Tax Book 2023

Income From Other Sources Chapter- 13

Less: tax deducted at source:
On dividend 3,000
On profit on debt 5,000
On prize bond 3 ,000
On bonus issue 0
11 , 000
Balance tax payable 2,500

6. Pakistan source & Foreign source Income from other sources

Geographical

source of Income from

other sources [section

101]

Received by Taxability

Pakistan source income

from other sources

Resident / non-resident

individual

 Taxable [Section 11(5) and (6)]

 Exemption, tax credits and term and conditions

of double taxation treaty agreements shall be

considered.

Foreign source income

from other sources

a. Resident Individual Taxable [Section 11(6)]

b. Short term resident

[For all foreign source

income]

[Section 50]

An individual shall be exempt in respect of his

foreign-source income which is not brought /

received in Pakistan if he is resident only by

reason of his employment and he is present in

Pakistan for not exceeding 3 years.

c. Returning expatriate

[Citizen of Pakistan

coming back in

Pakistan]

[For all foreign source

income]

[Section 51]

If an individual citizen of Pakistan (returning

expatriate) is resident in the current tax year but

was non-resident in the 4 preceding tax years,

his foreign-source income shall be exempt in

current tax year and in the following tax year.

Non-resident individual Not taxable [Section 11(6)]

7. EXEMPTIONS UNDER VARIOUS SECTIONS OF THE INCOME TAX ORDINANCE, 2001
   PROFIT ON DEBT [U/S 46]
   Any profit received by a non-resident person on a security issued by a resident person shall be
   exempt from tax where-
   (a) the persons are not associates; and
   (b) the security approved by board was widely issued by the resident person outside Pakistan for
   raising loan outside Pakistan (profit on security also payable outside Pakistan) for use in a
   business in Pakistan.
   EXEMPTIONS UNDER SECOND SCHEDULE PART I TO INCOME TAX ORDINANCE, 2001

CLAUSE PARTICULARS

72 Interest to non-residents for approved projects.

This clause has been omitted by Finance Act, 2021.

74 Interest on income of HUBCO.

This clause has been omitted by Finance Act, 2021.

75 Interest income of foreign agencies.

This clause has been omitted by Finance Act, 2021.

78 Interest on foreign currency accounts

79 Interest on rupee account of non-resident Pakistanis