IFTIKHAR AHMAD BUTT versus GOVERNMENT OF ISLAMIC REPUBLIC OF PAKISTAN
Income Tax Ordinance 1979 Sections 15, 16 (2) (C), 50 (1) and Second Schedule, CL (17) of the Central Board of Revenue Circular No. 1997, dated 16 I1 1997 of the Central Board of Revenue Circular No. 1965, Schedule 1 7 Constitution of Pakistan 1965 (1973), Article 199 Constitutional petition Reduction in tax on payments to employees under the Golden Hand Shakes Scheme was a dispute of employees as salaries as such payments were not ex-grant grants. Salaries, none of which can be deducted under Section 50 (1) of the Ordinance. And that such payments were in compensation for the loss of service paid to the retiring employees and thus, there was no income income that could be paid by the employee upon termination of the employment or the modification of the contract of employment. Each amount received will be a return on pay. According to the definition of salary given in Section 16 (2) (c) of the Ordinance, in which there is no scope for wider interpretation using the term, such provisions shall be construed as compensation for an employee Can bring any money. Not Paid by the Employer There is no difference in compensation for salary or compensation due to job loss. Optional or mandatory Golden Handshake Scheme will not matter as far as payment by employer or employee of the amount. Such payment shall not be compensated for the loss of employment, nor will any capital be charged under any law de salary, which is a head in section 15 of the Ordinance under which Such receipts were to be levied, compensation which was due to only one employee and the employer
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