Post graduate trainees: YDA writes to tax ombudsman against tax deductions

LAHORE:

The Young Doctors Association (YDA) on Sunday filed a complaint with the federal tax ombudsman on the issue of tax deduction from post graduate (PG) trainees’ stipends.

YDA leader Salman Kazmi filed the application. The YDA had earlier filed an application on the matter to the Inland Revenue Regional Tax Office chief commissioner.

“A post graduate trainee working in the hospital to complete his training is neither on a contract nor a regular government servant,” the application said.

“The nature of work of a trainee is such that he cannot work or treat patients independently and is more of an observer who works with his supervisor…The deduction of income tax from the salaries of post graduate trainees should be stopped,” it stated.

Kazmi said the YDA had also provided copies of the budget book of Punjab government with the application showing that the trainees were paid under the head of ‘scholarships’.

“The income tax chief commissioner had heard us and agreed with our view and passed an order stating that the…stipend doesn’t fall under salary…He stated that the amount being a scholarship, falls under U/S 47 of the income tax Ordinance, 2001, and therefore should be exempt from tax deduction,” Kazmi said.

Kazmi said the chief commissioner sought an opinion from the Inland Revenue member of the Federal Board of revenue who never responded.

Published in The Express Tribune, July 22^nd, 2013.