Interest On Securities

Interest On Securities 

                Following are the important provisions of the Ordinance in this behalf;

An income in order to be considered as "Interest on Securities"must fulfill the following conditions;-

1)It must have been received as interest;

2)It must be on "securities when received from Govt.or on"securities"or "debentures"when received from a local authority or a Pakistani company;

3)It must have been received from;

a)The Federal Government,

b)A Provincial Government,

c)A Local Authority,

d)A Pakistani Company.

   The above conditions are cumulative and not alternative.In other words these must all be satisfied before the amount becomes taxable under this head.If it does not satisfy even one of the above conditions,it cannot be taxed under this head.

          The following are not taxable under the head "Interest on Securities";- 

1)Dividend received on preference shares from a co;

2)Interest received from Government on a claim decreed by a Court of Law;

3)Interest received from an individual or from a partnership firm;

4)Interest received from a company , on a book debt or on an overdraft or on a loan bank;---