Nuaman Khalid
Tax Year: 2024
Tax Year Ending: 30-06-2024
Residential Status: Resident
Computation of Taxable Income and Income tax Payable
INCOME FROM SALARY (SECTION 12) Rs Rs
Basic Salary (45000-5000-68000) XXX
Bonus (If not received in the current year then exempt) XXX
Commission XXX
Dearness Allowance XXX
Overseas Allowance XXX
Cost of Living Allowance XXX
Accommodation:
Accommodation allowance/House Rent Allowance XXX
Accommodation facility
(Furnished/Unfurnished)/Rent ceiling paid by employer
a. Amount of rent paid by employer if this facility is not provided /Amount
of rent ceiling XXX
b. 45% / 30% of minimum time scale XXX_ XXX
Whichever of “a” or “b” is higher will be taxable
Note:
1. If entitled amount of rent is not given, then 45% / 30% of MTS will be
taxable ( 30% for other than Big City).
2. If MTS is not given, the basic salary will be taken for computation.
We will assume big city if nothing is mention about it.
Conveyance:
Conveyance allowance XXX
Conveyance facility provided by employer
a. For personal / Private use
Rule: Cost of FMV of motor vehicle x 10% XXX
b. For personal/private and business/official use
Rule: Cost of FMV of motor vehicle x 5% XXX
Note: If any other information or case is given regarding conveyance, it shall not
be considered for tax purposes.
Medical:
1. Medical allowance XXX
Less: Exempt up to 10% of basic salary (XX)_ XXX
2. Free medical treatment/ Hospitalization XXX
3. Medical Facility/Medical bill reimbursed XXX
Entertainment:
1. Entertainment allowance XXX
2. Free tea, coffee etc XXX
3. Re-imbursement of entertainment bills XXX
4. Free / subsidized lunch facility (Hotel’s employee) XXX
5. Lunch facility other than hotel’s employee XXX
6. Hotel bill paid by company relating to office duties XXX
7. Hotel bill paid by company relating to pleasure trip XXX
Special Allowance/ Special Additional Allowance: XXX
Example: Travelling Allowance, Daily Allowance(TA/DA), Uniform Allowance
Loan to Employee:
If amount of loan is upto Rs. 10,00,000 or rate of interest is above 10% than no
interest will be charged. If amount of loan is above Rs. 10,00,000 & rate of interest
is below10% then the tax treatment are as;
1. If employer does not charge any interest ( Interest free loan)
Rule:10% × Amount of loan XXX
2. If employer charge interest which is less than BMR (Concessional loan)
Rule: (10% -Given Rate) × Amount of Loan = XXX
3. If employer charge interest which is equal or higher than 10% Rule: Nothing
shall be taxable
Note: Bench Mark Rate (BMR) for tax year 2024 is 10% XXX
Pension Received:
1. From Government organization or previous employer XXX
2. If working for same employer XXX
3. If receives more than one pension then lower will be taxable. XXX
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Leave Encashment Preparatory to Retirement:
1. For Government employees XXX
2. For Private employees XXX
Treatment of Provident Fund:
Govt. Provident Fund (GPF)
a. Employee’s Contribution (Already included in salary income) XXX
b. Employer’s Contribution XXX
c. Interest Credit XXX
d. Receipt of accumulated balance XXX
Recognized Provident Fund (RPF)
a. Employee’s Contribution (Already included in salary income) XXX_
b. Employer’s Contribution XXX
Rule: Exempt up to 10% of Basic salary or Rs.150,000 (XX)_ XX
c. Interest Credit XX
16%
i. Amount of Interest given ×𝐺𝑖𝑣𝑒𝑛 𝑟𝑎𝑡𝑒 = XX
𝟏
ii. of Salary = XX (XX)_
𝟑 XX
𝑾𝒉𝒊𝒄𝒉 𝒆𝒗𝒆𝒓 (𝒊)𝒐𝒓 (𝒊𝒊)𝒊𝒔 𝒍𝒆𝒔𝒔 𝒘𝒊𝒍𝒍 𝒃𝒆 𝒆𝒙𝒆𝒎𝒑𝒕
d. Receipt of accumulated balance
XXX_
Unrecognized Provident Fund (URPF)
a. Employee’s Contribution (Already included in salary income) XXX
b. Employer’s Contribution XXX
c. Interest Credit XXX
