 3144 125 64013 2% 65013
42 Travelling/ Conveyance 3145 126 64014 0.5% 65014
43 Electricity/ Water/ Gas 3148 127 Dividend 64031 5% 92031
44 Communication Charges 3154 128 64032 10% 92032
45 Repairs & Maintenance 3153 129 Gas consumption by CNG Station 64021 4% 65021
46 Stationery/ Office Supplies 3155 130 Royalties/Fees 640511 15% 650511
47 Advertisement/ Publicity/ Promotion 3157 131 Contracts (Non-Resident) 640521 6% 650521
48 Insurance 3159 132 Supply of Goods 640611 3.50% 650611
49 Professional Charges 3160 133 640612 1.50% 650612
50 Profit on Debt (Markup/Interest) 3161 134 640613 650613
51 Donations 3163 135 Payment to Ginners for supply of cotton lint. 640614 1% 650614
52 Directors’ Fees 3177 136 Contracts (Resident) 640631 6% 650631
53 Workers Profit Participation Fund 3179 137 640632 650632
54 Loss on Disposal of Intangibles 3185 138 Transport Services 64142 2% 65142
55 Loss on Disposal of Assets 3186 139 Exports/ Indenting Commission/ 64071 1% 65071
56 Accounting Amortization 3187 140 Export Services 64072 0.75% 65072
57 Accounting Depreciation 3188 141 64073 0.50% 65073
58 Bad Debts Provision 31811 142 Foreign Indenting Commission 64075 5% 65075
59 Obsolete Stocks/Stores/Spares Provision 31812 143 Property Income 64081 5% 65081
60 Diminution in Value of Investments Provision 31813 144 Prizes 64091 10% 65091
61 Bad Debts Written Off 31821 145 Winnings 64092 20% 65092
62 Obsolete Stocks/Stores/Spares Written Off 31822 146 Petroleum Commission 64101 10% 65101
63 Selling expenses(Freight outwards etc.) 31080 147 Brokerage/Commission 64121 10% 65121
64 Others 3170 148 Advertising Commission 64122 5% 65122
65 Net Profit/ (Loss) 3190 149 Stock Exchange Commission 64131 0.01% 65131
66 Inadmissible Expenses (Including proportionate expenses relating to PTR) 3191 150 Goods Transport Vehicles 64141 65141
67 Tax Gain on disposal of Intangibles 319135 151 Total 6599
68 Tax Gain on disposal of Assests 319136 Source Code Rate Code
69 Other Inadmissible Expenses 319198 152 Property Income not subject to WHT 210101 5% 920235
70 Admissible Deductions 3192 153 Purchase of Locally Produced Edible Oil 310431 1% 920208
71 Tax Amortization 319287 154 Services rendered / contracts executed outside Pakistan 210102 1% 920236
72 Tax Depreciation 319288 155 Total 9202
73 Other Admissible Deductions 319298 156 Total of Final & Fixed Tax (151+155) 94592
74 Income/(Loss) relating to Final and Fixed tax 3199 157 Tax Paid/ Deducted 94591
75 Loss for the year surrendered to Holding Company 3901 158 Tax Payable/ Refundable to be transferred to Net Tax Payable 6699
76 Loss acquired from Subsidiary Company and Adjusted 3902 159 Gross Tax @ 9201
77 Brought Forward Loss Adjusted/(Loss for the year Carry Forward) 3990 160 Tax Reductions, Credits & Averaging 9249
78 Total Income/ (Loss) 9099 161 Business Turnover 310101
79 Business Income/(Loss) 3999 162 Minimum Tax 0.5% 920201
80 Capital Gains 4999 163 Mimimum Tax Exemptions/ Reductions 9217
81 Other Sources Income/ (Loss) 5999 164 Adjustment of Minimum Tax 9497
82 Foreign Income/ (Loss) 6399 165 Final Tax on Business Turnover 6598
83 Deductible Allowances 9139 166 Net Minimum Tax Payable 9203
84 Zakat 9121 167 Net Tax 9299
85 Workers Welfare Fund 9122 168 Tax Already Paid Including Adjustments 9499
86 Charitable Donations Admissible for Straight Deduction 9124 169 Net Tax Payable 99991
87 Taxable Income/ (Loss) 9199 170 Tax Paid as per CPR No. 9471
88 Exempt Income 6199 171 Net Tax Refundable; may be credited to my bank account as under: 9999
89 Property Income 6102 172 Bank
90 Business Income 6103 173 Branch Name & Code
91 Capital Gains 6104 174 Branch Name & Code
92 Other Sources Income/ (Loss) 6105 175 WWF Paid with Return as per CPR No. 9308
I,
Date : Signatures
Tax Due
Source Tax Due
Final Tax Statement U/s 115(4)
Assets
Adjustments Profit & Loss Account (Including Final/Fixed Tax) Manufacturing/ Trading Account (Including Final/Fixed Tax) Share Holding
Capital
Amount
IT-1
Share Holding
Capital
Amount
Balance Sheet
Amount Liabilities
Receipts/ Value
UNDER THE INCOME TAX ORDINANCE, 2001 (FOR COMPANY)
2008
Name
Registration
RETURN OF TOTAL INCOME/STATEMENT OF FINAL TAXATION
(dd/mm/yyyy)
Note : Grey blank fields are for official use
Total / Taxable Income Computation
, holder of CNIC
section 172 of the Income Tax Ordinance, 2001) of the Taxpayer named above, do solemnly declare that to the best of my knowledge and belief the information given in this Return/Statement u/s 115(4) is correct, complete and in
accordance with the provisions of the Income Tax Ordinance, 2001, Income Tax Rules, 2002 and the Companies Ordinance 1984.
Fixed Tax
Receipts/Value
, in my capacity as Principal Officer / Trustee / Representative (as defined in
Payment/ Refund Tax Computation
1 Inserted by S.R.O. 891(I)/2008, dated 26.08.2008.
203
NTN
Signatures
Total
3. Others 8141
2.
8105
8107
8
9
10
11
Total
Intangibles
Particulars/Description
Intangibles
12
Any expenditure providing
advantage or benefit for a period
S. No.
1.
2.
3.
4
5
6
7
S. No.
1.
