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Sample Income Tax

Mr. Salman Ahmed, a civil servant, has a total remuneration package including a basic salary, bonuses, and various allowances, amounting to a taxable income that needs to be assessed for tax liability for the fiscal year ending June 30, 2026. The document outlines the applicable tax rates for salaried individuals and provides a detailed breakdown of Mr. Ahmed's earnings and allowances. It also specifies the surcharge applicable for individuals with taxable income exceeding Rs. 10 million.

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2 views2 pages

Sample Income Tax

Mr. Salman Ahmed, a civil servant, has a total remuneration package including a basic salary, bonuses, and various allowances, amounting to a taxable income that needs to be assessed for tax liability for the fiscal year ending June 30, 2026. The document outlines the applicable tax rates for salaried individuals and provides a detailed breakdown of Mr. Ahmed's earnings and allowances. It also specifies the surcharge applicable for individuals with taxable income exceeding Rs. 10 million.

Uploaded by

zarlalaijax
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Mr.

Salman Ahmed is a civil servant currently serving in a department under the Federal
Government. For the fiscal year ending June 30, 2026, he has provided the following details of
his remuneration and benefits for the purpose of assessing his tax liability.
During the year, Mr. Ahmed earned a monthly Basic Salary of Rs. 55,000. In addition to his
regular pay, he received a Bonus equivalent to 4 months of his basic salary as per government
policy. To account for his professional duties, the government provided him with a Special
Allowance of Rs. 45,000 for the year.
Furthermore, his compensation package included specific utility and logistics support: he was
granted an Allowance for Gas and Electricity amounting to Rs. 18,000 and a House Rent
Allowance of Rs. 60,000 to assist with his residential costs. Finally, to facilitate his official and
personal mobility, he received a Conveyance Allowance totaling Rs. 15,000.
Required: Taking into account his status as a government employee and the prevailing tax laws
for the Tax Year 2026, calculate the Total Taxable Income & Tax Liability for Mr. Salman
Ahmed.
1. Tax rates and deductions from total income
(A) Tax rates for individuals and Association of Persons (AOP) for the Tax Year 2026:
Category 1 (for individual non-salaried case i.e. where taxable salary is nil or up to 75% of
taxable income and for AOP)

TAXABLE RATE OF TAX


INCOME
1. Up to Rs.600,000 0%

2. Rs.600,001 – Rs.1,200,000 15% of amount exceeding


Rs.600,000

3. Rs.1,200,001 – Rs.1,600,000 Rs.90,000 + 20% of amount


exceeding Rs.1,200,000

4. Rs.1,600,001 – Rs.3,200,000 Rs.170,000 + 30% of the amount


exceeding Rs.1,600,000

5. Rs.3,200,001 – Rs.5,600,000 Rs.650,000 + 40% of the amount


exceeding Rs.3,200,000

6. Over Rs.5,600,000 Rs.1,610,000 + 45% of the


amount exceeding Rs.5,600,000
In case of a professional firm
prohibited from incorporating by
any law or the rules of the body
regulating their profession, 45%
rate of tax mentioned against
serial number 6 shall be 40%.
Category 2 (for individual salaried case i.e. where taxable salary exceeds 75% of taxable
income)

TAXABLE RATE OF TAX


INCOME
1. Up to Rs.600,000 0%

2. Rs.600,001 – Rs.1,200,000 1% of the amount exceeding


Rs.600,000

3. Rs.1,200,001 – Rs.2,200,000 Rs.6,000 + 11% of the amount


exceeding Rs.1,200,000

4. Rs.2,200,001 – Rs.3,200,000 Rs.116,000 + 23% of the amount


exceeding Rs.2,200,000

5. Rs.3,200,001 – Rs.4,100,000 Rs.346,000 + 30% of the amount


exceeding Rs.3,200,000

6. Over Rs.4,100,000 Rs.616,000 + 35% of the amount


exceeding Rs.4,100,000

Surcharge: Surcharge @ 10% of income tax as above shall also be payable where taxable
income of an individual or AOP exceeds Rs.10 million (9% in case of an individual deriving
salary income) – section 4AB.

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