Mail me on...
azeem5pk@gmail.com
to get LOCKErz account............
Monday, September 7, 2009
Make a LOCKERZ account
So, what is Lockerz.com?
Lockerz is the place to go to buy the coolest stuff at the lowest prices, watch exclusive video, discover new music, play the hottest games, hang out with your friends - and get rewarded for just about EVERYTHING you do on the site.
It is one of the most promising sites on the internet. Lockerz.com's popularity is based on its free offers especially during this time period while it's still in Beta testing. The Registration is fast and simple and if you're a member, you can earn points extremely easily.
One of the main reasons why it is becoming so popular is because of how easy it is to earn points or PTZ. These points can then be used to get Ipods, Xbox 360 games, PS3 games, MacBooks as well as many other products.
Why do they do this? They say 'To thank you for joining early. To build a Lockerz community of cool, stylish, cutting-edge people who love to buy great brands. To give you a taste of how PTZ will work when we go live this fall. And to test out different prizes and PTZ levels. That's key.'
This version of PTZ Place is a test. PTZ levels will change when the full Lockerz site launches.
Lockerz is set to launch sometime in the Fall 09.
Members who sign up now will get to explore and help shape the site before the launch.
How it works
Simple. You sign up with an invite, go to http://www.lockerzinvitez.com if you need one, and are taken to a page containing a game. The aim of the game is to catch as many of the 'PTZ' blocks as possible (aim for the 2 PTZ ones), after you have completed this you are taken to your main page. There are two things that you can do now, either invite your friends or answer the daily question. If you invite your friends you get 2 PTZ for each one that signs up because of your invite, when you get to 20 friends that have joined because of your invites you become part of the 'Z-list'. The 'Z-list' then means that you get double points for 'Dailies' and any more invites that get accepted, you also get sent a free t shirt. The other thing to do is answer the 'Dailies'. Each day a question is put onto the site, when you give your answer you get 2 PTZ and thats it. You can only answer each question once and only one is put on the site each day, you can answer questions from previous days but you don't get any points for it. You also get 2 PTZ each day that you log in but again you only get the PTZ the first time you log in that day.
Is Lockerz.com a legitimate website?
In the short, yes it is. Lockerz CEO is Kathy Savitt who used to be Vice President at Amazon.com and the CMO at American Eagle. The major contributors financially to Lockerz.com is Liberty Media, which owns a major part of Time Warner.
How do I get an invite to Lockerz?
The way only way to get in to Lockerz is to get invited. Now if you don't know anyone on Lockerz this may not seem easy but if you visit http://www.lockerzinvitez.com you can get an invite within seconds.
If you need an invite, visit:
http://www.lockerzinvitez.com
Sunday, September 6, 2009
SALIENT FEATURES FOR THE BUDGET 2009-10
SALIENT FEATURES FOR THE BUDGET 2009-10
INCOME TAX
RELIEF MEASURES:
• The basic limit of exemption from income tax in respect of salaried persons is proposed to be increased from Rs.1,80,000 to Rs.2,00,000. In the case of women salaries taxpayers, this limit is proposed to be increased from Rs.2,40,000 to Rs.2,60,000.
• Presently senior citizens are allowed 50% relief in tax liability provided the taxable income, in a tax year, does not exceed Rs.5,00,000/-. In view of inflationary trend, it is proposed to enhance limit of taxable income to Rs.7,50,000.
• In view of the less margin of profit available to cigarettes and pharmaceutical products distributors, withholding tax rate in respect of such taxpayer is being reduced from 3.5% to 1%.
• At present, the taxpayers are entitled to compensation @ 6% for the late payment of refunds. Considering the prevailing interest rates on bank loans the rate of compensation is being increased to 10% per annum.
• Presently, receipts form accumulated balance of voluntary pension scheme is exempt up to 25% of the available balance. In order to promote the voluntary pension schemes and allow relief to pensioner class the said limit is proposed to be enhanced to 50%.
