What is Tax ?
An expense charged by a government on an item, income, or activity. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax.
Taxation In Pakistan ?
Pakistan’s Current Taxation framework is characterized by Income Tax Ordinance 2001, proclaimed on 13 September 2001, which got to be successful from 1 July 2002 and it has been Amended for commonly since its declaration.
Tax rates and technique for calculating taxable shifts with financial status of the tax payer. Following are the broad categories of taxpayers.
- Association of Persons (AOP)
- Non Salaried Individuals
- Salaried individuals
Brief History of Income Tax of Pakistan:
Income Tax Act of 1922: predominant in the British Raj and was received by the Government of Pakistan as its Income Tax Law. Income Tax Ordinance, 1979 was the main law on Income Tax which was declared in Pakistan from 1 July 1979 by Government of Pakistan. To upgrade the tax laws and acquire nation’s law agreement with worldwide guidelines, Income Tax Ordinance 2001 was declared on 13 September 2001, which got to be viable from 1 July 2002. IT rules 2002 were declared by FBR on 1 July 2002 in the activity of forces allowed under segment 237 of the Ordinance.
