Part I        Rate Of Income Tax

Part II      Rate Of Super Tax

Part III    Rate Of Surcharge

Part IV

Part V     Rate Of Income Tax For Companies

(A)  In the case of every individual, unregistered firm, association of persons, Hindu undivided family and artificial juridical person referred to in clause (32) of section 2, not being a case to which paragraph AA or paragraph B of this part applies the income tax shall be charged on the total income, excluding income to which section 80B, 80C and 8OCC apply, at the following rates:-

Provided that-

(a)    no income tax shall be payable by an assessee where his total income does not exceed-

(i)     Rs. 50,000 in case the total income consists of, or includes, any income chargeable under the head "salary", and such income constitutes more than 50% of his total income;

Sub-clause (ii) omitted which reads as follows:

(ii)        Rs. 60,000 in the case of a working woman where the total income consists of, or includes, any income chargeable under the head "salary", (excluding salary received as director of a company) and such income constitutes more than 50% of her total income;

and

(iii)   Rs. 40,000 in other cases.

(b)    The income tax payable shall be reduced by-

(i)     Rs. 2,500, in case the total income consists of, or includes, any income chargeable under this head "salary", and such income constitutes more than 50% of his total income;

Sub Clause (ii) omitted by Finance Ordinance, 2001 which previously reads as follows :

(ii)       Rs. 3,000, in the case of a working woman where the total income consists of, or includes, any income chargeable under the head "salary" (excluding salary received as director of a company), and such income constitutes more than 50% of her total income;

(iii)   Rs. 2,000, in other cases; and

(iv)   Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above as on first day of the relevant income year and earning income upto Rs. 200,000, in addition to any other rebate admissible under the law.

(d)    notwithstanding anything contained in this Ordinance, no rebate for any allowance under sections 39, 40, 41, 43, 44, 44A or 46 shall be admissible;

(e)    notwithstanding anything contained in this Ordinance, the rebate for any allowance under section 47 shall be computed at the average of tax and allowed accordingly;

(f)    where the total income includes any income from a share of the income, profits and gains of a firm to which paragraph C of Part II applies, such portion of the super tax payable under the said paragraph as bears to the total amount of such super tax the same proportion as his share of income, profits and gains of the firm bears to the total income of the firm shall be added to the income tax payable by such partner under this paragraph, and, if the sum so arrived at exceeds 20% of the total income of such partner (including his share of income, profits and gains of the firm before the deduction of super tax), the amount of income tax payable by him under this paragraph shall be reduced by the amount of such excess; and

(g)    in the case of an assessee whose income consisting of, or including any income chargeable under the head "salary", (inclusive) of allowances and perquisites) exceeds Rs. 300,000, income tax shall be charged in respect of income representing allowances and perquisites, at the following rates:

Where the amount representing the value of allowances and perquisites:

Provided that for the assessment year 1997-98.

(a)    the tax liability of an assessee in whose case valuation of perquisites, allowances and benefits for the purposes of computing income under the head "salary" is made under sub-rule (IA) of rule 3 of the Income Tax Rules, 1982, shall be:

(i)     the tax computed on total income on the basis of valuation of perquisites under sub-rule (1) of rule 3 of the said Rules;

(ii)    three per cent of the amount representing the difference between the value of perquisites, benefits and allowances computed under sub-rule (1A) and the value computed under sub-rule (1) of the rule 3 said Rules; and

(b)    for the purposes of computing the income chargeable under the head "Salary", the value of perquisites, allowances and benefits in the case of employees of Pakistan International Airlines and journalists covered under the Wage Board Awards shall be computed under the provisions of sub-rule (1) of the rule 3 of the said Rules :

Provided further that nothing contained in this clause shall apply in the case of any assessee for any assessment year commencing on or after the first day of July, 2000.

(h)    Notwithstanding anything in clause (g), for the purpose of assessment for the assessment year 1999-2000, in the case of an assessee whose income consisting of, or including any income chargeable under the head "salary" (inclusive of allowances and perquisites) exceeds Rs. 300,000, income tax shall be charged in respect of income representing allowances and perquisites, at the following rates:

Where the amount representing the value of allowances and perquisites,-

(i)     For the purpose of deduction of tax at source under sub-section (1) of section 50, the tax in respect of the income for the financial year 1998-1999 covered by clause (h) shall be computed at the rates specified in that clause.

(j)    For the purposes of assessment, where the total income of an assessee comprises or includes any income chargeable under the head "salary" and such income is more than fifty per cent of his total income, the rates specified in this paragraph shall be effective from the assessment year commencing on or after the first day of July, 2000:

Provided further that in the said cases, the entry at serial number 7 in this paragraph, shall have effect as if for the figure "35", the figure "30" was substituted;

Provided further that for the purposes of deduction of tax from salary under sub-section (1) of section 50, the rates specified in this paragraph shall, subject to the first proviso, apply in respect of income for the income year 1999-2000 and thereafter.

