Judges in Pakistan enjoy several tax benefits and exemptions that are not available to other individuals. These benefits are outlined in Clause 55 of Part-I of the Second Schedule of the Income Tax Ordinance 2001. Let’s take a closer look at some of the benefits and exemptions provided to judges.
Rent-Free Residence: Judges of the High Court and Supreme Court are entitled to a rent-free residence provided either by the Federal Government or Provincial Government. This accommodation can either be a rented place or their own residence for which the government pays the rent. The accommodation is fully exempt from tax and is allowed until the term of service of the judge.
Perquisites, Benefits, and Allowances: Judges are entitled to several tax-free perquisites, benefits, and allowances during their term of service. These include:
- Transport Vehicles: Any transport vehicle provided during the term of service is exempt from tax.
- Superior Judicial Allowance: Any superior judicial allowance received by the judges is also exempt from tax.
- Transfer Allowance: Any transfer allowance given to judges of High Courts is exempt from tax.
- Free Local Telephone Calls: Judges are entitled to 1000 free local telephone calls per month.
- Free Electricity Units: Judges are entitled to 1000 units of free electricity per month.
- Free Petrol: Judges of the High Court and Supreme Court are entitled to 200 liters of petrol per month.
It is important to note that these benefits and exemptions are not available to other individuals and are exclusive to judges only. However, it is important to understand that these benefits and exemptions are subject to certain conditions and limitations.
In conclusion, judges in Pakistan are entitled to several tax benefits and exemptions during their term of service and even after the end of their term. It is essential to have a detailed understanding of these rules while working on tax returns or audit assessments for judges. Additionally, it is important to note that these benefits and exemptions are subject to certain conditions and limitations.