NAME: ONASHI DEVNANI

STUDENT ID: FA17-BBAH-0012

ASSIGNMENT 3
INCOME FROM SALARY
QUESTION 01: SAMIULLAH

COMPUTATION OF INCOME FROM SALARY:

BASIC SALARY 500,000
BONUS 80,000
ENTERTAINMENT ALLOWANCE 10,000
DEARNESS ALLOWANCE 180,000
HOUSE RENT ALLOWANCE 225,000
GRAUITY (APPROVED) FULLY EXEMPT
ENCASHMENT OF LEAVE 120,000
(A) TOTAL INCOME FROM SALARY 1,115,000

COMPUTATION OF INCOME FROM PROPERTY (STR):

AMOUNT CHARGEABLE:
RENTAL INCOME 240,000
SECURITY DEPOSIT (160000 / 10) 16,000
PROPERTY TAX PAID BY THE EMPLOYER 6,000
(B) INCOME FROM PROPERTY (STR) 262,000

COMPUTATION OF TAX LIABILTY (STR REGIME):

TAX ON RS 200000 0
ADD:TAX ON RS (262000-200000)*5% 3100
TOTAL TAX LIABILTY 3100
LESS: ADVANCE TAX PAID 0
TOTAL NET TAX LIABILITY PAYABLE 3100

(C) LESS: ZAKAT 8000

TOTAL TAXABLE INCOME (A-C) 1,107,000

COMPUTATION OF TAX LIABILITY

TAX ON RS. 600,000 0
TAX ON RS (1,107,000 - 600,000)*5% 25350
TOTAL TAX LIABILITY 25350
LESS: REBAT(TAXABLE INCOME IS > 1 MILLION 0
LESS: TAX CREDIT 0
LESS: ADVANCE TAX PAID 0
TOTAL NET TAX LIABILITY PAYABLE 25350
 QUESTION 02: MR.HABIB

COMPUTATION OF INCOME FROM SALARY:

BASIC SALARY 231,000
BONUS 20,000
FURNISHED ACCOMODATION (W-1) 110000
CONVEYANCE ALLOWANCE 19800
MEDICAL ALLOWANCE (W-2) 1900
UTILITY EXPENSES 26400
ENTERTAINMENT EXPENSES 13,200
TRAVELLING EXPENSES 187,000
LEAVE ENCASHMENT 27,500
(A) TOTAL INCOME FROM SALARY 636,800

COMPUTATION OF INCOME FROM PROPERTY (STR):

AMOUNT CHARGEABLE:
RENTAL INCOME 132000
(B) INCOME FROM PROPERTY (STR) 132000

TAXLABILITY: UPTO 200000 0% IS TAXABLE

(C) LESS: ZAKAT(11000+275) 11275

TOTAL TAXABLE INCOME (A-C) 625,525

COMPUTATION OF TAX LIABILITY

TAX ON RS. 600,000 0
TAX ON RS (625525 - 600,000)*5% 1276.25
TOTAL TAX LIABILITY 1276.25
LESS: REBAT 0
LESS: TAX CREDIT 0
LESS: ADVANCE TAX PAID 2000
TOTAL NET TAX LIABILITY refund -723.75

WORKINGS:
(W-1)
45%OF MTS OR BASIC SALARY (231000*45%) 103950
OR
FMV 110000
WHICHEVER IS HIGHER SO 110000

(W-2)
MEDICAL ALLOWANCE 25000
LESS: 10% OF BASIC SALARY 23100
TAXABLE AMOUNT 1900
 QUESTION 03: MR HASSAN

COMPUTATION OF INCOME FROM SALARY:

BASIC SALARY 500,000
HOUSE RENT ALLOWANCE 110,000
UTILITIES 25,700
ENTERTAINMENT ALLOWANCE 13,000
REIMBURSEMENT OF MEDICAL EXPENSE (FULLY EXEMPT) 0
CAR FOR BUSINESS USE ONLY (FULLY EXEMPT) 0
CAR FOR HIS FAMILY (300000*10%) 35,000
(A) TOTAL INCOME FROM SALARY 683,700

COMPUTATION OF INCOME FROM OTHER SOURCES:

ON PROFESSIONAL WRITER INCOME (27000/0.9) 30000
(B) TOTAL INCOME FROM OTHER SOURCES 30,000

(C) LESS: ZAKAT 10000

TOTAL TAXABLE INCOME (A+B-C) 703,700

COMPUTATION OF TAX LIABILITY

TAX ON RS. 600,000 0
TAX ON RS (703700 - 600,000)*5% 5185
TOTAL TAX LIABILITY 5185
LESS: REBAT (5185/703700*181740) 1,339
LESS: TAX CREDIT 0
LESS: ADVANCE TAX PAID (30000*0.1) 3000
TOTAL NET TAX LIABILITY PAYABLE 846
COMPUTATION OF TAX CREDIT:
1.      DONATIONS TO AN APPROVED INSTITUTE U/S 61.
a.      ACTUAL AMOUNT OF DONATIONS
b.      30% OF TAXABLE INCOME (20% IF COMPANY) (30% * 703700)

2.      DONATIONS TO APPROVED PENSION FUNDS.

a.      ACTUAL AMOUNT OF DONATIONS
b.      20% OF TAXABLE INCOME (20% * 703700)

3.      INVESTMENT IN PUBLIC LISTED CO. SHARES

a.      ACTUAL AMOUNT OF INVESTMENT
b.      20% OF TAXABLE INCOME. (20% * 703700)
c.       Rs.2,000,000.