Machinery and equipment used in
manufacture of IT products
Air crafts and aero engines
Below ground installations of
mineral oil concerns
Off shore platforms and production
installations of mineral oil concerns
Depreciable Assets
Particulars/Description
Building (all types)
Furniture including fittings
Machinery and plant (not otherwise
specified)
Motor vehicles plying for hire
Motor vehicles not plying for hire
Ships
810306
Technical or professional books
Computer hardware including
printer, monitor and allied items
810304
810302
810308
81044
810307
Code
Code
8102
810303
810301
81042
81041
81043
Brought forward
Written Down
Value
Amount (Rs)
Useful Life
Year(s)
Acquired on
(Date)
dd/mm/yyyy
Additions
Amount (Rs)
(Deletions)
Amount (Rs)
Amount (Rs)
Original Cost
50%
50%
Total
Amount (Rs) Rate
50%
0%
50%
50%
0%
50%
50%
50%
Annual
Amount (Rs) Extent
Initial Allowance on
additions, if any
Amount (Rs)
30%
30%
30%
100%
20%
0%
50%
10%
15%
15%
15%
15%
15%
15%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Depreciation
Business Use
Extent Amount (Rs)
100%
Total / Annual
Rate Amount (Rs)
Amortization Remarks
Actual Usage
Days Amount (Rs)
Business Use
Amount (Rs)
Written Down Value
carried forward
Amount (Rs)
Annex-A
Depreciation, Initial Allowance and Amortization A
Reg/Inc/CNIC No.
Tax Year 2008
204
NTN Reg/Inc/CNIC No.
1998-99
1999-00
2000-01
2001-02
2002-03
Signature
Annex-B Tax Year 2008
Carry forward and brought forward of Unabsorbed Depreciation,
Initial Allowance, Amortization and
Business Losses
(Other than Speculation Business)
261114
261112
B
Particulars Code Amount (Rs.)
1.
(a) B/Forward
(a) B/Forward
(b) Current year
(a) Business income/(loss) for the year after depreciation and amortization 261111
Business income/(Loss) for the year transferred to Return of Total Income for adjustement
against (loss)/income for the year under any other head of income
(b)
(c) Loss for the year surrendered in favour of a holding company 3901
(d) Balance business income/(loss) for the year after depreciation and amortization [Add
1(a) minus 1(b) minus 1(c)]
2. Breakup of balance income/(loss) for the year after depreciation and amortization: 261211
(b) Depreciation for the year including unabsorbed depreciation brought forward 3988
(a) Business income/(loss) for the year before depreciation/amortization 3900
(c) Amortization for the year including unabsorbed amortization brought forward 3987
3. Details of adjustments of brought forward business losses, losses of subsidiary, depreciation and
amortization including unabsorbed depreciation and amortizaton 261311
(a) Business income/(loss) for the year before depreciation and amotization
[from 2(a) above] 261312
(b) Adjustment of brought forward business losses 261313
(c) Adjustment of losses of subsidiary 261314
(d) Adjustment of depreciation including unabsorbed depreciation brought forward 261315
(e) Adjustment of amortization including unabsorbed amortization brought forward 261316
(f) Balance business Income after adjsutment transferred to Return of Total Income [3(a)
minus 3(b) minus 3(c) minus 3(d) minus 3(e), if greater than zero, else Nil] 261317
(g) Balance business loss after adjsutment carry forward [3(a)
minus 3(b) minus 3(c) minus 3(d) minus 3(e), if less than zero, else Nil] 261318
Adjusted against
the income for the
current year
Lapsed(not available for carry
forward) /Attributtable to
PTR income
Balance carried
forward
Taxpayers own Of amalgamating
company
Balance brought forward
OR
For the current year
Amount (Rs.) Amount (Rs.) Amount (Rs.)
4. Details / breakup of business losses brought forward and carried forward
Assessment
Year /
Tax Year
(starting from
earliest year)
Code
Amount (Rs.) Amount (Rs.)
(a) 3900
(b) 3900
(c) 3900
(e) 3900
(d) 3900
(f) 2003 3900
(g) 2004 3900
(h) 2005 3900
(i) 2006 3900
(j) 2007 3900
(k) Current year 3900
5. Details / breakup of un-absorbed depreciation brought forward and carried forward
Total 262422
319288
319288
6. Details / breakup of un-absorbed amortization brought forward and carried forward
Total 262513
319287
262613
(b) Current year 319287
7. Details / breakup of losses of subsidiaries brought forward and carried forward
Total
(a) 2006 3904
3904
(c) Current year 3904
(b) 2007
Total 262714
205
Sub-Total [Add 26(a) to 26(c)]
27. Transfer to the Return of Income [Add 5 plus 25 plus 26(d)]
CPR No.
Signatures
94118
94159
94169
94179
94159
940630
94138
94028
94119
940629
10. On Government securities Evidence of payment attached
12.
Workers Welfare Fund Already Paid
28. Evidence of payment attached 9495
94981
94179
15. Evidence of payment attached
Evidence of payment attached
On payments for execution of contracts
17.
Evidence of payment attached
Tax Collected by car manufacturer
Registration No. Engine / Seating Capacity Owner’s Name
C
Annex-C Tax Year 2008
Tax Already Paid Including Adjustments
NTN Reg/Inc/CNIC No.
Particulars Code Amount of Tax paid (Rs.)
Advance Tax
1.
3. Third installment CPR No.
First installment CPR No.
2. Second installment CPR No.
CPR No.
Evidence of payment attached
Evidence of payment attached 94613
8.
Evidence of payment attached
5. Sub-Total [Add 1 to 4] 9461
7. On dividend Income 94039
Amount of Tax
deducted (Rs.)
94611
94612
4. Fourth installment 94614
(Other than tax collected/deducted on receipts/value of goods subject to final taxation)
Tax Collected/Deducted at Source
6. On import of goods Evidence of payment attached 94019
From salary 94029
Share%
94049
Certificate/Account No. etc. Bank Branch
9. On profit on debt Evidence of payment attached
94049
94049
11. On payments received by non-resident Evidence of payment attached 940539
94049
940619
94018
94043
On Import of CBU motor vehicle by manufacturers Evidence of payment attached
13. On payments for goods Evidence of payment attached
16. On withdrawal from pension fund Evidence of payment attached
14. On payments for services Evidence of payment attached
On cash withdrawal from bank Evidence of payment attached
Certificate/Account No. etc. Bank Branch Share%
94119
94119
94119
19. On financing of carry over trade
18. On trading of shares at a Stock Exchange Evidence of payment attached
Evidence of payment attached 94139
94149
Registration No. Engine / Seating Capacity Owner’s Name Share%
20. With motor vehicle tax (Other than goods transport vehicles) Evidence of payment attached
94149
94149
21.
22. With bill for electricity consumption Evidence of payment attached
Share%
94149
Manufacturer Prticulars
94179
Consumer No. Subscriber’s CNIC Subscriber’s Name
94159
94159
23. With telephone bills, mobile phone and pre-paid cards Evidence of payment attached
Number Subscriber’s CNIC Subscriber’s Name Share%
94169
94169
94169
24. Others
94599
Previous Adjustments Available for Adjustment
Adjustment of Prior Year(s) Refunds Determined by Department
26. Refund adjustments (To the extent adjustment is required against the current year’s tax payable, if any)
Total
25. Sub-Total [Add 6 to 24]
Amount (Rs.) Amount (Rs.) Amount (Rs.)
