Law relating to taxation of income in Pakistan is affirmed in the Income Tax Ordinance, 2001 (the Ordinance) and the rules frame there under viz. Income Tax Rules, 2002 (the Rules). The Ordinance is a Central order and is; therefore, applicable to the whole of Pakistan. Under section 4 of the Ordinance, income tax is compulsory for each tax year at specific rates on every person who has taxable income for the year. The tax payable is calculated by apply the rate(s) of tax to the taxable income of the taxpayer for the year and any tax credit permitted to the taxpayer for that year is deduct from that amount.