As per Lawkidunya, The Income Tax Act in Pakistan has several key features that govern the taxation system in the country. Taxable Income is defined as the total income reduced by donations qualifying for deductions and certain deductible allowances. This income is categorized into five heads: _Salary, __Income from Property, __Income from Business, __Capital Gains, and __Income from Other Sources_.

Residency is determined by the individual’s presence in Pakistan for at least 183 days in a tax year. Residents are taxed on their worldwide income, while non-residents are only taxed on their Pakistan-source income.

The Tax Year in Pakistan runs from July 1 to June 30, and taxpayers must file their returns by September 30. The tax rates vary based on income level, with rates ranging from 5% to 35%.

Withholding Tax is another crucial aspect of the Income Tax Act in Pakistan. It is deducted at source on various types of income, including salaries, dividends, and interest. The tax rates vary depending on the type of income and the taxpayer’s residency status.

The Income Tax Act in Pakistan also provides for Tax Incentives and Exemptions, such as tax holidays, investment incentives, and exemptions for certain industries and individuals.

Overall, the Income Tax Act in Pakistan aims to provide a fair and equitable taxation system, with various provisions to encourage economic growth and development.