Refund Assessed
Tax Year Amount (Rs.) Tax Year
(a)
(b) 94981
(c) 94981
Total Tax Already Paid Including Adjustments
9499
(d) Evidence of refund due attached 9498
206
1[PART-II
N°
CNIC (for Individual) NTN
1 Taxpayer’s Name Gender Male Female
2 Bussines Name Year Ending
3 Business Address Tax Year
4 Res. Address Person IND AOP
5 Res. Status Non-Res. Resident
6 Principal Activity Birth Date
7 Employer NTN Name Revised N°
8 Representative NTN Name RTO/LTU
% in Capital
Others
100%
Code
9 3101
10 3116
11 3117
12 3104
13 3111
14 3118
15 3119
16 3131
17 3189
18 3190
19 3191
20 3192
21 319203
22 3902
23 Total Income [Sum of 24 to 29] 9099
24 1999
25 3999
26 312021
27 4999
28 5999
29 6399
30 Deductible Allowances [31 + 32 + 33] 9139
31 9121
32 9122
33 9124
34 Exempt Income [Sum of 35 to 38] 6199
35 6101
36 6103
37 6104
38 6105
39 9199
40 @ 9201
41 9249
42 Minimum Tax (Section 235(4)) 920206
43 Tax Already Paid including Adjustments (Attach Annex-C) 9499
44 4594
45 99991
46 Tax Paid as per CPR No. 9471
47 9999
48 Bank
49 Branch Name & Code
50 A/C Number
51 WWF Paid with Return as per CPR No. 9308
Payment / Refund
Signatures
Net Tax Refundable, may be credited to my bank account as under:
Manufacturing/ Trading, Profit & Loss
Account ( including Final/Fixed Tax)
Profit & Loss Expenses
Admissible Deductions (Attach Annex-A for Tax Depreciation)
Adjustments
Income/(Loss) relating to Final and Fixed tax
Brought Forward Loss Adjusted/(Loss for the year Carry Forward) Attach Annex-B)
Net Profit/ (Loss) [(15 + 16) – 17]
Purchases
Manufacturing/ Trading Expenses
Inadmissible Expenses (Including proportionate expenses relating to PTR)
Proprietor/Member/Partners’ Name Capital Amount
UNDER THE INCOME TAX ORDINANCE, 2001 (FOR INDIVIDUAL / AOP)
Tax Reductions, Credits & Averaging
Gross Tax
Net Tax Payable [(40 – 41 – 43) + 44]
Note-1 : Grey blank fields are for official use
Tax Computation
Tax Payable/ Refundable (transferred from Final/ Fixed Tax )
Zakat
Items Total
Ownership
NTN
IT-2 (Page 1 of 2)
Registration
2008
E-Mail Address Phone
RETURN OF TOTAL INCOME/STATEMENT OF FINAL TAXATION
Opening Stock
Gross Sales
Cost of Sales [11 + 12 + 13 – 14]
Total / Taxable Income Computation
Business Income/ (Loss) [(18 + 19) – 20-21-22]
Capital Gains
Other Sources Income/ (Loss)
Foreign Income/ (Loss)
Business Income
Salary Income including Arrears
Charitable donations admissible for straight deduction
Salary Income
Workers Welfare Fund
Other Revenues/ Fee/ Charges for Services
Gross Profit/ (Loss) [9-10]
Share from AOP
Other Sources Income/ (Loss)
Taxable Income/ (Loss) [23 -30 ]
Code
Closing Stock
Total
Capital Gains
1 Inserted by S.R.O. 891(I)/2008, dated 26.08.2008.
207
N°
NTN
T.Y
Business Name RTO/LTU
Source Code Rate
(%) Code
52 Imports 64011 5 92011
53 64012 1 92012
54 64013 2 92013
55 64014 0.5 92014
56 64015 92015
57 Gas consumption by CNG Station 64142 4 92142
58 Dividend 64032 10 92032
59 64033 7.5 92033
60 Profit on Debt 64041 10 92041
61 Royalties/Fees 640511 15 920511
62 640512 920512
63 Contracts (Non-Resident) 640521 6 920521
64 Supply of Goods 640611 3.5 920611
65 640612 1.5 920612
66 640613 920613
67 On Payment to Ginners 640614 1 920614
68 Services 640621 6 920621
69 640623 920623
70 Transport Services 640622 2 920622
71 Contracts (Resident) 640631 6 920631
72 64072 1 92072
73 640641 0.5 920921
74 64071 0.75 92071
75 Foreign Indenting Commission 64075 5 92075
76 Property Income subject to WHT 64081 5 92081
77 Prizes 64091 10 92091
78 Winnings 64092 20 92092
79 Petroleum Commission 64101 10 92101
80 Brokerage/Commission 64121 10 92121
81 Advertising Commission 64122 5 92122
82 Stock Exchnage Commission 64131 0.01 92131
83 Goods Transport Vehicles 64141 92141
84 Retail Turnover upto 5 million 310102 0.5 920202
85 Retail Turnover above 5 million 310103 920203
86 6599
Source Code % Code
87 Property Income not subject to WHT 210101 5 920235
88 Purchase of locally produced edible oil 310431 1 920208
89 Flying Allowance 112001 2.5 920234
91 Employment Termination Benefits 118301 920211
92 Total ( 87 to 91) 9202
93 Total Tax Due (86 + 92) 94592
94 Tax Paid/ Deducted Evidences Attached 94591
95 Tax Payable/ Refundable to be transferred to Net Tax Payable (to 44)
I,
holder of CNIC No. , in my capacity
1
Total ( 52 to 85)
Exports/Indenting Commission/
Exp.Services
Services rendered / contracts
executed outside Pakistan
63311 920236
Taxpayer’s Name 2008
CNIC (for Individual)
IT-2 (Page 2 of 2)
Tax Due
RETURN OF TOTAL INCOME/STATEMENT OF FINAL TAXATION
UNDER THE INCOME TAX ORDINANCE, 2001 (FOR INDIVIDUAL / AOP)
90
Final Tax Statement U/s 115 (4)
Receipts/Value
Fixed Tax
Receipts/Value
Acknowledgement
Tax Due
Note : Grey blank fields are for official use
as Self/ Partner or Member of Association of Persons/Representative (as defined in section 172
of the Income Tax Ordinance, 2001) of Taxpayer named above, do solemnly declare that to
the best of my knowledge and belief the information given in this Return/Statement u/s 115(4)
and the attached Annex(es), Statement(s), Document(s) or Detail(s) is/are correct and complete
in accordance with the provisions of the Income Tax Ordinance, 2001 and Income Tax Rules,
2002 (The alternative in the verification, which is not applicable, should be scored out).