Explanation.- For the removal of doubt, it is hereby declared that for the purposes of assessment for the assessment year 1999-2000, the rates of tax applicable to aforesaid cases shall be the same as given in this paragraph as it stood before its amendment, through Finance Act, 1999, and in clause (h) in respect of the income representing allowances and perquisites.

Paragraph (AA) omitted which reads as follows :

(AA)  Notwithstanding anything contained in Paragraph A, the rates of income tax for individuals, unregistered firms, association of persons and Hindu undivided families who qualify for assessment under the scheme of self assessment made by the Central Board of Revenue, under section 59 for the assessment year 1999-2000, income tax shall be payable at the following rates:-

A1.   Notwithstanding anything contained in paragraph A, in the case of every individual, unregistered firm, association of persons, Hindu undivided family and artificial juridical person referred to in clause (32) of section 2, not being a case to which paragraph B of this part applies, the income tax shall be charged on the total income, excluding income to which section 80B, 80BB, 80C, 80CC or 80CD apply, for any assessment year commencing on or after the first day of July, 2002, at the following rates:

(1)	where the total income does not exceed Rs.60,000;	Nil;
(2)	where the total income exceeds Rs.60,000 but does not exceed Rs.150,000;	7.5% of the amount exceeding Rs.60,000;
(3)	where the total income exceeds Rs.150,000 but does not exceed Rs.300,000;	Rs.6,750 plus 12.5% of the amount exceeding Rs.150,000;
(4)	where the total income exceeds Rs.300,000 but does not exceed Rs.400,000;	Rs.25,500 plus 20% of the amount exceeding Rs.300,000;
(5)	where the total income exceeds Rs.400,000 but does not exceed Rs.700,000;	Rs.45,500 plus 25% of the amount exceeding Rs.400,000;
(6)	where the total income exceeds Rs.700,000.	Rs.120,500 plus 35% of the amount exceeding Rs.700,000.

Provided that --

(a)   where an assesse's income includes any income from agriculture which is liable to tax under the laws of any province of Pakistan and such income exceeds Rs. 80,000, the tax rates applicable in case of such taxpayers would be as under:- 

(1)	where the total income does not exceed Rs.150,000;	7.5%;
(2)	where the total income exceeds Rs.150,000 but does not exceed Rs.300,000;	Rs.11,250 plus 12.5% of the amount exceeding Rs.150,000;
(3)	where the total income exceeds Rs.300,000 but does not exceed Rs.400,000;	Rs.30,000 plus 20% of the amount exceeding Rs.300,000;
(4)	where the total income exceeds Rs.400,000 but does not exceed Rs.700,000;	Rs.50,000 plus 25% of the amount exceeding Rs.400,000;
(5)	where the total income exceeds Rs.700,000.	Rs.125,00 plus 35% of the amount exceeding Rs.700,000.

(b)    The tax payable shall be reduced by an amount equal to fifty per cent of the tax payable by an assessee of sixty-five years of age or above as on first day of the relevant income year and earning income upto two hundred thousand rupees in addition to any other rebate admissible under the law.

(c)    notwithstanding anything contained in this Ordinance, no rebate for any allowance under sections 39, 40, 41, 43, 44, 44A or 46 shall be admissible.

(d)    notwithstanding anything contained in this Ordinance, rebate for any allowance under sections 41AA, 44AA and  44AAA shall be computed at the average rate of tax and allowed accordingly.

(e)    where the total income includes any income from a share of the income profits and gains of a firm to which paragraph C of Part II applies, such portion of the super tax payable under the said paragraph as bears to the total amount of such super tax the same proportion as his share of income, profits and gains of the firm bears to the total income of the firm shall be added to the income tax payable by such partner under this paragraph, and, if the sum so arrived at exceeds 20% of the total income of such partner (including his share of income, profits and gains of the firm before the deduction of super tax), the amount of income tax payable by him under this paragraph shall be reduced by the amount of such excess;

(f)    for the purposes of assessment, the rates specified in above paragraph will be applicable to the assessment year commencing on, or after, the1st day of July 2002;

(g)   notwithstanding the provisions of clause (f) of proviso to paragraph A1 where the total income of an assessee comprises or includes any income chargeable under the head "salary" and such income is more than fifty per cent of his total income, the rates specified in this paragraph for the purposes of deduction of tax under sub-section (1) of section 50 shall be effective from the first day of July, 2001

CC. In the case of every individual, unregistered firm, association of persons, Hindu undivided family and artificial juridical person referred to in clause (32) of section 2, not being a case to which paragraph B of this Part applies,-

CCC  (i).  In the case of every resident person holding a National Tax Number and to whom section 80C applies,-

(a)    From the assessment year commencing on or after the first day of July, 1999, on the income representing payments on account of execution of contracts other than the income to which clause (b) or (c) or (cc) applies –

(i)	where the value of contract does not exceed thirty million rupees.		five per cent of such income;
(ii)	where the value of contract exceeds thirty million rupees.		six per cent of such income.

