How to add a debit note to an FTN holder, as they usually don't file their returns?

Questions / Scenarios:
 
1) Is Maturity Payment of "Life Insurance Plan" is Taxable
2) How to disclosure Life insurance Premium Paid in Tax Returns (Should Profit/Bonus Credited in Account may also be disclosed)
 
Findings:
1) Life Insurance Maturity payment is not explicitly discussed in Income Tax Ordinance, 2001. However, unless any receipt is specifically made taxable in its nature, it can not be treated as taxable. Therefore, the assumption is it remain exempt.
 
2) I only show Premium paid by myself.

However, another way could be to show bonuses and profits credited to my insurance plan may as Asset, while in Income we can show such Profits/Bonuses (Exempt Income).

In this way if Maturity Payment is made taxable in future, then the split is over earlier periods may avoid taxation of whole amount.

A significant legal ambiguity within the Punjab Sales Tax on Services Act 2012 created a foundational conflict between taxpayers and the revenue authority. The core of the issue lay in the Act's definition of a taxable "economic activity," which included the "supply of movable or immovable property by way of lease, licence or such similar arrangements." This language was interpreted by the Punjab Revenue Authority (PRA) in its broadest sense, leading it to contend that all supplies of property by developers, including outright sales, were taxable "services." This interpretation was contested by developers, who argued that their specific activity which was outright sales, did not fall under the legal definition of "lease, licence or such similar arrangements" and therefore was not a taxable service.

For any private company in Islamabad, understanding which employee benefits mandatory are is a critical point of compliance. The answer is complicated because there isn't one single "labor law." Instead, a company's obligations are determined by a mix of different laws which are listed. This article breaks down the relevant laws and provides a clear, tiered guide based on the number of your employees.

1. The Employees' Old-Age Benefits Act, 1976 (EOBI): This is the federal law for employee pensions.  
   
2. The Provincial Employees' Social Security Ordinance, 1965 (ESSI): In the capital, this is administered by the ICT Employees Social Security Institution (IESSI) and covers health and cash benefits for employees.  
   
3. The West Pakistan Shops & Establishments Ordinance, 1969: This law governs the basic working conditions (like leave and termination notice) for smaller businesses.  
   
4. The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968: This is the stricter law that applies to larger, more established companies. It is the law that makes Gratuity and Group Insurance mandatory.  
   

• Companies with 1 to 19 employees are governed by the 1969 Shops & Establishments Ordinance. This law provides basic protections but does not include a legal requirement to pay Gratuity.  
  
• When a company hires its 20th employee, it crosses a legal threshold. The 1968 Standing Orders Ordinance kicks in, and this law replaces many of the rules of the 1969 ordinance, imposing stricter obligations: most notably, mandatory Gratuity.  
  

• Social Security (IESSI): Not Mandatory.
  
• EOBI (Pensions): Not Mandatory.
  
• Gratuity / Provident Fund: Not Mandatory.
  
• Group Life Insurance: Not Mandatory.
  
• What is required: You must still follow the 1969 Ordinance for basic rules like working hours, annual leave, and providing a written termination notice.  
  

• Social Security (IESSI): Mandatory. This is the first scheme that applies. Once you hire your 5th employee, you are generally required to register with IESSI for employee health and social security benefits.  
  
• EOBI (Pensions): Optional. For years, the rule was 5+ employees. However, a 2021 government reform (F081) exempted micro/small organizations (5-9 employees) from mandatory registration to ease the burden on small businesses. You can still register voluntarily, but it is no longer a legal obligation at this size.  
  
• Gratuity / Provident Fund: Not Mandatory. The 1969 Ordinance still applies.
  

• Social Security (IESSI): Mandatory.
  
• EOBI (Pensions): Mandatory. The exemption for 5-9 employees ends. At 10 or more employees, registration with EOBI is a legal requirement. This aligns with the original 1976 Act and current official EOBI policy.  
  
• Gratuity / Provident Fund: Not Mandatory. You are still governed by the 1969 Ordinance, which does not mandate this benefit.  
  

• Social Security (IESSI): Mandatory.
  
• EOBI (Pensions): Mandatory.  
  
• Gratuity / Provident Fund: Mandatory. This is the "benefits cliff." The 1968 Ordinance legally requires you to pay a gratuity to eligible employees. The law states you are exempt from paying gratuity only if you have a Provident Fund where the employer's contribution is equal to or greater than the employee's contribution.  
  
• Group Life Insurance: Mandatory. This is also triggered by the 1968 Ordinance (Standing Order 10-B). The threshold is 20+ employees for commercial establishments (like offices or shops) and 50+ for industrial establishments.  
  

