Income Tax is an annual charge on a person's income according to the Income Tax Ordinance of 2001. A person may be liable to pay income tax, deduct or collect tax at source, pay tax in advance, pay penalties and fees. Taxable income is total income for the year reduced by allowable deductions. Total income is the sum of income from various heads including salary, property, business, capital gains, and other sources. The document then outlines the definition and treatment of income classified as salary.