Scribd
Upload
100 views

Ahmad Maths

1. The employee's basic salary is Rs. 20,000. Allowances are 50% of basic salary, or Rs. 10,000. Gross salary is Rs. 30,000. Taxable income does not include allowances. 2. Company costs for leaves, group insurance, and social benefits on the Rs. 30,000 gross salary total Rs. 8,700 annually or Rs. 725 monthly. 3. Employee savings of Rs. 1,818 each are deducted monthly for provident fund and gratuity, based on 11% of the basic salary. 4. Gross remuneration includes all monetary payments and benefits from employment, totaling Rs. 34,361 for this salary package

Uploaded by

Khawaja Taimoor
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
100 views

Ahmad Maths

1. The employee's basic salary is Rs. 20,000. Allowances are 50% of basic salary, or Rs. 10,000. Gross salary is Rs. 30,000. Taxable income does not include allowances. 2. Company costs for leaves, group insurance, and social benefits on the Rs. 30,000 gross salary total Rs. 8,700 annually or Rs. 725 monthly. 3. Employee savings of Rs. 1,818 each are deducted monthly for provident fund and gratuity, based on 11% of the basic salary. 4. Gross remuneration includes all monetary payments and benefits from employment, totaling Rs. 34,361 for this salary package

Uploaded by

Khawaja Taimoor
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
You are on page 1/ 3

Assignsment # 1 MTH 302

Name: Ahmad Ali Rasheed


Student ID: BC200406760
Question: 1
The basic salary of an employee is 20,000 find the following for this salary.
(a) Calculate the allowances, if allowances are 50% of the basic salary. What is the taxable
income of employee? Also find gross salary?
BASIC SALARY=20,000

Allowance =?

If allowance is 50% of the basic salary


Allowance = 50%×20,000
Allowance = 50/100×20,000
Allowance = 1/2×20,000
Allowance = 20,000/2
Allowance = 10,000
TAXABLE INCOME OF EMPLOYEE =?
Accordance to taxation rule, if the allowance is 50% of the basic salary the amount is treated
as tax-free.
GROSS SALARY=?
Gross salary = Allowance + Basic salary
Gross salary = 10,000 + 20,000
Gross salary = 30,000
(b) What is the cost of the company on account of leaves (18.2%), group insurance/medical
(5%) and other social benefits (5.8%)?
COST OF LEAVES =?
Cost of leaves = 18.2% of the gross salary
Cost of leaves = 18.2%×30,000
Cost of leaves = 18.2/100×30,000
Cost of leaves = 0.182×30,000
Cost of leaves = 5460
GROUP INSURANCE =?
Group insurance = 5%×gross salary
Group insurance = 5%×30,000
Group insurance = 5/100×30,000
Group insurance = 1/20×30,000
Group insurance = 30,000/20
Group insurance = 1,500
SOCIAL BENEFITS =?
Social benefits = 5.8%×gross salary
Social benefits = 5.8%30,000
Social benefits = 5.8/100×30,000
Social benefits = 0.058×30,000
Social benefits = 1740
TOTAL MONTHLY SOCIAL BENEFITS =?
Total monthly social benefits = cost of leaves +group insurance +social benefits
Total monthly social benefits = 5,460 = 1,500+1,740/12
Total monthly social benefits = 8,700/12
Total monthly social benefits = 725
(c) What is the total saving of the employees per month on account of provident trust fund
and Gratuity?
PROVIDENT FUND =?
Provident fund = 1/11 of the basic salary
Provident fund = 1/11×20,000
Provident fund = 20,000/11
Provident fund = 1.818
GRATUITY =?
Gratuity = 1/11 of the basic salary
Gratuity = 1/11×20,000
Gratuity = 20,000/11
Gratuity = 1,818
(d) Define the Gross Remuneration and also find Gross Remuneration for the above salary
package?
Gross Remuneration is all monies paid to you or deemed to have been paid to you as an
allowance or advance or in the form of a benefit as a result of your employment.
GROSS REMUNERATION=?

Gross remuneration = Allowance + Basic Salary + Total Social Benefits + Provident Fund +
Gratuity.
Gross remuneration = 10,000+20,000+725+1,818+1,818
Gross remuneration = 34,361
THE END

You might also like