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Sunday, February 13, 2011

Advance Tax

Q: List down various types of incomes which are not taken into consideration while calculating advance tax?

Ans:

1. Dividends (S.5)

2. Certain payments to non-residents (S.6)

3. Shipping and air transport income of a non-resident person (S.7)

4. Income from Property

5. Salary

6. Income that is subject to deduction/ collection of tax under Division II or Division III, or Chapter XII and which is subject to final taxation.


A taxpayer deriving income exclusively from one or more of these sources is not required to pay advance tax. In case a person derives incomes subject of advance tax and incomes not subject to advance tax, the person is required to pay advance tax only in relation to incomes that are subject to advance tax.

[See Para 22.1.2 of 'Taxation in Pakistan' or Sec. 147(1) of the ITO-2001]

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