d. Receipt of accumulated balance (Taxable Employer’s contribution and
interest thereon) 50% of given amount XXX
Note: For provident fund the term salary means basic salary + Dearness Allowance
Gratuity or Commutation of Pension:
For Government employees ( Fully Exempt ) XXX
Private employees
a. If approved from CIR (Gratuity Fund) XXX
b. If approved by FBR (Gratuity Scheme) XXX
Rule: Exempt up to Rs. 300,000 (300,000) XXX
c. If gratuity is not approved XXX
Rule: Exempt up to Rs.75,000 or 50% (Gratuity) Lesser value will exempt (XXX) XXX
The Following Points are totally Taxable:
1. Any Obligation of employee paid by employer such as:
i. Tax of employee borne, Salary of Domestic servant XXX
ii. Life/accidental insurance premium XXX
iii. Gymkhana / Membership fee paid of any club XXX
2. Waiver of an amount payable by employee to his employer XXX
3. Utilities allowance, bills paid by the employer or reimbursed. XXX
4. Over time/Part time payment received XXX
5. Leave encashment/ pay in lieu of leave/ Directors meeting fee XXX
6. Amount received from employer as termination compensation. XXX
7. Golden handshake received ( if average rates are not given) XXX
8. Annual leave fare assistance / Return tickets XXX
9. Deprecation of asset owned by employer but used by the employee. XXX
10. Any other allowance, pay or benefits like:
i. Project Allowance/ Orderly Allowance /Special Pay/Ad-hoc relief
allowance/ Special relief allowance XXX
ii. Senior post allowance / Big City Allowance/ Relocation allowance /
Reward for passing departmental examination /Qualification XXX
pay/Ph.D or M.Phil allowance/Performance award / Incentive award/ XXX
Efficiency Honorarium XXX
iii. Internet usage bill or reimbursed (For personal use) XXX
The following points are totally exempt from tax:
1. Internet usage bill/ internet usage bill reimbursed (official use) Exempt
2. Pick and drop facility provided by employer/Relocation Allowance Exempt
3. Refresher or management course fee paid by the employer Exempt
4. Perquisite or facility (free/subsidized) received from employer which is
also the nature of employer’s business such as:
i. Education facility in the employer’s institution Exempt
ii. Lunch/dinner facility to hotel or restaurant employee Exempt
INCOME FROM PROPERTY (SECTION 15)
Rent received or receivable or FMR (which is higher) XXX
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1
Add: 10 of Un-adjustable advance XX
Token money as forfeited deposit XX
Any burden of owner / landlord paid by tenant XX
Irrecoverable rent received XX
Rent chargeable to tax (RCT) XXX
Less Allowable Deductions
Repair Allowance (1/5 of RCT) (not applicable in case of open plot) (XX)
Collection charges (Restricted up to 4% of RCT) (applicable only if given) (XX)
Fire insurance primum/ Property tax paid (XX)
Lawyer fee for drafting rent agreement/defending the title (XX) XXX
INCOME FROM BUSINESS (SECTION 18)
Income from fruit processing business XXX
Profit on trading of agricultural produce XXX
Income from poultry farming / fish farming / fish catching XXX
Income from stone quarries /sale of timber / yarn XXX
Income from event management business XXX
Royalties received on professional books XXX
Income from foreign business XXX
Income of educational institution established for profit XXX
Income of a Business setup in FATA between 2013 to 2017 XXX
Income of educational institution established not for profit XXX
Income from export of computer software taxable @ of 0.25% as FTR XXX
CAPITAL GAINS (SECTION 37)
1. Gain from sale of securities (Public/listed or Modaraba Co’s shares, etc.,
i) If acquired after 1st July 2013 and before 1st July 2022:
