Whatsapp

" COMMENTS, EFFECTS AND IMPLICATIONS   COMMENTS, EFFECTS AND IMPLICATIONS OF THE AMENDMENTS MADE IN THE INCOME TAX ORDINANCE, 2001 BY THE FINANCE ACT, 2012   By Habib Fakharruddin, F.C.A., Rawalpindi   1. General.---All amendments made in the Income Tax Ordinance, 2001 through Finance Act, 2012 are effective from July 01, 2012 or applicable from the Tax Year 2013, as the case may be, unless otherwise stated against the respective amendment. Amendments of technical, editorial and consolidation of the scattered provisions having no material effect have not been included in these comments.   All references of clauses, subsections, sections, schedules etc. in these comments are of Income Tax Ordinance, 2001.   2. Definition of "NCCPL" - Section 2(35AA).---A new definition of "NCCPL" for the purposes of regulating the entire regime of taxation of capital gains on listed "Securities" and the related amnesty has been inserted. The new definition reads as under:--   (35AA) "NCCPL" means National Clearing Company of Pakistan Limited, which is a company incorporated under the Companies Ordinance, 1984 (XLVII of 1984) and licensed as "Clearing House" by the Securities and Exchange Commission of Pakistan;   The term "Securities" used in this definition means share of a public company, vouchers of Pakistan Telecommunication Corporation, Modaraba Certificate, an instrument of redeemable capital and derivative products.   3. Loan to employees - Sections 13(7) and 13(14).---Loan given to an employee bearing rate of interest below the "bench mark rate" or free of interest is treated as a perquisite in the hands of employee to the extent of the difference in interest calculated…