3.      LIFE INSURANCE

a.      ACTUAL AMOUNT OF INVESTMENT
b.      20% OF TAXABLE INCOME. (20% * 703700)
c.       Rs.2,000,000.
TOTAL LESSOR AMOUNT ( THE VALUE OF C)
 15,000
211,110 15,000

12,000
140,740 12,000

14,000
140,740
2,000,000 14,000

300,000
140,740
2,000,000 140,740
UNT ( THE VALUE OF C) 181,740
 QUESTION 04: ABDUL REHMAN
COMPUTATION OF INCOME FROM SALARY:
BASIC SALARY 412500
HOUSE RENT ALLOWANCE 182800
UTILITIES 40600
LEAVE ENCASHMENT 50600
EMPLOYER'S CONTRIBUTION TO RECOGNIZED PF (W-1) 0
BONUS 82500
MEDICAL ALLOWANCE (W-2) 0
CAR FACILITY (1250000*5%) 62500
(A) TOTAL INCOME FROM SALARY 831,500

COMPUTATION OF INCOME FROM CAPITAL GAIN:

NET PROCEEDS 140000
TAXLABILITY: H.P > 1 YEAR 75%WILL BE TAXABLE.
CAPITAL GAIN (140000*75%) 105000
(B) TOTAL INCOME FROM CAPITAL GAIN 105,000

COMPUTATION OF INCOME FROM PROPERTY (STR):

AMOUNT CHARGEABLE:
RENTAL INCOME (40000*12) 480,000
SECURITY DEPOSIT (1000000 / 10) 100,000
(B) INCOME FROM PROPERTY (STR) 580,000

COMPUTATION OF TAX LIABILTY (STR REGIME):

TAX ON RS 200000 0
ADD:TAX ON RS (580000-200000)*5% 19000
TOTAL TAX LIABILTY 19000
LESS: ADVANCE TAX PAID 0
TOTAL NET TAX LIABILITY PAYABLE 19000

(C) LESS: ZAKAT 35000

TOTAL TAXABLE INCOME (A+B-C) 901,500

COMPUTATION OF TAX LIABILITY

TAX ON RS. 600,000 0
TAX ON RS (901500 - 600,000)*5% 15075
TOTAL TAX LIABILITY 15075
LESS: REBAT (15075/901500)*56000 936
LESS: TAX CREDIT 0
LESS: ADVANCE TAX PAID 26500
TOTAL NET TAX LIABILITY PAYABLE -12,361
COMPUTATION OF TAX CREDIT:
1.      DONATIONS TO AN APPROVED INSTITUTE U/S 61.
a.      ACTUAL AMOUNT OF DONATIONS
b.      30% OF TAXABLE INCOME (20% IF COMPANY) (30% * 901500)
TOTAL LESSOR AMOUNT ( THE VALUE OF C)
 56,000
270,450 56,000
UNT ( THE VALUE OF C) 56,000
 QUESTION 05: MR. AB

COMPUTATION OF INCOME FROM SALARY:

BASIC SALARY 700000
BONUS 100000
COLA 80000
RENT FREE ACCOMODATION (W-1) 315000
DEARNESS ALLOWANCE 100000
UTILITIES ALLOWANCE 80000
LEAVE ENCASHMENT 48000
LFA PROVIDED EVERY YEAR 118000
HOTEL BILLS PAID BY THE COMPANY 222000
EMPLOYER'S CONTRIBUTION TO RECOGNIZED PF (W-2) 0
INTEREST FREE LOAN (1300000*10%) 130000
CAR FACILITY (800000*5%) 40000
(A) TOTAL INCOME FROM SALARY 1,933,000

COMPUTATION OF INCOME FROM PROPERTY (STR):

AMOUNT CHARGEABLE:
RENTAL INCOME (15000*12) 180000
INCOME FROM PROPERTY (STR) 180000

TAXLABILITY: UPTO 200000 0% IS TAXABLE

COMPUTATION OF INCOME FROM CAPITAL GAIN (STR):

GAIN ON SALE OF LISTED CO. SHARES 60000

TAXLABILITY: 0% IS TAXABLE BECAUSE ACQUIRED BEFORE 30-6-2013

COMPUTATION OF INCOME FROM CAPITAL GAIN:

NET PROCEEDS 50000
TAXLABILITY: H.P > 1 YEAR 75%WILL BE TAXABLE.
CAPITAL GAIN (50000*75%) 37500
(B) TOTAL INCOME FROM CAPITAL GAIN 37,500

(C) LESS: ZAKAT 500

TOTAL TAXABLE INCOME (A+B-C) 1,970,000

COMPUTATION OF TAX LIABILITY

TAX ON RS. 1800,000 90000
TAX ON RS (1970000-1800,000)*15% 25500
TOTAL TAX LIABILITY 115500
LESS: REBAT 0
LESS: TAX CREDIT 0
LESS: ADVANCE TAX PAID 3000
TOTAL NET TAX LIABILITY PAYABLE 112,500
 WORKINGS:
(W-1)
RENT FREE ACCOMODATION
45% OF (MTS OR B.S) (700000*45%) 315000
OR
FMV 110000
WHICHEVER IS HIGHER SO 315000
(W-2)
EMPLOYER'S CONTRIBUTION TOWARDS PF (5250*12) 63000
LESS:EXEMPT THE LESSOR OF
RS.150000
OR
10% OF (B.S+D.A) (700000+100000)*10%=80000 80000
TAXABLE AMOUNT 0