Maximum Benefit to the employee...

[Sarfaraz.alam]

If an employee salary including allowances, is 75,000 per month, i.e. 900,000/- per year.

What is the minimum taxable amount for the above case after availing exemption as per Income tax rule, because I wanna provide maximum benefit to the employee.

Thanks,

[sajid naveed khan]

As per my knowledge u can give him 10% of salary as Special Allowance which is exempt and no other exemptions are there,

[LapTop]

Bohat sari exemptions han, persons or classes of person k liye,,,, aam tor par medical allowance exempt hay 10% of Basic pay.

Aap agar apny employees ko relief dayna chahty han to un say IT3 form fill karwayen or un ko tax credit dayn.

[sajid naveed khan]

Dear Laptop please reply briefly to Sarfraz's query as i also have such problem and facing difficulty to make salary schemes of Rs.75,000, 60,000 and 50,000, so please solve it for one case, and further please tell whether house rent@45% is exempt or not, as per my understanding for tax withheld its not considered while could be deducted from taxable income while submitting annual tax return, anxiously waiting for ur reply

[LapTop]

Sajid bhai,,,, salary par kafi exemptions han mukhtalif logon k liye,,,,,,, app ye sari exemptions second schedule may daykh sakty han.

Par ik aam concept ye hay k agar koi aysa allowance to k aap ki duty ka expense hay wo exempt hota hay. Missal k tor par agar uniform allowance diya jaye to exempt ho ga,,,,

Medical allowance basic ka 10% exempt hay. Agar app ko 15% medical allowance milta hay to 10% exempt ho ga or 5% taxable ho ga. Han agar aap mo medical reimbursement hoti hay to wo tax able nahi ho gi, par us ki kuch conditions han.

Ik aam company may aksar pay scale nahi hoty, to waha job hi pay ho gi wo taxable ho gi, jab tak k us pay ko mukhtalif allowances may divide nahi karti company.

Or aap nay house rent ka zikar kiya , daykhyn house rent chahay 10% mily ya 100% taxable hay employee k liye,,,,,, par agar employer ki tarf say daykha jaye to income tax usy bound karta hay k wo 45% of basic pay say zayada house rent na day,, agar employer 45% say zayada house rent day ga to 45% say zayada job hi amount bany ga wo us employer ka inadmissible expense ho jaye ga.
Umeed hay kuch concept clear ho gya ho ga.

[LapTop]

(39) Any special allowance or benefit (not being entertainment or conveyance allowance) or other perquisite within the meaning of section 12 specially granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit.

(40) Any income of a newspaper employee representing Local Travelling Allowance paid in accordance with the decision of the Third Wage Board for Newspaper Employees constituted under the Newspaper Employees (Conditions of Service) Act, 1973, published in Part II of the Gazette of Pakistan, Extraordinary, dated the 28th June, 1980.


(53A) The following perquisites received by an employee by virtue of his employment, namely-

(i) free or concessional passage provided by transporters including airlines to its employees (including the
members of their household and dependents);

(ii) free or subsidized food provided by hotels and restaurants to its employees during duty hours;

(iii) free or subsidized education provided by an educational institution to the children of its employees;

(iv) free or subsidized medical treatment provided by a hospital or a clinic to its employees; and

(v) any other perquisite or benefit for which the employer does not have to bear any marginal cost, as notified by the Central Board of Revenue.

[sajid naveed khan]

Basic Salary Medical Allowance Special Allowance Total
62,500 6,250 6,250 75,000


Please check this salary scheme, and comment. In this case 10% medical and 10% special allowance as per Cl 39 is made part of salry, and now in my opinion taxable income will become (62,500*12) = 750,000 which is minimum.

[talha.moin]

Is the above calculation of mr sajid is correct? please anyone comment.