Amendments in Income Tax Rule 2002

GOVERNMENT OF PAKISTAN REVENUE DIVISION FEDERAL BOARD OF REVENUE ************ Islamabad, the 25th July, 2009. NOTIFICATION (Income Tax) S.R.O. 697 (I)/2009.-The following draft of further amendments in the Income Tax Rules, 2002 which the Federal Board of Revenue proposes to make 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 for the information of all persons likely to be affected thereby, as required by sub- section (3) of the said section, 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 ma y be received from any person, in respect of the said draft before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue. DRAFT AMENDMENT In the aforesaid Rules, in the Second Schedule, after Part-II, the following new part shall be inserted, namely:-

"PART-IIA RETURN OF TOTAL INCOME (FOR IND & AOP) IT-2 (1/2) UNDER THE INCOME TAX ORDINANCE, 2001 Under Section 114(1) (Return of Income filed voluntarily for complete year) 1201 Registartion No. (CNIC ONLY for Individual & NTN ONLY for AOP) Name Business Address Partners' Name Tax Year 2009 Residency (In case of Non-Resident, insert "Non-" before Resident) Resident Items Code Amount A/C 1 Net Sales (excluding Sales Tax/Federal Excise Duty/Commission/Brokerage) 3103 2 Cost of Sales [3 + 4 + 5 - 6] 3116 P&L 3 Opening Stock 3117 4 Net Purchases (excluding Sales Tax/Federal Excise Duty/Commission/Brokerage) 3106 Trading, 5 Manufacturing/ Trading Expenses 3111 6 Closing Stock 3118 7 Gross Profit/ (Loss) [1 - 2] 3119 8 Other Revenues/ Fees/ Charges for Professional & Other Services 3131 9 Profit & Loss Expenses 3189 Manufacturing/ 10 Net Profit/ (Loss) [(7 + 8) - 9] 3190 11 Inadmissible Deductions (Including Accounting Depreciation) 3191 12 Admissible Deductions (excluding tax depreciation/ including proportionate PTR income) 3192 13 Unadjusted loss from Business for previous year(s) (Annex-A) 3902 Adjustments 14 Unabsorbed Tax Depreciation for previous/ current year(s) (Annex-A) 3988 15 Total Income [Sum of 16 to 21] 9099 16 Salary Income including Arrears 1999 17 Business Income/ (Loss) [(10 + 11) - 12 - 13 - 14] 3999 18 Share from AOP 312021 19 Capital Gains 4999 20 Other Sources Income/ (Loss) 5999 21 Foreign Income/ (Loss) 6399 Income 22 Deductible Allowances [23 + 24 + 25] 9139 23 Zakat 9121 Taxable/ 24 Workers Welfare Fund 9122 Total 2526 ExemptCharitableIncome/donations(Loss) admissible[Sum of 27asto straight30] deduction 91246199 27 Salary Income 6101 28 Business Income/ (Loss) 6103 29 Capital Gains 6104 30 Other Sources Income/ (Loss) 6105 31 Taxable Income/ (Loss) [15 - 22] 9199 32 Tax Chargeable on Taxable Income 9201 33 Tax Reductions/ Credits/ Averaging 9249 34 Minimum Tax Chargeable under section 235(4) 920206 Tax 35 Total Tax Chargeable [(32 - 33) or 34) + 79] 9299 36 Total Tax Payments (Annex-B) 9499 37 Tax Payable/ Refundable [35 - 36] 9999 38 Refund adjustments (To the extent of current year's tax payable only) 9998

STATEMENT OF FINAL TAXATION (FOR IND & AOP) IT-2 (2/2) UNDER THE INCOME TAX ORDINANCE, 2001 Registartion No. (CNIC ONLY for Individual & NTN ONLY for AOP) Tax Year 2009 Rate Source Code Receipts/Value (%) Code Tax Chargeable 39 Imports 64011 2 92011 40 64012 1 92012 41 64013 2 92013 42 64014 0.5 92014 43 64015 92015 44 Dividend 64032 10 92032 45 64033 7.5 92033 46 Profit on Debt 64041 10 92041 47 Royalties/ Fees (Non-Resident) 640511 15 920511 48 Contracts (Non-Resident) 640521 6 920521 49 Insurance Premium (Non-Resident) 640524 5 920524 50 Advertisement Services (Non-Resident) 640525 10 920525 51 Supply of Goods 640611 3.5 920611 52 640612 1.5 920612 53 640613 920613 54 Payments to Ginners 640614 1 920614 Taxation 55 Services 640621 6 920621 Final 56 Transport Services 640622 2 920622 57 640623 920623 58 Contracts (Resident) 640631 6 920631 59 Exports/ related Commission/ Services 640641 0.5 920641 60 64071 0.75 92071 61 64072 1 92072 62 Foreign Indenting Commission 64075 5 92075 63 Property Income subject to WHT 64081 5 92081 64 Prizes 64091 10 92091 65 Winnings 64092 20 92092 66 Petroleum Commission 64101 10 92101 67 Brokerage/ Commission 64121 10 92121 68 Advertising Commission 64122 5 92122 69 Stock Exchnage Commission 64131 0.01 92131 70 Goods Transport Vehicles 92141 71 Gas consumption by CNG Station 64142 4 92142 72 Retail Turnover upto 5 million 310102 0.5 920202 73 Retail Turnover above 5 million 310103 920203 74 Property Income not subject to WHT 210101 920235 Taxation 75 Purchases of local edible oil 310431 2 920208 76 Flying Allowance 112001 2.5 920234 Fixed 77 Services/ Contracts abroad 63311 1 920236 78 Employment Termination Benefits 118301 920211 79 Final/ Fixed Tax Chargeable [sum of 39 to 78] 9202 I, in my capacity, as Self/ Partner or Member of Association of Persons/Representative (as defined in section 172 of the Income Tax Ordinance, 2001) of Taxpayer named above, do solemnly declare that to the best of my knowledge and belief the information given in this Return and the attached Annex(es), Statement(s), Document(s) or Detail(s) is/are correct and complete in accordance with the provisions of the Income Tax Verification Ordinance, 2001 and Income Tax Rules, 2002. Signature

