annexure c examples

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ANNEXURE 'C' EXAMPLES .. SALARY TAX YEAR: 2011 Note: For computation of tax liabil ity, use tax calculato r availabe at www.softax.com.pk Example 1 Mr. A is the employee of M/s ABC Ltd. Mr. A provided following particulars. Compute his taxable income and tax liability for the Tax Year 2011 SOLUTION Mr. A M/s ABC Ltd. Salaried Individual Tax Year: 2011 COMPUTATION OF TAXABLE INCOME Notes: 1. Medical allowance is exempt upto 10% of Basic Salary. (Clause 139, Part I, 2nd Schedule) COMPUTATION OF TAX LIABILITY Description Gross Exempt Taxable House Rent All owance 150,000  - 300,000  Bonus 20,000 - 20,000  Basic Sal ary 300,000  - 150,000  Conveyance Al lowance 12,000 - 12,000  Util iti es Al lowance 30,000 - 30,000  Medical Allowance 36,000 30,000 6,000  30,000 518,000  Total Income 518,000  Less: Tax deducted by the employer u/s 149 (18,805)  518,000  Surcharge u/s 4A 15% for 3.5 months (Tax / 12 x 3.5 x 15%) 793  Total tax incl udi ng surcharge 18,923  Conveyance Allowance 12,000  Utilities Allowance 30,000  Basic sal ary 300,000  Bonus 20,000  House Rent All owance 150,000  Medical Allowance 36,000  Taxabl e i ncome 518,000  Less: Zakat -  Taxable Income Tax deducted by the empl oyer u/s 149 including surcharge 18,805  Net Tax payabl e / (ref undabl e) 118  Tax payable 18,130  Total 548,000  1

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