Escolar Documentos
Profissional Documentos
Cultura Documentos
Sr.
Rule
No Details
Taxable/Exempt
.
Accommodation:
(a). House Rent Allowance Taxable
(b). Accommodation Facility
If the Employers provides a Furnished or
Unfurnished accommodation, the following
amount will be added:
1. The amount that would have been paid by
the Employers in case such
accommodation was not provided or Whichever of (1) 0r (2) is
2. 45% of the minimum of time scale of the higher
basic salary Taxable
Notes:
1. If there is no time scale, basic salary
should be taken for computation.
2. Same procedure is to be adopted whether
accommodation provided is furnished or
unfurnished.
1. (C). Accommodation Facility in the Areas Where
House Rent Allowance is Admissible (Allowable
or Acceptable) @30%
1. The amount that would have been paid by
the Employers in case such
accommodation was not provided or
2. 30% of Minimum of time Scale of the
Basic Salary
Whichever of (1) 0r (2) is
Notes:
higher
1. If there is no time scale, basic salary
Taxable
should be taken for computation
2. In case it is not known whether the area of
accommodation is a big city or not, any
assumption can be taken. However, in this
book it is assumed that person is
employed in a big city unless otherwise
mentioned.
6. Conveyance: Taxable
1. If Conveyance Allowance is given
2. If Conveyance Provided by Employers for 10% of the cost of Motor
Personal or Private use of Employee Vehicle etc. should be
included in Taxable
Income
3. Conveyance Provided by Employers Partly 5% of the cost of Motor
for Personal or Private and Partly for Vehicle etc. should be
Official Use included in
Taxable Income
4. Employers Acquires (Obtain, Gain, Get,
10% of Fair Market Value
Attain) the Conveyance on Lease:
will be included in the
(1. If Conveyance Provided by Employers for
total income.
Personal or Private use of Employee
(2. Conveyance Provided by Employers Partly 5% of Fair Market Value
for Personal or Private and Partly for will be included in the
Official Use total income.
Medical Facility:
Medical Charges or Hospitalization or
Reimbursement
Exempt
If Under Terms
If Not Under Terms Taxable
11. If Silent Provision then consider (Under Terms) Exempt
Medical Allowance:
Remaining Taxable
Exempt Upto 10% of Basic Salary
When both Medical Allowance and Medical
Facility is given:
Taxable
Medical Allowance is fully
Entertainment:
16. Reimbursement of Entertainment Exempt
Entertainment Allowance Fully Taxable
Loan to Employee: Taxable (Difference
(a). More than Five Lac. (Rs. 500000). between 10% and the rate
18.
(b). Interest Rate less than 10% given) and it is applied on
loan
Special Allowance:
19. It is also known as TA (Travelling Allowance), DA Fully Exempt
(Daily Allowance)
Provident Fund:
1. Government Provident Fund:
(a. Employee Contribution (Already included
20. Fully Exempt
in Salary)
(b.Employers Contribution Exempt
(c. Interest Credited Exempt
(d.Receipt of Accumulated Balance Exempt
2. Recognized Provident Fund:
(a. Employee Contribution (Already included
Fully Exempt
in Salary)
(b.Employers Contribution Exempt upto Lesser of
Note: (a. 10% (Basic Salary +
(See Note No.10) Dearness Allowance)
(b. Rs.100000
(c. Interest Credited Exempt upto Lesser of
Note: (a. 16% of Rate of
(See Note No.10) Interest
(b. 1/3 (Basic Salary +
Dearness Allowance)
(d.Receipt of Accumulated Balance Exempt
3. Unrecognized Provident Fund:
(a. Employee Contribution (Already included
Fully Exempt
in Salary)
(b.Employers Contribution Fully Exempt
(c. Interest Credited Fully Exempt
(d.Receipt of Accumulated Balance:
Employers Contribution + Interest on this
Taxable
Contribution
Employee Contribution + Interest on it Exempt
Re-imbursement of Entertainment (It belongs to
34. Exempt
office)
Obligation (Loan) of an Employee paid by
35. Taxable
Employers
36. Special (Qualification) Pay Taxable
37. Life Insurance Premium Paid by Employers Taxable
Domestic Servant Salary Paid by Employers
38. Domestic Servant such as Gardener, Chowkidar, Taxable
Watchman, Gardener and Sweeper etc.