• Under the existing provisions of the Income Tax Ordinance, a person is entitled to tax credit on interest payment of housing loans up to 45% of the taxable income or Rs.5,00,000/- whichever is low. The said limits are proposed to be enhanced to 50% and Rs.7,00,000/- respectively.
• Presently, tax collected on monthly electricity bills in respect of non-corporate Commercial and Industrial consumers is treated as final tax. An amendment has been proposed in section 235 of the Income Tax Ordinance by virtue of which the tax deducted on the monthly electricity bills exceeding Rs.30,000/- will be adjustable which consequently could be refunded.
• Last year amendment was made in the seventh schedule to the Income Tax Ordinance whereby the banks were deprived of the facility to claim deduction on account of provisions of non-performing loans. This facility is being restored. However, the same is proposed to be restricted to 1% of the total advances made by the bank in a tax year.
Revenue Measures:
• Before amendment made through Finance Act, 2008 withholding tax on imports was collected @ 5% which was reduced to 2%. The benefit of reduction in tax rate could not be passed on to end users therefore, the rate is proposed to be enhanced to 4% across the board.
• Presently, advance tax is payable in four quarterly installments on the basis of last assessed income. It is proposed that far working out the advance tax liability the sales should also be taken in to account.
• Last year the provision regarding payment of minimum tax on declared turnover by the companies showing losses for one or other reasons was deleted mainly for the reason that the revenue collection was insignificant. Subsequently, it was found that actual collection from this source was much higher, however due to misclassification, the same could not be reported properly. In view of huge revenue loss the provision is being revived.
• Presently, the indenting commission is being taxed @ 1% of the gross receipts whereas the general rate for commission and brokerage is 10%. In view of the gross disparity in the rate it is proposed to be enhanced to 5%.
• The scope of advance tax collection on purchase of new locally manufactured motorcar/jeep is proposed to be extended to all types of motor vehicles.
• In order to raise funds for the rehabilitation of internally displaced persons (IDPs) of Swat, Dir & Bunir it is proposed to charge 5% tax on tax payable by individuals and AOPs whose taxable income exceeds one million rupees.
• In order to support IDPs in their habilitation a new tax is being proposed to be charged on bonus income of corporate executives @ 30% of the bonus. This is a one time levy and payable for tax year 2009 only.
• At present, additional tax is chargeable @ 12% per annum on late payment of tax. The rate being low as compared to prevailing interest rate on bank loan gives temptation for delaying payment of tax. It is therefore, proposed to increase the rate of additional tax to 15% per annum.
• At present, depreciation on passenger transport vehicles is allowed on total cost which has encouraged the purchase of luxury vehicles mainly used for personal purposes at the cost of revenue. It is, therefore, proposed to restrict the value of such vehicle to Rs.1.5 million for the purpose of depreciation.
• Presently the large trading houses are exempt from payment of withholding tax on imports as well as sales of goods. The facility of exemption of tax at import stage is being withdrawn. However, the tax so collected will be adjustable against final tax liability.
• The exemption regime provided under the second schedule to the Income Tax Ordinance has
been reviewed to delete the redundant and unjustified exemptions as per detail given in the Finance Bill.
• It has been noticed that the facility of tax exemption available to educational institution is being grossly misused by private universities and medical colleges etc. It is therefore proposed that such facility would only be available to those institutions which have been approved by the concerned Director General of LTU/RTO for this purpose.
o At present no tax is collected on export of goods made without form “E” because in this case export proceeds are received in cash. An amendment has been proposed in section 154 whereby the Collectorate of Customs shall collect tax @ 1% at the time of clearing goods for export made without form “E”. Presently such exports are mainly allowed to Afghanistan through land routs.
TECHNICAL MEASURES:
• In order to avoid false claims of tax payments and make possible speedy verification of tax paid for issuance of refund, it is proposed that the taxpayer would be required to furnish copies of challan or other equivalent document in support of claims of tax payments.
• At present, the taxpayers are allowed to file revised return any time within five years of the filing of original return. It is proposed to disallow filing of revised return in cases, where the department has initiated proceedings for amendment of assessment order.
