INCOME TAX COMPUTATION FOR INDIVIDUALS (SALARIED PERSONS) FY 2012-2013 (TAX YEAR 2013)

Employee Code Designation

Description Basic Salary House Rent Utility Allowance Medical Allowance Conveyance Alowwance Bonus / Ex-Gratia Leave Fare Assistance (LFA) Leave Encashment P.F. Employer Contribution Payment From WPPF Stay Allowance Overtime Total Particulars A B C D E Amount Paid Eligibile July August September October

Employee Name Department

November December January

CNIC #

NTN Senior Citizen

If Yes

(Aged > 60 years)

Taxable If Yes

February

March

April

May

June

Total -

Exempt -

Actual / Expected Expected Expected Expected Expected Expected Expected Expected Expected Expected Expected Expected Expected

Gross Income Tax Computation

Tax on Tax on
Taxable Income
If Yes

Tax Credits Available at Average Tax Rate Tax Credit Item Name Charitable donation (See Section 61) Investment in Shares & Life Insurance Premium (See Section 62) Contribution to Approved Pension Fund (See Section 63) Profit on Debt on House Loans (purchase/construction) (See Section 64)

Gratuity Opted To Be Taxed at 3 Years Average Rate? Computation of Preceding 3 Years Average Tax Rate See Section 12, Sub Section (6)
Tax Year 2012 2011 2010 Taxable Income

@ 0%

Tax Payable

Total Gross Income Tax (A + B)

Efective Gross Tax Income Tax Rate Taxable Value of Conveyance (See Rule 5) Number of Months Vehicle Usage in Current Year Purpose of Vehicle Usage Official + Personal Value of Motor Vehicle At Cost Amount to be part of taxable Income---------------> Taxable Value of Company Loan (See Section 13 (7)) Average Loan Balance Benchmark Rate Amount to be part of taxable Income--------------->

0.00% Total Amount Eligible for Tax Credit (Under Section 61-64)-------------->

Withholding Adjustment For the Year

12 Tax Deducted by Employer Upto Last Month (See Section 149) 5% On Telephone/Mobile Phone Bills (See Section 236) Along with Motor Vehicle Tax (See Section 234) On Cash Withdrawals from Banks (See Section 231A)

Total -----------> Average Tax Rate of 3 Preceding Years--> 0.00% Computation of Tax on Gratuity (See Clause 13 of Part 1 of 2nd Schedule) Type of Gratuity---> Others (Unapproved Unfunded)
Total Gratuity Exempt Gratuity Taxable Gratuity

If Yes

On Registration of New Car/Jeep (See Section 231B) On Sales/Cancellation of Any Banking Instrument Against Cash (See Section 231AA) 10% On Purchase of Air Tickets (See Section 236B) -

Tax on Gratuity-------------------------------> Computation of Monthly Income Tax Deductions

Eligibile Taxable Amount From Monthly Salary (as Above) Deemed Income (Taxable Value of Employer's Loan / Conveyance) Taxable Gratuity (Opted to be Taxed at Current Year Rate) Zakat (See Section 60) Gross Taxable Income Charitable Donation Admissible For Straight Deduction Taxable Income Gross Tax Chargeable on Taxable Income Senior Citizen Tax Rebate Net Tax Chargeable on Taxable Income Before Tax Credits Tax Credit Allowed At Average Tax Rate (See Section 61-64) Tax on Gratuity Opted to Taxed at 3 Years Average Tax Rate Income Tax Liability Withholding Tax Adjustment (Tax Already Paid) Income Tax Payable / (Refundable) No. of Months Upto June 2013 Monthly Tax Deduction

Important Notes
1. Medical Allowance upto 10% of basic salary is exempt if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided (see Clause 139, Sub Clause (b) of Part I of 2nd Schedule). 2. Provident Fund Contributions made by employer in excess of one tenth of salary (10%) or Rs. 100000/= whichever is lower are deemed to be income received by employee (See Clause 3, Sub Clause (a) of Part I of 6th Schedule) . 3. Any income of worker received from WPPF established under Companies Profits (Workers Participation) Act 1968 is totally exempt (see Clause 26 of Part I of 2nd Schedule).

Total Amount of Withholding Tax to be Adjusted--------------> Zakat / Charitable Donations Admissible For Straight Deductions
Items Eligible For Straight Deduction Charitable Donation (See Clause 61 of Part 1 of 2nd Schedule) Zakat Paid (See Section 60) Paid

Total Amount Eligible From Staight Deduction From Income---->

With Compliments From Muhammad Ijaz Khan FCMA Comments / Suggestions to Improve This Sheet are Welcomed Email: mijazkhan@hotmail.com

4. Accumulated balance payment received by an employee participating in a recognized provident fund is totally exempt (see Clause 23 of Part I of 2nd Schedule).
5. 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).

12 -