ISLAMABAD, July 1: The Central Board of Revenue (CBR) on Saturday issued new income tax rules for computing tax on gross income of salaried taxpayers, inclusive of perks and privileges, to be applicable after June 30, 2006.
The CBR issued an income tax notification SRO668 of 2006 here for the purpose of computing the taxable income under the head of a salary. The value of all perquisites, allowances and benefits provided by the employer to the employee shall be included in the said income in accordance with rules 4 to 7 of the income tax rules 2002.
According to the notification, the value of accommodation provided by an employer to the employee shall be taken equal to the amount that would have been paid by the employer in case such accommodation was not provided.
Provided that the value taken for this purpose shall, in any case, not be less than 45 per cent of the minimum of the time scale of the basic salary or the basic salary where there is no time scale.
The value of conveyance provided by the employer to the employee shall be taken equal to an amount as — partly for personal and partly for official use — five per cent of the cost to the employer for acquiring the motor vehicle or the fair market value of the motor vehicle at the commencement of the lease if the motor vehicle is taken on lease by the employer.
In case of personal use only, 10 per cent of cost to the employer for acquiring the motor vehicle or the fair market value of the motor vehicle at the commencement of the lease if the motor vehicle is taken on lease by the employer.
For the purpose of this part, employee includes a director of a company, added the rules.
