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The Women University Multan: FBR directed to provide tax relief to 20 low-paid women teachers by FTO

The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to provide tax relief to 20 female low-paid employees working as teachers on temporary/adhoc basis at the Women University, Multan.

In this regard, the FTO has issued directions to the FBR on Monday.

The order caters to extend relief in tax deduction in terms of Section 153(1)(b) of the Income Tax Ordinance, 2001 (the Ordinance) of low-paid employees allowed on the strength of decisions which have been upheld by the President vide orders dated August 15, 2022 on identical issue.

The teachers from the WUM, Multan have confirmed that they are exclusively engaged in the teaching activity on semester basis with the University as temporary/visiting faculty and their annual receipts did not exceed Rs 600,000 in Tax Year 2023.

The alleged departmental practice to subject the remuneration of low-paid adhoc/temporary employees has been examined in these orders in the light of relevant legal provisions i.e. Sections 12 and 149 of the Ordinance.

The above legal provisions govern “Salary Taxation” Section 12 and withholding of tax thereupon under Section 149 of Ordinance only the equation of employer-employee based on “Master-Servant Relation-ship” is material. This criterion forms the basic parameter for any employment: regular/adhoc/temporary hired/daily wages which are different shades and forms of employment and law doesn’t create any distinction among all the above forms.

According to the FTO recommendations to the FBR, the chief commissioner Inland Revenue (CCIR), RTO, Multan is directed to ensure that tax shall be deducted on these low-paid employees working on temporary/adhoc under Section 149, as has been ordained by the president vide orders in similar cases of teaching community.

The Treasure, Women University, Multan to ensure that from now onwards tax withholding on the payments made to these temporary I visiting faculty teachers are subjected to Section 149 of the Ordinance in future; and report.


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