All salaried employees must submit income tax returns, while government officials are required to file for the current tax year, according to the National Board of Revenue (NBR).

To this end, the tax authority has detailed the types of income subject to taxation in its guidelines.

The NBR recently published the income tax guideline for the current fiscal year, outlining 15 types of taxable income for government employees and 11 for private-sector employees.

Taxable income for government employees

The tax authority has identified 15 types of income taxable for government employees in the current fiscal year.

These include basic salary, arrears, special pay, house rent allowance, medical and transport allowances, festival allowance, support staff allowance, leave encashment, honorariums and awards, overtime pay, Baishakhi allowance, interest from provident fund, lump-sum grants, and gratuity. The NBR has made it mandatory for all salaried individuals, particularly government officials, to file income tax returns, aiming to ensure clarity and proper compliance in the taxation process.

Taxable income for private sector employees

The revenue authority has identified 11 types of income taxable for private-sector employees this fiscal year

These include salary, various allowances such as transport and medical, advance or arrears pay, and post-employment benefits like gratuity, annuity, and pension.

Other taxable items include perquisites such as free housing and utilities, cash in lieu of salary, income from employee share schemes, employer-provided housing and vehicles, and club memberships or travel perks with monetary value.

Besides, employer contributions to a recognised provident fund are also taxable, according to the NBR.