Income from other source 200,000 Foreign source income 150,000 Total income 950,000 Less: Zakat deducted at source 7,000 Profit on debt paid under housing finance scheme 19,000 26,000 Taxable income 924,000 Tax liability (salaried case) Tax on Rs.750,000 14,500 Tax on Rs.193,000 @ 10% 17,400 31,900 Less: Senior Citizen Allowance @ 50% 15,950 15,950 Less: Full time teacher allowance (as per working) 1,400 14,550 Less: Foreign tax credit a) tax paid in foreign country 7,500 b) (14,550 ÷ 924,000) x 150,000 2,362 whichever is lower 2,362 12,188 Less: Rebate on donation 12,188 ÷ 924,000 x 105,000 1,385 Rebate on shares 12,188 ÷ 924,000 x 184,800 2,438 3,823 Tax liability 8,365 Working of full time teacher allowance: Salary Income 600,000 Tax on Rs.500,000 2,000 Tax @ 5% on Rs.100,000 5,000 7,000 Less: Senior Citizen allowance @ 50% 3,500 3,500 Full time teacher allowance 40% of Rs.3,500 1,400 Answer to Q.2.2 Mr. Y Salary 880,000 Income from other sources 510,000 Total income 1,390,000 Less: Zakat deducted at source 7,200 Donation to an institution under 2nd Schedule 5,000
Income from other source 200,000 Foreign source income 150,000 Total income 950,000 Less: Zakat deducted at source 7,000 Profit on debt paid under housing finance scheme 19,000 26,000 Taxable income 924,000 Tax liability (salaried case) Tax on Rs.750,000 14,500 Tax on Rs.193,000 @ 10% 17,400 31,900 Less: Senior Citizen Allowance @ 50% 15,950 15,950 Less: Full time teacher allowance (as per working) 1,400 14,550 Less: Foreign tax credit a) tax paid in foreign country 7,500 b) (14,550 ÷ 924,000) x 150,000 2,362 whichever is lower 2,362 12,188 Less: Rebate on donation 12,188 ÷ 924,000 x 105,000 1,385 Rebate on shares 12,188 ÷ 924,000 x 184,800 2,438 3,823 Tax liability 8,365 Working of full time teacher allowance: Salary Income 600,000 Tax on Rs.500,000 2,000 Tax @ 5% on Rs.100,000 5,000 7,000 Less: Senior Citizen allowance @ 50% 3,500 3,500 Full time teacher allowance 40% of Rs.3,500 1,400 Answer to Q.2.2 Mr. Y Salary 880,000 Income from other sources 510,000 Total income 1,390,000 Less: Zakat deducted at source 7,200 Donation to an institution under 2nd Schedule 5,000
02-income_tax_rates_and_rebates[11-22]yy.docx