The ITO has clearly specified that any income taxed on receipt basis shall not be taxed again on accrual basis and vice versa. Any expenditure that is deducted on due basis shall not be deducted when it is paid and vice versa.
Similarly, if any tax has been paid by a resident taxpayer for employment exercised out of Pakistan on foreign source income, that income will be exempt in Pakistan by virtue of ITO 2001, s 102. A resident individual is treated as having paid foreign income tax in respect of foreign-source salary if tax has been withheld from the salary by the individual's employer and paid to the revenue authority of the foreign country in which the employment was exercised.
Additionally, if a resident taxpayer earns foreign source income that is taxable under ITO 2001, and has paid foreign income tax,
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