Computation of Taxable income of an individual

NAME OF TAXPAYER :
NTN TAXPAYER :
TAX YEAR :
RESIDENTIAL STATUS :
PERSON STATUS :

NOTES Total Exempted Rs. Taxable

Rs. Rs.
Income from salary:
Basic salary Xx - xx
Dearness allowance Xx - xx
Cost of living allowance Xx - Xx
Bonus Xx - xx
Commission/fee Xx - Xx
Leave encashment 1 Xx - xx
Overtime payment Xx - xx
Allowances:
Medical allowance Xx Exempt up to xx
10% basic
salary
House rent allowance Xx - xx
Entertainment allowance Xx - xx
Travelling allowance Xx - Xx
Utilities allowance Xx - xx
Overseas allowance Xx - xx
TA/DA or special allowance 2 Xx Xx -
Senior post allowance Xx - xx
Facilities:
Medical facility 3 Xx Xx -
Higher of
Rent free accommodation provided by Annual rental
4
employer value OR 45% of
basic salary
Car provided by the employer: 5
For office work only xx -
For private use only 10% of value of
car
For both use 5% of value of
car
Interest on loan provided by employer If loan is less Loan
than Rs. 1
million , no amount*(10%-
tax will be interest charged
charged
by employer)
Salary of domestic servant paid by xx
employer
Obligation of employee Xx - xx
waive/paid/reimbursed by employer
Reward/Asset paid/transferred by Fair market value
employer
Leave fare assistance Xx - xx
Entertainment facility Xx Xx -
(free/reimbursement/subsidized)
Provident fund:
Employee contribution - - -
Employer contribution 6 Xx Exempt up to xx
lessor of 10%
of salary or
Rs. 150,000
Interest credited 6 Xx Exempt xx
higher of 1/3rd
of salary or
amount
calculated at
16%
Accumulated balance - - -
Gratuity /accumulated pension:
Government Xx Fully exempt -
Approved under Income tax Xx Fully exempt -
ordinance, 2001, by the commissioner
Un-recognized fund but scheme is Xx Exempt up-to xx
approved by the board Rs. 300,000
Any other 7 Xx Lessor of xx
Rs.75,000 or
50% of
amount
Pension 8 Xx - xx
Any other benefit or allowances Xx - xx
Waiver of amount payable by Xx - xx
employee
Total taxable income from salary xx

Income from property: NOTES Total Exempted Taxable

(separate block of Rs. Rs. Rs.
income/Normal income)
Annual rent received Higher of actual rent or xx - xx
FMR is taxable
Un-adjustable advance Unadjustable advance
xx - xx
10 years
Liability of landlord paid by Xx - xx
tenant
Forfeited token money Xx - xx
received
Rent chargeable to tax (RCT) xxx
Deductions:
1. Repair and 1/5th Of RCT
maintenance
2. Insurance premium Annual
insurance
premium
3. Local /property tax Actual
amount paid
4. Ground rent related Actual
with that property amount paid
5. Profit on debt /Share Amount Interest on
of rent to HBFC borrowed for such amount
 property paid
6. Rent collection Up-to 4% of
charges RCT
7. Legal expenses on Actual
suit against the amount paid
property
Rent chargeable to Tax

Income from Business: NOTES Total Exempted Rs Taxable

Rs Rs
Net profit/loss for the year
Add:
In admissible deduction
Accounting depreciation
Less:
Tax depreciation
Admissible deduction
Carry forward of business loss
Total taxable income from business xx

Income from capital gain: NOTES Total Exempted Rs Taxable

Rs Rs
Gain on assets disposed of within 7 xx - xx
one year from the date of
acquisition
Gain on assets disposed of after Xx 25% gain 75% of gain
year from the date of acquisition
Less: carry forward of capital (xx)
losses
Total taxable income from capital gain xx

Income from other sources: NOTES Total Exempted Rs Taxable

Rs Rs
All other incomes that are not 7 xx - xx
taxable under any above heads
will be taxable under income
from other sources

Total taxable income from other sources xx

NOTES Total Exempted Rs Taxable
Rs Rs
Total taxable income from xx
Salary
Total taxable income from xx
Business
Total taxable income from xx
capital gain
Total taxable income from xx
other sources
Total income 3800
Deduction:
1. Zakat paid under xx
zakat and usher
ordinance
2. Contribution to xx
worker welfare
fund
3. Contribution to xx
worker
participation fund
4. Donation to xx
approved
institution
5. Profit on debt for Lessor of
house Actual profit on debt or
50% taxable income or
Rs.2000,000
6. Education 10 Lessor of
expenses of 5% of total tuition fee or
children 25% of total taxable income or
Rs. 60,000* nos of children
7. Donation to relief xx (xx)
fund established
by the government
Actual total taxable income xx
NOTES Total Exempted Rs Taxable
Rs Rs
Add: Income included for xx
rate purpose only
Share of profit from AOP xx
Taxable income for rate xx
purpose
Computation of taxable
income:
Tax liability as per tax rate in first schedule of income tax ordinance, 2001 xxx
Less: Tax credits
 Foreign tax Actual foreign tax paid OR (xx)
credit Tax ontaxable∗foreign source Income
Taxable Income
 Investment in Amount eligible for Lessor of
shares tax credit Cost of acquisition of shares or
20% of taxable income or
Rs.2000,000
 Investment in Xx
life insurance
  Contribution to Lessor of total actual (Xx)
approved contribution or 20% taxable
pension fund income
Gross Tax liability xxx
Less: reduction in case of
full time teacher &
researcher (25%) (xx)
Total tax xx
Add: tax on income from property xx
Total tax liability under NTR: xx
Less: withholding taxes (xx)
Tax deducted at source (xx)

Net tax payables XX

Notes:

1. In case of government employees leave preparatory to retirement LPR will be exempted from tax.
2. Any allowance received for purpose of official duty is exempt from tax.
3. If both medical allowance and medical facility is provided, then medical allowance will fully taxable
4. If the house in provided in small cities, then 30% of basic salary is used instead of 45%.
5. Value of car;
Owned by employer: cost of car
Leased car: Market price
6. In case of government provident fund, employer contribution and interest credited are fully exempt. For
provident fund, salary means basic salary plus leave fare assistance
7. In case of government employee, gratuity received is fully exempt.
8. Only one pension with higher amount is exempt.
9. Capital gain on sale of immovable property with taxable under separate block of income
10. A deduction for education of children is only allowed if total taxable income of an individual is less than Rs
1500,000.