Circular No. 15 of 2004, Islamabad, July 3, 2004

DEDUCTION OF TAX FROM SALARY FOR THE TAX YEAR COMMENCING ON 1ST JULY 2004 GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE ***** No.F.4(1)ITP/2004-SAL Islamabad, July 3, 2004 Circular No. 15 of 2004 (Income Tax) Subject: DEDUCTION OF TAX FROM SALARY FOR THE TAX YEAR COMMENCING ON 1ST JULY 2004. Circular No. 15 of 2004, Islamabad, July 3, 2004:- The ta x liability of salaried taxpayers where salary constitutes more than 50% of the total income from all sources for the tax year 2005 shall be computed in accordance with the provisions of sections 12, 13 and 14 of Income Tax 0rdinance, 2001 read with rules 3 to 9 of Income Tax Rules, 2002. 2. The taxpayers would be entitled to the following relief: a. exemption of basic threshold of Rs.100,000; b. reduction in tax liability as provided in clause (1) (1) of Part-III of the Second Schedule to the Income Tax Or dinance, 2001, as per following schedule: S No. Income Slab Reduction in Tax liability 1. Where income exceeds Rs.60,000 but does not exceed Rs.80,000 70% 2. Where income exceeds Rs. 80,000 but does not exceed Rs.100,000 60% 3. Where income exceeds Rs.100,000 but does not exceed Rs.150,000 50% 4. Where income exceeds Rs. 150,000 but does not exceed Rs.200,000 40% 5. Where income exceeds Rs.200,000 but does not exceed rs,300,000 30% 6. Where income exceeds Rs.300,000 but does not exceed Rs.500,000 20% 7. Where income exceeds Rs.500,000 but does not exceed Rs.1,000,000 10% 8. Where income exceeds Rs.1,000,000 5% c. further reduction of 50% of tax available to the senior citizens aged 65 years or more and earning income upto Rs.300, 000/-under clause (1A) of the said schedule shall also be applicable to salaried persons; and d. additional reduction of 50% in tax liability in case of a full time teacher or researcher employed in a non -profit education or research institution, including Govt. training or research institution, duly recognized by a Board of Education or a university or University Grants Commission under-clause (1)(2) of the said schedule. 3. TAXATION OF PERQUISITES AND ALLOWANCES WHERE SALARY INCOME EXCEEDS RS.600,000. The method of valuation of perquisites and benefits under Income…