INCOME FROM PROPERTY

INCOME FROM HOUSE PROPERTY
                                          Under the head income from property rent is the second important source of income. The rent received or receivable is chargeable to tax.
Explanation:
Rent:
    The amount received or receivable by the owner of land or building for it use.the amount of rent shall not be less then the fair market rent.
Land:
    It means plot used for storing materials or temporary huts.
Building;
       It is made of stone or bricks which is covered by roof.
Fair market rent:
       It is the amount of rent which is determined on the basis of a rent fetched by similar property in the similar locality.
PROPERTY
       Any land or building which is constructed is called property.

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SALARY

HEAD OF INCOME


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                                   there are different sources of income. Income of a person  may be divided under the following six heads when we want to calculate the income tax .It  is necessary to classify the income under various heads. Because every source of income has separate rules for exemption. Such policy is adopted to provide justice. Other benefit is that all types of income under this head may create difficulties for assessment.
             These are six heads of income which are given below;
a: Salary
b:Income from house property
c: Income from business or profession  
d:Capital gains 
e: Income from other sources
        Now if a person who earns the income will fall in any one of  the above head. There is also one general head which is called other sources it is very important .If the income of any person dose not fall in the first four heads then it will be included the last one.
     SALARY ::
                       It is the first source which is given in the head of income. It is chargeable to tax.The team salary , is used in the wider sence.It includes the following receipts.
                        1: Salary and wages
                        2: Profits in lieu of or in addition to salary or wages.
                        3: Fees commission or allowance.
                        4: Annuity, pension or gratuity.
                         5: Perquisites.

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INCOME TAX EXEMPTIONS

 Various types of following incomes are related with the sec 41 to 51 of the income tax ordinance. Certain incomes from the tax while other are taxable at lower rate. some of them are exempted from tax subject to various provisions.
 1:AGRICULTURAL INCOME >
                                                        According the above change any person whose total incomes including total agricultural income on which tax is payable to the prouince and such agricultural income exceeds to Rs 80 thousand different rates of tax are applied.
2:AMOUNT OF GRATUITY>
                                                      The above amount received by the employee on his retirement or the heirs on his death is fully exempted from tax.
         LEGAL PROVISIONS
                            A: If the above amount is approved by the commissioner income tax then it is fully exempted from tax.
                            B: If the amount is received from govt,or local authority it is not taxable.
                            C:If the amount is received from corporation or statutory body, then it is not taxable.
                            D:The amount received from an organization which gives the facility of gratuitly to all empoyees .
 3:INCOME FROM VOCATIONAL, TECHNICAL AND POLY TECHNICAL INSTITUTE
                                                      To promote the technical education a new exemption has been provided by the finance ordinance 2004.Any income derived from any one of the above institions is exempted from tax.
       LEGAL PROVISIONS
                              A: The institution must be sat up between 01_07_2004 to 30_06_2008
                               B: It should be: recognized by the Technical Board or University or any other authority appointed by the govt.
                               C:The tax exemption period is five year.

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