THE SECOND SCHEDULE-EXEMPTION REDUCTION OF INCOME TAX 20144171242627332BasicConceptsofTaxonIncome
FBR exempts pensioners from income tax
Reported by: `CT Report December 16, 2017
ISLAMABAD: Federal Board of Revenue (FBR) has said that income of all pensioners is exempt from tax and same in case of pensioners of armed forces.
The FBR clarified that tax is already being deducted in respect of all personnel of Armed Forces deriving taxable salaries and only electronic filing of returns is being facilitated.
“Moreover, pension of ex-servicemen of Armed Forces, like every other pensioner, is exempt from tax,” the FBR said.
The FBR further said that tax payers outreach program had been launched to approach and facilitate taxpayers, being individual employees, through their employers for filing of their returns. This program is a step towards broadening the tax base in the country. Pakistan Army took the lead in this respect and subsequently FBR has started a series of workshops to educate, motivate and facilitate the taxpayers to file their Income Tax Returns. Following this lead, various heads of large organizations and leading banks approached FBR in this respect.
In response different teams were constituted led by senior Members of FBR who conducted various meetings with heads of these organizations to create understanding and awareness about tax obligations and offered facilitation to the taxpayers to boost filing of Income Tax Returns.
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What are the tax rates on pension?
By admin | September 22, 2018
Pension means a periodical payment granted not in respect of any right, privilege, perquisite or office, but on account of past services after retirement, or on particular merits, and is taxed as salary. Pension received by a citizen of Pakistan is exempt from levy of tax under clause 8 of Part I of Second Schedule, subject to certain exceptions as he must not be working for the same employer in any capacity for any remuneration or reward. However, where the person receives more than such pensions, the exemption applies only to the higher of the pension received.
Category: Income Tax Tags: Income Tax Ordinance 2001, Pakistan Tax Lawyer