Law: Income Tax Ordinance, 1979

Section: SecondSched.,PartI,item(39),Ss.49,16(2)& 14(1),14,16&49

Law: Income Tax Act, 1922

Section: 4(3)(vi)

(a) Income Tax Ordinance (XXXI of 1979)----Second Sched., Part I, item (39), Ss.49, 16(2) & 14(1) Income tax Act (XI of 1922), S.4(3)(vi) Special allowance Exemption Provision in the two statutes is not similar Scope of special allowance enjoying exemption under the Repealed Act of 1922 was broader than the special allowance or benefit, granted exemption under Second Sched., Part 1, item 39 of the Ordinance, 1979 Income, profit or gains falling under any of the clauses specified in S.4(3) of the Repealed Act of 1922 were not to be included in the total income of the person receiving them but under the Ordinance of 1979 by virtue of S..19 all such allowances or any sum exempt from tax is to be included in the total income but it has to be deducted from such income for the purpose of computing the tax payable by an assessee All the: provisions contained in Second Schedule have to be read with S.49 of the Ordinance Special allowance granted to meet the expenses in performance of duties of an office or employment of profit thus is to be included in the total income of the assessee in the first step and thereafter sc much of it is allowed exemption as has been incurred on the expenses other than entertainment, or conveyance or other perquisite within the meaning of S.16(2). The provisions in the two statutes are not similar. Under the Repealed Income tax Act, 1922 any special allowance, benefit or perquisite specifically granted to meet expenses wholly and necessarily incurred in the performance. of duties of an office or employment of profit enjoyed exemption, while under clause (39) of Part 1 of the Second Schedule to the Income Tax Ordinance, 1979 it is provided that the special allowance or benefit should not be in the nature of entertainment or conveyance allowance or other perquisite within the meaning of subsection (2) of section 16. Thus, the scope of special allowance enjoying exemption under the Repealed Income tax Act, 1922 was broader than the special allowance or benefit granted exemption under clause (39) of Part 1 of the Second Schedule to the Income Tax Ordinance, 1979. There is another significant departure made by the legislature. It is…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492