Tax exemption on income derived from OPF Welfare Fund

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has granted exemption from tax on income derived from Welfare Fund of Overseas Pakistanis Foundation (OPF) created under Rule 26 of the Emigration Rules of 1979 from the tax year 2003.

The FBR issued a notification In this regard on Friday.

According to the notification, exemption would be available to income for any tax year commencing from tax year 2003, derived from the Welfare Fund crated under Rule 26 of the Emigration Rules, 1979 except the income generated by the aforesaid Fund through commercial activities.

Following is the text of the SRO819 (I)/2012 issued here on Friday:

"In exercise of the powers conferred by sub-section (2) of Section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the federal government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said ordinance, namely:-

In the aforesaid Schedule, in Part-I, after clause (65) the following new clause shall be inserted, namely:-

"(65A) Income for any tax year commencing from the tax year 2003, derived from the Welfare Fund crated under rule-26 of the Emigration Rules, 1979 (made under section 16 of the Emigration Ordinance, 1979 (XVII of 1979), except the income generated by the aforesaid Fund through commercial activities," it added.