Companies Act 2017 had introduced a new category of Director i.e. Contractual 

Now the questions arise:

1) Can a non-member be appointed as contractual Director
2) What will be his/her tenure
3) Do we need any amendment in Articles of Association
4) Will it has any impact on number of Directors fixed during election of directors

Last Update: November 14, 2025
 
This Article covers the following topics:
 
1. RELATED LAWS
2. CHANGE OF COMPANY NAME — REQUIRED ACTIONS (SUMMARY)
3. CHANGE OF NAME - REQUIRED ACTIONS (DETAILED)
4. BOARD RESOLUTION FOR CHANGE OF COMPANY NAME
5. MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS
6. BOARD RESOLUTION FOR CALLING OF EXTRAORDINARY GENERAL MEETING (EGM)
7. SPECIAL RESOLUTION & STATEMENT OF MATERIAL FACTS
8. NOTICE OF GENERAL MEETING
9. MINUTES OF THE EXTRAORDINARY GENERAL MEETING (EGM)
10. UPDATED NAME CLAUSE - MEMORANDUM OF ASSOCIATION
11. UPDATED NAME REFERENCE - ARTICLES OF ASSOCIATION
12. COVERING LETTER TO SECP (For eServices Application —- Name Change)
13. REQUIRED DOCUMENTS, SECP PROCESSING, TIMELINES, FEE, CHECKLISTS & PRACTICAL GUIDANCE FOR CHANGE OF COMPANY NAME

Someone posted CVT notice on a what’s app group, this prompted me to go through CVT law as my memory told me the CVT section is empty. So here are few points to remember:

·        The CVT law is part of Finance Act 2022 and its rules were issued in September 2022

·        Applicable on:
  o   1300cc +/ 50kwh+ vehicles; Applicable for a total of first 6 years; 10% depreciation allowed, (CVT Rate 1%)
  o   Foreign Assets (immovable & movable) of RESIDENT individual if the COST exceeds Rs. 100m – payable with income tax return (Every year); Rate 1%:
 1) if cost is known (Cost * Exchange rate on June 30 of relevant tax year)
 2) If cost is not known (FMV * Exchange rate on June 30 of relevant tax year)
*** Meaning Value will keep changing as per Exchange rate every year

·        In Finance Act 2024, for ICT (Islamabad):
  o   Farm Houses Rs. 500,000 (2,000 – 4,000 square yards + Covered Area 5000 Sq Ft) and Rs. 1m if it exceeds 4,000 sq yards. Multiple houses in a compound with each area exceeding 2000 Sq Yards are considered Multiple Fams.
  o   Residential Houses Rs. 1m  (1,000 – 2,000 square yards) and Rs. 1.5m if it exceeds 2,000 sq yards

If a house do not fall within definition of FARM HOUSE then it may be considered as a Residential House :: within ICT limits irrespective of Rural or Urban distinction.

·        A separate FORM-A needs to be electronically filed on IRIS
·        12% Default Surcharge is payable in case of late payment

I am new member of this forum and found it very informative not only for tax issues but for other corporate legal discussions. I have following questions to be advice by experts in this forum:
BACKGROUND
Services company name ABC Opco Ltd is private limited company. It also runs Registered Gratuity Fund (or Trust also duly registered with Commissioner Income Tax) for its employees with eligibility criteria of 4 years of continued services as permanent employee. In recent times it entered in equity sale agreement with XYZ Corp Ltd for selling of its 100% shares. Both companies are in same nature of business. The acquiring company has intent  to merge both companies into one company (say Merg Co). The acquiring Corp doesnot run gratuity program for its existing employees.
In this scenario I want to seek your guidance on following questions:
1.      What would be the status of ABC gratuity fund trust?
2.      Can Merg Co close gratuity fund or trust?
3.      Can Merg Co refuse to pay to fund for maintaining required balance according to actuarial valuation?
4.      Does Merg Co has right to appoint new trustees of fund?
5.      Does Merg Co can make changes in trust deed to amend fund contribution clause?
6.      In case of above, is only board of trustees of fund can authorize change in trust deed or consent of all the eligible members of the fund is necessary?
7.      Can Merg co freeze fund at any cut off date?
a.      In above case when members will be paid their respective amounts
b.      If paid on subsequently at time of termination of services, what will happen to profits on investments made by fund and how these will be treated (or allocated)
8.      In case it is decided to abolish trust altogether, what will happen to the funds available on cut off date and does member will?
a.      Be paid till cut off time on date of closing of fund
b.      If a. is applied, what would be tax implications for members, as this will be before termination of services of employee
c.      Any exemption option available to members or trust as whole
Please provide a legal opinion with references to applicable laws and regulations.

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The ICMAP TSPD Committee of IBC in collaboration with the TSPD-NC has collaborated with CRO-SECP for a comprehensive coverage of all Annual Corporate Compliances `

Webinar Schedule: Thursday, November 06, 2025 from 3 to 5 pm

Registration Link

Speakers:
Mr. Amir Saleem Additional Registrar, SECP
Mr. Raza Khan Safi, Deputy Registrar, SECP

Participants:
1. Members, Students and Faculty of ICMAP and other Professional Bodies from all cities
2. Company Secretaries, Directors & Business Community
3. Corporate Intermediaries
4. General Public

Event Fee: Your Precious Time Only.

Looking Forward,


Muhammad Imran, FCMA
Event Organizer & Chairman TSPD-IBC ICMAP