Introduction and Geographical Source of Income Chapter- 05
Q. NO. 2(c) SUMMER 2009 In each of the following cases, you are required to identify the income as
Pakistan source income or foreign, source income, and provide the relevant provision of the sections used
as the basis for identification:
(i) Mr. Walter Vincent, is the employee of United Nations, who is employed in Pakistan. His salary is
paid by United Nations through direct credit to his foreign bank account.
(ii) Mr. Jonty Rhodes has been hired for one month as coach of national cricket team for training in
Dubai. He has been paid US $100,000 as fee for professional services by the Federal Government of
Pakistan.
(iii) Mr. Hammad Ali is a resident person for tax purpose. He has earned an income of Rs. 500,000 from
the disposal of shares of a company incorporated outside Pakistan.
(iv) M. Clifford, a resident of United Kingdom, has made a gain of UK ₤1000 from the sale of the shares
of a company listed in London Stock Exchange. The principal activity of the company is to explore for
the natural resources of Pakistan.
(v) Mr. Kareem, a resident of Pakistan, has been paid an amount of US $100,000 on account of secret
formula for making a chemical, by a company incorporated outside Pakistan.
Q. NO. 2(c) SUMMER 2008 Describe the provisions of the ITO, 2001 for foreign source salary of resident
individuals.
Q. NO. 2(c) SUMMER 2007 How residential status of an individual is determined under rule 14 of the
Income Tax Rules, 2002?
Q. NO. 3(a) WINTER 2006 Explain the foreign source salary of resident individual u/s 102 of the Income tax
Ordinance, 2001.