Year (CF) Tax 2009 WDV Adj. Amount Depreciation Amortization 100 100 100 100 100 100 100 100 100 100 100 100 Extent Extent Code 3988 3988 3988 3988 3988 3988 Rate (%) 10 15 15 15 15 15 15 30 30 30 100 20 Rate (%) allowance allowance allowance allowance allowance allowance . Allowance initial initial initial initial initial initial Initial 0 50 50 0 50 50 50 50 50 0 50Rate (%) 50 Description depreciation/ depreciation/ depreciation/ depreciation/ depreciation/ depreciation/ Cost tax tax tax tax tax tax Deletions Original Unabsorbed Unabsorbed Unabsorbed Unabsorbed Unabsorbed Unabsorbed Total Years Year Tax 2003 2004 2005 2006 2007 2008 Additions Useful Adj. Date (BF) Amount WDV Acquisition 3205 3206 3207 Code 3902 3902 3902 3902 3902 3902 Code 3202 320301 320302 320303 320304 320306 320307 320308 32041 32042 32043 32044 Code pro IT of benefit year(s) year(s) year(s) year(s) year(s) year(s) concerns items) oil specified) concerns manufacture previous previous previous previous previous previous oil in advantage/ for for for for for for allied mineral hire) term books of for hire) otherwise mineral used long of Description Business Business Business Business Business Business Description expenditure Description (not (including fittings) plying for engines from from from from from from plant professional installations equipment (not (plying aero types) providing loss loss loss loss loss loss and and hardware (including and installations (all ground vehicles vehicles and shore crafts commencement Building Machinery Computer Furniture Technical Below Off Machinery Motor Motor Ships Air Total Intangibles Pre Expenditure Total Unadjusted Unadjusted Unadjusted Unadjusted Unadjusted Unadjusted Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Assets Depreciable Intangibles Adjustmen Forward Brought 2009 Year Tax AOP) for ONLY NTN & Individual for ONLY (CNIC No. Registartion Annex-A ADJUSTMENTS & DEPRECIATION TAX OF CHART

"PART-1A CHART OF TAX PAYMENTS Annex-B Registartion No. (CNIC ONLY for Individual & NTN ONLY for AOP) Tax Year 2009 Particulars Code Amount 1 On import of goods (other than tax deduction treated as final tax) 94019 only) 2 On withdrawal from pension fund 94028 Tax 3 From salary 94029 4 On dividend (other than tax deduction treated as final tax) 94039 5 On Government securities 94043 6 On profit on debt (other than tax deduction treated as final tax) 94049 (Adjustable 7 On payments received by non-resident 940539 8 On payments for goods (other than tax deduction treated as final tax) 940619 9 On payments for services (other than tax deduction treated as final tax) 940629 Source at 10 On payments for contracts (other than tax deduction treated as final tax) 940639 11 On cash withdrawal from bank 94119 12 On trading of shares at a Stock Exchange 94138 Deducted 13 On financing of carry over trade 94139 14 With motor vehicle token tax (other than goods transport vehicles) 94149 15 With electricity bills 94159 16 With telephone/ mobile bills/ pre-paid cards 94169 Collected/ Tax 17 With motor vehicle registration fee 94179 18 Total tax deductions at source (Adjustable Tax) [Sum of 1 to 17] 94599 19 Total tax deductions at source (Final Tax) 94591 20 Advance tax 9461 21 Admitted Tax 9471 22 Total Tax Payments [18 + 19 + 20 + 21] (transfer to 36 of Return) 9499 23 CPR No.

This Notification shall be applicable for the tax year 2009. [C. No. 7(45) Tax Base/06] (Khalid Aziz Banth) Member Policy (Direct Taxes)/ Additional Secretary