CIRCULAR NO. 12 OF 1980, Islamabad, the 12th June, 1980

EXEMPTION OF SPECIAL ALLOWANCES OR BENEFITS UNDER CLAUSE (25) OF THE SECOND SCHEDULE TO INCOME TAXORDINANCE, 1979 C.No.5(11)IT-I/80 Islamabad, the 12th June, 1980 CIRCULAR NO. 12 OF 1980 (INCOME TAX) SUBJECT: EXEMPTION OF SPECIAL ALLOWANCES OR BENEFITS UNDER CLAUSE (25) OF THE SECOND SCHEDULE TO INCOME TAX ORDINANCE, 1979 CIRCULAR NO. 12 OF 1980, Islamabad, the 12th June, 1980:- Clause (25) of the Second Schedule to Income Tax Ordinance, 1979 exempts "any special allowance or benefit (not being entertainment or conveyance allowance or other perquisite within the meaning of sub-section (2) of Section 16) specifically granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit. The said clause (25) is same in substance as clause (vi) of Section 4(3) of the repealed Income Tax Act, 1922. 2. A number of queries have been raised as to the type of allowance/expenses qualifying for exemption under the said…