Salary Income - Difference Provisions

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.