help required?

ravaila · #1 Thursday, August 27, 2009

how to calculate income tax at 7 lac per year salary??????

qayym · #2 Thursday, August 27, 2009

Please visit

http://www.fbr.gov.pk/newdt/forms/IncomeTaxForms.asp

i hope you can get some assistance from there. However really difficult to understand these forms

.

Raz · #3 Friday, August 28, 2009

Quote:

Originally Posted by ravaila

how to calculate income tax at 7 lac per year salary??????

For the calculation of tax liability of a salaried person we need some additional information. Such as:

1) Nature of employment (Teacher, researcher, or any other salaried person)
2) Male or female
3) Other perks / fringe benefits, Bonus etc.
4) Any other tax paid, tax deducted at source, tax paid with motor vehicle tax etc.
5) Basic salary, Minimum Time Scale
6) Medical Allowance if any
7) House rent allowance if any
8) Gas and electricity allowance if any
9) Zakat deducted if any
10) Leave encashment if any
11) Workers welfare fund if any
12) Loan received from employer
13) Conveyance provided
14) Gratuity received

Some general guidelines for the calculation of tax liability of an individual salaried person:

1) Salaried person: Whose salary income is more than 50% of his/her taxable income.
2) Agriculture income is exempt from tax levy
3) For salaried woman: Tax shall be charged if the taxable income is more than Rs. 2,00,000 (Tax Year 2008). Tax shall be charged if the taxable income is more than Rs. 2,40,000 (Tax Year 2009)
4) For salaried man: Tax shall be charged if the taxable income is more than Rs. 1,50,000 (Tax Year 2008)
5) For senior citizen (aged 60 Yrs or above): If his/her taxable income is upto Rs.4,00,000 a special tax rebate @ 50% of tax payable will be provided (Tax Year 2008). If his/her taxable income is upto Rs.5,00,000 a special tax rebate @ 50% of tax payable will be provided (Tax Year 2009).
6) For full-time teacher and researcher: If s/he is employed in a non-profit education or research institution recognized by Board, university, or HEC. Her/his tax liability will be reduced by an amount equal to 75% of tax payable.
7) Average Relief: In case of donations, shares purchased, approved pension scheme and profit on debt (mark up payments) average relief will be allowed.
8) Credit of tax deducted at source will be provided.
9) Marginal relief will be provided for Tax year 2009.

Tax slabs for Tax year 2008:

Upto Rs.1,50,000……………….0%
Rs.1,50,001 to Rs.2,00,000…….0.25%
Rs.2,00,001 to Rs.2,50,000…….0.50%
Rs.2,50,001 to Rs.3,00,000…….0.75%
Rs.3,00,001 to Rs.3,50,000…….1.50%
Rs.3,50,001 to Rs.4,00,000……..2.5%
Rs.4,00,001 to Rs.5,00,000……3.50%
Rs.5,00,001 to Rs.6,00,000……4.5%
Rs.6,00,001 to Rs.7,00,000……6.00%
…….
……..
……
Exceeding Rs.84,00,000…….20.00%

Tax slabs for Tax year 2009:

Upto Rs.1,80,000……………….0%
Rs.1,80,001 to Rs.2,50,000…….0.50%
Rs.2,50,001 to Rs.3,50,000…….0.75%
Rs.3,50,001 to Rs.4,00,000……..1.5%
Rs.4,00,001 to Rs.4,50,000……2.50%
Rs.4,50,001 to Rs.5,50,000……3.50%
Rs.5,50,001 to Rs.6,50,000……4.50%
Rs.6,50,001 to Rs.7,50,000……6.00%
…….
……..
……
Exceeding Rs.86,50,000…….20.00%

.

Note: Any amendment in past few months may not be in my knowledge, sorry for that. But I can guide you on 2008 rules and in the light of some 2009 rules and rates which or in my knowledge. Provide the basic details we can work out taxable income and tax liability. But based on the limited information which you have mentioned here we can’t jump to the conclusion. Before finding tax liability we have to calculate taxable income and for taxable income we need some more details.

Based on the above broad guideline you can also manage to arrive at a rough idea.

Regards

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kinzacss (Sunday, April 04, 2010), Mohsin Ehsan LL.M (Friday, August 28, 2009), ravaila (Friday, August 28, 2009)