Amont of gain remains in exempted column and Taxable as Separate XXX
Block of Income @ 12.5%
ii) If acquired on or after 1st July 2022
Amont of gain remains in exempted column and Taxable as Separate XXX
Block of Income at the rate mentioned below
S.N Holding duration Rate
1 Holding period less than 1 Year 15.0%
2 Holding period more than 1 but less than 2 Years 12.5%
3 Holding period more than 2 but less than 3 Years 10.0%
4 Holding period more than 3 but less than 4 Years 07.5%
5 Holding period more than 4 but less than 5 Years 05.0%
6 Holding period more than 5 but less than 6 Years 02.5%
7 Holding period more than 6 Years 0%
2. Gain on sale of shares of industrial undertaking set up in EPZ Exempted XXX
3. Gain from the sale of shares of Private/Unlisted company shares, painting,
sculpture, drawing or other work of art, rare manuscript, folio/ book, Jewelry,
antique, coin/ medallion, etc, if disposed of:
i. Gain (Within 12 months): XXX
Less: Capital loss (if given) (XX) XXX
ii. Gain (After 12 months) XXX
Less: Exempt up to 25% of gain (XX)
Remaining amount XX
Less: Capital loss (if given) (XX) xxx
4. Gain from sale of Immovable property (Constructed/Open plot/Flats)
Amont of gain remains in exempted column and Taxable as Separate
Block of Income at the rate mentioned below
S.N Holding duration Plot Const.. Flat Plot Const.. Flat
1 Holding period less than 1 Year 15% 15% 15% 7.5% 7.55% 7.5%
2 Holding period more than 1 but less than 2 Years 12.5% 10% 7.5% 6.25% 5% 3.75%
3 Holding period more than 2 but less than 3 Years 10% 7.5% 0% 5% 3.75% 0%
4 Holding period more than 3 but less than 4 Years 7.5% 5% 0% 1.875% 1.25% 0%
5 Holding period more than 4 but less than 5 Years 5% 0% 0% 1.25% 0% 0%
6 Holding period more than 5 but less than 6 Years 2.5% 0% 0% 0.625% 0% 0%
7 Holding period more than 6 Years 0% 0% 0% 0% 0% 0%
INCOME FROM OTHER SOURCES (SECTION 39)
Agricultural income Exempt
Any gift/ present received Exempt
Gain on sale of residential furniture/ Personal car Exempt
Insurance money received on maturity of the policy Exempt
Amount received from abroad Exempt
Cash award or medal granted by the president of Pakistan Exempt
Scholarship received from HEC Exempt
Encashment of DSC or other deposit certificates Exempt
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Remuneration for literary work / Royalties received as Non-professional writer,
poet, artist/ Sale of irrigation water XXX
Income from lease of any building together with plant and machinery XXX
Directors meeting fee received XXX
Rent of furniture, machinery etc, (not a regular activity) XXX
Rental income of lift installed in a plaza XXX
Income of subletting of property, Ground rent received XXX
Amount received for vacating the property (Amount received – Amount paid as advance)× 101 XXX
Total Income XXX
Less: Allowable deduction
1. Zakat paid under zakat and Ushr ordinance XXX
2. Payment to worker’s welfare fund / worker’s participation fund
[Actual amount or 50% of total income or Rs.20,00,000 W.E.L] XXX
3. Tuition fee paid for the children education
Allowed only if total Income is less than 15,00,000
[5% of total tuition fee or 25% of taxable income or 60,000 × # of Children W.E.L] XXX (XXX)
Actual Taxable Income /Taxable Income excluding share from AOP XXX
Add: Share of profit from AOP (Including for rate purpose only) XX
Total Taxable Income for rate Purpose XXX
Computation of Income Tax Payable
Tax payable on taxable income as per rates specified in the 1st Schedule XXX
Computation of Tax on Actual Income
𝐆𝐫𝐨𝐬𝐬 𝐓𝐚𝐱
× 𝐓𝐚𝐱𝐚𝐛𝐥𝐞 𝐈𝐧𝐜𝐨𝐦𝐞 𝐄𝐱𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐬𝐡𝐚𝐫𝐞 𝐟𝐫𝐨𝐦 𝐀𝐎𝐏
