Saeed

Computation of total income, taxable income and net tax payable/refundable

For tax year 20X9
Rupees
Income from salary
Received from HPL
Basic salary (Rs. 600,000 × 9 months) 5,400,000
Medical allowance (Rs. 66,000×9 = 594,000 – 5,400,000×10%) 54,000
Bonus (Received after year end) -
Company maintained car for:
- office use only -
- personal use only (1,900,000×10%×9/12) 142,500
Free food provided in lunch 125,000
Special allowance (Rs. 20,000×9=180,000–150,000) -
Provident fund contribution [60,000×9=540,000–150,000] (Allowed
limit is 1/10 of the basic salary or 150,000 whichever is lower) 390,000
6,111,500
Exempt income
Salary received from DSL (From July 18 to September 18) (US $
15,000×3 = 45,000 @ Rs.131) 5,895,000
Total income 12,006,500

Less:

Exempt income: Salary from DSL (5,895,000)

Taxable income for the year 6,111,500

Mark-up paid to sch. bank Rs. 25×15%×7÷12 = 2,187,500

Allowed limit: 50% of the taxable income i.e. Rs. 3,024,250 or Rs. 2
million
(2,000,000)
whichever is lower

Taxable income for the year 4,111,500

Tax liability

Tax on Rs. 3,500,000 370,000

Tax on amount exceeding 3,500,000 [(4,111,500–3,500,000)×20%] 122,300

Total tax liability 492,300

Less: Tax already deducted

Tax withheld from salary 1,300,000

Net Tax Refundable (807700)