Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Exemption
1. Freedom from a duty, liability, or other requirement. See IMMUNITY. 2. A privilege given to a judgment debtor by law, allowing the debtor to retain certain property without liability. 3. Tax. An amount allowed as a deduction from adjusted gross income, used to determine taxable income. Cf. DEDUCTION (2).
dependency exemption
An exemption granted to an individual taxpayer for each dependent whose gross income is less than the exemption amount and for each child who is younger than 19 or, if a student, younger than 24.
exemption clause
A contractual provision providing that a party will not be liable for damages for which that party would otherwise have ordinarily been liable. Cf. INDEMNITY CLAUSE. "An exemption clause may take many forms, but all such clauses have one thing in common in that they exempt a party from a liability which he would have borne had it not been for the clause. In some cases an exemption clause merely relieves a party from certain purely contractual obligations, for example, the duties of a seller in a contract of sale regarding the quality and fitness of the goods. In other cases exemption clauses go further and protect the party not merely from contractual liability but even from liability which would otherwise have arisen in tort. For example, a shipping company's ticket may exempt the company from liability to the passenger for any injuries, however caused. Now if the passenger is injured as a result of the negligence of the company's employees, that would, in the normal way, give rise to an action in tort for negligence, quite apart from the contract." P.S. Atiyah, An Introduction to the Law of Contract 167 (3d ed. 1981).
exemption equivalent
The maximum value of assets that one can transfer to another before incurring a federal gift and estate tax.
exemption law
A law describing what property of a debtor cannot be attached by a judgment creditor or trustee in bankruptcy to satisfy a debt. See EXEMPT PROPERTY1 ex empto (eks emp-toh) [Latin] Roman & civil law. Out of purchase; founded on purchase.
personal exemption
An amount allowed as a deduction from an individual taxpayer's adjusted gross income.
surtax exemption
1. An exclusion of an item from a surtax. 2. An item or an amount not subject to a surtax. See surtax under TAX.
waiver of exemption
1. A debtor's voluntary relinquishment of the right to an exemption from a creditor's levy or sale of any part of the debtor's personal property by judicial process. 2. The contractual clause expressly providing for such a waiver.