Withholding tax: The ordinance requires certain parties, such as employers and financial institutions, to withhold taxes from payments made to individuals or entities. These withholding taxes are credited against the final tax liability.

Filing requirements: The ordinance requires taxpayers to file tax returns annually, reporting their income and tax liability. Failure to file a return or pay taxes on time can result in penalties and interest charges.

Tax audits: The ordinance authorizes tax authorities to conduct tax audits of taxpayers to ensure compliance with the law. Taxpayers are required to maintain records of their income and expenses to support their tax filings.

Overall, the Income Tax Ordinance 2001 is a comprehensive law that lays out the rules and procedures for the taxation of income in Pakistan. It is regularly updated to reflect changes in the economy and tax policy.

Under the Income Tax Ordinance 2001, salary tax is a type of income tax that is levied on the income earned by an individual through their employment. The tax is calculated based on the salary received by an individual during a tax year, which is the period from July 1st to June 30th of the following year in Pakistan.

The salary tax is deducted at source by the employer and remitted to the tax authorities on behalf of the employee. The employer is required to withhold tax from the salary of the employee based on the applicable tax rates and deductibles as per the law.

The tax rates for salary tax are progressive, meaning that the tax rate increases as the income level increases. The tax rates are updated annually through the Finance Act passed by the parliament of Pakistan.

The Income Tax Ordinance 2001 also has provisions for the taxation of income earned by Pakistani citizens and nonresidents working overseas. Under the ordinance, such individuals are not required to pay tax on their worldwide income, excluding income earned in Pakistan.

However, to avoid double taxation, the ordinance provides for certain exemptions and deductions for overseas Pakistanis. For example, individuals who are residents of a country with which Pakistan has a tax treaty can claim a tax credit for taxes paid in that country. Additionally, certain types of income, such as income from foreign sources that is taxed in the country where it is earned, may be exempt from taxation in Pakistan.

To determine their tax liability, overseas Pakistanis are required to file a tax return with the Federal Board of Revenue (FBR) in Pakistan. The return must include only income earned during the tax year in Pakistan and any taxes paid or withheld in Pakistan.

Overall, the Income Tax Ordinance 2001 aims to ensure that all Pakistani citizen nonresidents, do not taxes on their income earned outside Pakistan.