As per Lawkidunya, Section 149 of the Income Tax Ordinance, 2001 (Pakistan) deals with the taxation of income from salary. Here’s a summary:

Key Provisions of Section 149 of the Income Tax Ordinance

1. Taxation of Salary Income: Salary income is taxable in the hands of the employee.
2. Tax Deduction at Source: Employers are required to deduct tax from the salary paid to employees.
3. Tax Rates: Tax rates applicable to salary income range from 2% to 25%, depending on the income slab.
4. Taxable Salary: Salary includes all types of remuneration, such as basic salary, bonuses, allowances, and benefits in kind.

Exemptions and Deductions of Section 149 of the Income Tax Ordinance

1. Medical Allowance: Exempt up to PKR 10,000 per month.
2. Phone Bills: Exempt up to PKR 1,000 per month.
3. Housing Rent: Exempt up to PKR 10,000 per month (subject to conditions).
4. Conveyance Allowance: Exempt up to PKR 10,000 per month.
5. Charitable Donations: Deductible up to 10% of taxable income.

Obligations for Employers

1. Tax Deduction: Deduct tax from salary payments.
2. Tax Deposit: Deposit deducted tax with the Federal Board of Revenue (FBR).
3. Tax Return: File tax return (Form IRIS) and provide a certificate (Form S) to employees.

Important Notes of Section 149 of the Income Tax Ordinance

1. Tax Year: Pakistan follows a tax year from July 1 to June 30.
2. Filing Deadline: Tax returns must be filed by September 30 of each year.
3. Penalties: Failure to comply with tax laws and regulations may result in penalties and fines.
Please consult the Federal Board of Revenue (FBR) website or a tax professional for more detailed information and any updates on tax laws and regulations.