What is Presumptive Tax Regime ?

[AbdulSamad]

Can any one tell me what is presumptive tax regime and further please explain this new amendments?

In Budget 2010-2011,

- Senior Citizens of the age of 60 years or more, are to be eligible for relief of 50% of tax on their income, if their income does not exceed Rs.1,000,000/- (as compared to previous maximum limit of Rs.750,000/-) However this relief shall not be available on income subject to Presumptive Tax Regime.

[LapTop]

Presumptive Tax regime or final tax regime ik hi han,,,,,

Is regime may jo incomes aati hayn, un par FBR app say advance may ik fixed rate par income tax lay layti hay or aap ko discharge kar dayti hay aap ki tax liability say.

Is regime may aap ko apny tamam advance taxes say surrender karna parta hay

Or ap sal k aakhir may return of income ki jaga statement of final tax U/S115 jama karwaty han

[LapTop]

App ka dosra question ye hay k Senior Citizen Rebate FTR ya PTR may milta hay k nahi,,,,,

Nahi FTR or PTR may ye rebate nahi milta, ye sirf normal tax regime ya normal business income may hi milta hay ya salary income ho to milta hay.

[AbdulSamad]

Thank you laptop

Actually Mere GM ka RENT per tax pay ho raha hai, is ka matlab wo final liablity hai aur 50% rebate rent income shamil nahi hogi.


Am i correct?

Abdul Samad

[LapTop]

ji bilkul,,,

app rental income par Senior Citizen rebate nahi lay sakty.

[AbdulSamad]

Bohut Bohut shuykeriya Laptop sahab.


Abdul Samad

[zeeshan687]

we pay tax on the net profit..and to find out net profit, we subtract CGS from G.P..the less the marketing and admin exp..(the normal procedure followed in INCOME STATEMENT...bla bla bla...and then u will find the net profit and the tax rate will applied on this profit in order to find out the tax liability...

THIS IS THE NORMAL TAX REGIME...

whereas, PRESUMPTIVE TAX REGIME means that we are actually PRESUMING some income which is not actually liable for tax rate..but we are presuming some income for the tax purposes...

FOR EXAMPLE...you made an import of 400,000

this is not your net profit..but for the tax purposes, the law will PRESUME that this is your net profit and apply the respective WHT rate on this...

[LapTop]

Bohat acha define kiya hay zeeshan bhai nay

[Sarfaraz Khan]

yar laptop bhai ye zeeshan bhai k hati ko bhi plz depreciate kar do next topic par P..he is worry about it ..

[LapTop]

Yar 1 SRO may nay parha tha is hawaly say par mujhay mil nahi raha,,,, jab tak mily ga nahi advice nahi kar sakta na.

[AbdulSamad]

Bohut bohut shukeriya lap top ap ka aur zeeshan sb ap ka bhi.

Ap ne bohut accha define kia hai...

[student_of_law]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by LapTop</i>
<br />ji bilkul,,,

app rental income par Senior Citizen rebate nahi lay sakty.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

The answer that one is not entitled to senior citizen rebate on tax deducted from his rental income might be right at the time when this answer was given by Mr. Laptop i.e. in June 2010. At that time according to sub-section (2) of s.155, tax deducted at source u/s 155 was final tax.

However with effect from July 2010, sub-section (2) of s.155 has been omitted hence, in my opinion, income from property no longer falls within final tax regime, and consequently, senior citizen rebate is allowed on it, since last tax year.

Even otherwise, what is exempt from rebate is "income on which deduction of tax is final" . Hence where tax from rental income is not deductible at source and one pays tax on income from property along with the return in accordance with s.15, in such case I could not find any thing in the Ordinance, that says that such tax was final tax. So in any case tax payable with return has been subject to senior citizen concession at all times.

Whether FBR has provided for this situation in its return or not is a different matter.

[amerrafique]

Assalam o Alaikum to all forum members
after omission of section 155(2) and keeping in view section 15 please also give your opinion (specially student of law and lap top) concerning tax credits under sections 61,62,63,64. If a taxpayer has income from property alongwith other taxable income Should we add tax on income from property in component "A" and income from Property in component "B".

[student_of_law]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by amerrafique</i>
<br />Assalam o Alaikum to all forum members
after omission of section 155(2) and keeping in view section 15 please also give your opinion (specially student of law and lap top) concerning tax credits under sections 61,62,63,64. If a taxpayer has income from property alongwith other taxable income Should we add tax on income from property in component "A" and income from Property in component "B".
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

General rule is that all taxable income and all taxes including surcharge should be taken into account while working tax credit.

Exception to this rule is that income subject to final tax and tax deducted thereon is not included in Compnonent A and B while calculating tax credit. Reason therefor is that s.8(d) & s.169(2)(d), says that tax deducted as final tax would not be reduced by any tax credit.

S.155 is neither mentioned in s.169 nor in s.8, hence tax deducted u/s 155 or payable u/s 15 along with the corresponding rental income, should be taken into account while calculating tax credit. BUT what with the FBR that has ignored this aspect in its erroneous return.