Tax deduction at source - Salaries

[wsafca]

Dear All

An employee whose monthly gross salary is Rs. 25,000
Joining date Jan 1, 20X1
Whether tax will be deducted from his salary.

As he will receive Rs. 150,000 during the tax year 2002 which is below taxable limit

As his annual salary is Rs. 300,000 which is taxable.

Regards

Waqas Shabbir

[faisal_desperado]

Dear Wsafca,
In this case, no tax will be deducted from his salary, since his yearly salary is below the threshold provided under section 149.

However,summarily, as per Income Tax Ordinance 2001, if his yearly salary has exceeded the threshold then he will be required to pay tax.
If the said person has earned Rs. 150,000 in the last 6 months of a specific tax year then it is important to ascertain whether what has been his earnings in the first 6 months of that year?
If he has no earning in the first six months then no tax shall have to be paid.
If, however, he has earnings, which makes his total earnings by more than 200,000 then tax will be deducted, in this regards, if earnings of the first 6 months is more than 50,000 then he shall have to pay tax as his yearly income shall exceed the threshold.

Queries will be appreciated.

Best Regards

[muhammadazeem]

Salam,,,
i have requested that could u make the slab sheet with salaried and no-salaried case according to new ammdment by fbr pakistan to 2010.
thankxx

[Saqib Bashir]

In our firm salaries are increased in jan every year, if one empolyee has monthly salary for first 6 months is Rs. 15000 which is not taxable and no tax will be deducted for 6 months, but in jan his salary was increased as Rs. 18000 p.m which is taxable income. how will i calculate his tax. Please help in this regard. advance thank you.

[wsafca]

Dear All

Thanks to all and especially Mr Faisal

Mr. Saqib Taxable income shall be calculated in the following manner.

First six months 15,000 x 6 = 90,000
Next six months 18,000 x 6 = 108,000

Total salary income = 198,000

Regards

Waqas

Which is taxable at the rate of 0.5%

[faisal_desperado]

Dear Saqib,

Although, Waqas has replied the query , however, just would like to add that minimum limit on which tax is deducted has been extended to Rs. 200,000 for the tax year 2010 for salaried individuals.
Hence, no tax is required to be paid since yearly income (198,000) is below the threshold of Rs. 200,000.

Best Regards,

[wsafca]

Thanx Mr. Faisal for clarification