Assignment no 02

Business Law And Taxation

Student name: Tauraira Arshad

Student Id: 16320

SOLUTION:
TAX PAYER: MR. Haseeb Malik

INCOME YEAR: 2019-20

ASSSMENT YEAR: 2020-21

RESIDENTAL STATUS: Resident

Computation Of Total And Taxable Income And Tax Liability:

Total Taxable
INCOME FROM SALARY Income Income
Basic salary (60,000 x 12) 720,000 720,000
Bonus (60,000 x 1.5) 90,000 90,000
Dearness allowance 20,000 20,000
Cost of living allowance 120,000 120,000
Annual rental value (180,000)
Or 45% of MTS (270,000)
Whichever is higher 270,000 270,000
Conveyance (1,200,000 x 5%) 60,000 60,000
Medical allowance 10% of basic salary (720,000 x 10%) = 72,000 x 12 = 864,000
Less: 10% of basic salary (720,000 x 10%) = (72,000) 792,000
Medical reimbursement exempt exempt
Travelling allowance (5000 x 12) 60,000 60,000
Utilities allowance (1500 x 12) 18,000 18,000
TOTAL 2,222,000 2,150,000
INCOME FROM BUSNIESS AND PROFESSIONS
Profit from registered firm 20,0000 20,000
INCOME FROM OTHER SOURCES
Gifts Received from mother 80,000 exempt
Profit from P&L a/c 50,000 ------
TOTAL 2,372,000 2,170,000
LESS: Zakat (20,000) (20,000)
Donation to Bait-Ul-Maal (12,000) (12,000)
TOTAL 2,340,000 2,138,000

Calculation Of Tax Liability:

SOLUTION:

= 90,000 + 15% (2,150,000 – 1,800,000)

= 90,000 + 15% (350,000)

= 90,000 + 52500

= 142500