39. Club Fee (Lahore Gymkhana) Paid by Employers Taxable
40. Children Education Fee Paid by Employers Taxable
41. Free Education Facility in Employers Institution Exempt
Hotel Bills relating to Pleasure Trip Paid by
42. Taxable
Employers
Hotel Bills relating to Official Duty Paid by
43. Exempt
Employers
Compensation of Loss of
Employment/Termination:
44. Compensation received from previous
Taxable
Employers
Compensation for Temporary Disablement
45. Efficiency Honorarium Taxable
46. Reward on Passing Departmental Exam Taxable
47. Overtime Payment Taxable
48. Non Practicing Allowance received by a Doctor Taxable
49. Compensation for Temporary Disablement Taxable
50. Performance Award or Incentive Award Taxable
Golden, Hand Shake received
51. Taxable
(If average rate of last 2 or 3 years is not given)
52. Refresher Course Fee Paid by Employers Exempt
53. Free logging and Boarding Facility Exempt
54. Pick and Drop facility provided by Employers Exempt
Cash Amount/Award/Medal given by President of
55. Exempt
Pakistan
56. If Cash Amount/Award/Medal given by others Taxable
57. Leave Fair Assistant Taxable
58. Free U. S. A, Lahore Return Ticket Taxable
59. Gas and Electricity Allowance Taxable
Leave Encashment:
60. For Private Company Taxable
Government Company Exempt
Pension:
Pension received by a former Exempt
employee of Pakistan Armed Forces,
Government or Provincial Government
The Pension received from the United
Nations or its specialized agencies by Exempt
a citizens of Pakistan
The Pension received by any citizen of
62. Exempt
Pakistan from his former employer
Any Pension granted under the rules to
the families and dependents of
Exempt
Shaheeds, belonging to Pakistan
Armed Forces
In case a person receives more than
Only the amount of Higher
one pension,
Pension will be Exempt
Gratuity or Accommodation of Pension :
67. (a). If received from Government Exempt
(b). If Gratuity is Approved by Commissioner Exempt
(c). If Gratuity is Approved by FBR (Federal Exempt Upto two lac
Board of Revenue) (Rs.200000)
In all other cases (Not Approved) Which Ever is less will be
70.
50% of Amount of Gratuity or Rs.75000 Exempt
Encashment of Leave Preparatory to Retirement
(a. If Silent Provision then it is known as for
Taxable
71. Private Employee
(b. Encashment of Leave Preparatory to
Exempt
Retirement (Government)
Conveyance Provided by Employers Partly for
73. Personal and Partly for Official Purpose Exempt
Expenditure
Bonus or Incentives
74. Taxable
Tax Paid by the Employers
75. Taxable
Commission
76. Taxable
Lunch Facility
78. Taxable
Orderly Allowance
81. Taxable
Adhoc Relief
82. Taxable
Research Allowance
83. Taxable
Qualification Pay
84. Taxable
Dearness Allowance
90. Taxable
Ph.D. Allowance
91. Taxable
Efficiency Honorarium
92. Taxable
Special Pay
93. Taxable
Incentive Award
96. Taxable
Project Allowance
98. Taxable
Agricultural Income
101. Exempt
103. Exempt
Direct deduction:
Tax Year
Residential Area
Less: Zakat
Or
_______________
First Method
For Calculating Tax on Share from AOP:
Tax Payable /Taxable Income Including Share of AOP X Share from AOP
Then:
Gross Tax Tax on Share from AOP = Tax Payable on Actual Taxable Income
Second Method
For Calculating Tax on Actual Taxable Income:
Tax Payable /Taxable Income Including Share of AOP X Actual Taxable Income
Then:
Gross Tax Tax on Actual Taxable Income = Tax on Share from AOP
Less: Special Tax Rebate for Senior Citizens
Average Relief
EFFECT:
NOTE 1:
If Share from AOP (Association of Persons) is given then we take the following
step
Tax Payable
[Tax on Taxable Income for Rate Purpose / Taxable Income for Rate Purpose X
Amount Allowed]
NOTE 2:
NOTE 3:
Sub-Note
If Zakat is given and there is no explanation about Zakat then it will be
treated as Zakat is transferred to Government Fund and it will be deducted from
Total Taxable Income.
NOTE 5
NOTE 10
Solution:
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Or