ILLUSTRATION 5

Mr. Bahram received the following incomes during the year ended 30th June 2011. Will these be included in his income? Give reasons in support of your answer.

1. Prize of Rs. 20,000 received on a prize bond.

INCOME TAX

2. Income from monthly income saving account scheme Rs. 10,800. Mr. Bahram contributed Rs. 1,800 monthly to the scheme.

3. Income from property Rs. 18,000 constructed in 2005.

4. Pension from Federal Government amounting to Rs. 12,000.

5. Solution Travelling allowance received for official duties.

Prize received on prize bond is a casual receipt, which is

fully taxable with effect from 1998-99 (separate block of income).

Income from monthly saving account Dfa Ho has been made  taxable with effect from 2002-2003 if monthly instalment exceeds Rs. 1,000 per month

Exemption in respect of newly constructed property is no more available.

Pension received from Federal Government is wholly exempt.

It is special allowance, specially granted to meet expenses incurred in the performance of official duties.