(b)	on the income representing payments on account of supply of rice, cotton, cotton seed and edible oils,		One and one half per cent of such income.
(c)	on the income representing payments on account of supplies other than those referred to in sub-paragraph (b);		Three and one half per cent of such income.
(cc)	on the income representing payments on account of brokerage or commission		Ten per cent of such income:
	Provided that this clause shall take effect from the assessment year commencing on the first day of July, 2000: Provided further that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002;
(d)	on the income representing value of goods imported;		Five per cent of value of such goods as determined for the purposes of deduction of advance tax under sub-section (5) of section 50:
	Provided that for the assessment year commencing on or after the first day of July, 2001, the rate of tax shall be six per cent of the value of goods imported.
(dd)	on the income representing the difference referred to in sub-section (5AAA) of section 50.		Ninety per cent of such income:
	Provided that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002.
(e)	on the income representing lease money on account of octroi duties, tolls, fees or other levies.		Five percent of the sale price:
	Provided that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002.
(f)	on the income representing commission or discount referred to in sub-section (7H) of section 50.		Ten per cent

 

(ia)  in the case of every resident person not holding a National Tax Number and to whom section 80C applies, from the assessment year commencing on, or after, the first day of July, 2001, on the income representing payments on account of execution of contracts other than the income to which clause (b) or (c) or (cc) of sub-paragraph (i) apply--

 

(i)	where the value of contract does not exceed thirty million rupees;	seven per cent of such income;
(ii)	where the value of contract exceeds thirty million rupees;	eight per cent of such income;
(iii)	on the income representing payment on account of supplies.	five per cent of such income.

 

(ii)    In the case of every non-resident person, to whom section 80C applies, on the income representing payments on account of :

(a)    From the assessment year commencing on or after the first day of July, 1999, the representing payments on account of execution of contracts, other than those mentioned in sub-clause (b), (c) and (d);

(i)	where the value of contract does not exceed thirty million rupees.		five per cent of such income;
(ii)	where the value of contract exceeds thirty million rupees.		six per cent of such income.

(b)	execution of turn-key contracts.		eight per cent of amount of payment.
(c)	execution of contracts or sub-contracts for designing, supply of plant and equipment and construction of power projects other than hydel power projects) and transmission line projects.		four per cent of amount of payment.
(d)	execution of contracts, or sub-contractors for designing supply of plant and equipment and construction of hydel power project.		five per cent of the amount of payment.

CCCC.   (a)     In the case of every person to whom section 80CC or 80CD applies including supplies of goods to an exporter under a back to back inland letter of credit, and the income pertains to exports covered under:

(a)    Part I of Eighth Schedule    0.50% of such income.

(b)    Part II of Eighth Schedule   0.75% of such income.

(c)    Part III of Eighth Schedule  1% of such income.

(b)    for the assessment year commencing on or after the first day of July, 2001, the rates shall be as under:-

(i)  Part I of Eighth Schedule   0.75% of such income.

(ii) Part II of Eighth Schedule  1.0% of such income.

(iii) Part III of Eighth Schedule 1.25% of such income.

CCCCA. In the case of every person to whom section 80CD applies and the income pertains to exports specified in:

(i)  Part I of Eighth Schedule   0.75% of such income.

(ii) Part II of Eighth Schedule  1.0% of such income.

(iii) Part III of Eighth Schedule 1.25% of such income.

 

D.    Rates of income tax for deduction under sub-section (2) section 50,-

(i)	Residents. On the whole of income chargeable under the head ‘Interest on securities’ (not being interest payable on debentures issued by or on behalf of a local authority or a company).		30% of such income.
(ii)	Non-Residents. On the whole of income chargeable under the head 'Interest on securities' paid to a non-resident-

(a)	where such person is a company.		thirty per cent; and
(b)	where such person is not a company.		the rate applicable to a resident person not being a company.

(i)	in cases of payments on account of royalty.		Fifteen percent of such payment.
(ii)	in any other case.		Thirty percent of the sum chargeable or at the rate applicable to a resident whichever is the greater.

(i)	Where the payment is made to a resident assessee holding a National Tax Number, on account of –

(a)	execution of contracts other than the payments to which sub-clause (b), (c) or (d) applies…

(i)

Where the value of contract does not exceed thirty million rupees,

five percent of such income.

