11001234 xxxxxx-x 1

July August September October November December January February March April May June Total Exempt
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Applicable Tax Slab Not Taxable
Annual Tax Liability -
July August September October November December January February March April May June
Tax
Deducted
Total
Liability
- - - - - - - - - - - - - -
Income Tax Computation for Individuals (Salaried Persons 2014-15) "Highlighed Cells are Input Cells"
Employee Code
xxxxx-xxxxxxx-x ABC Employee Name
Department XYZ
NTN #
CNIC #
Car Ijara / Allowance
Description
Salary
P.F. Employer Contribution
Bonus / Ex-Gratia
LFA
Arrears
Over Time
Daily Allowance
Conveyance Alowwance
Relocation Allowance
Leave Encashment
Others
Monthly Tax Deduction
Description
Total
Medical Allowance
Age Below 60 Years
Age Above 60 Years
Senior Citizen Tax Credit
Tax Deducted by Employer Upto Last Month (See Section 149) - Number of Months Vehicle Usage in Current Year
Tax Deducted on Telephone/Mobile Phone Bills (See Section 236) - Purpose of Vehicle Usage
Tax Deducted at the time of Motor Vehicle Tax Payment (See Section 234) - Value of Motor Vehicle
Tax Deducted on Cash Withdrawals from Banks (See Section 231A) - Taxable Amount of Conveyance
Tax Deducted on Registration of New Car/Jeep (See Section 231B) -
Tax Deducted on Purchase of Air Tickets (See Section 236B) -
-
Loan Amount
Number of Months Loan used in Current Year
Interest Rate Charges by Company
Paid Allowable Benchmark Rate
Charitable donation - - Taxable Amount of Loan
Investment in Shares & Life Insurance Premium - -
Contribution to Approved Pension Fund - -
Profit on Debt on House Loans (purchase/construction)
- -
- - 1
Total Gratuity Received
Paid Allowable Gratuity Exempted
Charitable Donation - - Gratuity Taxable
Zakat Paid - -
Total Amount Eligible From Staight Deduction From Income - -
Taxable Amount From Salary
Taxable Amount of Conveyance and Employer's Loan
Taxable Amount of Gratuity
Zakat
Gross Taxable Income
Charitable Donation Admissible For Straight Deduction
Taxable Income
Gross Tax Chargeable on Taxable Income
Senior Citizen Tax Rebate
Tax Credit Allowed At Average Tax Rate (Section 61-64)
Income Tax Liability
Withholding Tax Adjustment (Tax Already Paid)
Income Tax Payable / (Refundable)
No. of Remaining Months in Tax Year
Monthly Deduction
Prepared By: Malik Mohammad Awais
Email: malikawais_CMA@hotmail.com
Computation of Monthly Income Tax Deductions
Withholding Income Tax Adjustments for the Year
Grand Total of WH Tax Adjustments
Official + Personal
Zakat / Charitable Donations Admissible For Straight Deductions
Tax Calculation on Interest Free Loan
Computation of Tax on Gratuity
Taxable Value of Conveyance - (If provided by employeer)
Tax Credit Adjustments for the Year
Grand Total of Tax Credit Adjustments
Received from Govt Approved Funded (PVt) Approved Unfunded (Pvt) Unapproved Unfunded
Taxable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance to be
Deducted
-
Income Tax Computation for Individuals (Salaried Persons 2014-15) "Highlighed Cells are Input Cells"
5
5%
-
-
-
12
0%
14%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
-
Computation of Monthly Income Tax Deductions
Tax Calculation on Interest Free Loan
Computation of Tax on Gratuity
Taxable Value of Conveyance - (If provided by employeer)
Unapproved Unfunded
- 400,000 Not Taxable
400,001 750,000 5% of amount exceeding Rs. 400 k
750,001 1,400,000 Rs. 17,500 + 10% of amount exceeding Rs. 750 k
1,400,001 1,500,000 Rs. 82,500 + 12.5% of amount exceeding Rs. 1400 k
1,500,001 1,800,000 Rs. 95,000 + 15% of amount exceeding Rs. 1500 k
1,800,001 2,500,000 Rs. 140,000 + 17.5% of amount exceeding Rs. 1800 k
2,500,001 3,000,000 Rs. 262,500 + 20% of amount exceeding Rs. 2500 k
3,000,001 3,500,000 Rs. 362,500 + 22.5% of amount exceeding Rs. 3000 k
3,500,001 4,000,000 Rs. 475,000 + 25% of amount exceeding Rs. 3500 k
4,000,001 7,000,000 Rs. 600,000 + 27.5% of amount exceeding Rs. 4000 k
7,000,001 50,000,000 Rs. 1,425,000 + 30% of amount exceeding Rs. 7000 k
Withholding Income Tax Adjustments :-
Tax Deducted on Telephone/Mobile Phone Bills (See Section 236) If connection is in the name of taxpayer
Tax Deducted at the time of Motor Vehicle Tax Payment (See Section 234) If vehicle is registered in the name of taxpayer
Tax Deducted on Cash Withdrawals from Banks (See Section 231A) If Bank Account is opened in the name of taxpayer
Tax Deducted on Registration of New Car/Jeep (See Section 231B) If vehicle is registered in the name of taxpayer
Tax Deducted on Purchase of Air Tickets (See Section 236B) If Air Ticket is booked in the name of taxpayer name.
