Assignment

Laiba Tufail Malik

Fa18-baf-005

Please determined Tax Liability on Taxable Income for the Tax Year 2020 in
following cases.

1- 500,000   
Solution: this income comes under the first slab i.e. salary is not exceeding 600,000 so
there will be no tax on the salary.

2- 1,300,000
Solution: this income comes under third slab so the tax on income will be 30000 + 10%
on the amount exceeding 1,200,000
So, 10% of 100,000 = 10,000
Total tax = 10,000+30,000
= 40,000

3- 5,000,000
Solution: this income comes under sixth slab so the tax on income will be 370,000 +
20% of the amount exceeding 3,500,000
So, 20% of 1,500,000 = 300,000
Total tax = 300,000 + 370,000
= 670,000

4-  7,000,0000 
Solution: this income comes under seventh slab so the tax on income will be 670,000 +
22.5% of the amount exceeding 5,000,000
So, 22.5% of 2,000,000 = 450,000
Total tax = 450,000 + 670,000
= 1,120,000

5- 9,000,000
Solution: this income comes under eight slabs so the tax on income will be 1,345,000 +
25% 0f the amount exceeding 8,000,000
So, 25% of 1,000,000 = 250,000
Total tax = 250,000 + 1,345,000
=13,700,000
6- 12,000,000
Solution: this income also comes under eight slabs so pervious procedure will be
followed
So, 25% of 4,000,000 = 1,000,000
Total tax = 1,000,000 + 1,345,000
= 2,345,000