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salary taxation - Coggle Diagram
salary taxation
gratuity
Gov. employees
fully exempt
approved by C.I.R
fully exempt
unapproved
exempt upto 75,000 or 50% whichever is low . to be taxed at avrg rate of last 3 years
no exemption in case of
payment not recived in pak
payment recive. by a dir. of a comapny who is not a regular employee of such company
payment reciv. by non resident
gratuity reicv. by employee who alr have reciev. gratuity
approved by board
exempt upto 300,000
provident fund
empli. contri
recong.
no treatment
unrecong.
no treatment
gov
no treatment
intrst calc. during year
recong
exempt higher of
16% intrst on acc. bal.
1/3rd of basic salary + dearness allowance
unrecong.
no treatement
gov
exempt
emplr. contri
recong.
lower of
150,000
1/10th of basic salary + dearness allowance
unrecong.
no treatment
gov
exempt
pay of acc. balance
gov
exempt
unrecong.
emplr. contri. & intrst acc bal. is taxable
recong.
exempt
exempt. w/o virtue of employement
free food during duty hours
free edu. by edu. institutes to their emplye.
free medical treatement by med. inst. to theur empplye.
any perk for whiich no MC will be born by emplyr.
consessional loan
lower than benchmark rate
difference of benchmark rate and actual intrest
no intrest paid at all
loan given at bench mark rate to be added in salay
upper two conditions do not apply when
loan is less then 1,000,000
benchmark rate is 10% annually
bought an asset/ acuquired property
wholly/ partly
such amount is allowed as a deductable when it generates income chargeable to tax
calculation
amount if equal to benchmark rate
benchmark rate is allowed as deduction
intrest charged is higher than benchmark rate
that whole amount paid is allowed as deduction
pension under FTR
fully exempt
reipient is over 70y
0% tax
pension does not exceed 10 mil.
5% tax of amm. exceeeding 10 mil
exceeds 10 mil. and recipient is less than 70y
conveyence
tax rate
partial
5%
prsnl
10%
office
0%
calculation
basic salary
%
timelimit
calculated on orginal cost/fmv (when bought)
accomodation
tax rate higher of
cash amount if no acc. was provided
45% of MTS or basic salary if no MTS
calculation
mts/salary or acc. amount
12
45%
medical
reimbursment
taxabale
not in acc with policy/ unattested/no NTN
exempt
in acc w/ policy/ has NTN
allowance
taxable
10% of basic salary when only allowance is given
exempt
fully taxable allowance and reimbursemnt is 100% exempt when allowance + reimb. is given
foregin source salary
exempt
alr taxed in foregin
taxable
not taxed in foregin
scholarship
exempt
no assosiate realtion btw emplye. & emplyr
scholarship grant is not disguised to levy tax
taxable
if assosiation relation exists ( scholarship grant directly realted to emplyment contract)
settlements
the amount waived that emplye owes to emplyr
treated as taxable salary
paid to sm1 on urbehlaf ( like bank etc)
that paid amm. by emplyr is taxable
house rent allowance
calculation
whole amount taxable
HRA * time = added to taxable salary
leave encashment
exempt
only for gov. empl and armed forces members
workers profit partic. fund
exmept
as a worker
pension commutation
exempt
reiceved by gov
when approved by board
salary earned out of pak by paki
exemept
if not in pak. for that tax year
foreign gov. officials
exempt
not a pak. citizen
servicezs performed are similar to fed gov. emplyee perform in forgein countries.
for. gov grants similar exmept to fed. gov. empl. working there
self hiring property
spouse/emplye owns the house
employr rented out that house
provided it to the emplyee
income ( rent emplyr pays against it as accomodation fo that emplye.) is treated as income from proerty and is treated acc.
if provided as rent free accom. by emplr to emplyee.
its a perk, added in salaryvincome
surcharge
when taxable income for year exceeds 10 mil.