BSAF 5 – Taxation – Fall 2022 Assignment no.

Question no. 01:-

Ahmer Ghazi has been working as director production in Delta Pakistan Limited (DPL)
for last three years. He received following monthly emoluments from DPL during the
year ended 30 June 2022.

Basic Salary - Rs 650,000

House Rent Allowance - Rs 95,000

Medical Allowance - Rs 70,000

(i). Health insurance for him and his family members. The amount of annual premium
paid by DPL was Rs. 50,000

(ii). Return air ticket for Dubai worth Rs. 180,000 for him and his family as a reward for
achieving the production target

(iii). Loan of Rs. 5 million was given to him on 1 August 2021 at 6% per annum

(iv). Withholding tax of Rs. 1,500,000 deducted from his salary was reimbursed to him

(v). On 30 October 2020 Ahmer Ghazi let out his apartment at a monthly rent of Rs.
30,000 to his friend. The fair market rent of the apartment is Rs. 40,000 per month

(vi). He is a part time singer and earned Rs. 225,000 by allowing a private TV channel
to use his song in a TV drama.

Required:
Under the provisions of the Income Tax Ordinance, 2001 and Rules made thereunder,
compute the following for the year ended 30 June 2022.
a. Total income
b. Taxable income
c. Net tax payable or refundable

Date to Submit: December 24, 2022 at 11:10 AM

BSAF 5 – Taxation – Fall 2022 Assignment no. 2

Question no. 02:-

Taqi Ahmed is working as Director Marketing with Zee Textiles Limited (ZTL) for the last
twenty five years. Details of his monthly emoluments during the year ended 30 June
2022 are as under:

Basic Salary - Rs 440,000

Conveyance Allowance - Rs 44,000

Medical Allowance - Rs 44,000

In addition to the above, Taqi Ahmed has provided the following information:

(i). He and his family members are covered under the health insurance policy in accord
ance with the terms of employment. The amount of annual premium paid by ZTL was Rs.
200,000.

(ii). During the year, daily allowance of Rs. 400,000 was received to meet the expenses
for working on a assignments at ZTL’s factories located in Lahore and Multan.

(iii). On 31 July 2022, the HR Committee approved a performance bonus for all employe
es for the year ended 30 June 2022. Taqi received Rs. 1,200,000 as performance bonus
on 15 August 2022.

(iv). On 31 March 2022, in recognition of completion of twenty five years of his service w
ith ZTL, the board of directors approved to waive the outstanding amount of loan taken
by Taqi Ahmed. This interest free loan of Rs. 2,500,000 was taken on 1 January 2019
and was repayable in fifty equal monthly instalments commencing from May 2019. The
prescribed benchmark rate is 10% per annum.

(v). During the year, he received Rs. 100,000 for attending board meetings of ZTL. No t
ax was withheld from this amount.

vi). Amount of tax withheld by ZTL from his salary amounted to Rs. 2,000,000.

Other information relevant to tax year 2022 is as under:

(i) Salary is transferred to the bank account on 10th of the following month.

Date to Submit: December 24, 2022 at 11:10 AM

BSAF 5 – Taxation – Fall 2022 Assignment no. 2

(ii) 10% annual increase was given to him effective 1st July in each of the last three years.

(iii) Taqi has given his house on rent to his cousin at annual rent of Rs. 1,500,000. The
rent was inclusive of amenities and utilities of Rs. 25,000 per month. However, annual
rent for a similar house with same amenities and utilities, in the vicinity, is Rs. 1,800,000.

Required:

Under the provisions of the Income Tax Ordinance, 2001 and Rules made thereunder,
compute under correct head of income, the total income, the taxable income and net tax
payable by or refundable to Taqi Ahmed for the year ended 30 June 2022.

Date to Submit: December 24, 2022 at 11:10 AM