• An amendment has been proposed in section 124 of the Income Tax Ordinance, 2001 by virtue of which the taxpayers would be provided the facility of filing appeal against the reassessment order.
• In order to safeguard the interest of revenue it has been proposed that in certain cases where departmental appeals are pending in courts the Commissioner will be empowered to withhold refunds.
• In the cases of taxpayers having special tax year calculation of additional tax for delayed payment of advance tax will be made from the first day of the last quarter of the relevant tax year instead of 1st April as allowed in case of taxpayers having normal tax year.
• Presently the taxpayers are allowed to rework out the cost of an asset, purchased against a
loan in foreign currency, for the purpose of depreciation. An amendment has been proposed to restrict the revaluation of the asset only in the year of occurrence of exchange fluctuation and not in previous years.
• An amendment has been proposed in section 115 of the Income Tax Ordinance to provide for filing of revised statement by the tax payer on account of any omission or wrong statement of particulars of income.
• The motor vehicle registration authorities are being empowered to collect advance tax payable on purchase of a new locally manufactured motor vehicle at the time of registration of such vehicle.
• It is being made mandatory that the taxpayers who are required to file wealth statement shall also file wealth statement reconciliation giving necessary details and documents in support thereof.
• An amendment has been proposed in section 177 of the Income Tax Ordinance 2001 to empower the Commissioner of Income Tax to delegate powers to a chartered accountant firm for conducting audit of a taxpayer.
• Harmonization of different tax laws namely Income Tax, Sales Tax, Customs and Federal Excise Duty is one of the objectives of the ongoing Tax Reforms. In this connection necessary amendments are being made in the Income Tax Ordinance, 2001 to make it harmonized with other tax laws. These amendments mainly relate to appellate proceedings, appeal fees, fine, penalties and appointment of Special Judges.
MEASURES FOR BROADENING OF TAX BASE:
• In order to broaden the tax base and promote documentation of economy, importers, exporters and service providers are being required to file normal return of income instead of simple statement. Further tax deducted/collected from such taxpayers would be treated as minimum instead of final tax.
• It is proposed that obtaining of NTN may be made mandatory for purchase of property, obtaining commercial and industrial gas/electricity connection and opening of a bank account. All NTN holders are also proposed to file returns necessarily.
• In order to ensure filing of income tax returns by all persons having reasonable resources and income, it is proposed that any person owning immovable property with a land area having 500 sq. yards, flat having covered area 2000 sq.ft or owns a motor vehicle having engine capacity of 1000CC or more shall file return of income.
• Taxation Officers are being empowered to pass best judgment assessment orders in the cases of the taxpayers who failed to furnish statutory statement as required under section 115 of the Income Tax Ordinance, 2001.
• To accelerate the pace of documentation of the economy and broadening of tax base the manufacturer are being incentivized by allowing tax credit at 2.5% of
the tax payable if they are able to make at least 90% of their sales to sales tax registered persons.
• The real estate sector is known to be the most under taxed sector of the economy which usually attracts black economy. In order to curb the speculative tendency and discourage non productive investment the rate of CVT on transfer of immoveable property is being enhanced from 2% to 4
INCOME TAX
RELIEF MEASURES:
• The basic limit of exemption from income tax in respect of salaried persons is proposed to be increased from Rs.1,80,000 to Rs.2,00,000. In the case of women salaries taxpayers, this limit is proposed to be increased from Rs.2,40,000 to Rs.2,60,000.
• Presently senior citizens are allowed 50% relief in tax liability provided the taxable income, in a tax year, does not exceed Rs.5,00,000/-. In view of inflationary trend, it is proposed to enhance limit of taxable income to Rs.7,50,000.
• In view of the less margin of profit available to cigarettes and pharmaceutical products distributors, withholding tax rate in respect of such taxpayer is being reduced from 3.5% to 1%.
• At present, the taxpayers are entitled to compensation @ 6% for the late payment of refunds. Considering the prevailing interest rates on bank loans the rate of compensation is being increased to 10% per annum.
