FBR orders exemption of tax on special, judicial allowance

ISLAMABAD: The Federal Board of Revenue (FBR) has directed the Accountant General Pakistan Revenues (AGPRs) and field formations to not deduct tax on account of payments being made on special or judicial allowance to higher and subordinate judiciary.

Documents state that FBR has issued an office memorandum pertaining to the exemption from income tax in the light of judgments by the Sindh High Court (SHC) and Peshawar High Court (PHC).

The judgements are applicable to all persons, therefore, no tax is required to be collected on payments being made to said accounts as per clause 39 of the Part-I of Second Schedule of the Income Tax Ordinance, 2001, the document states.