Amendment made in Income Tax Rules, 2002

GOVERNMENT OF PAKISTAN Revenue Division Central Board of Revenue *** Islamabad, the 27th of June, 2006 NOTIFICATION (Income Tax) S.R.0 668(I)/2006 - In exercise of the powers conferred by sub-section (1) of 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Central Board of Revenue is pleased to direct that the following amendment shall be made in Income Tax Rules, 2002, the same having been previously published as required by sub-section (3) of the said section. In the aforesaid Rules, in Chapter II, for Part I, the following shall be substituted, namely:- “PART-1: SALARY 3. Valuation of perquisites, allowances and benefits.- For the purposes of computing the income chargeable to tax under the head “salary”, the value of all perquisites, allowances and benefits provided by the employer to the employee shall be included in the said income in accordance with the rules 4 to 7. 4. Valuation of Accommodation. - The value of accommodation provided by an employer to the employee shall be taken equal to the amount that would have been paid by the employer in case such accommodation was not provided. Provided that the value taken for this purpose shall, in any case, not be less than forty five percent of the minimum of the time scale of the basic salary or the basic salary where there is no time scale. 5. Valuation of conveyance.- The value of conveyance provided by the employer to the employee shall be taken equal to an amount as below: - (i) | Partly for personal and partly for official use | 5% of: (a) the cost to the employer for acquiring the motor vehicle; or, (b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer; (ii) | For personal use only | 10% of: (a) the cost to the employer for acquiring the motor vehicle; or, (b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer; and 6. For the purpose of this part, “employee” includes a director of a company. 7. These rules shall be applicable for the salary income received after thirtieth of June, 2006 ” [C.No. 4(5)/ITR/06] (Salman Nabi) Member (Direct Taxes)/ Additional Secretary