INCOME TAX RULES, 1982 - PakSearch.com

14. Conveyance used exclusively for business purposes.-- Where the conveyance is used by the employee exclusively for business purposes, there shall be included in his income--

(1) where the conveyance is owned or hired by the employer and its running (including hire and maintenance) costs are also borne by him, the whole amount of the conveyance allowance, if any, receivable by the employee;

(2) where the conveyance is owned or hired by the employer and its running (including maintenance) costs are borne by the employee, the amount, if any, by which the conveyance allowance paid by the employer exceeds the actual expenditure incurred by the employee on the running (including maintenance) of the conveyance;

(3) where the conveyance is owned by the employee and its running (including maintenance) costs are borne by him, the amount, if any, by which the conveyance allowance paid by the employer exceeds Rs 4800 or 10 per cent of the basic salary, whichever of these tow sums is the higher; and

(4) where the conveyance is owned by the employer and its running (including maintenance) cost are borne by the employer, the amount, if any, by which the conveyance allowance paid by the employer exceeds Rs 2,400 or 7.5 per cent of the basic salary, whichever of these two sums is the higher.

15. Free or concessional passage for travel abroad or within Pakistan.-- (1) Where free or concessional passage for travel abroad or within Pakistan is provided by the employer to an employee (including the members of his house-hold and dependents), there shall be included in the income of the employee--

(i) where the passage is provided in accordance with the terms of employment, an amount equal to the sum by which the cash payment, if any, made by the employer exceeds the actual expenditure on fare incurred by the employee; or

(ii) where the passage is not in accordance with the terms of employment, the whole of the amount paid in cash, if any, or if no cash payment is made, the amount which would have been expended by the employee had the free or concessional passage, as the case may be, not been provided by the employer:

Provided that where free or concessional passage for travel abroad is availed of by the employee more than once in two years and more than once in three years for the members of his household and dependants, the whole of the amount paid to him in cash, if any, for such additional passage or if no cash payment is made the amount which would have been expended by him, had the additional passage not been provided by the employer shall be included in his income.

(2) Where the transport is provided free of cost, or at a concessional rate, by an undertaking engaged in the transport of passengers or the carriage of goods to any employee of the undertaking (including the members of his household and dependents) in any conveyance owned or chartered by the undertaking for the purpose of the transport of the passengers or carriage of goods, nothing shall be added in his income.

16. Entertainment allowance.-- Where any amount is payable to the employee by way of entertainment allowance, the whole of the amount so payable shall be included in his income. No addition on this account shall, however, be made if free tea, coffee, beverages, etc., are provided at the office premises during the course of work.

17. Medical expenses.-- Where any amount is payable to the employee by way of hospitalisaiton or medical expenses, the amount, if any, by which the sum receivable by him exceeds the actual expenditure incurred by him shall be included in his income.

18. Other benefits.-- Where any benefit or annuity not covered by the provisions of rule 4 to rule 16 is provided to the employee, the members of his household or his dependents, there shall be included in his income an amount equal to the amount which would have been expended by the employee in obtaining such benefit or annuity from an independent source in the same or near locality, had it not been so provided, as reduced by the amount, if any, expended wholly, necessarily and exclusively in the performance of the duties of the office held by him or actually paid by him in cash.

18A. Valuation of perquisites, allowances, benefits where salary is Rs 300,000 or more:--
(1) Where any perquisite is receivable in cash, the whole mount shall be taxable.

(2) Where any perquisite is receivable otherwise than in cash, other shall be included in his income an amount equal to the amount which would have been expended by the employee in obtaining such benefit, or annuity from an independent source in the same or near locally, had it not been so provided, and reduced by the amount, if any, actually paid by him in cash for the purpose of availing such perquisite.

18B. Valuation of perquisites received in kind.-- (1) Computation of value of perquisites, where the same is not quantified in cash, shall be made on the following, basis:--

(a) where free unfurnished accommodation is provided to the employee.

Nature of perquisite/Benefit	Value to be adopted for benefit addition in income.
1. Accommodation	In areas falling within the limits ofMetropolitan Corporation, Municipal Corporation, Cantonment Board of the Islamabad Capital Territory.	Other Places
With land areas upto 250 sq. yards.	36,000	24,000
With land areas upto 500 sq. yards.	96,000	60,000
With land area of 500 sq. yards and above.	1,80,000	96,000
With land area of 1000 sq. years and above.	3,36,000	1,80,000
With land area of 7000 sq. yards and above.	4,20,000	2,40,000

(i) Where the conveyance is exclusively used for private purpose,	(i) The value shall be determined on the following basis:
	Motor vehicle with engine less than 1000CC	Amount to be added (per annum)/Rs. 40,000
	1000CC to less than 1500CC	80,000
	1500CC to less than 1800CC	1,20,000
	1800CC and over.	2,00,000

(ii) Where the conveyance is partly used for business purposes and partly for private.	(ii) 50% of the value determined in clause (i); and
(iii) Where the conveyance is used by more than one employees.	(iii) the amount as determined in clause(i), divided by number of employees. using the conveyance.