C.P Fund
Q.1 Why is G.P Fund and C.P Fund both deducted from my salary?
Ans: C.P Fund is a Contributory Pension Scheme introduced through the Khyber Pakhtunkhwa Contributory Provident Fund Rules 2022, which is applicable on all those employees appointed on or after 1st July 2022. Whereas, the G.P Fund is governed by the Khyber Pakhtunkhwa General Provident Fund Rules 2008 which are applicable on all regular government employees of the Khyber Pakhtunkhwa irrespective of the date of appointment.
Q.2 I was regularized under Regularization Rules 2022 from date of initial appointment and my appointment was before July 2022, why is C.P Fund applied on me by the Account Office?
Ans: Khyber Pakhtunkhwa Contributory Provident Fund Rules 2022, clearly provides in the Section 1(2) that these rules shall apply to all the employees, mentioned in clause (f) of Rule 2 of these rules, duly recruited after the commencement of the Khyber Pakhtunkhwa Civil Servants (Amendment) Act, 2022. The clause (f) of rule 2 reads as following:
- “employee” means –
- a civil servant, recruited under the Act, after coming into force of the Khyber Pakhtunkhwa Civil Servants (Amendment) Act, 2022 (Khyber Pakhtunkhwa Act No. X of 2022); or
- an employee of the Government, regularized as civil servant through any legal instrument, issued after coming into force of the Khyber Pakhtunkhwa Civil Servants (Amendment) Act, 2022 (Khyber Pakhtunkhwa Act No. X of 2022), irrespective of the effective date of regularization;
Tax Rebate
Q.3 I was allowed a tax rebate under the Income Tax Rules, but it wasn’t applied to my salary and excess tax has been deducted from me. I want the Account Officer to refund the excess amount deducted from me.
Ans: The refund of tax deducted in excess of the chargeable amount comes under the Section 170 of the Income Tax Ordinance 2001. This office or its sub-ordinate offices (i.e DAOs) has no jurisdiction to refund the tax charged in excess. The above-mentioned section of ITO provides a detailed procedure to claim refund from the FBR.
Q.4 The Account Office has started to deduct higher tax from my salary than it was doing previously.
Ans: If you have received a large sum of arrears pertaining to previous years, your annual income for this year will increase which in effect increases your tax rate applicable. The SAP System calculate the annual income tax rate applicable as per FBR rules applicable.