Mr Irfan resident of Pakistan received salary from UK He has-02028
This subjective question is related to the book/course vu mgt502 Organizational Behaviour. It can also be found in vu mgt502 Mid Term Solved Past Paper No. 3.
Question 1: Mr. Irfan resident of Pakistan received salary from UK. He has also paid tax on his salary from UK as per the tax laws prevailing there. What will be the tax treatment of his salary as a Pakistani residentWhich section of the income tax ordinance deals this scenario?
Answer:
Foreign-Source Salary Income [102]
Mr. Irfan's salary from UK would be exempted from tax, because he has paid tax on his salary from UK. Under Foreign-Source Salary Income [section102] foreign source salary income of a resident individual will be exempt from tax, if he has paid foreign income tax in respect of such income. Payment of foreign tax means that the employer has deducted the tax at source and deposited the same to the revenue authorities of the country in which employment was exercised.