• Presently, receipts form accumulated balance of voluntary pension scheme is exempt up to 25% of the available balance. In order to promote the voluntary pension schemes and allow relief to pensioner class the said limit is proposed to be enhanced to 50%.
• Under the existing provisions of the Income Tax Ordinance, a person is entitled to tax credit on interest payment of housing loans up to 45% of the taxable income or Rs.5,00,000/- whichever is low. The said limits are proposed to be enhanced to 50% and Rs.7,00,000/- respectively.
• Presently, tax collected on monthly electricity bills in respect of non-corporate Commercial and Industrial consumers is treated as final tax. An amendment has been proposed in section 235 of the Income Tax Ordinance by virtue of which the tax deducted on the monthly electricity bills exceeding Rs.30,000/- will be adjustable which consequently could be refunded.
• Last year amendment was made in the seventh schedule to the Income Tax Ordinance whereby the banks were deprived of the facility to claim deduction on account of provisions of non-performing loans. This facility is being restored. However, the same is proposed to be restricted to 1% of the total advances made by the bank in a tax year.
Revenue Measures:
• Before amendment made through Finance Act, 2008 withholding tax on imports was collected @ 5% which was reduced to 2%. The benefit of reduction in tax rate could not be passed on to end users therefore, the rate is proposed to be enhanced to 4% across the board.
• Presently, advance tax is payable in four quarterly installments on the basis of last assessed income. It is proposed that far working out the advance tax liability the sales should also be taken in to account.
• Last year the provision regarding payment of minimum tax on declared turnover by the companies showing losses for one or other reasons was deleted mainly for the reason that the revenue collection was insignificant. Subsequently, it was found that actual collection from this source was much higher, however due to misclassification, the same could not be reported properly. In view of huge revenue loss the provision is being revived.
• Presently, the indenting commission is being taxed @ 1% of the gross receipts whereas the general rate for commission and brokerage is 10%. In view of the gross disparity in the rate it is proposed to be enhanced to 5%.
• The scope of advance tax collection on purchase of new locally manufactured motorcar/jeep is proposed to be extended to all types of motor vehicles.
• In order to raise funds for the rehabilitation of internally displaced persons (IDPs) of Swat, Dir & Bunir it is proposed to charge 5% tax on tax payable by individuals and AOPs whose taxable income exceeds one million rupees.
• In order to support IDPs in their habilitation a new tax is being proposed to be charged on bonus income of corporate executives @ 30% of the bonus. This is a one time levy and payable for tax year 2009 only.
• At present, additional tax is chargeable @ 12% per annum on late payment of tax. The rate being low as compared to prevailing interest rate on bank loan gives temptation for delaying payment of tax. It is therefore, proposed to increase the rate of additional tax to 15% per annum.
• At present, depreciation on passenger transport vehicles is allowed on total cost which has encouraged the purchase of luxury vehicles mainly used for personal purposes at the cost of revenue. It is, therefore, proposed to restrict the value of such vehicle to Rs.1.5 million for the purpose of depreciation.
• Presently the large trading houses are exempt from payment of withholding tax on imports as well as sales of goods. The facility of exemption of tax at import stage is being withdrawn. However, the tax so collected will be adjustable against final tax liability.
• The exemption regime provided under the second schedule to the Income Tax Ordinance has
been reviewed to delete the redundant and unjustified exemptions as per detail given in the Finance Bill.
• It has been noticed that the facility of tax exemption available to educational institution is being grossly misused by private universities and medical colleges etc. It is therefore proposed that such facility would only be available to those institutions which have been approved by the concerned Director General of LTU/RTO for this purpose.
o At present no tax is collected on export of goods made without form “E” because in this case export proceeds are received in cash. An amendment has been proposed in section 154 whereby the Collectorate of Customs shall collect tax @ 1% at the time of clearing goods for export made without form “E”. Presently such exports are mainly allowed to Afghanistan through land routs.