Verification Date :
Signatures
Signatures & Stamp
of Receiving Officer with Date
208
NTN
Signatures
Total
3. Others 8141
2.
8105
8107
8
9
10
11
Total
Intangibles
Particulars/Description
Intangibles
12
Any expenditure providing
advantage or benefit for a period
S. No.
1.
2.
3.
4
5
6
7
S. No.
1.
Machinery and equipment used in
manufacture of IT products
Air crafts and aero engines
Below ground installations of
mineral oil concerns
Off shore platforms and production
installations of mineral oil concerns
Depreciable Assets
Particulars/Description
Building (all types)
Furniture including fittings
Machinery and plant (not otherwise
specified)
Motor vehicles plying for hire
Motor vehicles not plying for hire
Ships
810306
Technical or professional books
Computer hardware including
printer, monitor and allied items
810304
810302
810308
81044
810307
Code
Code
8102
810303
810301
81042
81041
81043
Brought forward
Written Down
Value
Amount (Rs)
Useful Life
Year(s)
Acquired on
(Date)
dd/mm/yyyy
Additions
Amount (Rs)
(Deletions)
Amount (Rs)
Amount (Rs)
Original Cost
50%
50%
Total
Amount (Rs) Rate
50%
0%
50%
50%
0%
50%
50%
50%
Annual
Amount (Rs) Extent
Initial Allowance on
additions, if any
Amount (Rs)
30%
30%
30%
100%
20%
0%
50%
10%
15%
15%
15%
15%
15%
15%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Depreciation
Business Use
Extent Amount (Rs)
100%
Total / Annual
Rate Amount (Rs)
Amortization Remarks
Actual Usage
Days Amount (Rs)
Business Use
Amount (Rs)
Written Down Value
carried forward
Amount (Rs)
Annex-A
Depreciation, Initial Allowance and Amortization A
Reg/Inc/CNIC No.
Tax Year 2008
209
NTN Reg/Inc/CNIC No.
1998-99
1999-00
2000-01
2001-02
2002-03
Signature
Annex-B Tax Year 2008
Carry forward and brought forward of Unabsorbed Depreciation,
Initial Allowance, Amortization and
Business Losses
(Other than Speculation Business)
261114
261112
B
Particulars Code Amount (Rs.)
1.
(a) B/Forward
(a) B/Forward
(b) Current year
(a) Business income/(loss) for the year after depreciation and amortization 261111
Business income/(Loss) for the year transferred to Return of Total Income for adjustement
against (loss)/income for the year under any other head of income
(b)
(c) Loss for the year surrendered in favour of a holding company 3901
(d) Balance business income/(loss) for the year after depreciation and amortization [Add
1(a) minus 1(b) minus 1(c)]
2. Breakup of balance income/(loss) for the year after depreciation and amortization: 261211
(b) Depreciation for the year including unabsorbed depreciation brought forward 3988
(a) Business income/(loss) for the year before depreciation/amortization 3900
(c) Amortization for the year including unabsorbed amortization brought forward 3987
3. Details of adjustments of brought forward business losses, losses of subsidiary, depreciation and
amortization including unabsorbed depreciation and amortizaton 261311
(a) Business income/(loss) for the year before depreciation and amotization
[from 2(a) above] 261312
(b) Adjustment of brought forward business losses 261313
(c) Adjustment of losses of subsidiary 261314
(d) Adjustment of depreciation including unabsorbed depreciation brought forward 261315
(e) Adjustment of amortization including unabsorbed amortization brought forward 261316
(f) Balance business Income after adjsutment transferred to Return of Total Income [3(a)
minus 3(b) minus 3(c) minus 3(d) minus 3(e), if greater than zero, else Nil] 261317
(g) Balance business loss after adjsutment carry forward [3(a)
minus 3(b) minus 3(c) minus 3(d) minus 3(e), if less than zero, else Nil] 261318
Adjusted against
the income for the
current year
Lapsed(not available for carry
forward) /Attributtable to
PTR income
Balance carried
forward
Taxpayers own Of amalgamating
company
Balance brought forward
OR
For the current year
Amount (Rs.) Amount (Rs.) Amount (Rs.)
4. Details / breakup of business losses brought forward and carried forward
Assessment
Year /
Tax Year
(starting from
earliest year)
Code
Amount (Rs.) Amount (Rs.)
(a) 3900
(b) 3900
(c) 3900
(d) 3900
(e) 3900
(f) 2003 3900
(g) 2004 3900
(h) 2005 3900
(i) 2006 3900
(j) 2007 3900
(k) Current year 3900
5. Details / breakup of un-absorbed depreciation brought forward and carried forward
Total 262422
319288
319288
6. Details / breakup of un-absorbed amortization brought forward and carried forward
Total 262513
262613
(b) Current year 319287
319287
7. Details / breakup of losses of subsidiaries brought forward and carried forward
Total
(a) 2006 3904
3904
(c) Current year 3904
(b) 2007
Total 262714
210
Sub-Total [Add 26(a) to 26(c)]
27. Transfer to the Return of Income [Add 5 plus 25 plus 26(d)]
CPR No.
Signatures
94118
94169
94159
94179
94159
940630
94138
94028
94119
940629
10. On Government securities Evidence of payment attached
12.
Workers Welfare Fund Already Paid
28. Evidence of payment attached 9495
94981
94179
15. Evidence of payment attached
Evidence of payment attached
On payments for execution of contracts
17.
Evidence of payment attached
Tax Collected by car manufacturer
Registration No. Engine / Seating Capacity Owner’s Name
C
Annex-C Tax Year 2008
Tax Already Paid Including Adjustments
NTN Reg/Inc/CNIC No.
Particulars Code Amount of Tax paid (Rs.)
Advance Tax
1.
3. Third installment CPR No.
First installment CPR No.
2. Second installment CPR No.
CPR No.
Evidence of payment attached
Evidence of payment attached 94613
8.
Evidence of payment attached
5. Sub-Total [Add 1 to 4] 9461
7. On dividend Income 94039
Amount of Tax
deducted (Rs.)
94611
94612
4. Fourth installment 94614
(Other than tax collected/deducted on receipts/value of goods subject to final taxation)
Tax Collected/Deducted at Source
6. On import of goods Evidence of payment attached 94019
From salary 94029
Share%
94049
Certificate/Account No. etc. Bank Branch
9. On profit on debt Evidence of payment attached
94049
94049
11. On payments received by non-resident Evidence of payment attached 940539
94049
940619
94018
94043
On Import of CBU motor vehicle by manufacturers Evidence of payment attached
13. On payments for goods Evidence of payment attached
16. On withdrawal from pension fund Evidence of payment attached
14. On payments for services Evidence of payment attached
On cash withdrawal from bank Evidence of payment attached
Certificate/Account No. etc. Bank Branch Share%
94119
94119
94119
19. On financing of carry over trade
18. On trading of shares at a Stock Exchange Evidence of payment attached
Evidence of payment attached 94139
94149
Registration No. Engine / Seating Capacity Owner’s Name Share%
20. With motor vehicle tax (Other than goods transport vehicles) Evidence of payment attached
94149
94149
21.