(ii)

where the value of contract exceeds thirty million rupees,

six percent of such income.

(b)

supply of rice, cotton, cotton seed or edible oils;

One and one half per cent of the amount of payment.

(c)

supply of goods other than those referred to in sub-paragraph (b); and

Three and one half per cent of the amount of payment.

(d)

services rendered.

Five per cent of the amount of payment.

(ia)  Where the payment is made to a resident assessee not holding a National Tax Number, on account of execution of contract other than the payments to which sub clause (b), (c) or (d) of sub-paragraph (i) apply--

(i)	where the value of contract does not exceed thirty million rupees;	seven per cent of such income;
(ii)	where the value of contract exceeds thirty million rupees;	eight per cent of such income;
(iii)	on the income representing payment on account of supplies.	five per cent of such income.

 

(ii)	Where the payment is made to a non-resident, on account of –

(a)	execution of contract, other than those mentioned in sub-clause (b), (c) and (d).

(i)

Where the value of contract does not exceed thirty million rupees,

five per cent of such income.

(ii)

Where the value of contract exceeds thirty million rupees,

six per cent of such income.

(b)

execution of turn-key contracts

eight per cent of the amount of payment.

(c)

execution of contracts or sub-contracts for designing, supply of plant and equipment and construction of power projects other than hydel power projects) and transmission line projects

four per cent of the amount of payment.

(d)

execution of contracts or sub-contractors for designing supply of plant and equipment and construction of hydel power project.

five per cent of the amount of payment.

Where the income pertains to supply of goods to an exporter under a back to back inland letter of credit and from exports specified in:	Rates
(i)  Part I of Eighth Schedule	0.75% of such income.
(ii) Part II of Eighth Schedule	0.1% of such income.
(iii) Part III of Eighth Schedule	1.25% of such income.

Paragraph FFB omitted by Finance Ordinance, 2001.
FFB.	Rate for collection of income tax under sub-section (5AAA) of section 50.		Ninety per cent of such income.

Paragraph FFF omitted by Finance Ordinance, 2001.

FFF.	Rates for collection of income tax under sub-section (5B) of section 50 at the time of encashment of –

(i)

bearer certificates other than Foreign Exchange Bearer Certificates.

2% of the amount.

(ii)

Foreign Exchange Bearer Certificates.

1% of the amount.

(1)	Goods transport vehicles with registered laden weight of –

(a)

less than 2,030 kilograms;

One thousand two hundred rupees per annum.

(b)

2,030 kilograms or more but less than 8,120 kilograms;

Seven thousand two hundred rupees per annum.

(c)

8,120 kilograms or more but less than 15,000 kilograms;

Twelve thousand rupees per annum.

(d)

15,000 kilograms but less than 30,000 kilograms;.

Eighteen thousand rupees per annum:

(e)

30,000 kilograms or more but less than 45,000 kilograms…

Twenty four thousand rupees per annum;

(f)

45,000 kilograms or more but less than 60,000 kilograms…

Thirty-thousand rupees per annum.

(g)

60,000 kilograms or more…

Thirty six thousand rupees per annum.

Provided that no collection shall be made in respect of goods transport vehicles falling under sub-clause (b) after ten years from the date of first registration of such vehicle with a motor vehicle registration authority in Pakistan.

(2)	passenger transport vehicles plying for hire with registered seating capacity of –

(a)

four or more persons but less than ten persons;

Twenty five rupees per seat per annum

(b)

ten or more persons but less than twenty persons; and

Sixty rupees per seat per annum

(c)

twenty persons or more.

One hundred rupees per seat per annum

(3)	Other private motor cars with engine capacity of …

(a)

1000cc to 1199 cc

Five hundred rupees per annum;

(b)

1200cc to 1299cc

Seven hundred fifty rupees per annum;

(c)

1300cc to 1599cc

Fifteen-hundred rupees per annum;

(d)

1600cc to 1999cc

Two thousand rupees per annum;

(e)

2000cc and above

Three-thousand rupees per annum.

Paragraph GGG and H omitted by Finance Ordinance, 2001:

GGG.	Rates of withholding of income tax under sub-section (7) of section 50,-

(a)

Where the company which issued bonus shares or bonus is a public company.

10 percent of such amount.

(b)

In other cases.

15 percent of such amount.

H.	Rates of collection of income tax under sub-section (7A) of section 50,-

(i)

Sale of property consisting of lease of right to collect octroi duties, tolls fee or other levies, by whatever name called.

Five percent of the sale price.

(ii)

In other cases.

Three percent of the sale price.

Clause HHH omitted which reads as follows:

HHH.	Rate for collection of income tax under sub-section (7BB) of section 50:

(i)	In cities of Islamabad, Lahore and Karachi, in case of building located on plot size –

(a)

not exceeding 500 square yards;

Nil

(b)

Exceeding 500 square yards.

