02-18-2011, 03:46 AM
Dear Arsalan your calculation is correct, while faisal bhai and laptop are missing the point in thier earlier replies that the whole tax liability of the employee will be paid by the employer
As per laptop calculation RS.120,400 will be added in the income and the new tax liability will be derived, then again some liability will arise and will be added back in salary and this process will continue, to make the calculation simple, the gross-up method will be used and the same has been correctly produced by Arsalan, I am surprised to see that his calculation has been quoted wrong I totally agree with Arsalan and laptop this calculation is not so simple as u had explained
Faisal bhai the results of your long method and gross up method will be the same, you can check it
Best REgards
Anfal
As per laptop calculation RS.120,400 will be added in the income and the new tax liability will be derived, then again some liability will arise and will be added back in salary and this process will continue, to make the calculation simple, the gross-up method will be used and the same has been correctly produced by Arsalan, I am surprised to see that his calculation has been quoted wrong I totally agree with Arsalan and laptop this calculation is not so simple as u had explained
Faisal bhai the results of your long method and gross up method will be the same, you can check it
Best REgards
Anfal
