Do you know?
Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. •
Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. •
Kindly advise if gratuity fund is approved by commissioner then bank profit will be exempt for withholding tax or not.
IF not then what can we do for exemption as this cost is free fund cost to fund account.
Gratuity Funds are not exempt from WHT in case of profit on debt.
Hello: For taxable gratuity, If we get gratuity from last employer after tax deduction in the same financial year and also tax deducted by the current employer on the taxable salary and benefits. However, if we add both amounts gratuity from last employer and amount from current employer in same financial year, tax slabs become high. So should we proceed to declare the same tax already deducted on gratuity and income from current employer or need to calculate on the consolidated amount which is very high?
Gratuity will be taxed seperately and will not be added in the annual salary.
what would be the tax rate in that case..i,e, if gratuity is calculated separately?
Average rate of tax will be applicable calculated via past 3 years income and tax paid thereon.
Assalam o Alaikum
I am working in a government organisation on Management Pay (MP) Scale. According to the MP scale policy, I am entitled for Gratuity equal to one basic pay for each completed year. Is this category of gratuity taxable or otherwise?
Either gratuity is taxable or not depends on whether the fund is approved or not. You may reach your employer for this to know about.
I’m working in a company as technical lead for 19 years . Next year is my retirement . I came to know that this company pays Gratuity on basis of basic salary of employees . i.e if last gross monthly salary is 100000 , then only 64000 are considered for Gratuity . Whereas laws cite that whole 100000 should be considered . What is your professional comment on this . How to deal with it as otherwise each outgoing employee will loose 36% in his termination benefit .
Gratuity calculations shall be done according to law and as per company policy as well.
Sir,
i am from Saif Textile Swabi Gadoon, Want to know How to tax Calculate on Gratuity if the employee resigned after 10 year and 5 months. and his salary is 70,000/-.
Gratuity calculation is done internally as per company policy and Gratuity Act.
Seek your employer for any such calculations.
AOA,
IF A COMPANY PAY GRATUITY TO WORKERS THROUGH A THIRD PARTY SERICES PROVIDER and third Party Services provider issue Sales tax invoice than can income and sales tax applicable or not
Walaikum Salam, If you are paying (anything for), service provider may ask for GST (against their service charges) and you’re liable to pay that. However your second question regarding income tax is unclear. As on the other hand, you being the payee are liable to withheld income tax (assuming if you’re WHT agent), then yes here the service provider is liable to pay WHT on income. However, this was my understanding to your question. If you were asking something else, please ask clearly.
Is gratuity paid on gross salary or basic salary. Any law that mandates that?
As per company policy, it is governed by Gratuity Act of 1972..
Can an employee, while in service, request for a loan from a funded gratuity account?
I work for an NGO where a gratuity fund has been approved. In this context, is the payment made to employees upon settlement fully exempt from tax?
Is there any possibility that the company (MNC) deduct tax amount every year on account of yearly incremental gratuity amount from Employee salary?
Payment in liu of leave is taxable?
yes
I am working in a INGO, gratuity is not approved fund. in this case how much gratuity will be tax exempted?
The exempt amount is the lesser of 50% of the gratuity received or PKR 75,000.
Can u plz elaborate this please, what u mean by lesser of 50% of the graduity or PKR 75,000.
What if the graduity is 5 million what will it mean here.
If Gratuity is 5m, then its 50% will be 2.5m. So find the lesser value between 2.5m and 75k which is 75k. Which means 75k will be exempt out of 5m. In short if Gratuity is more than 150,000 then only 75,000 rupees will be exempt.
In Approved Gratuity Fund case the entire amount is exempt from tax whether the amount is calculated as per Gross Salary or Basic Salary. Please advise.
If approved fund it will be exempt.
what is meant by approved gratuity fund, I am an employee of a MNC, we are getting gratuity would this be taxable or how can I check that our gratuity fund is approved. Also what tax rates applies on gratuity, it is normal income tax as we bear on salaries or there are another rates?
Your employer can update about Gratuity Fund Status whether Approved or not.
Yup taxed under salary rates if above threshold.
Aslamoalikom
I am Prof working at IUB. I am working on Tenure track system of HEC. I receive 13th salery each year as gratuity, because TTS system is pentionless.
I want to know, weather this gratuity is taxable or not?
if not please share the reference.
Walaikum Assalam,
Any gratuity received other than from approved gratuity fund is gonna be taxable, there are certain other exemptions available as mentioned.
If not approved Rs. 75,000 exemption available, any amount above that will be taxable.
Sir you are receiving 13 salary and it would be taxable in normal manner, as it does not comes under the definition of Gratuity, however being a teacher you can avail a full time teacher allowance and reduction in your overall tax liability
In case of any confusion you can contact me
Atif Nasir
03041490875