TECHNICAL MEASURES:
• In order to avoid false claims of tax payments and make possible speedy verification of tax paid for issuance of refund, it is proposed that the taxpayer would be required to furnish copies of challan or other equivalent document in support of claims of tax payments.
• At present, the taxpayers are allowed to file revised return any time within five years of the filing of original return. It is proposed to disallow filing of revised return in cases, where the department has initiated proceedings for amendment of assessment order.
• An amendment has been proposed in section 124 of the Income Tax Ordinance, 2001 by virtue of which the taxpayers would be provided the facility of filing appeal against the reassessment order.
• In order to safeguard the interest of revenue it has been proposed that in certain cases where departmental appeals are pending in courts the Commissioner will be empowered to withhold refunds.
• In the cases of taxpayers having special tax year calculation of additional tax for delayed payment of advance tax will be made from the first day of the last quarter of the relevant tax year instead of 1st April as allowed in case of taxpayers having normal tax year.
• Presently the taxpayers are allowed to rework out the cost of an asset, purchased against a
loan in foreign currency, for the purpose of depreciation. An amendment has been proposed to restrict the revaluation of the asset only in the year of occurrence of exchange fluctuation and not in previous years.
• An amendment has been proposed in section 115 of the Income Tax Ordinance to provide for filing of revised statement by the tax payer on account of any omission or wrong statement of particulars of income.
• The motor vehicle registration authorities are being empowered to collect advance tax payable on purchase of a new locally manufactured motor vehicle at the time of registration of such vehicle.
• It is being made mandatory that the taxpayers who are required to file wealth statement shall also file wealth statement reconciliation giving necessary details and documents in support thereof.
• An amendment has been proposed in section 177 of the Income Tax Ordinance 2001 to empower the Commissioner of Income Tax to delegate powers to a chartered accountant firm for conducting audit of a taxpayer.
• Harmonization of different tax laws namely Income Tax, Sales Tax, Customs and Federal Excise Duty is one of the objectives of the ongoing Tax Reforms. In this connection necessary amendments are being made in the Income Tax Ordinance, 2001 to make it harmonized with other tax laws. These amendments mainly relate to appellate proceedings, appeal fees, fine, penalties and appointment of Special Judges.
MEASURES FOR BROADENING OF TAX BASE:
• In order to broaden the tax base and promote documentation of economy, importers, exporters and service providers are being required to file normal return of income instead of simple statement. Further tax deducted/collected from such taxpayers would be treated as minimum instead of final tax.
• It is proposed that obtaining of NTN may be made mandatory for purchase of property, obtaining commercial and industrial gas/electricity connection and opening of a bank account. All NTN holders are also proposed to file returns necessarily.
• In order to ensure filing of income tax returns by all persons having reasonable resources and income, it is proposed that any person owning immovable property with a land area having 500 sq. yards, flat having covered area 2000 sq.ft or owns a motor vehicle having engine capacity of 1000CC or more shall file return of income.
• Taxation Officers are being empowered to pass best judgment assessment orders in the cases of the taxpayers who failed to furnish statutory statement as required under section 115 of the Income Tax Ordinance, 2001.
• To accelerate the pace of documentation of the economy and broadening of tax base the manufacturer are being incentivized by allowing tax credit at 2.5% of
the tax payable if they are able to make at least 90% of their sales to sales tax registered persons.
• The real estate sector is known to be the most under taxed sector of the economy which usually attracts black economy. In order to curb the speculative tendency and discourage non productive investment the rate of CVT on transfer of immoveable property is being enhanced from 2% to 4
income tax amendments 2009
Government of Pakistan
Federal Board of Revenue,
(Revenue Division)
****
Circular No. 03 of 2009
INCOME TAX
C.No.ITP/B-2009-10-170/EC Islamabad the July 17th July, 2009
Subject: FINANCE ACT, 2009 – EXPLANATION REGARDING IMPORTANT AMENDMENTS MADE IN THE INCOME TAX ORDINANCE, 2001.
Several amendments have been made in the Income Tax Ordinance, 2001 through Finance Act, 2009. The important amendments are explained as under.