22. With bill for electricity consumption Evidence of payment attached
Share%
94149
Manufacturer Prticulars
94179
Consumer No. Subscriber’s CNIC Subscriber’s Name
94159
94159
23. With telephone bills, mobile phone and pre-paid cards Evidence of payment attached
Number Subscriber’s CNIC Subscriber’s Name Share%
94169
94169
94169
24. Others
94599
Previous Adjustments Available for Adjustment
Adjustment of Prior Year(s) Refunds Determined by Department
26. Refund adjustments (To the extent adjustment is required against the current year’s tax payable, if any)
Total
25. Sub-Total [Add 6 to 24]
Amount (Rs.) Amount (Rs.) Amount (Rs.)
Refund Assessed
Tax Year Amount (Rs.) Tax Year
(a)
(b) 94981
(c) 94981
Total Tax Already Paid Including Adjustments
9499
(d) Evidence of refund due attached 9498
211
N°
1 Name NTN
2 Bussiness Name Tax Year
3 Business Address Res. Status Resident Non-Resident
4 Nature of Business Sector Process Product Revised N°
5 Representative NTN Assessed N°
6 NTN Top 10 Share Holders’ Names % NTN Top 10 Share Holders’ Names %
Remaining Share Holders
Total 100%
Items Code Code
7 Net Sales 3101 95 Capital 8699
8 Gross Domestic Sales 31011 96 Paid-up Capital 8621
9 Domestic Commission/Brokerage 31021 97 Reserves 8641
10 Gross Exports 31012 98 Accumulated Profits 8661
11 Foreign Commission/Brokerage 31022 99 Surplus on Revaluation 8671
12 Rebates/Duty Drawbacks 3107 100 Long Term Liabilities 8799
13 Cost of Sales 3116 101 Long Term Loans 8701
14 Local Raw Material/ Components 310411 102 Deferred Liabilities 8711
15 Imported Raw Material/ Components 310421 103 Current Liabilities 8899
16 Salaries,Wages 311101 104 Trade & Other Payables 8801
17 Power 311102 105 Short Term Loans 8821
18 Fuel 311103 106 Other Liabilities 8901
19 Stores/Spares 311106 107 Total Capital & Liabilities 8999
20 Insurance 311107 Code
21 Repair & Maintenance 311108 108 Fixed Assets 8199
22 Other Expenses 311118 109 Land 8101
23 Accounting Amortization 3114 110 Building 8111
24 Accounting Depreciation 3115 111 Plant & Machinery 812101
25 Opening Stock 3117 112 Capital Work-in-Progress 8181
26 Finished Goods Purchases (Local) 310412 113 Motor Vehicles 8131
27 Finished Goods Purchases (Imports) 310422 114 Office Equipment 812109
28 Closing Stock 3118 115 Furniture & Fixtures 812103
29 Gross Profit/ (Loss) 3119 116 Current Assets 8299
30 Gross Receipts 3131 117 Investments 8251
31 Markup/ Interest (for Financial Institutions) 31311 118 Cash & Cash Equivalents 8201
32 Leasing 31312 119 Stock in Trade/Stores/Spares 8221
33 Oil & Gas Exploration 31313 120 Trade Receivables 8231
34 Telecommunication 31314 121 Advances/Deposits/Prepayments/Other Receivables 8241
35 Insurance 31315 122 Intangible assets 8401
36 Accounting Gain on Disposal of Intangibles 3135 123 Other Assets 8402
37 Accounting Gain on Disposal of Assets 3136 124 Total Assets 8499
38 Other Revenues/ Fee/ Charges for Services etc. 3131 Code Rate Code
39 Management, Administrative, Selling & Financial expenses 3189 125 Imports 64011 6% 65011
40 Rent/ Rates/ Taxes 3141 126 64012 1% 65012
41 Salaries & Wages 3144 127 64013 2% 65013
42 Travelling/ Conveyance 3145 128 64014 3% 65014
43 Electricity/ Water/ Gas 3148 129 Dividend 64031 5% 65031
44 Communication Charges 3154 130 64032 10% 65032
45 Repairs & Maintenance 3153 131 64033 7.50% 65033
46 Stationery/ Office Supplies 3155 132 Royalties/Fees 640511 15% 650511
47 Advertisement/ Publicity/ Promotion 3157 133 640512 650512
48 Insurance 3159 134 Contracts (Non-Resident) 640521 6% 650521
49 Professional Charges 3160 135 Supply of Goods 640611 3.50% 650611
50 Profit on Debt (Markup/Interest) 3161 136 640612 1.50% 650612
51 Donations 3163 137 640613 650613
52 Directors’ Fees 3177 138 Contracts (Resident) 640631 6% 650631
53 Workers Profit Participation Fund 3179 139 640632 650632
54 Loss on Disposal of Intangibles 3185 140 Exports/ Indenting Commission/ 64071 0.75% 65071
55 Loss on Disposal of Assets 3186 141 Export Services 64072 1% 65072
56 Accounting Amortization 3187 142 64073 1.25% 65073
57 Accounting Depreciation 3188 143 64074 1.50% 65074
58 Bad Debts Provision 31811 144 Foreign Indenting Commission 64075 5% 65075
59 Obsolete Stocks/Stores/Spares Provision 31812 145 Property Income 64081 5% 65081
60 Diminution in Value of Investments Provision 31813 146 Prizes 64091 10% 65091
61 Bad Debts Written Off 31821 147 Winnings 64092 20% 65092
62 Obsolete Stocks/Stores/Spares Written Off 31822 148 Petroleum Commission 64101 10% 65101
63 Selling expenses(Freight outwards etc.) 31080 149 Brokerage/Commission 64121 10% 65121
64 Others 3170 150 Advertising Commission 64122 5% 65122
65 Net Profit/ (Loss) 3190 151 Stock Exchange Commission 64131 0.01% 65131
66 Inadmissible Expenses 3191 152 Goods Transport Vehicles 64141 65141
67 Tax Gain on disposal of Intangibles 319135 153 Total 6599
68 Tax Gain on disposal of Assests 319136 Source Code eipts/Value Rate Code ax Due
69 Other Inadmissible Expenses 319198 154 Property Income not subject to WHT 210101 5% 920235
70 Admissible Deductions 3192 155 Purchase of Locally Produced Edible Oil 310431 1% 920208
71 Tax Amortization 319287 156 Total 9202
72 Tax Depreciation 319288 157 Total of Final & Fixed Tax (153+156)