Gratuity Taxable Criteria :-
1. Govt employee (Totally exempt)
2. Private employee
a. If gratuity is approved by CIR (Totally exempt)
b. If gratuity is approved by FBR/Board
Tax treatment: exempt upto 200,000 from the amount of gratuity
C. If gratuity is not approved
Tax treatment: Rs.75000 or 50% of amount of gratuity whichever is lesser will be exempt from amount of gratuity
Tax Credit Adjustments
Charitable donation (Section 61) A person shall be entitled to a tax credit in respect of any sum paid, or any property given by the person in the tax year as a donation to -
(a) any board of education or any university in Pakistan established by, or under, a Federal or a Provincial law;
(b) any educational institution, hospital or relief fund established or run in Pakistan by Federal Government or a Provincial Government or a 2[Local Government]; or
(c) any non-profit organization.
Eligible Amount of charitable donation for the purposes of tax credit is lower of:
Amount of charitable donations; or
* 30% of taxable income of an individual or association of persons
* and 20% of the taxable income of a company.
Investment in Shares & Life Insurance Premium (Section 62) Eligible Amount of Investment in Shares and Life Insurance for the purposes of tax credit is lower of:
* Amount of investment in new offered shares and Life Insurance; or
* 20% of the taxable income for the tax year and Rs. 1000,000 with effect from tax year 2012.
Salary Range
Investment in Shares used above, for the purpose of tax credit means cost of acquiring:
* New shares offered to public by a public company listed on a stock exchange in Pakistan, as an original allottee; or
* Shares acquired from the Privatization Commission of Pakistan.
Investment in Life Insurance used above for the purpose of tax credit means life insurance premium paid on a policy to a Life Insurance
Company registered by the Securities and Exchange Commission of Pakistan under the Insurance Ordinance, 2000.
Tax credit for investment in Life Insurance is available only to a resident individual deriving income chargeable to tax under the head salary or income from business, and with effect from tax year 2012.
Contribution to Approved Pension Fund (Section 63) Eligible Amount of contribution or premium paid to an Approved Pension Fund for the purposes of tax credit is lower of:
* Amount of contribution or premium paid by an eligible person to an Approved Pension Fund; or
* 20% of the taxable income;
Approved Pension Fund means approved under the Voluntary Pension System Rules, 2005
Profit on Debt on House Loans (purchase/construction) (Section 64) Eligible Amount of Profit on Debt etc. for the purposes of tax credit is lower of:
* Amount of profit on debt etc.;
* 50% of the taxable income; or
* Rs. 750,000
Profit on debt etc. for the purpose of tax credit means profit or share in rent and share in appreciation of value of house paid on a loan or advance for the construction of a new house or
the acquisition of house obtained from the following:
* Scheduled bank;
* Non-banking finance institution regulated by
* Securities and Exchange Commission of Pakistan;
* Statutory body;
* Public company listed on a registered stock exchange in Pakistan; or
* The Federal Government, Provincial Government or a Local Government
Zakat / Charitable Donations
Charitable Donation (See Clause 61 of Part 1 of 2nd Schedule) Donations to certain institutions specified in Clause 61 Part I Second Schedule are straight deduction from income of the donor instead of calculating rebate at average rate of tax.
However, maximum limit on donations under this clause is 30% of taxable income in case of an individual or AOP and 20% of taxable income in case of a company.