Two percent of the estimated cost.

(ii)	At other places, in case of building located on plot size–

(a)

Not exceeding 1,000 square yards;

Nil

(b)

Exceeding 1,000 square yards.

Two percent of the estimated cost.

(a)       in the case commercial consumer if the electricity bill

(i)	does not exceed Rs.400;	Rs.60;
(ii)	exceeds Rs.400 but  does not exceed Rs.600;	Rs.80;
(iii)	exceeds Rs.600 but  does not exceed Rs.800;	Rs. 100;
(iv)	exceeds Rs.800 but  does not exceed Rs.1000;	Rs. 160;
(v)	exceeds Rs.1000 but  does not exceed Rs.1500;	Rs. 300;
(vi)	exceeds Rs.1500 but  does not exceed Rs.3000;	Rs. 450;
(vii)	exceeds Rs.3000 but  does not exceed Rs.4500;	Rs. 600;
(viii)	exceeds Rs.4500 but  does not exceed Rs.6000;	Rs. 750;
(ix)	exceeds Rs.6000.	Rs. 1000.

Sub Paragraph (a) substituted by Finance Ordinance, 2001.

(a)	in the case of commercial consumer if the electricity bill--

(i)

does not exceed Rs. 400

Rs. 60

(ii)

exceeds Rs. 400 but does not exceed Rs. 600

Rs. 80

(iii)

exceeds Rs. 600 but does not exceed Rs. 800

Rs. 100

(iv)

exceeds Rs. 800 but does not exceed Rs. 1,000

Rs.160

(v)	exceeds Rs. 1,000 but does not exceed Rs. 1,500		Rs. 240
(vi)	exceeds Rs. 1,500 but does not exceed Rs. 2,000		Rs. 360
(vii)	exceeds Rs. 2,000 but does not exceed Rs. 2,500		Rs. 480
(viii)	exceeds Rs. 2,500 but does not exceed Rs. 3,000		Rs. 600
(ix)	exceeds Rs. 3,000		Rs. 720.

(b)	in the case of an industrial consumer if the electricity bill–

(i)

does not exceed Rs. 500;

Rs. 30

(ii)

exceeds Rs. 500 but does not exceed Rs. 750;

Rs. 40

(iii)

exceeds Rs. 750 but does not exceed Rs. 1,000;

Rs. 50

(iv)

exceeds Rs. 1,000 but does not exceed Rs. 1,500;

Rs. 80

(v)	exceeds Rs. 1,500 but does not exceed Rs. 2,000;		Rs. 120
(vi)	exceeds Rs. 2,000 but does not exceed Rs. 3,000;		Rs. 180
(vii)	exceeds Rs. 3,000 but does not exceed Rs. 4,000;		Rs. 240
(viii)	exceeds Rs. 4,000 but does not exceed Rs. 5,000;		Rs. 300
(ix)	exceeds Rs. 5,000		Rs. 360.

(a)	In the case of telephone subscriber where the monthly bill-

(i)

exceeds Rs. 1,000 but does not exceed Rs. 2,000

Fifty Rupees.

(ii)

exceeds Rs. 2,000 but does not exceed Rs. 3,000

One hundred rupees.

(iii)

exceeds Rs. 3,000 but does not exceed Rs. 5,000

Two hundred rupees.

(iv)

exceeds Rs. 5,000

Three-hundred rupees.

(b)	In the case of mobile telephone subscribers if the monthly bill or the issue or sale price of prepaid telephone card –

(i)

does not exceed Rs. 2,000

One hundred twenty five rupees;

(ii)

exceeds Rs. 2,000 but does not exceed Rs. 5,000

Two hundred fifty rupees.

(iii)

exceeds Rs. 5,000

Four hundred rupees.

Paragraph M omitted by Finance Ordinance, 2001.

M.	Rates of collection of income tax under sub-section (7G) of section 50,-

(a)	in the case of a commercial consumer if the gas bill-

(i)

does not exceed Rs. 2,500.

Nil

(ii)

exceeds Rs. 2,500 but does not exceed Rs. 4,000

Rs. 150

(iii)

exceeds Rs. 4,000 but does not exceed Rs. 6,000

Rs. 300

(iv)	exceeds Rs. 6,000 but does not exceed Rs. 7,500		Rs. 400
(v)	exceeds Rs. 7,500		Rs. 500

(b)	in the case of an industrial consumer if the gas bill -

(i)

does not exceed Rs. 2,500.

