Q1

Dr. Sami, a medical practitioner, has taxable profit of Rs. 3,250,000 for the year ending 30 th June 2020.
These profits are after all tax adjustment except for tax depreciation. Tax depreciation has not been
charged to the profit.

Sami had purchased a car (car-1) costing Rs. 3,500,000 on 1 st July 2015. He sold the car for Rs. 2,400,000
on 15th July 2020, and purchased another car (car-2) for Rs. 3,200,000. He estimates both cars are 40%
used for personal purposes.

Sami had purchased a laptop (laptop-1) for 60,000 on 1 st January 2016. He sold the laptop for Rs. 20,000
on 30th April 2020, and bought a new laptop for Rs. 50,000. He estimates both laptops are 75% used for
business purposes.

Sami has purchased shares from IPO on 15 th December 2019 costing Rs. 500,000.

Required: Tax payable for the tax year 2020 for Dr. Sami.

Q2.

Dr. Amir, a medical practitioner, furnishes the following receipt and payment account for the period
from 1st July 2019 to 30th June 2020:

Payment Rs. Receipts Rs.

Rent of Clinic 240,000 Consultation fee 1,750,000
House-hold expenses 996,000 Visiting fee 650,000
Purchase of car 1,200,000 Rental income 900,000
Purchase of medical equipment 400,000 Gifts from patients 50,000
Salary to assistant 180,000
Advance income tax 60,000
Car Exp. (running & maintenance) 220,000
Property tax 12,000
Depreciation of car 240,000
Stationery expense 5,000
Utilities bill of the clinic 85,000
Donation paid 50,000

Notes:
1. Dr. Amir estimates 60% of his use of car is for business purposes.
2. Rental income relates to personal flat of Dr. Amir that has been given on monthly rent of Rs.
50,000 for a term of 15 years starting from 1 st July 2019. Dr. Amir received a non-adjustable
deposit of Rs. 300,000 received at the start of lease term.
3. Gifts from patients includes cash gifts from 5 patients of Rs. 10,000 each.
4. Assistant is paid a salary of Rs. 15,000 in cash every month.
5. Property tax is paid on annual basis for the personal flat (see note 2).
6. Donation was paid on 1st January 2020 to a charity listed in 2 nd schedule.
7. Dr. Amir uses cash basis of accounting.
Required: Tax payable for the tax year 2020 for Dr. Amir