FBR Notification of Judicial Allowance are Exempt From Income Tax 2021

Federal Board of Revenue (FBR), Government of Pakistan has issued the official notification on 29th March, 2021 in connection with Judicial Allowance are exempt from Income Tax 2021. The further details are given below;


Judicial Allowances Exempt From Income Tax in Pakistan 2021


I am directed to refer to your U.No.4(11)Rev.Bud/2020 dated 25/02/2021 and to state that in the light of the judgment of High Court of Sindh, Karachi vides Petition No. D-2019 of 2019 & dated 24.07.2020 and Judgment of Peshawar High Court in Writ Petition No. 4747-P of 2016, decided on 20th April 2017, Judicial Allowance and Special Judicial Allowance are exempt from tax not only in the cases of Superior Judiciary but also in the case of sub-ordinate Judiciary.

The judgments of courts are in rem and applicable to all persons. Therefore, no tax is required to be collected/deducted on account of payments being made on account of Special Judicial Allowance or Judicial Allowance to the Higher and subordinate judiciary as per clause 39 of the Part-I of Second Schedule of the Income Tax Ordinance.

It is, therefore, requested that necessary instruction be issued to the AGPRs and field formations.

FBR Notification of Judicial Allowance are Exempt From Income Tax 2021

Leave a Comment