FIN623 GDB

FIN623 3rd GDB

Q1 Does the individual partners are liable to pay tax on interest received from the partnership firm? Justify your answer in either case.Q2 A local company has hired services of private security guards for security of its key management personnel. Should the management staff be taxed for this benefit?

ANS:

When computing the amount of tax to be withheld from an employee’s salary, can tax credits under the Ordinance to which an employee is entitled be taken into account, such as those relating to:
a) Approved donations;
b) Interest on housing loan;
c) Investment in shares; and
d) Contribution to approved pension funds
Further, can the employer reduce the withholding tax for tax paid by the employee with utility bill payments and with payments for motor vehicle token fee?