NPOs, trusts, welfare bodies: tax credit equal to 100 percent of tax liability allowed

Finance Act, 2014 has allowed non-profit organisations, trusts or welfare institutions, tax credit equivalent to 100 percent of the tax payable, including minimum tax and final taxes payable under Income Tax Ordinance, 2001.
According to the Finance Act issued here on Monday, non-profit organisations, trusts or welfare institutions shall be allowed a tax credit equal to 100 percent of the tax payable, including minimum tax and final taxes payable under any of the provisions of the Ordinance, subject to the following conditions: A return has been filed; tax required to be deducted or collected has been deducted or collected/paid and withholding tax statements for the immediately preceding tax year have been filed.
The persons eligible for tax credit under this section included any income of a trust or welfare institution or non-profit organization from donations, voluntary contributions, subscriptions, house property, investments in the securities of the Federal Government and so much of the income chargeable under the head "income from business" as is expended in Pakistan for the purpose of carrying out welfare activities:
The Finance Act said a trust administered under a scheme approved by the Federal Government in this behalf and established in Pakistan exclusively for the purposes of carrying out such activities as are for the benefit and welfare of ex-servicemen and serving personnel, including civilian employees of the Armed Forces, and their dependants or ex-employees and serving personnel of the Federal Government or a Provincial Government and their dependants, where the said trust is administered by a committee nominated by the Federal Government or, as the case may be, a Provincial Government; a trust or welfare institution or non-profit organization approved by Chief Commissioner for the purposes of this sub-clause; income of a university or other educational institution being run by a non-profit organization existing solely for educational purposes and not for purposes of profit and any income which is derived from investments in securities of the Federal Government, profit on debt from scheduled banks, grant received from Federal Government or Provincial Government or District Governments, foreign grants and house property held under trust or other legal obligations wholly, or in part only, for religious or charitable purposes and is actually applied or finally set apart for application thereto.
Provided that nothing in this clause shall apply to so much of the income as is not expended within Pakistan. Provided further that if any sum out of the amount so set apart is expended outside Pakistan, it shall be included in the total income of the tax year in which it is so expended or of the year in which it was set apart, whichever is the greater, and the provisions of section 122 shall not apply to any assessment made or to be made in pursuance of this proviso.
Explanation.- Not withstanding anything contained in the Mussalman Wakf Validating Act, 1913 (VI of 1913), or any other law for the time being in force or in the instrument relating to the trust or the institution, if any amount is set apart, expended or disbursed for the maintenance and support wholly or partially of the family, children or descendants of the author of the trust or the donor or, the maker of the institution or for his own maintenance and support during his life time or payment to himself or his family, children, relations or descendents or for the payment of his or their debts out of the income from house property dedicated, or if any expenditure is made other than for charitable purposes, in each case such expenditure, provision, setting apart, payment or disbursement shall not be deemed, for the purposes of this clause, to be for religious or charitable purposes or any income of a religious or charitable institution derived from voluntary contributions applicable solely to religious or charitable purposes of the institution. Provided that nothing contained in this clause shall apply to the income of a private religious trust which does not ensure for the benefit of the public, the Finance Act 2014 added.