Presumptive Tax and Normal Tax

[mrshakeel786]

Dear Members
What is Presumptive Tax and Normal Tax?
what is its treatment in accounts?

[unseendemon]

PTR (or FTR as it is called now) is the full and final discharge of tax liability and furthermore no loss/expense can be adjusted against FTR income.

e.g. Rent falls under FTR. Assume you're earning Rs. 10,000 per month in rentals.

UNDER NORMAL TAX

Rent 10,000
Less expense (xxxx)
--------------------
taxable income

UNDER FTR

Rent 10,000
tax @ x%

i.e. no adjustment, tax paid is full and final discharge of liability.

I would again reiterate that this is very basic stuff, you should have a look at the CBR's website.

[ukaccountant]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by unseendemon</i>
<br />PTR (or FTR as it is called now) is the full and final discharge of tax liability and furthermore no loss/expense can be adjusted against FTR income.

e.g. Rent falls under FTR. Assume you're earning Rs. 10,000 per month in rentals.

UNDER NORMAL TAX

Rent 10,000
Less expense (xxxx)
--------------------
taxable income

UNDER FTR

Rent 10,000
tax @ x%

i.e. no adjustment, tax paid is full and final discharge of liability.

I would again reiterate that this is very basic stuff, you should have a look at the CBR's website.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Very well explained I must say... Simple yet precise and understandable, I couldn't have explained it better myself..

[mc060401420]

How can we define the <b>"Interest Free loan"</b> under income tax ordinance 2001?

[Hasaan]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by unseendemon</i>
<br />PTR (or FTR as it is called now) is the full and final discharge of tax liability and furthermore no loss/expense can be adjusted against FTR income.

e.g. Rent falls under FTR. Assume you're earning Rs. 10,000 per month in rentals.

UNDER NORMAL TAX

Rent 10,000
Less expense (xxxx)
--------------------
taxable income

UNDER FTR

Rent 10,000
tax @ x%

i.e. no adjustment, tax paid is full and final discharge of liability.

I would again reiterate that this is very basic stuff, you should have a look at the CBR's website.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

heellloooo!...

o mere bhaiyo RENT is not chargeable under NTR...

there are only 2 possibilities to tax Rent Chargeable to Tax (RCT)
that is
1. as seperate block of income
2. as under FTR...

separate block of income doesnt count to NTR in anyway.

NTR mein to buht kuch available hota hai ap ko during calculation of taxable income and after tax liability of taxable income.

RCT doest not form part of taxable income as it is not chargeable under NTR...

lot of people need to correct this. even this website has an article named abc for income from property. that article also says that property income is taxable under NTR... NOWAY!... even his own examples prove him wrong when he calculates tax liability.

[Hasaan]

interest free loan means, any loan that is provided with out charging interest on the principle amount i.e. loan.

[awaisaftab]

Hassan you are write the Rent is a separate block of inceome

[LapTop]

Hassan is right, rental income is not Normal income it is FTR income, and separate slab rates for rental income. No deduction allowed.

[LapTop]

Incomes subject to Final Taxation are those, which are subject to collection or deduction of tax at source and such tax collected or deducted at source is treated as a final tax in respect of such income e.g.-
• Income arising from business of
- Import of goods;
- Supply of goods;
- Execution of contract;
- Export of goods;
- Brokerage and commission;
- Plying of goods transport vehicles;
- Income of CNG Stations
- Income from property
- Payments to Non-Residents on account of contracts
• Dividend received from a company; and
• Prize and winnings from prize bond, raffle, lottery, crossword puzzle, quiz or sale promotion offers.
The income from above sources are excluded from the ambit of total / taxable income subject to normal taxation.

[noman5]

what is the difference between FTR and PTR ?

who/which person/s fall under the FTR in Income Tax Ordinance sections ?

please let me know.