Applicable July 01, 2022 to June 30, 2023 as updated vide the Finance Act, 2022
ABOUT THIS WRITE-UP
The purpose of this write-up is to briefly summarize the concept of computation of income from salary and computation of tax thereon under the Income Tax Ordinance, 2001 (the Ordinance) and Income Tax Rules, 2002, taking into account the amendments vide the Finance Act, 2022 (the Act).
The information and elaborations as contained herein are general in nature and based on our interpretation of the applicable statute and significant amendments vide the Act, becoming effective from July 01, 2022 – i.e., for the Tax Year 2023.
As such nothing contained herein should be taken as legal advice in a given case and Make Me Filer does not accept any responsibility for any loss arising from any action taken or not taken based on this document.
FINANCE ACT, 2022 | SIGNIFICANT CHANGES
- Tax burden for income below Rs. 2.9M has been reduced, whereas the burden increases above this income point.
- Profit on debt paid on loans acquired for purchase or construction of house no more deductible from taxable income;
- Tax credits on investment in shares and sukuks issued by listed companies and investment in mutual funds no more available;
- Tax credits on life and health insurance premium abolished.