Mr. Tax year: 2013 Tax year ended: 30.06.

2013 Residential status: resident Computation of tax payable

Income from salary (section 12)

Basic salary Bonus, commission, cost of living allowance, dearness allowance, overseas allowance Overtime payments Special relief allowance Entertainment allowance House rent allowance Utilities allowance Reward on passing departmental examination Tax paid by the employer (Also admissible for tax deducted at source) Hotel bills for official duty Hotel bills for pleasure trip Loan obtained by the employer (10% - loan interest rate= XXXXXXX loan amount)
(loan will not be taxable if it is RS. 500,000 or blew)

TE/PE

TT
XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

Club membership fee paid by the employer Refresher course fee paid by the employer Adhoc relief Senior post allowance Furnished or un-furnished furnished accommodation 1- Annual value 2- 45%( 30% in case of other than big city) of MTS or basic salary (whichever is higher) Leave encashment Lunch facility Subsidized lunch facility Special additional allowance ( private employee ) Special additional allowance ( Govt. employee ) Orderly allowance

XXXXXXX XXXXXXX XXXXXXX

XXXXXXX XXXXXXX XXXXXXX XXXXXXX 1

Qualification pay Computer allowance Special pay Children education facility in employer institution Children education fee paid by the employer Fixed education allowance for children provided by the employer Medical allowance Medical facility Reimbursement of medical expenditures Conveyance allowance Conveyance provided by employer for personal use (Cost 10%) Conveyance provided by employer for personal use and official use (Cost 5%) Conveyance provided on lease for personal use (Fair market value 10%) Conveyance provided on lease for personal use and official use (Fair market value 5%) Pick and drop facility provided by the employer Free transport facility provided by employer Salary of mali and chokidar Entertainment bills reimbursed Personal medical expenditure reimbursed Residential bills paid by the employer House servant salaries paid by the employer Reimbursement of entertainment bills Reimbursement of internet usage bills Pay in lieu of leave Incentive award Free gas, water and electricity provided by the employer Employees contribution towards recognized provident fund Employers contribution towards recognized provident fund (Exempt up to 10% of salary or RS. 100,000) Interest on provident fund Exempt up to 16% or 1/3 of salary ( whichever is less) Life insurance premium paid by employer (Also entitled for average relief) Performance award PhD allowance Efficiency honorium Leave encashment Encashment of leave preparatory to retirement Annual leave fare assistance Free return ticket

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX 2

Amount of gratuity received (Approved by CIT) Amount of gratuity received (Approved by FBR) Exempt up to Reimbursement of utilities bills Reimbursement of medical bills Telephone bill paid by the employer Telephone bill reimbursed by the employer Telephone bill reimbursed Project allowance Special allowance for certain business expenses Medical insurance for hospitalization??? Leave fare assistance (travelled outside Pakistan) Leave fare assistance (travelled within Pakistan) Leave fare assistance (Free of cost) Free electricity provided by the employer Free boarding and lodgings facility provided by employer Part time chowkidar Golden handshake scheme received (If average tax rates are not given) Tax borne by employer on employees salary(Also admissible for tax deducted at source)( See working at the end)

XXXXXXX XXXXXXX -200,000 XXXXXXX

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

Income from property (section 15)

Rental income + Forfeited amount or token money + Property tax + 1/10 of un adjustable advance (Taxable under step no.3)
XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

Income from business (section 18)

Income from poultry farm Royalties on professional books Income from fish catching business Income from foreign business Income from fruit processing business
XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

Income from capital gains (section 37)

Profit on sale inherited jewelry (Holding period within 12 months) Profit on sale inherited jewelry (Holding period more than 12 months) Exempt up to 25%of the gain Gain on sale of private company shares (Disposed off within 12 months) Gain on sale of private company shares (Disposed off after 12 months) Less capital loss Net gain Exempt up to 25% of net gain Profit on sale of Modaraba certificate (Taxable separately ) Gain on sale of public company shares (Holding period less than 6 months) (Taxable separately ) Gain on sale of public company shares (Holding period more than 12 months) Profit on sale of inherited house (Holding period within 12 months) (Taxable separately) Profit on sale of inherited house (Holding period more than 2 year) Gain on sale of immovable property (Holding period less than 1 year) (Taxable separately ) Gain on sale of immovable property held for more than 2 years Gain on sale of securities (Holding period more than 1 year) Capital gain on disposal of shares of company regarding Export processing zone Loss on sale of painting Loss on sale of antiques

XXXXXXX

XXXXXXX XXXXXXX

XXXXXXX XXXXXXX

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

XXXXXXX

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

Income from other sources (Section 39)

Remuneration for examinership (Also admissible for tax deducted at source @ 6%) Income from TV talk shows (Also admissible for tax deducted at source @ 6%) Income of non-professional writer Income from sublease of property Income from hire of furniture Remuneration of literary work Rent of furniture and fittings Bonus shares received from public limited company Agriculture income Gift from mother
XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX 4

Profit on sale of car Amount received from abroad Cash award granted by president of Pakistan Encashment of defense saving certificates Insurance money received on maturity of policy Total income Less Zakat, akat, worker welfare fund, donation to Pakistan Red Crescent society(restricted up to 30%of total income) and donation to Alshifa trust (restricted up to 30%of total income) Actual taxable income Add share from AOP fro rate purposes Taxable income for rate purposes

XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX

Formula for tax borne by employer on employees salary First we need to calculate the income tax on just salary income. Then that income tax will be adjusted in the following formula. The answer of the formula will have two effects. 1- The answer will be added in the total income of salary. 2- The answer will be treated as tax deducted at source Formula = Gross tax 100/100 (Where R is the rate applied for gross tax) 100/100-R

Prepared by: Muhammad Ahmad (M.phil Finance) (Please join for more suggestions) 0306-6922217 m.ahmadlhr m.ahmadlhr3@gmail.com