73 Other Admissible Deductions 319298 158 Tax Paid/ Deducted 94591
74 Income/(Loss) relating to Final and Fixed tax 3199 159 Tax Payable/ Refundable to be transferred to Net Tax Payable 6699
75 Loss for the year surrendered to Holding Company 3901 160 Gross Tax @ 9201
76 Loss acquired from Subsidiary Company and Adjusted 3902 161 Tax Reductions, Credits & Averaging 9249
77 Brought Forward Loss Adjusted/(Loss for the year Carry Forward) 3990 162 Business Turnover 310101
78 Total Income/ (Loss) 9099 163 Minimum Tax 0.5% 920201
79 Business Income/(Loss) 3999 164 Mimimum Tax Exemptions/ Reductions 9217
80 Share from AOP (Untaxed) 312019 165 Adjustment of Minimum Tax 9497
81 Share from AOP (Taxed) 312029 166 Final Tax on Business Turnover 6598
82 Capital Gains 4999 167 Net Minimum Tax Payable 9203
83 Other Sources Income/ (Loss) 5999 168 Net Tax 9299
84 Foreign Income/ (Loss) 6399 169 Tax Already Paid Including Adjustments
85 Deductible Allowances 9139 170 Net Tax Payable
86 Zakat 9121 171 Tax Paid as per CPR No. 9471
87 Workers Welfare Fund 9122
88 Charitable Donations Admissible for Straight Deduction 9124 172 Net Tax Refundable; may be credited to my bank account as under: 9999
89 Taxable Income/ (Loss) 9199
90 Exempt Income 6199
91 Property Income 6102 173 Bank
92 Business Income 6103 174 Branch Name & Code
93 Capital Gains 6104 175 A/C Number
94 Other Sources Income/ (Loss) 6105
I,
Date : Signatures
Assets Amount
Manufacturing/ Trading Account (Including Final/Fixed Tax) Share Holding
Amount
Capital
Amount
IT-1
Share Holding
Capital
Tax Due
Tax Computation Fixed Tax
Liabilities
Name
Balance Sheet
Receipts/ Value
2007
UNDER THE INCOME TAX ORDINANCE, 2001 (FOR COMPANY)
City
Registration
RETURN OF TOTAL INCOME/STATEMENT OF FINAL TAXATION
Adjustments Profit & Loss Account (Including Final/Fixed Tax)
Payment/ Refund Final Tax Statement U/s 115(4)
(dd/mm/yyyy)
Source
Note : Grey blank fields are for official use Total /
Taxable Income Computation
section 172 of the Income Tax Ordinance, 2001) of the Taxpayer named above, do solemnly declare that to the best of my knowledge and belief the information given in this Return/Statement u/s 115(4) is correct, complete and in
accordance with the provisions of the Income Tax Ordinance, 2001, Income Tax Rules, 2002 and the Companies Ordinance 1984.
, holder of CNIC , in my capacity as Principal Officer / Trustee / Representative (as defined in
212
N°
CNIC NTN
1 Name Gender Male Female
2 Bussines Name Year Ending
3 Business Address Tax Year
4 Res. Address Person IND AOP
5 Res. Status Non-Res. Resident
6 Principal Activity Sector Process Birth Date
7 Employer NTN Name Revised N°
8 Representative NTN Name RTO/LTU
% in Capital
Others
100%
Code
9 3101
10 3116
11 3117
12 3104
13 3111
14 3118
15 3119
16 3131
17 3170
18 3190
19 3191
20 3192
21 3199
22 3990
23 Total Income [Sum of 24 to 30] 9099
24 1999
25 3999
26 312019
27 312029
28 4999
29 5999
30 6399
31 Deductible Allowances [32 + 33 + 34] 9139
32 9121
33 9122
34 9124
35 Exempt Income [Sum of 36 to 39] 6199
36 6101
37 6103
38 6104
39 6105
40 9199
41 @ 9201
42 9249
43 9499
44 4594
45 9999
46 Tax Paid as per CPR No. 9471
47 9999
48 Bank
49 Branch Name & Code
50 A/C Number
Manufacturing/ Trading Profit & Loss
Account ( including Final/Fixed Tax)
Profit & Loss Expenses
Admissible Deductions (Attach Annex-A for Tax Depreciation)
Adjustments
Income/(Loss) relating to Final and Fixed tax
Brought Forward Loss Adjusted/(Loss for the year Carry Forward) Attach Annex-B)
Net Profit/ (Loss) [(15 + 16) – 17]
Inadmissible Expenses
Closing Stock
NTN Capital Amount
UNDER THE INCOME TAX ORDINANCE, 2001 (FOR INDIVIDUAL / AOP)
Tax
Computation
Net Tax Refundable, may be credited to my bank account as under:
Tax Reductions, Credits & Averaging
Tax Already Paid including Adjustments (Attach Annex-C)
Gross Tax
Net Tax Payable [(41 – 42 – 43) + 44]
Note-1 : Grey blank fields are for official use
Payment /
Refund
Signatures
Other Sources Income/ (Loss)
Taxable Income/ (Loss) [23 – 31]
Charitable donations admissible for straight deduction
Salary Income
Workers Welfare Fund
Salary Income including Arrears
Tax Payable/ Refundable (transferred from Final/ Fixed Tax )
Zakat
Proprietor/Member/Partners’ Name
Items Total
Opening Stock
Manufacturing/ Trading Expenses
Purchases
Ownership
Product
IT-2 (Page 1 of 2)
Registration
2007
E-Mail Address Phone
RETURN OF TOTAL INCOME/STATEMENT OF FINAL TAXATION
Total / Taxable Income Computation
Business Income/ (Loss) [(18 + 19) – 20-21-22]
Share from AOP (Untaxed)
Share from AOP (Taxed)
Capital Gains
Other Sources Income/ (Loss)
Foreign Income/ (Loss)
Business Income
Total
Capital Gains
Other Revenues/ Fee/ Charges for Services
Gross Profit/ (Loss) [9-10]
Gross Sales
Cost of Sales [11 + 12 + 13 – 14]
____________________________________________________________________
In Part-II IT-2 Page 1
A. The entry relating to S.No. 29 i.e. “Gross Penalty (loss)” substituted by S.R.O. 887(I)/2007, dated 03.09.2007.
B. The entry relating to S.No. 81 i.e. “Income/ (loss) from Other Sources” substituted by S.R.O. 887(I)/2007, dated
03.09.2007.
C. The entry relating to S.No. 92 i.e. “Income/ (loss) from Other Sources” substituted by S.R.O. 887(I)/2007, dated
03.09.2007.
