MR.

ASAD
COMPUTATION OF TAXABLE SALARY INCOME
TAX YEAR 2014

SALARY Rs. 240,000

EMPLOYER'S CONTRIBUTION TOWARDS P.F.:
CONTRIBUTION AMOUNT 35,000
LESS: EXEMPT THE LESSOR OF:
Rs.150,000 150,000
OR OR
10% OF (B.S + D.A) (240,000 * 10%) 24,000 -24,000
TAXABLE CONTRIBUTION AMOUNT 11,000
INTEREST CREDITED TOWARDS P.F.:
INTEREST AMOUNT 100,000
LESS: EXEMPT THE LESSOR OF:
1/3 OF (B.S + D.A) 1/3 * 240,000 80,000
OR OR
16% OF P.F. ACCUMULATED BALANCE
(0.16 *625,000) 100,000 -80,000
TAXABLE INTEREST AMOUNT 20,000
TOTAL TAXABLE SALARY INCOME 271,000
INTEREST AMOUNT = P.F ACCUMULATED BALANCE * INTEREST RATE
100000= P.F.ACC. BALANCE * 0.16
625,000= P.F.ACC. BALANCE
MR. ALAMGIR
COMPUTATION OF TAXABLE SALARY INCOME
TAX YEAR 2014

SALARY Rs. 320,000

EMPLOYER'S CONTRIBUTION TOWARDS P.F.:
CONTRIBUTION AMOUNT 36,000
LESS: EXEMPT THE LESSOR OF:
Rs.150,000 150,000
OR OR
10% OF (B.S + D.A) (320,000 * 10%) 32,000 -32,000
TAXABLE CONTRIBUTION AMOUNT 4,000
INTEREST CREDITED TOWARDS P.F.:
INTEREST AMOUNT 45,000
LESS: EXEMPT THE LESSOR OF:
1/3 OF (B.S + D.A) 1/3 * 320,000 106,667
OR OR
16% OF P.F. ACCUMULATED BALANCE
(0.16 *225,000) 36,000 -36,000
TAXABLE INTEREST AMOUNT 9,000
TOTAL TAXABLE SALARY INCOME 333,000
INTEREST AMOUNT = P.F ACCUMULATED BALANCE * INTEREST RATE
45,000= P.F.ACC. BALANCE * 0.20
225,000= P.F.ACC. BALANCE