building, and includes any forfeited deposit paid under a contract for the sale of land or a building. (3) This section shall not apply to any rent received or receivable by any person in respect of the lease of a building together with plant and machinery and such rent shall be chargeable to tax under the head "Income from Other Sources". [(3A) Where any amount is included in rent received or receivable by any person for the provision of amenities, utilities or any other service connected with the renting of the building, such amount shall be chargeable to tax under the head "Income from Other Sources".] (4) Subject to sub-section (5), where the rent received or receivable by a person is less than the fair market rent for the property, the person shall be treated as having derived the fair market rent for the period the property is let on rent in the tax year. (5) Sub-section (4) shall not apply where the fair market rent is included in the income of the lessee chargeable to tax under the head "Salary". (6) Income under this section derived by an individual or an association of persons shall be liable to tay at the rate specified in Division VIA of Dart Lof the First Scbedule 1
building, and includes any forfeited deposit paid under a contract for the sale of land or a building. (3) This section shall not apply to any rent received or receivable by any person in respect of the lease of a building together with plant and machinery and such rent shall be chargeable to tax under the head "Income from Other Sources". [(3A) Where any amount is included in rent received or receivable by any person for the provision of amenities, utilities or any other service connected with the renting of the building, such amount shall be chargeable to tax under the head "Income from Other Sources".] (4) Subject to sub-section (5), where the rent received or receivable by a person is less than the fair market rent for the property, the person shall be treated as having derived the fair market rent for the period the property is let on rent in the tax year. (5) Sub-section (4) shall not apply where the fair market rent is included in the income of the lessee chargeable to tax under the head "Salary". (6) Income under this section derived by an individual or an association of persons shall be liable to tay at the rate specified in Division VIA of Dart Lof the First Scbedule 1
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![Do Interpretation of the data given below in a professional manner.
1. Income from property. – (1) The rent received or receivable by a person [for] a tax year, other
than rent exempt from tax under this Ordinance, shall be chargeable to tax in that year under the
head "Income from Property".
(2) Subject to sub-section (3), "rent" means any amount received or receivable by the owner of land
or a building as consideration for the use or occupation of, or the right to use or occupy, the land or
building, and includes any forfeited deposit paid under a contract for the sale of land or a building.
(3) This section shall not apply to any rent received or receivable by any person in respect of the
lease of a building together with plant and machinery and such rent shall be chargeable to tax under
the head "Income from Other Sources". [(3A) Where any amount is included in rent received or
receivable by any person for the provision of amenities, utilities or any other service connected with
the renting of the building, such amount shall be chargeable to tax under the head "Income from
Other Sources".]
(4) Subject to sub-section (5), where the rent received or receivable by a person is less than the fair
market rent for the property, the person shall be treated as having derived the fair market rent for
the period the property is let on rent in the tax year.
(5) Sub-section (4) shall not apply where the fair market rent is included in the income of the lessee
chargeable to tax under the head "Salary".
(6) Income under this section derived by an individual or an association of persons shall be liable to
tax at the rate specified in Division VIA of Part I of the First Schedule.]
(7) The provisions of sub-section (1) shall not apply in respect of an individual or association of
persons who derive income chargeable to tax under this section not exceeding two hundred
thousand rupees in a tax year and does not derive taxable income under any other head.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F241714f1-4252-4b1a-802d-a7a2c7f8e3a5%2Feef59ed9-e5e0-4533-98c9-15bc0152829d%2F7t8w2v_processed.png&w=3840&q=75)
Transcribed Image Text:Do Interpretation of the data given below in a professional manner.
1. Income from property. – (1) The rent received or receivable by a person [for] a tax year, other
than rent exempt from tax under this Ordinance, shall be chargeable to tax in that year under the
head "Income from Property".
(2) Subject to sub-section (3), "rent" means any amount received or receivable by the owner of land
or a building as consideration for the use or occupation of, or the right to use or occupy, the land or
building, and includes any forfeited deposit paid under a contract for the sale of land or a building.
(3) This section shall not apply to any rent received or receivable by any person in respect of the
lease of a building together with plant and machinery and such rent shall be chargeable to tax under
the head "Income from Other Sources". [(3A) Where any amount is included in rent received or
receivable by any person for the provision of amenities, utilities or any other service connected with
the renting of the building, such amount shall be chargeable to tax under the head "Income from
Other Sources".]
(4) Subject to sub-section (5), where the rent received or receivable by a person is less than the fair
market rent for the property, the person shall be treated as having derived the fair market rent for
the period the property is let on rent in the tax year.
(5) Sub-section (4) shall not apply where the fair market rent is included in the income of the lessee
chargeable to tax under the head "Salary".
(6) Income under this section derived by an individual or an association of persons shall be liable to
tax at the rate specified in Division VIA of Part I of the First Schedule.]
(7) The provisions of sub-section (1) shall not apply in respect of an individual or association of
persons who derive income chargeable to tax under this section not exceeding two hundred
thousand rupees in a tax year and does not derive taxable income under any other head.
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