06-28-2006, 10:06 PM
For person receiving rent
i will 1st quote abdur rehman's reply
2. and u have to do nothing if u r getting rent of something. The other person making u the payment will deduct the tax. and ur rental income will not be included in ur total income. and u also cannot claim any expenditure which was previously allowed under section 17.
now to go further here r sections 160,161,162
160. Payment of tax collected or deducted.-
Any tax that has been collected or purported to be collected under Division II of this Part or deducted or purported to be deducted under Division III of this Part or deducted or collected, or purported to be deducted or collected under Chapter XII shall be paid to the Commissioner by the person making the collection or deduction within the time and in the manner as may be prescribed.
161. Failure to pay tax collected or deducted.-
(1) Where a person â
(a) fails to collect tax as required under Division II of this Part or Chapter XII or deduct tax from a payment as required under Division III of this Part or Chapter XII or as required under section 50 of the repealed Ordinance; or
(b) having collected tax under Division II of this Part or Chapter XII or deducted tax under Division III of this Part or Chapter XII fails to pay the tax to the Commissioner as required under section 160 or having collected tax under section 50 of the repealed Ordinance pay to the credit of the Federal Government as required under sub-section (8) of section 50 of the repealed Ordinance,
the person shall be personally liable to pay the amount of tax to the Commissioner who may pass an order to that effect and proceed to recover the same.
(1A) No recovery under sub-section (1) shall be made unless the person referred to in sub-section (1) has been provided with an opportunity of being heard.
(1B) Where at the time of recovery of tax under sub-section (1) it is established that the tax that was to be deducted from the payment made to a person or collected from a person has meanwhile been paid by that person, no recovery shall be made from the person who had failed to collect or deduct the tax but the said person shall be liable to pay additional tax at the rate of eighteen per cent per annum from the date he failed to collect or deduct the tax to the date the tax was paid.
(2) A person personally liable for an amount of tax under sub-section (1) as a result of failing to collect or deduct the tax shall be entitled to recover the tax from the person from whom the tax should have been collected or deducted.
162. Recovery of tax from the person from whom tax was not collected or deducted.-
(1) <b> Where a person fails to collect tax as required under Division II of this Part or Chapter XII or deduct tax from a payment as required under Division III of this Part or Chapter XII, the Commissioner may pass an order to that effect and recover the amount not collected or deducted from the person from whom the tax should have been collected or to whom the payment was made.
</b>
(2) The recovery of tax under sub-section (1) does not absolve the person who failed to deduct tax as required under Division III of this Part or Chapter XII from any other legal action in relation to the failure, or from a charge of additional tax or the disallowance of a deduction for the expense to which the failure relates, as provided for under this Ordinance.
theek hai the person receiving rent from any property lent to a prescribed person would not be liable to pay tax except as under 162(1)
and in this case he owuld be liable for <u>the amount not collected or deducted</u>,which would be 5% of rent received/receivable by him..
irrespective of amount of rent , whether , the amount be 150,001 or 149999...
now there isnt any issue of rent slab....so dont get confused in numbers