Mateen:

Mr. Mateen was employed with Melody Limited (ML) as an event organizer. On June 30, 2023 he resigned
from his employment without completion of notice period. On July 01, 2023 he joined another company Rock
Star Limited (RSL) as a senior event organizer. Following information is available relating to his assessment for
the tax year 2024:

(a) On July 01, 2023 RSL paid Rs. 280,000 to ML as compensation in lieu of un-served notice period by
Mr. Mateen.
(b) On July 15, 2023 Mr. Mateen received a gratuity of Rs. 350,000 from an unrecognized gratuity fund
maintained by ML. He also received Rs. 150,000 as leave encashment.
(c) In accordance with the terms of his employment with RSL, Mr. Mateen was provided with the
following emoluments / benefits during the tax year 2024:

(i) Basic salary of Rs. 245,000 per month and utility allowance of Rs. 21,000 per month.
(ii) A reimbursement of personal medical expenses, upto 15% of the annual basic salary and
Rs.250,000 on account of hospitalization charges for his daughter were made after procuring
hospital bills showing the national tax number of the hospital. These bills were also attested and
certified by RSL.
(iii) For the first two months of his employment, a pick and drop facility was provided to Mr.Mateen at
a monthly rent of Rs. 25,000. On September 01, 2023, RSL provided a company maintained 1300
CC., Honda City which was partly used for private purposes. The cost of the car was Rs.
2,500,000.
(iv) Monthly salary of Rs. 6,000 was paid to Mr. Mateen’s house keeper by RSL. Mr. Mateen however,
reimbursed 20% of the house keeper’s salary to RSL.
(v) A special allowance of Rs. 50,000 was paid to meet expenses necessarily to be incurred in the
performance of his official duties. Actual expenditure was Rs. 40,000.
(vi) On January 01, 2024, he was provided an interest free loan of Rs. 1,500,000. The prescribed
benchmark rate is 10% per annum.
(vii) A commission of Rs. 500,000 was paid for introducing new clients to the company. Withholding
tax was deducted by RSL at the rate of 12% from such payments.
(viii) The tax deducted at source from his salary by RSL for the tax year 2024 amounted to Rs.550,000.

d) He also received a share of profit from a business in Malaysia equivalent to Rs. 535,000. He paid
Rs. 130,000 in taxes in Malaysia on such income.

e) He paid Zakat of Rs. 150,000 to an approved organization, through crossed cheque. He also paid Rs. 40,000
zakat in cash to a his house help. He also paid his children’s educational expenses of Rs.600,000 in the year.

f) He paid Rs. 30,000 to a hospital run by a local government.

g) During the year, he received dividends of Rs. 575,000 from a listed company. The amount was net
of withholding income tax at the rate of 15% and Zakat of Rs. 62,500 deducted under the Zakat and
Usher Ordinance, 1980.