213
D. In S.No.4, the word “City” omitted by S.R.O.939(I)/2007, dated 13.09.2007.
E. In S.No.4 in third column, the figure and word “%age” substituted by S.R.O.939(I)/2007, dated 13.09.2007.
F. In S.No.4 in fourth column, the word “Capital” substituted by S.R.O.939(I)/2007, dated 13.09.2007.
G. In S.No.9, the words and letter “including PTR Sales” omitted by S.R.O.939(I)/2007, dated 13.09.2007.
H. In S.No.15, the words and letters “excluding PTR G.P” substituted by S.R.O.939(I)/2007, dated 13.09.2007.
I. In S.No.17, the brackets, words and letter “(Attach Annex-A for Tax Depreciation” omitted by S.R.O.939(I)/2007,
dated 13.09.2007.
J. In S.No.19, brackets and asterisk “(*)”, omitted by S.R.O.939(I)/2007, dated 13.09.2007.
K. In S.No.20, after the word “Deduction”, brackets letters and words “(Attach AnnexA for Tax Depreciation” added
by S.R.O.939(I)/2007, dated 13.09.2007.
L. S.No.21 substituted by S.R.O.939(I)/2007, dated 13.09.2007.
M. In S.No.22, the brackets and words “(Attach Annex-B)” added by S.R.O.939(I)/2007, dated 13.09.2007.
N. In S.No.23, the brackets, words and figures “(sum of 24 to 30)” added by S.R.O.939(I)/2007, dated 13.09.2007.
O. In S.No.25, the brackets and figures “[(18 + 19) – 20]” substituted by S.R.O.939(I)/2007, dated 13.09.2007.
P. In S.No.40, the words, brackets and figures “Net Taxable Income/(Loss) [38 – 39]” substituted by S.R.O.939(I)/2007,
dated 13.09.2007.
Q. In the end “Note-2” omitted by S.R.O.939(I)/2007, dated 13.09.2007.
N°
NTN
T.Y
Business Name RTO/LTU
Source Code % Code
51 Imports 64011 6 65011
52 64012 1 65012
53 64013 2 65013
54 64014 3 65014
55 Dividend 64031 5 65031
56 64032 10 65032
57 64033 7.5 65033
58 Profit on Debt 64041 10 65041
59 Royalties/Fees 640511 15 650511
60 640512 650512
61 Contracts (Non-Resident) 640521 6 650521
62 Supply of Goods 640611 3.5 650611
63 640612 1.5 650612
64 640613 650613
65 Services 640621 6 650621
66 Contracts (Resident) 640631 6 650631
67 640632 650632
68 Exports/Indenting Commission/Exp.Services 64071 0.75 65071
69 64072 1 65072
70 64073 1.25 65073
71 64074 1.50 65074
72 Foreign Indenting Commission 64075 5 65075
73 Property Income subject to WHT 64081 5 65081
74 Prizes 64091 10 65091
75 Winnings 64092 20 65092
76 Petroleum Commission 64101 10 65101
77 Brokerage/Commission 64121 10 65121
78 Advertising Commission 64122 5 65122
79 Stock Exchnage Commission 64131 0.01 65131
80 Goods Transport Vehicles 64141 65141
81 Retail Turnover upto 5 million 310102 0.5 920202
82 Retail Turnover above 5 million 310103 920203
83 6599
Source Code % Code
84 Property Income not subject to WHT 210101 5 920235
85 Purchase of locally produced edible oil 310431 1 920208
86 Flying Allowance 112001 2.5 920234
87 Employment Termination Benefits 118301 920211
88 Total ( 84 to 87) 9202
89 Total Tax Due (83 + 88)
90 Tax Paid/ Deducted Evidences Attached 94591
91 Tax Payable/ Refundable to be transferred to Net Tax Payable (to 44)
I,
holder of CNIC No. , in my capacity
Name
CNIC
2007
IT-2 (Page 2 of 2)
Tax Due
RETURN OF TOTAL INCOME/STATEMENT OF FINAL TAXATION
Final Tax Statement U/s 115(4)
Receipts/Value
Fixed Tax
Receipts/Value
Date : Signatures
Signatures & Stamp
of Receiving Officer with Date
Acknowledgement
Tax Due
UNDER THE INCOME TAX ORDINANCE, 2001 (FOR INDIVIDUAL / AOP)
Total ( 51 to 82)
Note : Grey blank fields are for official use
as Self/ Partner or Member of Association of Persons/Representative (as defined in section 172
of the Income Tax Ordinance, 2001) of Taxpayer named above, do solemnly declare that to
the best of my knowledge and belief the information given in this Return/Statement u/s 115(4)
and the attached Annex(es), Statement(s), Document(s) or Detail(s) is/are correct and complete
in accordance with the provisions of the Income Tax Ordinance, 2001 and Income Tax Rules,
2002 (The alternative in the verification, which is not applicable, should be scored out).
Verification
214
—————————————
In IT-2 Part-II, Page-2
A. In third column, the letter “TY” and the figure “2007” in fourth column inserted by
S.R.O.939(I)/2007, dated 13.09.2007.
B. In S.Nos. 81 and 82, the figure “10” substituted by S.R.O.939(I)/2007, dated 13.09.2007.
C. The oblique, words and figure “/Statements u/s 115(4)” in the verification portion inserted
by S.R.O.939(I)/2007, dated 13.09.2007.
Signatures
2.
8
9
10
11
Total
Intangibles
Particulars/Description
Intangibles
12
Any expenditure providing
advantage or benefit for a period
Total
S. No
1.
2.
3.
4
5
6
7
S. No
1.
Machinery and equipment used in
manufacture of ITproducts
Air crafts and aero engines
Below ground installationsof
mineral oil concerns
Off shoreplatforms andproduction
installations of mineral oil concerns
DepreciableAssets
Particulars/Description
Building
Furniture including fittings
Machinery andplant (not otherwise
specified)
Motor vehicles plyingfor hire
Motor vehicles not plying for hire
Ships
Technical or professional books
Computer hardware including
printer, monitor and allied items
Code
8141
8161
812108
81314
812105
812107
Code
8111
812103
812101
81312
81311
81313
812104
812102
Acquired on
(Date)
dd/mm/yyyy
Brought forward
Written Down
Value
Amount (Rs)
Useful Life
Year(s)
Additions
Amount (Rs)
(Deletions)
Amount (Rs)
Original Cost
Amount (Rs)
Total
Amount (Rs) Rate
Initial Allowance on
additions, if any
Amount (Rs) Rate
Depreciation
Business Use
Extent Amount (Rs)
Total / Annual
Amount (Rs)
Amortization Remarks
Actual Usage
Days Amount (Rs)
Business Use
Extent Amount (Rs)
Annual
Amount (Rs)
Written Down Value
carried forward
Amount (Rs)
Annex-A
Depreciation, Initial Allowance and Amortization
2007
A
NTN CNIC
_____________________
In Annex-A
A. The word “Signatures” added in the end by S.R.O.939(I)/2007, dated 13.09.2007.
215
Signature
(l)
Total [Add 3(a)
to 3(k)]
(k) Current year
(j)
(i)
(h)
(g)
(f)
(e)
(d)
(c)
(b)
(a)
3. Details / breakup of un-absorbed amortization brought forward and carried forward
(l)
Total [Add 2(a)
to 2(k)]
(k) Current year
(j)
(i)
(h)
(g)
(e)
(f)
(d)
(c)
(b)
(a)
2. Details / breakup of un-absorbed depreciation brought forward and carried forward
(l)
Total [Add 1(a)
to 1(k)]
(k) Current year
(j)
(i)
(h)
(g)
(f)
(e)
(d)
(c)
(b)
(a)
1. Details / breakup of business losses brought forward and carried forward
Assessment
Year /
Tax Year
(starting from
earliest year)
Code
Amount (Rs.)
