Exemption Certificate for Provident Fund
BeSpoke Consulting and Training offers Provident Fund Registration Services in Lahore Pakistan and we also provide professional services for Exemption Application under section 159 of the Income Tax Ordinance, 2001.
Provident Fund Registration Pakistan: Provident fund is a very common retirement plan to benefit the employees, which is contributory in nature and yields a feeling of participation in employees.
We will apply Exemption Certificate for your Provident Fund Trust u/s 159 of the Income Tax Ordinance, 2001 read with 151 as our fund is recognized and Income of the Fund is exempt under clause 57(3) of 2nd Schedule of The Income Tax Ordinance, 2001.
The application for issuance of exemption certificate U/S 159 of the Income Tax Ordinance, 2001 against any income of the trust covered under clause 57(3) of Part-I of Second Schedule to the Income Tax Ordinance, 2001 in respect of income of Employees Provident Fund.
The income of Employees Provident Fund is exempt as before from levy of tax per law and as such, no deduction of tax is to be made on dividend income u/s 150, profit on debt u/s 151 and commission income u/s 233 of the Income Tax Ordinance, 2001 payable to the Provident Fund Trust.
The Establishment settles the Provident Fund in form of Trust, required to be registered with the concerned Sub-registrar for getting the status of an independent Body. There are three types of Provident funds, which are known as:
Statutory Provident Funds, which are set up under the Provident Fund Act, 1925 and is maintained by the Government, semi Government organizations, local authorities and other such institutions. Payments from such funds does not need recognitions from the Commissioner Inland Revenue and are exempted from Income Tax.
Recognized Provident Fund, which is recognized by the Commissioner Inland Revenue under the Sixth Schedule of Income Tax Ordinance, 2001. This type of Provident Fund is maintained by private sector or organizations. Payments from such Provident fund are exempted from Income Tax.
Unrecognized Provident Fund No exemptions are available but there is no yearly taxability. Employer’s contributions and interest thereon will be taxable at the time of payments to the employees only.
To hire us for your Provident Fund Registration and Application for Issuance of Exemption Certificate for Provident Fund Trust under section 159 read with section 151 further read with clause 57(3) of 2nd Schedule of The Income Tax Ordinance, 2001