Wapda Town was developed as a housing society for employees of the Water and Power Development Authority, and many residents still work — or worked — for WAPDA, LESCO, NTDC or other power-sector companies. Power-sector employees have a benefits package with some unusual items, including electricity concessions, that need care at tax time.
Salary and allowances
Power-sector employees are paid by their company or authority with tax withheld, and receive an annual salary certificate. Allowances — house rent, conveyance, medical, utility — are treated according to the rules and the employer's classification.
Free or concessional electricity
Many power-sector employees receive electricity units free or at concessional rates as part of their terms of service. In principle, a benefit provided by an employer can be a taxable perquisite, valued under the rules. How the electricity concession is treated in a given year — and how it's reflected in the salary certificate — depends on the employer's practice and the law. This benefit has also been the subject of public debate and policy change. We follow your salary certificate and the current rules.
The Wapda Town plot or house
| Situation | Wealth statement |
|---|---|
| Plot allotted through the society, paid in instalments | Asset at amounts paid |
| House built on it | Cost of construction added |
| House bought from another member | Asset at purchase cost |
| Portion rented out | Rent declared as income |
Society membership and transfer rules apply when buying from another member — see our Wapda Town Phase 1 page.
Employee loans and advances
Power-sector employers often provide house-building advances and car loans at concessional rates. Interest-free or low-interest loans can create a taxable benefit, calculated against a benchmark rate under the rules. The outstanding loan is a liability in your wealth statement.
GP Fund and benevolent fund
Your GP Fund balance is an asset; annual statements from the fund are the source. Benevolent fund and group insurance contributions and receipts follow their own treatment. See our provident fund page.
Ask your accounts office for a salary certificate that lists perquisites separately. It's the document that settles what has and hasn't been taxed.
Retirement
Power-sector pensions, commutation and gratuity follow government-style rules in many cases. See our retirement year page.
Spouses employed in the same company
Couples where both spouses work in the power sector each file their own return. Where one spouse is entitled to a benefit — such as an official residence or electricity concession — the benefit belongs on that spouse's certificate only. Don't let the same benefit appear twice across two returns.
Wapda Town — questions we get asked
Talk to a Lahore tax consultant today
Share your situation on WhatsApp — salary slip, rent agreement, notice, anything — and we tell you what is actually needed.