Finance Act 2013 regarding Amendments Made in Income Tax Ordinance 2001

Govt of Pakistan Revenue Division, Federal Board of Revenue, Islamabad has issued Notification No. C.No.4 (36) ITP/2013-97567-R dated 19th July 2013 in connection with Finance Act-2013-Explanation Regarding Important Amendments made in the Income Tax Ordinance 2001. The headings for these amendments are as under:

  •  Dividend Income Received by a Corporate Taxpayer
  • Income from Property
  • Set off Losses
  • Person
  • Unexplained Assets or Income
  • Minimum Tax on the Income of certain persons
  • Minimum Tax on Builders
  • Minimum Tax on Land Developers
  • Return of Income
  • Persons not required to furnish a Return of Income
  • Wealth Statement
  • Method of Furnishing Returns and other Documents
  • Provisional Assessment
  • Imports
  • Payments to Non-Resident Persons
  • Payments for goods, services and contracts
  • Income from Property
  • Prizes and Winnings
  • Statements
  • Furnishing of Information by Banks
  • Additional Payment for Delayed Refunds
  • Representatives
  • Audit
  • Displaying of National Tax Number
  • Offensives and Penalties
  • Selection for Audit by Board
  • Tax on Cash Withdrawal from Bank
  • Collection of Tax by NCCPL
  • Advance Tax on Private Motor Vehicles
  • Tax on Motor Vehicles
  • Tax on Telephone Users
  • Advance Tax at the Time of Sale by Auction
  • Advance Tax on Functions and Gatherings
  • Advance Tax on Foreign Produced TV Plays and Serials
  • Advance Tax on Cable Operators and Other Electronic Media
  • Advance Tax on to Sale to Distributors, Dealers and Wholesalers
  • Advance Tax on Sale to Retailers
  • Advance Tax on Payment of Fees to Educational Institutions
  • Income Tax on Dealers, Commission Agents and Arhties etc
  • Income Tax Rates for Individuals and Association of Persons
  • Income Tax Rates for Salaried Individuals
  • Income Tax Rates for Companies (Other Than Banking Company)
  • Amendment in Second Schedule
  • Amendment in Third Schedule
  • Amendment in Seventh Schedule



Some of the important amendments in Income Tax related to the Govt Employees are as under:

New Income Tax Rates for the Employees

Detail is as under:

  • There has been made reduction in tax liability of the tax payable on income from salary equal to 75% has been reduced to 40% in case of:

A full time teacher employed in non-profit educational institution or researchers employed in research institution duly recognized by HEC, a Board of Education, a University recognized by HEC including Govt Training Institutions.

  •  There has also been amendments for the income tax for the salaried employees. The detail of the same is available as shown in the picture.



Tax on Tuition Fees Paid to Educational Institutions

Every Educational Institution will collect advance income tax @ 5% on the fee paid to the institution.  They will charge withholding tax in case fee is more than Rs. 200,00/- annually.  See the full detail on the below picture.



Increased Rates of Income Tax for Telephone Users

The rate of Income Tax for subscribers of mobile telephone users and prepaid card has been raised from 10% to 15%.

Enhanced Rates of Income Tax for Cash Withdrawal from Bank

The rates of deduction of Income Tax for every Bank Company has been increased to 0.3%. It is to mention here that earlier these rates were 0.2%.



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