Smart Salary Planning: How to Save Tax with Medical Allowance in Pakistan

💼 How to Save Tax with Medical Allowance in Pakistan Every salaried person in Pakistan unknowingly pays thousands of rupees extra in taxes every year — just because they don’t know about the Medical Allowance exemption under the Income Tax Ordinance! In this video, IRA Tax Consultants explains how you can legally save up to 10% tax on your salary simply by structuring your salary package the right way. Whether you’re an employee, HR professional, or a business owner, understanding this concept can help you or your staff reduce tax liability without breaking any law. 👇 Here’s what you’ll learn in this video: ✅ What is Medical Allowance under Pakistan’s Income Tax Ordinance ✅ How up to 10% of your salary can be legally exempt from tax ✅ A real-life salary example with complete tax-saving calculation ✅ How to document your medical allowance properly for FBR ✅ The best way to design your salary package for maximum savings ✅ Common mistakes employees make while filing tax returns ✅ How to respond if FBR questions your medical allowance claim 💡 Example from the video: If your basic salary is Rs. 200,000 per month, and you include Rs. 20,000 as Medical Allowance, this portion is completely tax-free. That means your taxable income is reduced — and you can save Rs. 24,000 or more every year without doing anything illegal. 🔍 Why Documentation Matters: Make sure your salary slip clearly shows Medical Allowance separately. Keep receipts or medical bills (even basic ones) ready, so if FBR audits or sends a notice, you can respond confidently. 🧾 Other Salary Structuring Tips: Besides Medical Allowance, employees can also use Conveyance Allowance, Provident Fund, and other legal exemptions to reduce their tax load. But the Medical Allowance remains one of the simplest and most powerful tools for every salaried person. 💬 About IRA Tax Consultants: We are Pakistan’s trusted tax advisory firm helping individuals and businesses with: • Income & Sales Tax Filing • Salary Structuring and Tax Planning • FBR Audit Handling & Compliance • Business Registration & Corporate Advisory 📞 Need professional help? Contact IRA Tax Consultants today to get your salary package reviewed and optimized for maximum legal savings. 🌐www.ira-consltants.com 🎯 Don’t Let FBR Take More Than It Should! Start saving today — legally and smartly. 🔔 Subscribe to our channel IRA Tax Consultants for more weekly videos on: • Tax Filing Tips • Salary & Allowance Exemptions • FBR Updates • Business & Corporate Law Simplified 💬 Drop your questions in the comments — we respond to every genuine query!