Nil

(ii)

exceeds Rs. 2,500 but does not exceed Rs. 5,000

Rs. 250

(iii)

exceeds Rs. 5,000 but does not exceed Rs. 10,000

Rs. 500

(iv)	exceeds Rs. 10,000 but does not exceed Rs. 20,000		Rs. 1,000
(v)	exceeds Rs. 20,000 but does not exceed Rs. 30,000		Rs. 2,000
(vi)	exceeds Rs. 30,000		Rs. 3,000

(1)

Where the total income does not exceed Rs. 30,000

Nil.

(2)

Where the total income exceeds Rs. 30,000 but does not exceed Rs. 80,000.

5 percent of the amount exceeding Rs. 30,000.

(3)	Where the total income exceeds Rs. 80,000 but does not exceed Rs. 130,000.		Rs. 2,500 plus 10 percent of the amount exceeding Rs. 80,000.
(4)	Where the total income exceeds Rs. 130,000 but does not exceed Rs. 180,000.		Rs. 7,500 plus 15 percent of the amount exceeding Rs. 130,000.
(5)	Where the total income exceeds Rs. 180,000.		Rs. 15,000 plus 25 percent of the amount exceeding Rs. 180,000.

 

Explanation.- For the removal of doubt, it is hereby declared that the term "total income" referred to in this paragraph does not include income to which section 80C or section 80CC applies.

(ii)

in the cases other than companies

The rate applicable to resident person, not being a company, on the sum chargeable.

B.    In respect of the income year relevant to the assessment year commencing on or after the first day of July, 1990,-

(c)   where the total income of any person (not being a person whose total income consists of, or includes, any income chargeable under the head 'Salary' and such income constitutes more than fifty per cent of the total income) does not exceed one hundred thousand rupees and the return of total income qualifies for acceptance under a scheme of self assessment made under sub-section (1) of section 59 for that year, the amount of surcharge payable shall be three hundred rupees:

Provided that no surcharge under this sub-paragraph shall be payable for the assessment year commencing on, or after, the first day of July, 2002.

(d)   any individual, unregistered firm, association of persons and Hindu undivided family shall pay surcharge, in addition to the amount specified in sub-paragraph (c) equal to ten per cent of the amount of income tax payable not being the amount of presumptive income tax payable under section 80C or 80CC:

Provided that no surcharge shall be payable by an assessee for any assessment year beginning on or after the first day of July, 1999, where his total income consists of, or includes, any income chargeable under the head "salary" and such income constitutes more than fifty per cent of his total income:

Provided further that no surcharge under this sub-paragraph shall be payable for the assessment year commencing on, or after, the first day of July, 2002.

C.    In respect of the income year relevant to the assessment year commencing on or after the first day of July, 2000, a company, not being a banking company, shall pay surcharge equal to five per cent of the amount of income tax payable excluding the amount of presumptive income tax payable under section 80BB, 80C, 80CC or 80CD: (Figures and Words "80C or 80CC" are substituted by "80BB, 80C, 80CC or 80CD:" through Finance Ordinance, 2001)

Provided that no surcharge under this sub-paragraph shall be payable for the assessment year commencing on or after the first day of July, 2002.

A.    Notwithstanding anything contained in this Schedule,-

(1)   where the assessee is a cooperative society, the tax shall be payable at the rates specified in paragraph A of Part I, or paragraph A of Part V of this Schedule relevant to the rates of public companies, whichever treatment is more beneficial to the assessee;

(2)   Tax rebate at the rate of five per cent shall be allowed in the case of a person other than a company who-

(i)     derives income chargeable under the head "Income from business or profession"; and

(ii)    issues to the customers, for each transaction of sale or receipt, a cash memo with his name, or the name of his business and address, National Tax Number and serial number of the memo printed thereon.

(2A) where an assessee,-

(a)    being a company registered under the Companies Act, 1913 (VII of 1913), and having its registered office in Pakistan, repatriates to Pakistan any income chargeable to tax under the head ‘Income from business or profession’ in any income year which has been derived by it from a construction work executed by it outside Pakistan, no super tax shall be payable by it on such income;

(b)    not being a company, who is resident in Pakistan, repatriates in any income year any income earned abroad by way of fees for any technical or consultancy service rendered outside Pakistan, he shall be entitled to a rebate equal to thirty per cent of income-tax or super-tax payable on the income so repatriated:

Provided that-

(i)     such income is received in Pakistan in accordance with the law for the time being in force for regulating payments and dealings in foreign exchange; and

(ii)    where the assessee is a registered firm, super-tax payable by it shall be reduced by an amount calculated on the basis of the income tax payable on its total income if it were the total income of an un-registered firm as does not exceed the said super tax;

(2B) no super tax shall be payable by a registered firm in respect of the income, profits and gains derived by it from the exercise of a profession if such income, profits and gains depend wholly or mainly on the professional qualifications of its partners who are prevented by any law for the time being in force or by convention or rules or regulations of the professional association, society or similar body of which they are members to constitute themselves into a corporate body with a limited liability which can be registered as a company under the Companies Act, 1913 (VII of 1913), unless such profession consists wholly or mainly in the making of contracts on behalf of other persons or the giving to other persons of advice of a commercial nature in connection with the making of contracts;

(2C) Where the total income of an assessee includes any profits and gains derived from import of goods or wholesale business the tax payable by him in respect of such import or wholesale shall be reduced by an amount equal to five per cent of the said tax, if he furnishes complete details of sales indicating the amount of sales and the names, National Tax Number and full addresses of the purchasers.

