Taxation

~~with focus on tax education~~

Salary Income - Difference Provisions

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Sr # Description Taxablity Remarks / Condition / Limit
1 Utility Allowance Taxable  Includes water, gas, electricity allowance. 
2 House Rent Allowance Taxable  
3 Free accommodation Taxable  45% of B. Salary or FMV of rent whichever is higher 
4 Leave Fare Assistance Taxable  
5 Salary of domestic servant Taxable  Includes house keeper, gardener, etc. 
6 Capital Receipt on termination of employment Taxable  
7 Tax Paid by the employer - Tax on tax Taxable  Amount would be grossed up by tax paid by employer. 
8 Interest free / concessional rate Loan Taxable  Difference between bench mark rate (10%) and rate charged by the employer. 
Interest free / concessional rate Loan Not Taxable  a) When amount of loan is upto Rs.500,000/- 
 b) Employee waives interest on his account with employer 
9 Conveyance Allowance Taxable  
10 Motor Vehicle Taxable  Upto 5% of cost / FMV - Partly for Pvt. Use 
(owned & maintained by employer) Taxable  Upto 10% of cost / FMV - Wholly for Pvt. Use 
11 Waiver of loan by the employer Taxable  
12 Discharge of debt by the employer Taxable  
13 Transfer to assets / Property Taxable  FMV of asset: Less consideration paid if any. 
14 Employee Share Scheme    
Value of Right / Option Not Taxable  
Disposal of Right / Option Taxable  Difference b/w consideration and cost of right / option. 
Acquistion of Shares - without Ristriction Taxable  Difference b/w FMV and cost of right / option. - At the time of acquition 
Acquistion of Shares - With Ristriction Taxable  Difference b/w FMV and cost of right / option. - At the earlier of time of end of restriction or actual disposal of shares.  
15 Medical Allowance - without medical facility Taxable  Exempt up10% of Basic salary 
Medical Allowance - with Reimbursement Taxable  No exemption 
16 Medical benefit / Reimbursement (in accordance with the terms of employment) Exempt if    - NTN of the hospital / clinic is disclosed 
  - The employer certifies and attests the bills 
17 Special Allowance  Exempt if  Given to meet expenses in performance of official duties 
18 Employer's contribution to App. Provident Fund Exempt  Lower of 10% of B.S. + Dearness allowance / Rs.100,000 
19 Employer's contribution to Non approved PF. Exempt  and Taxable at the time of receipt of fund amount 
20 Interest on approved provident fund Exempt  
21 Gratuity / Superannuation / Communation of Pension - ( Received in Pak. by resident)    On Retirement / Death 
Exempt  Received from approved funds 
Exempt  Upto Rs. 200,000/- if received from approved schemes 
Exempt  Lower of 50% of amount received/Rs.75,000 - Other cases 
20 Pension Exempt  Where person does not continue work with same employer or an associate of the employer 
Exempt  One of highest if received from more than one source.  

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posted @ 10:41 AM,

9 Comments:

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At August 12, 2016 at 1:10 PM, Anonymous Anonymous said...

If fixed amount of Fuel allowance + mobile allowance is given to perform duties to an individual, is exempt or not?
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