ISLAMABAD: Abiding by Finance Minister Ishaq Dar’s decision, the Federal Board of Revenue will now exclude annual school fees paid from taxes.
The facility is being provided for the first time to all registered tax filers of Pakistan. A new Section AB-64 has been inculcated into income tax ordinance 2001 through finance act 2016, for the purpose.
From now on, tuition fees will be considered as tax-deductable allowance for all taxpayers with an annual income of less than Rs. 1 million.
Under the new ruling, registered tax payers will enjoy a rebate on either five per cent of the total tuition fee paid or twenty-five per cent of the person’s taxable income for the year, whichever is lesser.