Tax Deducted on rent Payment

[AbdulSamad]

Muhammad Rehman i think there is little mistake taken by LAPTOP. Well i am paste here rent tax shedule, where company's rent tax deducting.

(b) The rate of tax to be deducted under section 155, in the case of company, shall

(1) Where the gross amount of rent does not exceed Rs.400,000.

5 per cent of the gross amount of rent.

(2) Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs.1,000,000.

Rs.20,500 plus 7.5 per cent of the gross amount of rent exceeding Rs.400,000.

(3) Where the gross amount of rent exceeds Rs.1,000,000.

Rs.65,000 plus 10 per cent of the gross amount of rent exceeding Rs.1,000,000

Mr. Muhammad Reham if your company year ending June Rule 2 applicable if Dec is ending year your applicable rule 3.

and tax calulation if Rule 2 applicable

100,000 * 6 = 600,000 - 400,000 (coz exceeding from 400,000)
= (200,000 * 7.5%)plus 20,500
= 15,000 + 20,500
= 35,500/6 = 5,916 per month from Jan to june

and tax calculation if rule 3 applicable

100,000 * 12 = 1,200,000 - 1,000,000 (coz exceeding from 1,000,000)
= (200,000 * 10%) plus 65,000
= 20,000 + 65,000
= 85,000/12 = 7,083 per month from Jan to Dec

Mr Muhammad Rehman please if your financial year ending is June you will apply rule no 2 tax calculation and in second year you will tax rule no 3 if shedule not change.

I hope i have tried to better satisfy you.

Thanks