APPELLATE TRIBUNAL :-
It has been defined in the income tax ordinance.
Explanation :-
Sometimes dispute arises between the taxpayer and tax
department. In this case appeal is made to Appellate tribunal. It consists of
judicial as well as accountant members. It is the highest judicial authority in
case of tax matters and its decision on point of facts is final. However the
matter may be referred to the high court.
APPROVED GRATUITY FUND :-
Under income tax ordinance the commissioner income tax
grants this approval.
Explations :-
Main Points :
(1)
This fund is maintained by the govt. and private
organizations.
(2)
It is contributed by employer.
(3)
It is for the benefit of their employees.
(4)
It is normally paid to the employees at the time
of retirement.
(5)
In case of death it is paid to family of the
employee.
(6)
If gratuity fund is approved then employer gets
a lot of benefits.
Advantages :-
This expenditure fund of the employer is treated as business
expenditure, so it is deducted from the profit and net profit reduces. The
amount of tax will be also reduced.
APPPROVED SUPERANNUATION FUND :-
Under income tax ordinance, the commissionor income tax
approves this fund.
Main Points :
1.
This fund is maintained by the employer.
2.
It is for the benefit of the employees.
3.
Its benefit is provided after retirement.
4.
It is paid at the time of disability.
5.
If employee dies then it is paid to his family.
6.
This fund is treated as business expenditure. So
net profit and taxable amount reduces.
Note : The govt. pays the pension to the widows and orphans
of the deceased employees out of this fund.
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