a) Sara owns some properties in Pakistan.

She bought a land few years ago and during this tax year
decided to sell it for Rs. 70 million to her friend. Miss Sara received security deposit of Rs.
500,000 but her friend backed off and hence the deposit was forfeited. During the year Miss
Sara incurred an expense of Rs. 80,000 for the land’s maintenance and paid an annual insurance
premium of Rs. 50,000 to protect it from damage.

b) Miss Sara owns a flat in an apartment in Clifton. The said property was rented out to Mr. Asad at
a rent of Rs. 175,000 per month. Mr. Asad left the premises on 31 January 2022. Mr. Asad had
paid a sum of Rs. 300,000 as un-adjustable advance in tax year 2018. Miss Sara returned the said
advance on his departure. The said property remained vacant in the month of February, 2022.
Thereafter Mr. Nasir took possession of the said property at a monthly rent of Rs. 230,000. New
tenant has paid a sum of Rs. 350,000 as security. Miss Sara incurred following expenses in
connection with the said rented property.

i) Insurance premium of Rs. 30,000 to guard against risk of damage or destruction.

ii) Miss Sara has employed Mr. Mehmood to administer and collect rent on her behalf. She
pays him a monthly salary of Rs. 25,000.
iii) Fee paid to lawyer during the tax year for drafting the rent agreement amounted to Rs.
80,000.
c) Miss Sara paid Zakat to her house help amounted to Rs. 50,000. Zakat of Rs. 70,000 was also
deducted at source under the Zakat and Usher Ordinance, 1980.
d) Miss Sara paid charitable donation of Rs. 80,000 in cash to an approved institution. She also
donated furniture with the fair market value of Rs. 130,000 to a hospital run by the local
government.
e) Miss Sara paid Rs. 350,000 on account of her son’s university fee.
f) Miss Sara has salary income of Rs. 2.5 million for tax year 2023.
g) She received dividend of Rs. 575,000 from a listed company. The amount was net off
withholding income tax @ 15% and zakat of Rs. 62,500 was deducted under the Zakat and Usher
Ordinance.
h) During the year, sara disposed of the following assets:
(a) A painting which she inherited from her father was sold for Rs. 1,250,000. The market value
of the painting at the time of inheritance was Rs. 1,550,000. The painting was purchased by her
father for Rs. 1,000,000.
(b) She sold jewellery for Rs. 2,300,000 which was purchased by her husband in March 2020 for
Rs.1,300,000 and gifted to her on the same date.
(c) On 20 October 2022 she sold a dining table to Faheem for Rs. 18,000, which she had
purchased on 15 May 2020 for Rs. 15,000 for her personal use.
(d) She sold shares of Himmat Ltd a listed company for Rs. 450,000 that she purchased on 30 th
June, 2021 for Rs. 130,000.
(e) She also sold shares of Asal Pvt Ltd. For Rs. 130,000 that she bought for Rs. 60,000 three
years ago.

Required:Compute total income, taxable income and tax liability of Sara for the tax year 2023.
Assume normal tax year.