Fin623 Assignment No. 2 solution
Thursday, January 13, 2011 Posted In Fin Edit ThisThe income tax assignment No. 2 last date is 12 Jan, 2011..
The assignment attached. please send the answer.
Question:
From the following particulars given by Mr. X, an officer in the Ministry of Trade, calculate the taxable income and tax payable by him in respect of the year ended on June 30, 2010.
1. Basic salary Rs. 120,000
2. He has been provided with the rent-free furnished accommodation with annual value of Rs. 60,000
3. He has been given a car by his employer and Rs. 1,000 per month to meet the running costs, etc. he can take that car home as well.
4. He is provided one free Karachi-London and back air ticket every year. During the year he received Rs. 17,000 in this respect.
5. Leave encashment paid to him Rs. 10,000.
6. He has let out his house at Rs. 3,000 per month. The tenant has left without paying rent for two months, which could not be recovered despite the best efforts.
7. He claims the following payments including Rs. 400 as Zakat deposited in Zakat fund.
Property tax Rs. 6,000 Fire Insurance Rs. 1,000
Corporation tax Rs. 5,000 Income tax deducted Rs. 3,000
Books purchased Rs. 5,000 Life Insurance Premium Rs. 6,000
8. The following amounts were received:
Dividend from NIT units (Zakat Rs. 1,000) 8,000
Dividend from XY (Pvt.) Ltd. (Zakat Rs. 600) 3,000
9. The life policy has Rs. 50,000 sum insured and the employee contributes one month’s basic salary to the Recognized Provident Fund.
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solution:
Salary 120,000
House rent 60,000
Car maintentance allowance 12,000
Leave encashement 10,000
Taxable income (Salaried ) 212,000/-
Taxable payable on Salaried Income: 212,000 . 5% = 10,600/-
Tax 5% as Page 287 of IT ordinance 2010-11.
Income from Rent of House 36,000/-
Tax 0% as IT ordinance 2010-11.
Entertainment Air Ticket allowance 17,000/-
Dividend from NIT 8,000
Dividend from XY company 3,000
Tax 0% as IT ordinance 2010-11.
Total Income: 64,000/-
Tax 0% as IT ordinance 2010-11.
Grand Total Income 266,000
Tax Payable 10,600 0
Net Income 255,400 0
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solution:
Salary 120,000
House rent 60,000
Car maintentance allowance 12,000
Leave encashement 10,000
Taxable income (Salaried ) 212,000/-
Taxable payable on Salaried Income: 212,000 . 5% = 10,600/-
Tax 5% as Page 287 of IT ordinance 2010-11.
Income from Rent of House 36,000/-
Tax 0% as IT ordinance 2010-11.
Entertainment Air Ticket allowance 17,000/-
Dividend from NIT 8,000
Dividend from XY company 3,000
Tax 0% as IT ordinance 2010-11.
Total Income: 64,000/-
Tax 0% as IT ordinance 2010-11.
Grand Total Income 266,000
Tax Payable 10,600 0
Net Income 255,400 0
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