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.