07-28-2010, 07:57 PM
Dears,
Based on the query, Ikhan's calculation is slenderly wrong due to lack of clarification and Laptop's assumption/suggestion is wrong as well.
First of all, your query requires some clarifications, i.e. whether do you pay your employees Rs. 9,000 - 15,000 at the end of the tax year if the same has not been availed by them?, since you said that you offer reimbursement facility, however you forgot to inform whether the same is paid if not reimbursed due to no such necessity.
Apart from the aforesaid, if it is assumed that you pay your employee or adjust Rs. 22,000 in full at the end of the tax year, then calculation should be semblance to the following;
Total medical allowance Rs. 54,545, which is within the permissible range of 10%, now deduct the said amount from Rs. 600,000 if Rs. 22,000 have been added in the taxable income of an employee, and resultant Figure of Rs. 567,455 will be taxable income.
However, if you have not added Rs. 22,000 into the taxable income of the employee then difference should be deducted (i.e. Rs. 32,545) from the employee salary to arrive at the taxable income.
Please note that the answer is same as Ikhan ascertained, however this answer is based on the assumption shown above.
Let it be know, if confusion still exists.
Best Regards,
Faisal.
Based on the query, Ikhan's calculation is slenderly wrong due to lack of clarification and Laptop's assumption/suggestion is wrong as well.
First of all, your query requires some clarifications, i.e. whether do you pay your employees Rs. 9,000 - 15,000 at the end of the tax year if the same has not been availed by them?, since you said that you offer reimbursement facility, however you forgot to inform whether the same is paid if not reimbursed due to no such necessity.
Apart from the aforesaid, if it is assumed that you pay your employee or adjust Rs. 22,000 in full at the end of the tax year, then calculation should be semblance to the following;
Total medical allowance Rs. 54,545, which is within the permissible range of 10%, now deduct the said amount from Rs. 600,000 if Rs. 22,000 have been added in the taxable income of an employee, and resultant Figure of Rs. 567,455 will be taxable income.
However, if you have not added Rs. 22,000 into the taxable income of the employee then difference should be deducted (i.e. Rs. 32,545) from the employee salary to arrive at the taxable income.
Please note that the answer is same as Ikhan ascertained, however this answer is based on the assumption shown above.
Let it be know, if confusion still exists.
Best Regards,
Faisal.
