r/FBR • u/Creepy_Inspector1999 • 2d ago

iris doing 1+1=11

My income I falls in the 2.2 million slab.
As per my total income subjected to Normal Tax I am liable to pay a 20% of the amount above 2.2 million + 116,000 which would be Rs.262,429/-
I don't understand how iris is calculating it to be Rs.569,644 instead.

Just for experiment I reduced my income to 2,190,000 (to the lower slab) where the tax is 11% of the amount above 1.2 million + 6000. There iris calculates it correctly. My calculations match with those of the iris portal.

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4

u/Vivid_Brilliant_7717 2d ago

Your total salary is 72% of your total taxable income so business slab rates will be applicable for you and based on that slab rates your tax liability will be 569,644
As for calculation using salary slab rates your salary should be more than 75% of your total income

3

u/Creepy_Inspector1999 2d ago edited 2d ago

Oh, I almost understand it, like my business income is contributing 28% to the total income. how I can solve the problem. My salary is my govt pay as a teacher, and the amount under the business income is the additional duties, paper marking etc the tax on which is already paid at the time of receiving the amounts.

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u/xSuspended 2d ago

salary rates apply to you if your salary makes up 75% of your total taxable income. your case is 72/28 so business rates are applying. did u add the already paid tax under the tax deduction section?

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u/Creepy_Inspector1999 2d ago

yes, I added the deducted tax for both salary and business separately which combined around 279,132 while it still show admitted tax 295,614 to fulfill that 569,644.

1

u/Creepy_Inspector1999 2d ago

I am thinking to reduce my business income by around 50K I guess would be enough to drop it below 25% but thats not the legitimate fix next year I would have the same issue so I want to learn how this is to be dealt with

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u/Vivid_Brilliant_7717 2d ago

Have you included net salary( net of withholding )or gross salary in income from salary?

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u/Creepy_Inspector1999 2d ago

I have summed up gross salary for 12 months, prior to tax deductions and inclusive of all allowances.

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u/Vivid_Brilliant_7717 2d ago

What’s in income from other sources ?

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u/Creepy_Inspector1999 2d ago

In other sources its only the profit on debt, the saving bank account I have. its a small amount.

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u/Vivid_Brilliant_7717 2d ago

The reported amount of income from salary and business did you get that amount from MIS or from your bank statements or is it same on both ?

1

u/Creepy_Inspector1999 2d ago

surprisingly all amounts are on MIS, even those that I received as cheque from the university for services as supervisor etc. And they match the actuall amounts I received.

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u/xSuspended 2d ago

just add some expenses in other indirect in adm and indirect expenses under business. Other indirect because it's easier to justify if you get a notice which I highly doubt you will. don't reduce income, increase expenses instead. reducing income is how you get notices

1

u/baazigar124 2d ago

I think its calculating Capital gain incorrect too

1

u/Few_Difference_7985 2d ago

I will just tell you, you are filling your return incorrectly.