service income u/s 153(b) and salary income

Imran Hafeez · 03-03-2011, 08:28 PM

Will the service income u/s 153b added with Salary income to calculate the new taxable income with new tax slab or will both the incomes kept separate?

As per the Financial Act 2009, service income u/s 153b does not come under Final Tax Regime, which means that it needs to be added with our other incomes like salary income.

Imran Hafeez · 03-04-2011, 04:32 PM

can anyone help resolve the issue?
<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Will the service income u/s 153b added with Salary income to calculate the new taxable income with new tax slab or will both the incomes kept separate?

As per the Financial Act 2009, service income u/s 153b does not come under Final Tax Regime, which means that it needs to be added with our other incomes like salary income.

<hr height="1" noshade id="quote"></blockquote id="quote">

Imran Hafeez · 03-07-2011, 04:32 PM

I have talked to multiple people, tax lawyers, Chartered Accountant and FBR Tax commisioners over this issue.

None of them could provide a unanimous point of view on this issue.

Following are their feedbacks

Retired Tax Commisioner Income u/s 153(1)b is no more under FTR but still its income is treated as FTR and not added in salary income

Serving Tax Commisioner Income u/s 153(1)b is no more under FTR and minimum tax applies. Therefore you will add this income with your salary income to calculate new taxable income to be taxed at new tax slab.

Tax Consultant Income from services cant be added to salary income, therefore to be treated separately.

Chartered Accountant Income from services to be added in Salary income.

I am totally confused, what to do(

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Will the service income u/s 153b added with Salary income to calculate the new taxable income with new tax slab or will both the incomes kept separate?

As per the Financial Act 2009, service income u/s 153b does not come under Final Tax Regime, which means that it needs to be added with our other incomes like salary income.

<hr height="1" noshade id="quote"></blockquote id="quote">

LapTop · 03-07-2011, 06:49 PM

IMRAN bhai,

Ap ki income U/S153(B) may aati hi nahi aap kyon zabardasti usy U/S 153(B) declare karna chah rahay han, ap ki income U/S 153 (C) may aati hay,

Agar ap apni income ko U/S 153(b) declare karyn gay to ap ko bohat zayada tax dayna pary ga, kyon k aap ki services ki income add ho jaye gi salary income may or phir tax rate salary income wala lagy ga,

Agy aap ki marzi.

Imran Hafeez · 03-07-2011, 07:15 PM

U/S 153(1)c says on the execution of a contract, other than a contract for the sales of goods or the rendering of services

Even If treat my my teaching on an hourly basis as contract, the above mentioned clause says that contract of services cant come under 153(1)c

But the good thing is that service defination as per ordinance is as follows
11[ ] services includes the services of accountants, architects,
dentists, doctors, engineers, interior decorators and lawyers,
otherwise than as an employee 12 [.]

But according to Income Tax Commisioner, the above defination is not a comprehensive defination. If the words "services means" had been used, we could have treated the above defination as a comprehensive defination

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by LapTop
 IMRAN bhai,

Ap ki income U/S153(B) may aati hi nahi aap kyon zabardasti usy U/S 153(B) declare karna chah rahay han, ap ki income U/S 153 (C) may aati hay,

Agar ap apni income ko U/S 153(b) declare karyn gay to ap ko bohat zayada tax dayna pary ga, kyon k aap ki services ki income add ho jaye gi salary income may or phir tax rate salary income wala lagy ga,

Agy aap ki marzi.

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LapTop · 03-07-2011, 07:19 PM

Jaysy Ap ki marzi Imran bhai.

Imran Hafeez · 03-07-2011, 07:24 PM

Dear Laptop,

You are an expert in this area. I am just a novice.

I will love to have my income come under 153(1)c so that i dont have to pay any extra tax.

I just want to be sure shot, so that i can defend my case with full confidence, if some challenges my stance.

Thats why i presented clauses before to you to have your opinion and to make case for 153(1) c stronger.

I appreciate your continous support.
<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by LapTop
 Jaysy Ap ki marzi Imran bhai.
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