(2D) Where an assessee, being an individual and resident in Pakistan, incurs any personal expenditure on legal services and furnishes alongwith his return of total income the receipts bearing names, National Tax Number and complete addresses of the  legal practitioners, a rebate in tax computed at the average rate of tax shall be allowed to him on the total amount of such receipts.

(2E) Where an assessee, incurs any expenditure on education of his dependent children, the tax payable by him shall be reduced by five per cent of such expenditure, subject to the conditions that:-

(i)     the educational expense does not exceed Rs. 30,000 per annum per child; and

(ii)    the receipt of such expense bears National Tax Number of the educational institution.

(3)   where a person, not being a company, is not resident in Pakistan, the tax, including super tax payable by him or on his behalf on his total 'income shall be an amount equal to-

(a)    the income-tax which would be payable on his total income at the rate of twenty per cent or the income tax which would be payable on his total income if it were the total income of the person resident in Pakistan, whichever is the greater; plus

(b)    the super-tax which would be payable on his total income if it were the total income of the person resident in Pakistan:

Provided that any such person may, on the first occasion subsequent to the thirty-first day of March, 1956, on which he is, under this Ordinance or the repealed Act, assessable for any year by notice in writing given to the Deputy Commissioner before the thirtieth day of September in the year of assessment declare (such declaration being final and being applicable to all assessments thereafter) that the tax, payable by him or on his behalf on his total income shall be determined with reference to his total world income, and thereupon such tax shall be an amount bearing to the total amount of tax, which would have been payable on his total world income had it been his total income, the same proportion as his total income bears to his total world income:

Provided further that where any such person satisfies the Deputy Commissioner that he was prevented by sufficient cause from making such declaration on the first occasion on which he became assessable and his failure to make such declaration has not resulted in reducing his liability to tax for any year, the Deputy Commissioner may, with the previous approval of the Inspecting Additional Commissioner, allow such person to make the declaration at any time on or after the expiry of the period specified, and such declaration shall have effect in relation to the assessment for the year in which the declaration is made (if such assessment has not been completed before such declaration) and all assessments thereafter.

Explanation.- For the removal of doubt, it is hereby declared that the term "total income" referred to in this sub-paragraph does not include income to which sections 80B, 80C and 80CC apply; and

(4)   where the total income of an assessee includes any income chargeable under the head 'Capital gains' (hereinafter referred to as the said income), the tax including super tax payable by him on his total income shall be-

(a)    where the said income has arisen as a result of disposal by the assessee of his capital assets after not more than twelve months from the date of their acquisition by him-

income tax and super tax payable on the total income (including the said income);

(b)    where the said income consists of capital gains which have arisen on account of the disposal by the assessee of his capital assets after twelve months from the date of their acquisition by him-

(i)     in the case of a company or a firm registered under section 68 (including a firm treated as a registered firm under sub-clause (ii) of clause (b) of sub-section (1) of section 69)-

(1)    income tax and super tax payable on the total income, as reduced by the said income had such reduced income been the total income, plus

(2)    income tax at the rate of twenty five per cent on the whole amount of the said income;

(ii)    in the case of other assessee income tax payable on-

(1)    the total income, as reduced by the said income had such reduced income been the total income, plus

(2)    the amount of the said income as reduced by-

(i)     an amount equal to sixty per cent of the amount of the said income, or

(ii)    five thousand rupees, whichever is the greater:

Provided that as respects the assessments for the years ending on the thirtieth day of June, 1981; income tax and super tax shall, subject to the other provisions of this Ordinance, be payable on the total income as reduced by the said income.

