The Federal Board of Revenue (FBR) will charge income tax on payment under the compulsory Magnetisation of Transport Facility for Civil Servants in BS-20 to BS-22 at the rate of 5 percent as a separate block of income. In this connection, the FBR has issued a notification here on Thursday.
Through SRO No 569(I)/2012, the tax on payment under the compulsory Magnetisation of Transport Facility for Civil Servants in BS-20 to BS-22 shall be changed at the rate of 5 percent as a separate block of income. Following is the text of the notification issued here on Thursday:
"In exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 2001 ( XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance, Namely.
In the aforesaid Schedule, in Part II, after clause (26), the following new clause shall be added, namely. (27) The tax on payments under the Compulsory Magnetisation of Transport Facility for Civil Servants in BS-20 to BS-21( as reduced by deduction of driver's salary) shall be charged at the rate of 5 percent as a separate block of income," it added.