𝐓𝐨𝐭𝐚𝐥 𝐓𝐚𝐱𝐚𝐛𝐥𝐞 𝐈𝐧𝐜𝐨𝐦𝐞 𝐈𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐬𝐡𝐚𝐫𝐞 𝐟𝐫𝐨𝐦 𝐀𝐎𝐏 XXX
Tax Concessions/Credits
1. TEACHER AND RESEARCHER
If a person is working as a teacher or researcher in a Non-profit making institution then
again calculate tax only on total salary:
(XX)
25% of Tax on salary’s income
XX
2. IN CASE OF FOREIGN SOURCE INCOME
i. Foreign income tax paid xx
𝑻𝒂𝒙 𝒑𝒂𝒚𝒂𝒃𝒍𝒆
ii. ×Foreign income xx (XX)
𝑻𝒐𝒕𝒂𝒍 𝑻𝒂𝒙𝒂𝒃𝒍𝒆 𝑰𝒏𝒄𝒐𝒎𝒆
Whichever is (i) or (ii) is less will be admissible
XX
3. AVERAGE RELIEF OR TAX REBATE
Average relief or tax rebate will be available on following reasons & Conditions
a. Donation to Charitable Institution [Section 61]
Given amount or 30% of taxable income
(Lesser will be admissible for rebate)
b. Contribution to approved pension fund[Section 63] XX
Given amount or 20% of taxable income
(Lesser will be admissible for rebate)
XX
c. Installation of Point of sale Machine [Section 64D]
Given amount or 1,50,000
(Lesser will be admissible for rebate) XX
XXX
Total amount admissible/Allowed for average Relief
Less Average relief/ Tax Rebate:
𝑮𝒓𝒐𝒔𝒔 𝒕𝒂𝒙
× 𝑻𝒐𝒕𝒂𝒍 𝒂𝒎𝒐𝒖𝒏𝒕 𝒂𝒅𝒎𝒊𝒔𝒔𝒊𝒃𝒍𝒆 𝒇𝒐𝒓 𝒓𝒆𝒍𝒊𝒆𝒇 =
𝑻𝒐𝒕𝒂𝒍 𝑻𝒂𝒙𝒂𝒃𝒍𝒆 𝑰𝒏𝒄𝒐𝒎𝒆
(XX)
Add Separate Block of Income XX
1. Golden hand shake ( given amount x Average rate) XX
2. Capital Gain
a. Gain from sale of securities like Public XX
b. Gain from sale of immovable property (constructed and open plot) XX XX
XX
Less tax deducted at source/ tax paid in advance:
i. Tax deducted at source from salary under section 149 XX
ii. Tax paid by employer XX
iii. Tax paid on motor vehicle & Tax paid on utility bills XX
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iv. Tax paid on remuneration for services provided not under the employment
agreement e.g., examiner ship/paper checking TV talk show delivered (Gross
amount × 11/100) XX
v. Purchase of immovable property above Rs. 40,00,000 (Amount × 2%) XX
vi. On Sale or transfer of immovable property @ 1% XX
vii. Withholding tax paid on purchase of domestic or international air tickets (XX)
Income Tax payable with return XX
Final Tax regime
1. Flying allowance/ Submarine allowance (Amount ×2.5%) XX
2. Bonus shares received from company (Amount ×5%) XX
3. Profit or interest on bank deposit, PLS, Saving or fixed deposit Account/
Profit or yield on Special Deposit Certificate, Defense Saving Certificate,
National Saving Deposit Certificate / Profit on debt or interest on Govt.
Securities (Amount × 10%) XX
4. Dividend received/Income from cross word puzzle/ Prize on prize bond
(Amount × 15%) XX
5. Winning from quiz/ lottery/ Raffle /Sale promotion schemes of Companies
(Amount × 20%) XX XX
Note: For the reasons behind the tax treatment of point given.
Following will be the rate of tax for salaried person for the year 2024
S.N Taxable Income Rate of Tax
1 Where taxable income does not exceed Rs. 6,00,000 0%
2 Where taxable income exceed Rs. 6,00,000 but does not 2.5% of amount exceeding Rs.600,000/-
exceed Rs. 12,00,000
3 Where taxable income exceed Rs.12,00,000 but does not Rs. 15,000 + 12.5% of the amount exceeding Rs. 12,00,000/-
exceed Rs. 24,00,000
4 Where taxable income exceed Rs.24,00,000 but does not Rs. 165,000 + 20% of the amount exceeding Rs. 24,00,000/-
exceed Rs. 36,00,000
5 Where taxable income exceed Rs.36,00,000 but does not Rs. 435,000 + 27.5% of the amount exceeding Rs. 36,00,000/-
exceed Rs. 60,00,000
6 Where taxable income exceed Rs.60,00,000 Rs. 10,95,000 + 35% of the amount exceeding Rs. 60,00,000/-
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YouTube Channel : Home of Accountancy Recourse Person: Nuaman khalid
Contact +92 344 6046421 for Online or Physical Coaching Exam year : 2025