(1)   "industrial undertaking" means an undertaking which is set up or commenced in Pakistan on or after the 14th day of August, 1947, and which employs (i) ten or more persons in Pakistan and involves the use of electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agency; or (ii) twenty or more persons in Pakistan and does not involve the use of electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agency and which is-

(i)    engaged in-

(a)    the manufacture of goods or materials or the subjection of goods or materials to any process, which substantially changes their original condition;

(b)    ship-building;

(c)    generation, transformation, conversion, transmission or distribution of electrical energy, or the supply of hydraulic power; or

(d)    the working of any mine, oil-well or other source of mineral deposits not being an undertaking to which the Fifth Schedule applies; or

(ii)    any other industrial undertaking which may be approved by the Central Board of Revenue for the purposes of this clause;

(2)    "public company" means-

(a)    a company in which not less than fifty per cent of the shares are held by the Government;

(b)    a company whose shares were the subject of dealings in a registered stock exchange in Pakistan at any time during the income year and remained listed on the stock exchange till the close of that year; or

(c)    a trust formed by or under any law for the time being in force;

(3)   "registered firm" means a firm registered under section 68 or a firm treated as a registered firm under sub-clause (ii) of clause (b) of sub-section (1) of section 69;

(5)   "total world income" includes all income, profits and gains wherever accruing or arising except any income which is not includible in the total income of an assessee.

A.    Notwithstanding anything contained in this Schedule, except Part IV, in the case of a company, not being a modaraba, the rates of income tax on total income excluding such part of total income to which paragraph D and E or F or sections 80BB, 80C, 80CC or 80CD (Figures and Words "80C or 80CC" are substituted by "80BB, 80C, 80CC or 80CD:" through Finance Ordinance, 2001) apply, shall be as under:-

(1)   in respect of the assessment year commencing on the first day of July 1992,

(a)	in the case of a banking company;		66 percent
(b)	in the case of public company other than a banking company; and		44 percent
(c)	in the case of any other company		55 per cent

(2)   in respect of the assessment year commencing on or after the first day of July, 1993, as set out in the table below:

Assessment Year		Banking Company		Public Company other than a banking company		Other Company
1993-94		64 percent		42 percent		52 percent
1994-95		62 percent		39 percent		49 percent
1995-96		60 percent		36 percent		46 percent
1996-97		60 percent		36 percent		46 percent
1997-98		58 percent		33 percent		43 percent
1998-99		58 percent		33 percent		43 percent

 

(3)   in respect of any assessment year commencing on or after the first day of July, 1999 and thereafter, -

(a)	in the case of a banking company;		58 percent
(b)	in the case of public company other than a banking company; and		33 percent
(c)	in the case of any other company.		43 per cent

(4)   in respect of the assessment year commencing on, or after, the first day of July, 2002,-

(a)	in case of a banking company;		50%;
(b)	in case of a public company other than a banking company;		35%;
(c)	in case of  any other company;		45%;

B.    In the case of a modaraba in respect of any assessment year commencing on or after the first day of July, 1993, the rate of income tax shall be 25 per cent of total income excluding such part of total income to which paragraph D and E or section 80C or 80CC applies:

Provided that, for any assessment year commencing on or after the first day of July, 1993, and ending on or before the thirtieth day of June, 1995, this paragraph shall have effect as if for the figure "25" the figure "12.5" was substituted:

Provided further that in case of the total income of a modaraba becoming chargeable to tax for the first time in any assessment year commencing on or after the first day of July, 1994, the rate of income tax in the case of such modaraba for such assessment year and the assessment year next following shall be 12.5 per cent of total income.

C.   No super tax (Words "and surcharge" omitted by Finance Ordinance, 2001 and deemed to have been so omitted on the first day of July, 2000) shall be payable by a company in respect of any assessment year beginning on or after the first day of July, 1992.

D.   The rates of income tax in respect of the amount representing income from dividends declared or distributed by a Pakistani company or a modaraba shall be as under: -

(a)	Where such dividends are received by a public company other than the dividend received upto thirtieth June, 2001 by a public company carrying on insurance business. (Words "other than a company carrying on insurance business" substituted by "other than the dividend received upto thirtieth June, 2001 by a public company carrying on insurance business" by Finance Ordinance, 2001.)		5 percent of such amount.
(b)	where such dividends are received by a body corporate referred to in sub-clause (c) of clause (16) of section 2 or a foreign association declared to be a company under sub-clause (e) of clause (16) of section 2.		15 percent of such amount.
(c)	in other cases.		20 percent of such amount:

Provided that rates of tax as specified in clause (b) and clause (c) shall be reduced to 7.5% in case of dividends declared or distributed on shares of a company set up for power generation: (Words "and transmission line projects" omitted by Finance Ordinance, 2001)

Provided further that notwithstanding anything contained in this paragraph, the rate of tax in respect of dividend income received upto thirtieth June, 2001 by a company carrying on insurance business shall be the same as specified in paragraph A.

E.    The rates of income tax on the amount representing the face value of any bonus shares or the amount of any bonus issued by the company, with a view to increasing its paid-up capital-

(a)	Where a company which issued bonus shares or the bonus is a public company.		10 percent of such amount.
(b)	in other cases.		15 percent of such amount.