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Salary Mock Solution - March-24

Mr. Khan's salary income for tax year NTY-2024 includes basic salary, allowances for conveyance, medical, accommodation, interest-free loan, loan waived by employer, redundancy payment, gratuity, car purchase, and employee share scheme. His total income is Rs. 10,950,000 with a taxable income of Rs. 10,695,000 and a tax liability of Rs. 2,334,000 after deducting advance tax paid. The document provides details of salary components and tax calculations for two taxpayers, Mr. Khan and Mr. Salman, for different tax years.

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61 views2 pages

Salary Mock Solution - March-24

Mr. Khan's salary income for tax year NTY-2024 includes basic salary, allowances for conveyance, medical, accommodation, interest-free loan, loan waived by employer, redundancy payment, gratuity, car purchase, and employee share scheme. His total income is Rs. 10,950,000 with a taxable income of Rs. 10,695,000 and a tax liability of Rs. 2,334,000 after deducting advance tax paid. The document provides details of salary components and tax calculations for two taxpayers, Mr. Khan and Mr. Salman, for different tax years.

Uploaded by

syedameerhamza762
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We take content rights seriously. If you suspect this is your content, claim it here.
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CAF-02: TAX PRACTICES

TOPIC: SALARY
MOCK SOLUTION
Answer # 01:

Taxpayer: Mr. Khan


Tax Year : NTY-2024
Residential Status: Resident Individual

(A) SALARY
- Basic Salary (300,000*6) 1,800,000
- Conveyance Allowance (50,000*6) 300,000
- Medical Allowance (10,000*6) 60,000
- Accomodation of housing
Higher of:
Fair market rent (100,000*6) 600,000
45% of B. Salary (45%*300,000*6) 810,000 810,000
- Accomodation of Car 50,000
(2,000,000*5%)*6/12
- Interest free loan 125,000
(2,500,000*10%*6/12)
- Loan waived by employer 625,000
(2,500,000*25%)
- Compensation under redundancy scheme 4,000,000
- Gratuity under unapproved gratuity scheme 1,925,000
(2,000,000-75,000) - SBOI
- Purchase of Car (1,500,000-1,000,000) 500,000
- Employee share Scheme 500,000
Amount Chargeable 10,695,000
Add: Exempt Income (75,000+180,000) 255,000
TOTAL INCOME 10,950,000
Less: Exempt Income (255,000)
TAXABLE INCOME 10,695,000
Separate Block of Income 1,925,000
Other than SBOI 8,770,000

Tax Liability (W-1) 2,334,000


Less: Advance Tax (1,837,000)
Tax Payable 497,000

W-1: Tax Liability


SBOI (1,925,000*14%) 269,500
Other than SBOI (1,095,000+35%(2,770,000) 2,064,500
Tax Liability 2,334,000
Answer # 02:

Taxpayer: Mr. Salman


Tax Year : NTY-2023
Residential Status: Resident Individual

(A) SALARY

- Basic Salary 2,400,000


- House Rent Allowance 600,000
- Annual Bonus 480,000
- Free Meals while on duty -
- Staff Discount 40,000
- Health Insurance -
- Accomodation of Car (2,000,000*5%) 100,000
- ESOS (12,000*(110-98) 144,000
- PF Contribution
Contirbution made (2,400,000*8%) 192,000
Less: Exempt - Lower of
Rs. 150,000 - 150,000
1/10th of 2,400,000 - 240,000 (150,000) 42,000
- PF Interest
Interest charged (960,000*22%) 211,200
Less: Exempt - Higher of
16%*960,000 - 153,600
1/3rd of 2,400,000 - 800,000 (800,000) -
- Culinary Chef course -
Travelling Allowance - not spent on behalf of the emplyer (250,000-100,000 150,000

Amount Chargeable 3,956,000


Add: Exempt Income (70,000+450,000+150,000+211,200) 881,200
TOTAL INCOME 4,837,200
Less: Exempt Income (881,200)
TAXABLE INCOME 3,956,000
Tax Liability (435,000+(3,956,000-3,600,000)*27.5%) 532,900
Less: Advance withholding Tax (400,000)
Tax Payable 132,900

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