Under the said Clause 61, condition of payment thru banking channel is not applicable.
Zakat Paid (See Section 60) (1) A person shall be entitled to a deductible allowance for the amount of any Zakat paid by the person in a tax year under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
(2) Sub-section (1) does not apply to any Zakat taken into account under sub-section (2) of section 40.
(3) Any allowance or part of an allowance under this section for a tax year that is not able to be deducted under section 9 for the year shall not be refunded, carried
forward to a subsequent tax year, or carried back to a preceding tax year.
Senior Citizen Tax Credit
Income tax liability of tax payer aged 60 years or more on first day of tax year is reduced by 50% provided his/her taxable income (other than from FTR)
does not exceed one million rupees (see Clause (1A) of Part III of 2nd Schedule).
Valuation of conveyance.-
The value of conveyance provided by the employer to the employee shall be taken equal to an amount as below:
i) Partly for personal and partly for official use 5% of:
(a) the cost to the employer for acquiring the motor vehicle; or,
(b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer;
ii) For personal use only 10% of:
(a) the cost to the employer for acquiring the motor vehicle; or,
(b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease
Interest Free Loan:-
Benchmark rate for Tax Years 2013 & 2014 is 10% per annum
Where a loan is made, on or after the 1st day of July, 2002, by an employer to an employee and either no profit on loan is payable by
the employee or the rate of profit on loan is less than the benchmark rate, the amount chargeable to tax to the employee under the head
Salary for a tax year shall include an amount equal to :-
a) the profit on loan computed at the benchmark rate, where no profit on loan is payable by the employee, or
b) the difference between the amount of profit on loan paid by the employee in that tax year and the amount of profit on loan computed at the benchmark rate,
as the case may be:
i) Provided that this sub-section shall not apply to such benefit arising to an employee due to waiver of interest by such employee on his account with the employer
ii) Provided further that this sub-section shall not apply to loans not exceeding five hundred thousand rupees
Medical Allowance:-
Exempt upto 10% of basic salary, if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided.
(See Clause (139)(b) of Part I of Second Schedule of ITO 2001)
Special Allowance:-
Exempt if granted to meet expenses for the performance of official duties.
(See Clause (39) of Part I of Second Schedule of ITO 2001)
Teacher or Researcher:-
A reduction of 75% of tax on income from salary is available to a full time teacher or researcher, employed in a
i) non-profit education or research institution duly recognized by HEC;
ii) a board of education or a university recognized by HEC, including government training and research institution.
(See Clause (2) of Part III of Second Schedule of ITO 2001)
If connection is in the name of taxpayer
If vehicle is registered in the name of taxpayer
If Bank Account is opened in the name of taxpayer
If vehicle is registered in the name of taxpayer
If Air Ticket is booked in the name of taxpayer name.
Tax treatment: Rs.75000 or 50% of amount of gratuity whichever is lesser will be exempt from amount of gratuity
A person shall be entitled to a tax credit in respect of any sum paid, or any property given by the person in the tax year as a donation to -
(a) any board of education or any university in Pakistan established by, or under, a Federal or a Provincial law;
(b) any educational institution, hospital or relief fund established or run in Pakistan by Federal Government or a Provincial Government or a 2[Local Government]; or
Eligible Amount of charitable donation for the purposes of tax credit is lower of:
* 30% of taxable income of an individual or association of persons
* and 20% of the taxable income of a company.
Eligible Amount of Investment in Shares and Life Insurance for the purposes of tax credit is lower of:
* Amount of investment in new offered shares and Life Insurance; or
* 20% of the taxable income for the tax year and Rs. 1000,000 with effect from tax year 2012.
Investment in Shares used above, for the purpose of tax credit means cost of acquiring:
* New shares offered to public by a public company listed on a stock exchange in Pakistan, as an original allottee; or
* Shares acquired from the Privatization Commission of Pakistan.
Investment in Life Insurance used above for the purpose of tax credit means life insurance premium paid on a policy to a Life Insurance
Company registered by the Securities and Exchange Commission of Pakistan under the Insurance Ordinance, 2000.
Tax credit for investment in Life Insurance is available only to a resident individual deriving income chargeable to tax under the head salary or income from business, and with effect from tax year 2012.
