Draft Notification of Amendment in the Income Tax Rules, 2002.

Government of Pakistan Revenue Division Federal Board of Revenue Inland Revenue Wing ***** Islamabad, February 06, 2013 NOTIFICATION (Income Tax) S.R.O ------(I)/2013.- The following draft of further amendment 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 (15) days of its publication in the official Gazzette. 2. Any objection or suggestion, which may be received from any person, in respect of the said draft, before the expiry of the aforementioned period, shall be considered by the Federal Board of Revenue. DRAFT AMENDMENT In the aforesaid Rules, in the Second Schedule,- (a) In Part-IC (IT-1), in order to facilitate taxpayers engaged in the business of goods forwarding, the following new Row 130 shall be added, namely,- Source Code Receipts/Value Rate Code Tax Due 130 Goods Transport Vehicles 64141 65141 (b) In Part-IC (IT-1), in order to treat the tax collected on import of edible oil and packing material as “minimum tax,” as intended by law, the following changes will be made, namely,- (i) A new block to cater the calculation of minimum tax at Sr. No. 141 as follows will be inserted: -

Difference of minimum tax chargeable on certain 141 9303 business transactions [141(c)(v) minus 141(c)(iii)] (i) (ii) (iii) (iv) (v) Import Value/Services Proportio Higher receipts subject nate Proportionat Minimum Rate of (iii) or to collection or chargeabl e tax * tax (iv) deduction of tax e income at source Imports (a) Edible Oil U/S 3% 148(8) Import of Packing (b) 5% Material U/S 148(8) (c) Total (ii) All other Serial Numbers greater than 141 will be incremented by one that would consequently result in the changes in remaining rows. (c) In Part-IC (IT-2), in order to restrict tax rebate @ 75% ONLY to “income from salary” allowed to “a full time teacher or a researcher” under Clause (2) of Part III of Second Schedule to the Income Tax Ordinance, 2001, as intended by the law, the following changes shall be made, namely,- (i) The caption against Sr. No.39 having code 9249 is changed from “Tax Reductions/Credits/Averaging (including rebate on Bahbood Certificates, etc.)” to “Tax reductions/ Credits/ Averaging other than Teachers/Researcher Rebate (Including rebate on Bahbood Certificates, etc)”. (ii) A new ROW at Sr. No.44 with the caption “Full Time Teacher/Researcher’s Rebate” and code 9309 is inserted. (iii) All other Serial Numbers greater than 44 are incremented by one that also resulted the changes in captions against the codes “9307” & “9999”. (iv) The following validation check has been incorporated against Sr. 44 having caption “Full Time Teacher/Researcher’s Rebate” and code “9309”. (v) The value against code “9309” must be less than or equal to the (value against code “1999” multiplied by @ rate against “9201”) minus (value against code “1999” multiplied by @ rate against “9201” multiplied by 0.25. This Notification and the changes made thereunder shall be applicable for the tax year, 2010. [C.No.2(2)Tax Base/2010 (Muhammad Ashfaq Ahmed) Secretary (IR General)