ISLAMABAD, Sept 11: The Central Board of Revenue(CBR) has amended the income tax rules 2002 extending some relief to the salaried class.

CBR, in this regard, issued a notification on Wednesday substituting Part-I of chapter-II of the Income Tax Rules, 2002. The revised rules would thus stand enforced, added the notification.

Member Direct Taxes, Vakil Ahmed Khan, said that the substituted rules pertaining to the emoluments, perquisites and allowances of salaried class were aimed at providing respite to those receiving income less than Rs600,000 per annum. This class was, in fact, adversely hit by the previous rules, he said.

It was felt that the recent increase in salaries would become ineffective as the tax burden would increase substantially, he said.

According to Mr Khan in some cases the take-home salary would have been even less than what was being received by the employees before said increase in the salaries. This would not be in any case, the intention of the government, he clarified.

Complaints were received in the CBR that income tax rules 2002 issued on July 1, 2002 with regard to valuation of perquisites, particularly provision of motor vehicle and accommodation to salaried taxpayers was too harsh, and not in conformity with the pre-budget proposals accepted by the government.

He said that CBR issued another notification on August 8, 2002 proposing amendments in the income tax rules 2002 taking into account hardships of the salaried taxpayers. Objections and suggestions form the stakeholders in respect of the proposals were received in pursuance of section 237 of the income tax ordinance 2001.