S.R.O. 510(I)/2002, Islamabad, the 8th August, 2002

SROS: S.R.O. 510(I)/2002, Islamabad, the 8th August, 2002 DRAFT AMENDMENT IN INCOME TAX ORDINANCE, 2001(SALARY TAXATION) S.R.O. 510 (I)/2002, Islamabad, the 8th August, 2002:- The following draft amendment in the Income Tax Rules, 2002, proposed to be made in exercise of the powers conferred by sub-section(1) of section 237 of the Income Tax Ordinance, 2001(XLIX of 2001), is hereby published, as required by sub-section(3) of the said section, for the information of all persons likely to be affected thereby, and notice is hereby given that the draft will be taken into consideration after fifteen days of its publication in the official Gazette. Any objection or suggestion, which may be received from any person in respect of the said draft before the expiry of the aforesaid period, shall be considered by the Central Board of Revenue. In the Income Tax Rules, 2002, in Chapter II for PART-I, the following shall be substituted, namely:- CHAPTER-II DETERMINATION OF INCOME - HEADS OF INCOME PART-1: SALARY 3. Valuation of perquisites, allowances benefits.- (1) For the purposes of computing the income chargeable to tax under the head salary, the value of perquisites, allowances and benefits includable in the said income shall be determined in accordance with the rule 4 to 9 (4) For the purpose of determining the value of perquisites, allowances and benefits under rule 3,- (a) annual value of an accommodation means the sum for which the accommodation might reasonably be expected to let from year to year; (b) basic salary means the pay or allowances payable monthly or otherwise, but does not include- (i) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned; (ii) employers contribution to a recognized provident fund or a fund to which the Provident Funds Act, 1925(XIX of 1925), applies and the interest credited on the accumulated balance of an employee in such fund; (iii) allowances which are exempt from the payment of tax under any provision of this Ordinance; (iv) allowances and perquisites referred to in sub-clauses(b) to(f) of sub-section(2) of section 12, sub-section(3) of section…