Investment Capital Allowances

 Following are the allowable Investments in respect of which Investment Allowance can be claimed.the aggreate of such investment should not exceed 1/3 of the total income or Rs. 50,000 or investment whichever is less;

1)Life Insurance Premium (self , wife and dependent children) restricted 10% of the sum assured;

2)Investment in Government Securities & Debentures;

3)Investment in approved Industrial Undertakings;

4)Post Office Savings Bank Certificates;

5)Contribution to Resognised Provident Fund;

6)Purchase of Books of Professional and Technical nature;

7)Retirement Annuity Contract;

8)Investment in NIT and ICP Certificates;

ALLOWANCES & EXEMPTIONS Following allowances and axemptions will be deducted from the total income and thereafter the taxable income will be calculated;-

1)statutory Deduction of Rs.40,000 from Gross Income,if it is less than Rs. 100,000;

2)Zakat - paid under the zakat & ushar Ordinance;

3)Wealt Tax Paid;

4)Donations are admissible as deductions provided the amount is paid to such organizatons as are recognised under section 15/D of the Income Tax Act or to such funds which are specifically notified by the Government;

5)Subscriptions paid for membership of professional Associatons is exempted;

6)Group Insurance & Benevolent Fund are exempted for rebate computation on investment;