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+--- Thread: Taxable income 2006 (/showthread.php?tid=3744)
Taxable income 2006 - Taxed to Kill - 08-29-2006
As salam u alakum,pals.
On circular no.3, 2006 (income tax), in illustrations tax is applied on basic salary & not on total salary.What is the percentage of basic salary to the total salary.plz advice. thanks to all with best wishes.
- pri_farhan@hotmail.com - 08-31-2006
Dear Friend!
July, 2006 to onwards whole gross salary except 10% medical is taxable.
Farhan
- Taxed to Kill - 09-02-2006
Dear Farhan.
Thanks for reply.
Plz visit www.cbr.gov.pk/newdt/circulars/2006/2006circular3.zip
In the examples given the tax is calculated on "basic Salary".If it is gross salary, why is cbr using the term basic salary?.I am waiting for reply from any one who can confirm.
As salam u alakum to all.
- pri_farhan@hotmail.com - 09-02-2006
Well!
The divisions are there but u can see that the whole house rent allowance and other allowances except 10 Medical is taxable.If we sum up the examples, in short whole gross salary is taxable.
Farhan
- Taxed to Kill - 09-02-2006
Thanks farhan
I was confused but now its all clear.
- naveedsaeed - 09-14-2006
Asalam O Alacom,
Actually i am new to thsi forum and i am here because i thought that my company is detecting more tax then it should be, let me tell you my total salary, it is 40,000 and the tax they will deduct is 1,378. While as if i follow your below message then it should be like this
By putting 10% medical it becomes
Net Salary Rs. 40,000/-
Medical (10%) Rs. 4,000/-
Basic \ Taxable Salary Rs. 36,000/-
Yearly Taxable income Rs. 432,000/-
The rate implies (Where the taxable income exceeds Rs.400,000 but does not exceed Rs.500,000 = 3.50%)
Yearly Tax @ 3.50% Rs. 15,120/-
Per Month deduction 15,120 / 12 = Rs. 1,260/-
But they respond me saying According to the new rule all allowances and medical have been finished. even though i have told them what you have written below. Now to help me can you please provide me the official document saying so.
Thanks in advance,
Naveed Saeed
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by pri_farhan@hotmail.com</i>
<br />Dear Friend!
July, 2006 to onwards whole gross salary except 10% medical is taxable.
Farhan
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
- pri_farhan@hotmail.com - 09-15-2006
Well Naveed!
You are 100% rite Rs.1,260 can me deducted out of ur montly salary.Well, about offical document you can get buget briefing 2006 from web site www.ey.com.pk go to page no 15 of that and read the very last line of this page.One thing i must tell you, i guess their will be no medical division in your monthly salary breakup.Taking that in consideration that r deducting less tax by Rs.22 p / m and if the breakup of salary is some what like BASIC SALARY HR ALLOWANCE MEDICAL, only than they must deduct Rs. 1,260 tax per month.
Farhan
- naveedsaeed - 09-16-2006
Can you please elbrate more "There will be no medical division in salary breakup"? Yes they are not mentioning medical allowance but i think they can, its only matter of defining salary breakup on papers (i guess).
And about deduction 22 less p/m actually on month of August my salary was 30,000 and now its 40,000 so thats mean my total yearly income will be 4,70,000/- thats mean 1371 per month so they are deducting 7 Rs. more then they should be.
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by pri_farhan@hotmail.com</i>
<br />Well Naveed!
You are 100% rite Rs.1,260 can me deducted out of ur montly salary.Well, about offical document you can get buget briefing 2006 from web site www.ey.com.pk go to page no 15 of that and read the very last line of this page.One thing i must tell you, i guess their will be no medical division in your monthly salary breakup.Taking that in consideration that r deducting less tax by Rs.22 p / m and if the breakup of salary is some what like BASIC SALARY HR ALLOWANCE MEDICAL, only than they must deduct Rs. 1,260 tax per month.
Farhan
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">