Introduction and Geographical Source of Income Chapter- 05
Physical stay in a tax year in Pakistan Status Status
a) 0 - 182 days Non-Resident individual
b) 1 83 or more days (equal or more than 50% of days in a year);
orResident individualc) A government employee posted abroad in the tax year is
resident irrespective of his physical stay in Pakistan. orResident individuald) being citizen of Pakistan is not a tax resident of any other
country for more than 182 days during the tax year or who is not
a resident taxpayer of any other country.Resident individualRule 14 of the Income Tax Rules 2002:
Rule to count days an individual present in Pakistan becomes vital when a person has frequent visits to or
from Pakistan. Rule 14 of the Income Tax Rules prescribes the procedure for counting of days as under:
Part of a day that an individual is present in Pakistan counts as a whole day including:- A day of arrival in Pakistan
- A day of departure from Pakistan
- A public holiday
- A day of leave
- A day that the individual's activity in Pakistan is interrupted because of a strike, lock-out or delay in
receipt of supplies - A holiday spent in Pakistan before, during or after any activity in Pakistan
- A day In Pakistan solely by reason of being in transit does not count as a day present in Pakistan
Residential Status of Company [Section 83]
(a) A company incorporated in Pakistan, provincial government and local governments are resident
without any condition.
(b) A company incorporated outside Pakistan is resident if control and management of the affairs is
situated wholly in Pakistan in the year.
Residential Status of Association of Persons (AOP) [Section 84]
AOP shall be considered as resident if control and management of affairs is situated wholly or partly in
Pakistan in the year.
Total income
Income tax is generally applicable on total income (including exempt income) that has been divided into
following 5 heads of income.
NTR = Normal tax regime SBI = Separate block of income FTR = Final tax regime
S. No. Head of income Tax regime
1 Salary income NTR and SBI
2 Property income NTR
3 Business income NTR and FTR
4 Capital gains NTR and Fixed tax as SBI
5 Other sources NTR and SBI under FTRTax regimes