Ahmad Farrukh

Shares will be sold to employee of the company which have 10 years of service with the com

Market value of share 2,500

Employees 1,500

Right to purchase share 150

Rest amount to purchase share 1,350

1,500

Mr. Muhammad Yaseen

Purchased Rights 100

Price per right 150
Total Amount Paid 15,000

Rights Sold out 25,000

Gain 10,000

Cost of Share

Amount Paid at time of Purchase of Right 15,000

Amount Paid at time of Purchase of Share 135,000
Amount added in salary 100,000
250,000
rs of service with the company

Thursday, June 30, 2022

Tuesday, August 30, 2022

Mr. Muhammad Yaseen

Purchased Rights 100

Price per right 150
Thursday, June 30, 2022 Total Amount Paid 15,000

Saturday, July 30, 2022 Paid rest amount 135,000

Income from Salary Total Amount Paid 150,000

Fair Market Value 250,000
Gain / Saving 100,000
Thursday, June 30, 2022

###

Income from Salary

Gratuity
Provident Fund
Pension
Gratuity

Gratuity = Current Salary * no of years served in the company

3,750,000 250,000 15

Type of Gratuity Taxation

Govt. Gratuity Fund Fully Exempt

Approved / Registered Gratuity Fund Fully Exempt
Un-Approved / Un-Registered Gratuity Fund exempt upto lower of:
a
b

Gratuity Scheme Introduced Board it exempt upto 300,000

Salay Income 2,500,000
Gratuity 3,750,000
6,250,000
Less: Exempt Gratuity 75,000
Taxable Income 6,175,000

75,000 75,000 75,000

50% of the gratuity received 1,875,000 50,000
75,000 50,000
rest is taxable
 Provident Fund

Every Month there is a deduction from employee's salary against provident fund

320,000 you use to pay tax on gross salary

Less:
Income Tax 15,000
EOBI 230
Provident Fund 6,500 7,500 14,000
21,730

Net Salary 298,270

t provident fund

Type of Provident Fund

Govt. Provident Fund

Approved / Registered Provident Fund
Un-Approved / Un-Registered P. Fund

Medical Allowance upto 10% of basic salary

any perquisite given by employer agaisnt which employee will not have to bear any extra cost
 Taxation

Fully Exempt
Fully Exempt
employee share is exempt rest is taxable

h employee will not have to bear any extra cost

Pension is exempt from tax

if a person is receiving more than 1 pension

higher one will be exempt from tax a

rest will be taxable b
c

if you are a senior citizen above age of 60

a
b
c
170,000 exempt
120,000 taxable
50,000 taxable

170,000 exempt
120,000 exempt
50,000 exempt
Monthly Basic salary 280,000
No of Month 12
Annual Basic Salary 3,360,000

medical allowance 10% of basic salary 336,000

Annual Gross Salary 3,696,000

Less: Exempt Medical Allowance 336,000
Taxable Salary 3,360,000

Monthly Basic salary 280,000

No of Month 12
Annual Basic Salary 3,360,000

medical allowance 18% of basic salary 604,800

Annual Gross Salary 3,964,800

Less: Exempt Medical Allowance upto 10% of basic salary 336,000
Taxable Salary 3,628,800
 Monthly Gross salary and includes medical allowance
No of Month
100 Annual Gross Salary

10 Exempt from Tax medical allowance 10% of basic salary

110 Annual Basic Salary

Taxable Salary

if both are being provided

Medical Allowance fully taxable
Medical Facility exempt from tax

18.00%

10.00%
 280,000 Basic Salary 100.00%
12 Medical Allowance 10.00%
3,360,000 110.00%

305,455

3,054,545 10.00%

3,054,545

Health & Safety

 Foreign Source Income
Resident Taxable
Non Resident exempt

Resident
Non Resident

Salary Income

Tax Deducted by Employer

Salary Income

Tax Deducted by Employer

Pakistan Source Income
Taxable
Taxable

july 150,000 Pakistan taxable

august 150,000 Pakistan taxable
september 150,000 Pakistan taxable
october 150,000 Pakistan taxable
november 150,000 Pakistan taxable
december 150,000 Pakistan taxable
january 150,000 Pakistan taxable
february 150,000 Pakistan taxable
march 750,000 Saudi Arabia exempt
april 750,000 Saudi Arabia exempt
may 750,000 Saudi Arabia exempt
june 750,000 Saudi Arabia exempt
4,200,000

Foreign Source Income Pakistan Source Income

Taxable Taxable
exempt Taxable

from UK From Pakistan

350,000 250,000
50,000 25,000
300,000 225,000
Exempt from Tax Taxable

from UK From Pakistan

350,000 250,000
- 25,000
350,000 225,000
Taxable Taxable