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    Mian Asim
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    The document calculates net income, taxable income, and tax liability for XYZ. It shows sales of 1,510,000 with an additional 200,000 for total sales of 1,710,000. Net income is calculated at 109,000. Taxable income is 149,000 after adding inadmissible expenses such as salaries and entertainment. The total tax liability for XYZ is 37,250. The divisible income among partners X, Y, and Z is calculated.

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    The document calculates net income, taxable income, and tax liability for XYZ. It shows sales of 1,510,000 with an additional 200,000 for total sales of 1,710,000. Net income is calculated at 109,000. Taxable income is 149,000 after adding inadmissible expenses such as salaries and entertainment. The total tax liability for XYZ is 37,250. The divisible income among partners X, Y, and Z is calculated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    21 views2 pages

    Taxation

    Uploaded by

    Mian Asim
    The document calculates net income, taxable income, and tax liability for XYZ. It shows sales of 1,510,000 with an additional 200,000 for total sales of 1,710,000. Net income is calculated at 109,000. Taxable income is 149,000 after adding inadmissible expenses such as salaries and entertainment. The total tax liability for XYZ is 37,250. The divisible income among partners X, Y, and Z is calculated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    CALCULATION OF NET INCOME

    Sales 1,510,000

    Additional sale 200,000

    1,710,000

    History of GP rate is= 1,710,000 * 10% = 171,000, 171,000-70,000= 101,000+8000=109,000

    Net income= 109,000

    Name: XYZ

    NTN#: XXX

    Tax Year Ended: 30th June, 2010

    Tax Year: 2010

    Personal Status: AOP

    Residential Status: Resident

    Computation of Taxable Income and Tax Liability

    RS. RS.

    Net income 109,000

    Add Inadmissible Expenses

    Salaries To X 10,000

    Y 10,000

    Z 10,000

    Income Tax 5000

    Entertainment 5000 40,000


    Taxable Income 149,000

    Tax Liability of the Firm: Tax on Rs 149,000@25% 37,250

    Divisible Income of the Firm

    Total Income 149,000

    Less: Tax Liability of AOP 37,250

    111,750

    TOTAL INCOME OF THE PARTNERS X Y Z

    Rs. Rs. Rs.

    Salaries 10,000 10,000 10,000

    Share Form Divisible Profit (1/3rd of Rs.111, 750) 37,250 37,250 37,250

    Total 47,250 47,250 47,250

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