Income From Business Chapter- 09
Less: Administrative expenses (110,000)
Add: accounting depreciation 10,000
Add: Penalty for violation of law 2,500
Less: Tax depreciation (15,000)
Total income 77,500
Less: Deductible allowance:
Zakat (20,000)
WWF (10,000)
Taxable income 47,500- Worker’s Participation Fund (u/s 60B):
A person shall be entitled to a deductible allowance for the amount of any Worker’s
Participation Fund paid by the person in tax year under Companies Profit (Workers’
Participation) Act, 1968 [or under any law relating to the Workers’ Profit Participation Fund
enacted by Provinces after the eighteenth Constitutional amendment Act, 2010:
Provided that this section shall not apply in respect of any amount of Workers’ Profit
Participation Fund paid to the province by a trans-provincial establishment.
In view of the above, any sum paid for Workers Profit Participation Fund is admissible
deductible allowance. It is important to place on record that under clause (4)(d) of the Schedule
to the Companies Profit (Workers’ Participation) Act, 1968, any amount of undistributed workers
profit participation fund will be paid as Workers Welfare Fund to the Tax Authorities. - Deductible allowance for profit on debt [u/s 60C] - withdrawn by Finance Act, 2022
(1) Every individual shall be entitled to a deductible allowance for the amount of any profit or
share in rent and share in appreciation for value of house paid by the individual in a tax
year on a loan by a scheduled bank or non-banking finance institution regulated by
the Securities and Exchange Commission of Pakistan or advanced by Government or the
Local Government, Provincial Government or a statutory body or a public company listed
on a registered stock exchange in Pakistan where the individual utilizes the loan for the
construction of a new house or the acquisition of a house.
(2) The amount of an individual’s deductible allowance allowed under subsection (1) for a tax
year shall not exceed 50% of taxable income or two million rupees, whichever is lower.
(3) Any allowance or part of an allowance under this section for a tax year that is not able
to be deducted for the year shall not be carried forward to a subsequent tax year. - Deductible allowance for education expenses [u/s 60D]
(1) Every individual shall be entitled to a deductible allowance in respect of tuition fee
paid by the individual in a tax year provided that the taxable income of the individual is
less than Rs. 1,500,000.
(2) The amount of an individual’s deductible allowance allowed under sub-section (1) for a
tax year shall not exceed the lesser of —
(a) 5% of the total tuition fee paid by the individual referred to in sub-section (1) in the
year;
(b) 25% of the person‘s taxable income for the year; and
(c) an amount computed by multiplying 60,000 with number of children of the
individual.
(3) Any allowance or part of an allowance under this section for a tax year that is not
able to be deducted for the year shall not be carried forward to a subsequent tax year.
(4) Allowance under this section shall be allowed against the tax liability of either of the
parents making payment of the fee on furnishing national tax number (NTN) or name of
the educational institution.