Adjusted against the
income for the
current year
Annex-B
Carry forward and brought forward of Unabsorbed
Depreciation, Initial Allowance, Amortization and
Business Losses
(Other than Speculation Business)
2007
B
Amount (Rs.) Amount (Rs.) Amount (Rs.)
NTN CNIC
Lapsed
(not available for
carry forward)
Balance carried
forward
Balance brought forward
loss
OR
Loss for the current year
216
Sub-Total [Add 21(a) to 21(c)]
22. [Add 5 plus 20 plus 21(d)] and transfer to the main return IT-2 (1 of 2) Col 43)
CPR No.
Signatures
Total Tax Already Paid Including Adjustments
9499
(d)
Workers Welfare Fund Paid with Return
23 Evidence of payment attached 9308
Evidence of refund due attached 9498
(c)
(b)
(a)
Amount (Rs.) Amount (Rs.) Amount (Rs.)
Refund Assessed
Tax Year Amount (Rs.) Tax Year
Previous Adjustments Available for Adjustment
Adjustment of Prior Year(s) Refunds Determined by Department
21. Refund adjustments (To the extent adjustment is required against the current year’s tax payable, if any)
Current Adjustments
20. Sub-Total [Add 6 to 19]
19. Others
94599
94169
94169
94169
Number Subscriber’s CNIC Subscriber’s Name Share%
94159
18. With telephone bills, mobile phone and pre-paid cards Evidence of payment attached
94159
94159
Consumer No. Subscriber’s CNIC Subscriber’s Name Share%
94149
17. With bill for electricity consumption Evidence of payment attached
94149
94149
Engine / Seating Capacity Owner’s Name Share%
94139
16. With motor vehicle tax (Other than goods transport vehicles) Evidence of payment attached
Registration No.
15. On financing of carry over trade Evidence of payment attached
14. On trading of shares at a Stock Exchange Evidence of payment attached 94138
94119
94119
94119
Bank Branch Share%
94028
13. On cash withdrawal from bank Evidence of payment attached
Certificate/Account No. etc.
12. On withdrawal from pension fund Evidence of payment attached
11. On payments for services Evidence of payment attached 940629
10. On payments for goods Evidence of payment attached
94049
940619
9. On payments received by non-resident Evidence of payment attached 940539
94049
94049
8. On profit on debt Evidence of payment attached
Certificate/Account No. etc. Bank Branch
From salary 94029
Share%
Tax Collected/Deducted at Source
(Other than tax collected/deducted on receipts/value of goods subject to final taxation)
6. On import of goods Evidence of payment attached 94019
7.
Evidence of payment attached
5. Sub-Total [Add 1 to 4] 9461
4. Fourth installment CPR No.
3. Third installment CPR No. Evidence of payment attached
2. Second installment CPR No.
Evidence of payment attached
Evidence of payment attached
1. First installment CPR No.
Particulars Code Amount (Rs.)
Advance Tax
C
Annex-C 2007
Tax Already Paid Including Adjustments and with Return
NTN CNIC
]
_______________________________
In Annex-C
A. In S.No.22, brackets, word and figures “[Add 5]” added by S.R.O.939(I)/2007, dated
13.09.2007
217
___________________________
Tax Year
LTU/RTO/MTU/Zone Code
Circle Code
NTN *
Registration No.
* In case of a new taxpayer without NTN, please attach prescribed NTN application Date of Registration
1.
Name (In Block Letters)
Is this your mailing address
Fax
Principal Office / Head Office Is this your mailing address
Address
Telephone Fax
(d) E-Mail
5. Type (See code descriptions at back)
Nature of Company
Public/Private
Banking/Non-Banking Financial Institution/Others
6. Residential Status
If resident: (i) Particulars of the directors As per Annex I attached
(ii) Foreign controlled resident company
If non-resident:
(i) Country of incorporation/formation/control and management
(ii) Permanent Establishment in Pakistan
(iii) Name of representative
(iv) Address of representative
7. Contact Person’s
Name
Designation (c) Telephone
8. Authorised Representative, if any
Name
Status Legal Representative (c) Telephone
Particulars
9. Income/(Loss) from Business * As per Annex IIB attached
As per Annex IIB & IID attached
10. Share from AOP * (a) Un-taxed As per Annex III attached
(b) Taxed (for rate purpose only) As per Annex III attached
11. Income/(Loss) from Property * As per Annex IV attached
12. Capital Gains * As per Annex V attached
13. Income/(Loss) from Other Sources * As per Annex VI attached
14. Foreign Income As per Annex VII attached
15. Total Income/(Loss) [Add 9 to 14]
16. (a) Zakat paid under the Zakat and Ushr Ordinance, 1980
(b) Workers Welfare Fund
(c) Charitable donations qualifying for straight deduction
(d) Sub-Total [Add 16(a) to 16(c)]
17. Taxable Income/(Loss) [15 minus 16(d)]
* Excluding foreign income separately disclosed at S. No. 14 Continued..P/2
Yes No
9199
(a)
(b)
(c)
(a)
(c)
(b)
(i) (ii)
For Assistance – Call Help line Center at Tele: 0800-00-227, 051-111-227-227, Fax 051-9205593 and E-mail at helpline@cbr.gov.pk
9124
9139
9121
9122
6379
9099
4999
5999
31204
2999
OR
3999
31203
Code Amount (Rs.) Amount (Rs.)
Computation of Taxable Income
(a)
(b) ITP CA C&MA Others
Yes No
0009
Resident Non-Resident
Yes No
004
0001 0002 0005
70 80 90
005 009
63 64
001
65
(b) 002 003
11 20 30 40 51 52
62
(a) 12 61
(b) (c)
4.
(a)
(c)
(d) E-Mail
(b) Telephone (i) (ii)
(a) Address
2.
3. Registered Office Yes No
Year Ending On (dd/mm/yyyy)
Taxpayer’s (Company) Profile
Original for the Department / Duplicate for the Taxpayer
(Please mark