CONTROL SHEET OF DEDUCTIBLE ALLOWANCES

PREPARED BY SIR TARIQ TUNIO THE TAXMAN (ARTT 0332-2130867)

ZAKAT ► A person shall be entitled to deductible allowance for Zakat paid under Zakat and Ushr Ordinance, 1980
► Zakat that has been allowed as deduction under IFOS in respect of POD income shall not be allowed as deductible allowance.
► Deductible allowance for Zakat that is not able to be deducted shall not be refunded, carried forward to a subsequent tax year, or carried back to a preceding tax year.

WWF ► Person shall be entitled to deductible allowance for amount of Workers’ Welfare Fund paid by person under Workers’ Welfare Fund Ordinance, 1971 or under any law relating to the
Workers’ Welfare Fund enacted by Provinces after 18th Constitutional Amendment Act, 2010.
► Deductible Allowance in/res/of Workers’ Welfare Fund paid to Provinces by trans-provincial establishment shall not be allowed. [Trans-provincial means operating in two or more provinces.]
► Note: Deductible Allowance in respect of amount of Workers’ Welfare Fund paid to FBR under Workers’ Welfare Fund Ordinance, 1971 shall be allowed.

WPPF ► Person shall be entitled to deductible allowance for amount of Workers’ Participation Fund paid by person in accordance with provisions of Companies Profit (Workers’ Participation) Act,
DEDUCTIBLE 1968 or under any law relating to the Workers’ Profit Participation Fund enacted by Provinces after 18th Constitutional Amendment Act, 2010.
► Deductible allowance in respect of amount of Workers’ Profit Participation Fund paid to the province by a trans-provincial establishment shall not be allowed.
ALLOWANCE ► Note: Deductible Allowance in respect of amount of Workers’ Profit Participation Fund paid to the province by a trans-provincial establishment shall be allowed.

DEDUCTIBLE Loan Advanced by

ALLOWANCE FOR o Schedule Bank
PROFIT ON DEBT o NBFI regulated by SECP Every individual is
o Government (i.e. Federal) LOAN Deductible Allowance
o Provincial Government equal to lower of
o Local Government
o Statutory Body or
o Public Listed Company Amount of D/Allowance (A) Amount of D/Allowance (B)
- Profit or shall not exceed
- Share in rent & Share in ► 50% of taxable income or
Utilization of Loan
appreciation for value of house ► Rs. 2 million
Utilized by individual for
PAID BY AN INDIVIDUAL WHICHEVER IS LOWER
construction of new house or
acquisition of a house

DEDUCTIBLE Every Individual Which Individual? Either of the parents making payment of the fee
ALLOWANCE FOR Shall be entitled to Subject to Condition that Taxable Income of the Individual for the tax year does not exceed Rs. 1.5 m
EDUCATION EXPENSE

DEDUCTIBLE ALLOWANCE ► Allowed Against tax liability of either of the parents making payment of fee on furnishing NTN or name of educational institution
IN/RES/OF TUITION PAID ► Allowance or part of it allowed under this section that is not able to be deducted shall not be carried forward.

Amount of D/A shall be equal to

lesser of

5% of total tuition 25% of person’s Amount = No. of

fee paid taxable income Children x 60,000