How to declare foreign scholarships in tax return?

Question

I received a scholarship from a foreign university. Do I have to declare it in my return?

Answer 1

No, scholarships are exempt from tax in Pakistan under Section 47 of the Income Tax Ordinance, 2001.
If you received a scholarship from a foreign or local university, you don’t have to pay any tax on it.
However, for transparency, it is advisable to declare it under the Exempt Income section of your return.
This way, FBR can see the source of funds without treating it as taxable income.
Always keep the scholarship award letter or bank record in case FBR asks for proof.