Seperate Block of Income

Imran Hafeez · 03-04-2011, 02:47 PM

Does income from services u/s 153b treated as a seperate block of income ?

If yes, then why? Because services income u/s 153b has been excluded from FTR regime and now comes under NTR regime.

Does the income from service income u/s 153b needs to be added into salary income to calculate new taxable salary and be taxed at new tax slab?

Imran Hafeez · 03-04-2011, 04:42 PM

Can anyone comment on this issue?

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Does income from services u/s 153b treated as a seperate block of income ?

If yes, then why? Because services income u/s 153b has been excluded from FTR regime and now comes under NTR regime.

Does the income from service income u/s 153b needs to be added into salary income to calculate new taxable salary and be taxed at new tax slab?
<hr height="1" noshade id="quote"></blockquote id="quote">

Imran Hafeez · 03-07-2011, 04:26 PM

Can anyone give me reference from IT Ordinance, that income from services u/s 153(1)b will be treated as a separate block of income.

Because now income from services does not come under Final Tax Regime.

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Does income from services u/s 153b treated as a seperate block of income ?

If yes, then why? Because services income u/s 153b has been excluded from FTR regime and now comes under NTR regime.

Does the income from service income u/s 153b needs to be added into salary income to calculate new taxable salary and be taxed at new tax slab?
<hr height="1" noshade id="quote"></blockquote id="quote">

Sayub · 03-08-2011, 12:55 AM

No. Services under 153(1)(b) should not be taxed as separate block of Income. Please explain why you want to add such in Salary income??

Regards

Sharjeel

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Can anyone give me reference from IT Ordinance, that income from services u/s 153(1)b will be treated as a separate block of income.

Because now income from services does not come under Final Tax Regime.

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Does income from services u/s 153b treated as a seperate block of income ?

If yes, then why? Because services income u/s 153b has been excluded from FTR regime and now comes under NTR regime.

Does the income from service income u/s 153b needs to be added into salary income to calculate new taxable salary and be taxed at new tax slab?
<hr height="1" noshade id="quote"></blockquote id="quote">
<hr height="1" noshade id="quote"></blockquote id="quote">

Imran Hafeez · 03-08-2011, 01:16 AM

Because when filing annual tax return, we are supposed to add all our income sources to calculate the new taxable income and based on the taxable income, tax slab is applied.

If my salary from permanent job is 1,000,000, my employer company is deducting tax at 9%, but if am also earning 500,000 from services (visiting faculty), my new taxable income will become 1,500,000 and tax rate of 12.5% will become applicable.

Till past, services income used to come Final Tax Regime. Because of that we were not supposed to add services income in salary income. But because of this new change that minimum tax will be applicable on service income, we will have to add services income in our salary income.

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Sayub
 No. Services under 153(1)(b) should not be taxed as separate block of Income. Please explain why you want to add such in Salary income??

Regards

Sharjeel

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Can anyone give me reference from IT Ordinance, that income from services u/s 153(1)b will be treated as a separate block of income.

Because now income from services does not come under Final Tax Regime.

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Imran Hafeez
 Does income from services u/s 153b treated as a seperate block of income ?

If yes, then why? Because services income u/s 153b has been excluded from FTR regime and now comes under NTR regime.

Does the income from service income u/s 153b needs to be added into salary income to calculate new taxable salary and be taxed at new tax slab?
<hr height="1" noshade id="quote"></blockquote id="quote">
<hr height="1" noshade id="quote"></blockquote id="quote">
<hr height="1" noshade id="quote"></blockquote id="quote">

LapTop · 03-08-2011, 04:03 AM

Imran bhai,,
Ap agar apni income ko jo visiting faculty Member ki hay 500000 usy 153(b) conceder karyn gay to ap bilkul theek calculation kar rahay han,
Ye 500000 ap ki salary income may add ho jaye gi, or ye ap ki business income kahlaye gi,
Ab chunky ap ki salary income ap ki total income k 50% say zayada hay is waja say tax rate salary income ka apply ho ga.
Is tarhan ap ki total taxable income 1500000 ho jaye gi,
Jis par tax rate 12.5% lagy ga agar marginal relief layn gay to tax 179500 bany ga.
1000000 par ap ka tax 90000 withheld howa ho ga
Or 500000 par 6% k hisab say 30000
Yani k ap ka total tax 120000 withheld howa
Ab ap ko 59500 mazid tax ada karna pary ga.

Jabky agar ap apni visiting faculty Member ki income ko 153 (c ) declare karyn gay to ap ko koi mazid tax jama karwany ki koi zarorat nahi ho gi.

Imran Hafeez · 03-08-2011, 04:49 PM

I am willing to declare my income under 153(1)c, But income tax ordinance says that contract of rendering services cant come under this clause.

Only thing that rescue me is the definition of services as per ordinance, which does not include teaching)

11[ ] services includes the services of accountants, architects,
dentists, doctors, engineers, interior decorators and lawyers,
otherwise than as an employee 12 [.]

But someone told me that above defination is not a comprehensive defination. If the following words had been used "services mean", instead of "services include", we could have treated it as a comprehensive defination and treated visiting faculty teaching under 153(1)c contracts.

What shall i do?

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by LapTop
 Imran bhai,,
Ap agar apni income ko jo visiting faculty Member ki hay 500000 usy 153(b) conceder karyn gay to ap bilkul theek calculation kar rahay han,
Ye 500000 ap ki salary income may add ho jaye gi, or ye ap ki business income kahlaye gi,
Ab chunky ap ki salary income ap ki total income k 50% say zayada hay is waja say tax rate salary income ka apply ho ga.
Is tarhan ap ki total taxable income 1500000 ho jaye gi,
Jis par tax rate 12.5% lagy ga agar marginal relief layn gay to tax 179500 bany ga.
1000000 par ap ka tax 90000 withheld howa ho ga
Or 500000 par 6% k hisab say 30000
Yani k ap ka total tax 120000 withheld howa
Ab ap ko 59500 mazid tax ada karna pary ga.

Jabky agar ap apni visiting faculty Member ki income ko 153 (c ) declare karyn gay to ap ko koi mazid tax jama karwany ki koi zarorat nahi ho gi.

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

LapTop · 03-08-2011, 07:34 PM

Imran Bhai ,,
Sorry to say, mujay explain karna nahi aata hay sahi say, may sirf advice dayta hon bus.
Koi or member ap ko shayed explain kar saky.

Imran Hafeez · 03-08-2011, 11:08 PM

Dear Laptop,

Your knowledge and explanations are excellent. Your examples are very relevant.

Regards,
Imran

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by LapTop
 Imran Bhai ,,
Sorry to say, mujay explain karna nahi aata hay sahi say, may sirf advice dayta hon bus.
Koi or member ap ko shayed explain kar saky.

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