Eligible Amount of contribution or premium paid to an Approved Pension Fund for the purposes of tax credit is lower of:
* Amount of contribution or premium paid by an eligible person to an Approved Pension Fund; or
Approved Pension Fund means approved under the Voluntary Pension System Rules, 2005
Eligible Amount of Profit on Debt etc. for the purposes of tax credit is lower of:
Profit on debt etc. for the purpose of tax credit means profit or share in rent and share in appreciation of value of house paid on a loan or advance for the construction of a new house or
the acquisition of house obtained from the following:
* Non-banking finance institution regulated by
* Securities and Exchange Commission of Pakistan;
* Public company listed on a registered stock exchange in Pakistan; or
* The Federal Government, Provincial Government or a Local Government
Donations to certain institutions specified in Clause 61 Part I Second Schedule are straight deduction from income of the donor instead of calculating rebate at average rate of tax.
However, maximum limit on donations under this clause is 30% of taxable income in case of an individual or AOP and 20% of taxable income in case of a company.
Under the said Clause 61, condition of payment thru banking channel is not applicable.
(1) A person shall be entitled to a deductible allowance for the amount of any Zakat paid by the person in a tax year under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
(2) Sub-section (1) does not apply to any Zakat taken into account under sub-section (2) of section 40.
(3) Any allowance or part of an allowance under this section for a tax year that is not able to be deducted under section 9 for the year shall not be refunded, carried
forward to a subsequent tax year, or carried back to a preceding tax year.
Income tax liability of tax payer aged 60 years or more on first day of tax year is reduced by 50% provided his/her taxable income (other than from FTR)
does not exceed one million rupees (see Clause (1A) of Part III of 2nd Schedule).
The value of conveyance provided by the employer to the employee shall be taken equal to an amount as below:
i) Partly for personal and partly for official use 5% of:
(a) the cost to the employer for acquiring the motor vehicle; or,
(b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer;
(a) the cost to the employer for acquiring the motor vehicle; or,
(b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease
Benchmark rate for Tax Years 2013 & 2014 is 10% per annum
Where a loan is made, on or after the 1st day of July, 2002, by an employer to an employee and either no profit on loan is payable by
the employee or the rate of profit on loan is less than the benchmark rate, the amount chargeable to tax to the employee under the head
Salary for a tax year shall include an amount equal to :-
a) the profit on loan computed at the benchmark rate, where no profit on loan is payable by the employee, or
b) the difference between the amount of profit on loan paid by the employee in that tax year and the amount of profit on loan computed at the benchmark rate,
i) Provided that this sub-section shall not apply to such benefit arising to an employee due to waiver of interest by such employee on his account with the employer
ii) Provided further that this sub-section shall not apply to loans not exceeding five hundred thousand rupees
Exempt upto 10% of basic salary, if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided.
(See Clause (139)(b) of Part I of Second Schedule of ITO 2001)
Exempt if granted to meet expenses for the performance of official duties.
(See Clause (39) of Part I of Second Schedule of ITO 2001)
A reduction of 75% of tax on income from salary is available to a full time teacher or researcher, employed in a
i) non-profit education or research institution duly recognized by HEC;
ii) a board of education or a university recognized by HEC, including government training and research institution.
(See Clause (2) of Part III of Second Schedule of ITO 2001)
(b) any educational institution, hospital or relief fund established or run in Pakistan by Federal Government or a Provincial Government or a 2[Local Government]; or
Tax credit for investment in Life Insurance is available only to a resident individual deriving income chargeable to tax under the head salary or income from business, and with effect from tax year 2012.
Profit on debt etc. for the purpose of tax credit means profit or share in rent and share in appreciation of value of house paid on a loan or advance for the construction of a new house or
Donations to certain institutions specified in Clause 61 Part I Second Schedule are straight deduction from income of the donor instead of calculating rebate at average rate of tax.
However, maximum limit on donations under this clause is 30% of taxable income in case of an individual or AOP and 20% of taxable income in case of a company.
(1) A person shall be entitled to a deductible allowance for the amount of any Zakat paid by the person in a tax year under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
(3) Any allowance or part of an allowance under this section for a tax year that is not able to be deducted under section 9 for the year shall not be refunded, carried
b) the difference between the amount of profit on loan paid by the employee in that tax year and the amount of profit on loan computed at the benchmark rate,
i) Provided that this sub-section shall not apply to such benefit arising to an employee due to waiver of interest by such employee on his account with the employer