FULL STORY CLICK HERE:
Federal Board of Revenue,
(Revenue Division)
****
Circular No. 03 of 2009
INCOME TAX
C.No.ITP/B-2009-10-170/EC Islamabad the July 17th July, 2009
Subject: FINANCE ACT, 2009 – EXPLANATION REGARDING IMPORTANT AMENDMENTS MADE IN THE INCOME TAX ORDINANCE, 2001.
Several amendments have been made in the Income Tax Ordinance, 2001 through Finance Act, 2009. The important amendments are explained as under.
FULL STORY CLICK HERE:
Income TaxCircular No. 6 of 2009
Government of Pakistan
(Revenue Division)
Federal Board of Revenue
*****
C.No. ITP/B-2009-10 (165) Islamabad, the August 18, 2009
Circular No. 6 of 2009
(Income Tax)
Subject: Clarification of Amendments in sub-section (6) of Section 153 of the Income Tax Ordinance, 2001 Brought Through Finance Act, 2009.
Certain representations received from various taxpayers show that the amendments, introduced in section 153 of the Income Tax Ordinance, 2001 through Finance Act, 2009, are being construed as to mean that all services rendered, whether by corporate taxpayers or otherwise, now fall in the scope of minimum tax regime in terms of sub-section (6) thereof and as such the eligibility of the corporate sector to obtain exemption certificate from the applicability of these provision stands abolished.
2. Matter has been examined in the light of relevant provisions of law and it is clarified that this interpretation is not based on correct interpretation of law. The amendments, made vide Finance Act, 2009, in section 153, modify the provisions of second proviso to sub-section (6) to the effect that henceforth the services rendered by the non-corporate taxpayers stand excluded from the ambit of final tax regime and through another proviso the tax deducted under section 153(1)(b) is to be treated as minimum tax. Previously such services remained subject to final tax pursuant to exclusion of corporate sector from its ambit through first proviso to sub-section (6). The position for services rendered by the corporate sector remains unchanged even after the recent amendments as services rendered/provided by corporate sector remain outside the scope of both the final tax regime as well as the minimum tax regime of section 153 of the Income Tax Ordinance.
3. Minimum tax as provided under section 113 is, therefore applicable to the resident companies accordingly.
( Aftab Ahmad )
Chief (Income Tax Policy)
Phone: 92 51 9201742
(Revenue Division)
Federal Board of Revenue
*****
C.No. ITP/B-2009-10 (165) Islamabad, the August 18, 2009
Circular No. 6 of 2009
(Income Tax)
Subject: Clarification of Amendments in sub-section (6) of Section 153 of the Income Tax Ordinance, 2001 Brought Through Finance Act, 2009.
Certain representations received from various taxpayers show that the amendments, introduced in section 153 of the Income Tax Ordinance, 2001 through Finance Act, 2009, are being construed as to mean that all services rendered, whether by corporate taxpayers or otherwise, now fall in the scope of minimum tax regime in terms of sub-section (6) thereof and as such the eligibility of the corporate sector to obtain exemption certificate from the applicability of these provision stands abolished.
2. Matter has been examined in the light of relevant provisions of law and it is clarified that this interpretation is not based on correct interpretation of law. The amendments, made vide Finance Act, 2009, in section 153, modify the provisions of second proviso to sub-section (6) to the effect that henceforth the services rendered by the non-corporate taxpayers stand excluded from the ambit of final tax regime and through another proviso the tax deducted under section 153(1)(b) is to be treated as minimum tax. Previously such services remained subject to final tax pursuant to exclusion of corporate sector from its ambit through first proviso to sub-section (6). The position for services rendered by the corporate sector remains unchanged even after the recent amendments as services rendered/provided by corporate sector remain outside the scope of both the final tax regime as well as the minimum tax regime of section 153 of the Income Tax Ordinance.
3. Minimum tax as provided under section 113 is, therefore applicable to the resident companies accordingly.
( Aftab Ahmad )
Chief (Income Tax Policy)
Phone: 92 51 9201742