02-13-2009, 09:56 PM
FTR means "final tax regime"
actually under law regarding calculation of income tax our income is taxed under one of the following three categories
Normal tax regime (NTR)
Final Tax regime (FTR)
Seperate block of income
if ur income is chargeable to tax under NTR than u have to compute "taxable income" and than pay tax on this taxable income. tax rates applicable to incomes taxable under NTR are given under Part-1 of First schedule to Income Tax Ordinance 2001.
where as if ur income is taxable under FTR than any amount deducted at source shall be treated as full and final discharge of your tax liability towards the same income. and u dont have to pay any other tax in respect of such incomes.
if ur income is taxable as "seperate block of income" than such income will not be added in taxable income while computing taxable under NTR rather for such incomes law has prescribed special rates. and only those rates shall be applied.
cares
Hasaan Fazal
actually under law regarding calculation of income tax our income is taxed under one of the following three categories
Normal tax regime (NTR)
Final Tax regime (FTR)
Seperate block of income
if ur income is chargeable to tax under NTR than u have to compute "taxable income" and than pay tax on this taxable income. tax rates applicable to incomes taxable under NTR are given under Part-1 of First schedule to Income Tax Ordinance 2001.
where as if ur income is taxable under FTR than any amount deducted at source shall be treated as full and final discharge of your tax liability towards the same income. and u dont have to pay any other tax in respect of such incomes.
if ur income is taxable as "seperate block of income" than such income will not be added in taxable income while computing taxable under NTR rather for such incomes law has prescribed special rates. and only those rates shall be applied.
cares
Hasaan Fazal
