This document discusses taxation in Pakistan. It defines tax rates as the percentage at which individuals and corporations are taxed by the federal government and some states, based on taxable income. It explains that income is categorized into tax slabs that are taxed at different rates. It outlines the taxation of individuals as salaried persons and non-salaried/association of persons. For companies, it notes they are separate legal entities from shareholders and taxed separately. It provides income tax slabs for salaried individuals, non-salaried/AOPs, and companies, and gives a numerical example calculating tax liability.

1. TAX MANAGEMENT
PRESENTED BY:
ABDULLAH SOHAIL
SUNDUS SALEEM
M. SAAD NASIR

2. WHAT IS TAX RATE?
▪ percentage at which an individual or corporation is taxed.
▪ imposed by the federal government and some states.
▪ based on an individual's taxable income or a corporation's earnings.

3. Tax SLABS
▪ Under the tax structure, income is categorized into different groups and the criteria.
▪ Each such group is known as Tax Slab.
▪ Tax is charged at different rates on the range of income falling under different tax slabs.

4. TAXATION OF PERSONS
▪ Salaried person
▪ Non salaried / AOP
▪ COMPANY

5. TAXATION OF INDIVIDUALS
▪ SALARIED PERSONS
▪ NON SALARIED/ AOP

6. Salaried Person
▪ SALARIED INDIVIDUALS (I-e., a person whose salary income
exceeds 50% of his taxable income for the tax year)

7. Non salaried/ aop’s
▪ Non-salaried individuals (i-e., all individuals other tan the salaried person)
▪ Term (Aop) includes the following person
1) a firm
2 )a Hindu un dividend family
3 )artificial juridical person (AJP)
4 )any body of persons formed under a foreign law
▪ How ever a company is not include in the association of persons . In other words al artificial legal persons other
then a company (as defined in the income tax ordinance) shall treated as association of persons.

8. Cont….
▪ Computation of taxable income under both cases is almost the same. It means the same rules
are applicable to both types of individuals. However, the tax rates for salaried individual are
different from those applicable to a non-salaried taxpayer.

9. ▪ Company
▪ Company is a separate legal entity distinct from its members (i-e., share holders). Thus the
tax liability of the company and its members shell be determined separately and each of
them shell be liable for its own tax liability. The income of a company shell be charged to tax
in the light of following principles
▪ 1) taxable income ( other than dividend income ) shall be computed and treated as per
normal procedure. Income tax under normal tax regime .
2) The dividend income received by the company shall be treated as separate block of income.
TAXATION OF Companies

10. Types of company
▪ Small company
▪ Private company
▪ Public company

11. Income Tax slab for salaried person

12. Income Tax slab for non salaried/AOP’s

13. Income Tax slab for COMPANIES

14. Numerical question
▪ Suppose Mr. ad has salary income of 500,000 and he received 200,000 from other source
find its tax liability
▪ Suppose ABC Company is a (private, public and a small company) and its taxable income is
1,000,000 find its tax liability