12-25-2009, 03:08 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by shakilicma76</i>
<br />Mr.Naseer is an employee of M/s.ABC Pvt Ltd, the terms of empoloyment provide that the tax will be paid by the company. The company paid a total of Rs.1,535,000 to Mr.Naseer and the Income Tax Department.
What will be tax and salary to be paid to Mr.Naseer?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Your question is having dual meanings i.e. by considering the following statement, <b>"the terms of empoloyment provide that the tax will be paid by the company"</b>, one can evaluates two meanings from the statement, i.e. either,
1- Tax will be paid by the company on behalf of its employees by way of deduction under section 149 from their salaries or,
2- Tax will be borne by the company on behalf of the said employee.
By assuming 1st statement to be the requirement, Rs. 1,535,000 will be divided by 111% (i.e. 11% is the applicable rate of tax in this case), which will deflate Rs. 1535000 to Rs. 1382883 (i.e. 1535000/1.11)
Hence, taxable income is <b>Rs. 1382883</b> and Tax liablity will be <b>Rs. 152117</b> (i.e. 1382883* 11%).
Total is Rs. 1535000(1382883+152117), which has been paid by the company to Mr Naseer and tax department.
I hope the answer to be sufficied for your understanding.
Best Regards,
Faisal
<br />Mr.Naseer is an employee of M/s.ABC Pvt Ltd, the terms of empoloyment provide that the tax will be paid by the company. The company paid a total of Rs.1,535,000 to Mr.Naseer and the Income Tax Department.
What will be tax and salary to be paid to Mr.Naseer?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear,
Your question is having dual meanings i.e. by considering the following statement, <b>"the terms of empoloyment provide that the tax will be paid by the company"</b>, one can evaluates two meanings from the statement, i.e. either,
1- Tax will be paid by the company on behalf of its employees by way of deduction under section 149 from their salaries or,
2- Tax will be borne by the company on behalf of the said employee.
By assuming 1st statement to be the requirement, Rs. 1,535,000 will be divided by 111% (i.e. 11% is the applicable rate of tax in this case), which will deflate Rs. 1535000 to Rs. 1382883 (i.e. 1535000/1.11)
Hence, taxable income is <b>Rs. 1382883</b> and Tax liablity will be <b>Rs. 152117</b> (i.e. 1382883* 11%).
Total is Rs. 1535000(1382883+152117), which has been paid by the company to Mr Naseer and tax department.
I hope the answer to be sufficied for your understanding.
Best Regards,
Faisal
