Staff Reporter Islamabad
Federal Board of Revenue (FBR) on Monday issued a clarification on a news report on taxation of salary income.
FBR has stated that the story contains some incorrect or misleading content; therefore FBR would like to issue a clarification in this regard.
FBR has clarified that withdrawal of exemption & reduced rates should not be confused with imposition of new taxes.
It is very clearly and candidly informed that the present budget proposals do not contain any new item for taxation of pensions or major components of salary as initially discussed.
Omission of Clause (39) of Part I of Second Schedule to the Income Tax Ordinance, 2001 is only of technical nature.
This clause provided exemption to re-imbursement of expenditure incurred by employee on behalf of the employer organization.