Question A.

Mr. Ameer has the following information for the FY 2024:

(a) Basic salary 4,004,520

(b) Bonus 1,980,642

(c) Utility allowance 400,452

(d) Leave encashment 538,083

(e) Other allowance 90,000

(f) House rent allowance 1,802,040

Apart from the above, he is eligible to receive gross Director's Fee of Rs.52,000. The company has paid
the amount after deduction of tax @ 20%.

During the year he has sold shares that were acquired through exercise of a 'Stock Option' three years
ago. The gain on sale amounts to Rs. 4,206,000.

He also owns a property which has been let out on rent. The details of rent received and expenses
incurred are as follows:

(a) Rent Rs.40,000 per month. The property was let out on rent for the whole year. The annual letting
value of the house is Rs.450,000. No income tax was deducted by the tenant.

(b) He has paid property tax amounting to Rs.11,500.

c) During the year he has paid Rs.6,000 for repairs and maintenance.

During the year the following amounts were withheld at source towards income tax:

(a) From salary income Rs.1,200,000 other than director's fee.

You are required to compute the taxable income and tax liability for the TY2024.
Question B.

Ms. FH was working as a Head of Department in Consumer Products Limited, with the following
benefits:

Basic salary Rs.100,000 per month

Utilities allowance Rs.40,000 per month
House rent allowance Rs.15,000 per month

She has been also provided with a Latest car of Honda exclusively for Official Use. During the year the
WDV of Rs: 100,000 whereas the FMV is 300,000.

In May 2024 FH was approached by Pharma Industries (Pvt) Ltd (PIL). They offered her employment at a
higher salary and some extra benefits which Ms. FH accepted on 1.6.2024 with one time payment of
200,000. She Joined PIL from 1.7.2024. The amount of Rs.200,000 paid at the time of acceptance.

During the year, Ms. FH has also undertaken the following transactions:

⁃ Shares in Queens Pakistan (Pvt) Ltd were sold for Rs.500,000. These shares were
acquired in the year 2020 at a cost of Rs.200,000.

-A residential plot inherited on 30.4.2023 was sold for Rs.1,000,000 on 15.6.2024. The original

cost of the plot in the hands of the transferor was Rs.200,000.

⁃ A painting purchased at a cost of Rs.100,000 was sold for Rs.75,000.

⁃ She had 30 acres of agricultural land in Dheer which she don’t cultivate herself. During
2024 she received annual rent of Rs.600,000 from the tenant cultivating the land.

⁃ On 1.5.2024 she spent Rs. 800,000 on the renovation of herhouse. The entire amount
was obtained as a loan from a scheduled bank on which a profit of Rs.20,000 was paid to the bank
during the tax year 2024.

⁃ (iv) On 15.6.2024 she received insurance claim of Rs.6 lac against theft of a painting
which was stolen on 31.5.2022. The painting was purchased by her on 1.1.2021 for Rs.350,000. She had
paid insurance premium of Rs.24,000 and also paid lawyer's fee of Rs.50,000 who represented her in
settlement proceedings.

⁃ On 15.7.2023 she received 20,000 shares in AB (Private) Ltd (ABL, a company under the
Companies Act, 2017 as a dividend in specie. On 30.6.2024 she sold 15,000 shares in ABL for Rs.425,000.
The fair market value of these shares, on the date of issue, was estimated at Rs. 25 per share.

⁃ Required: Under the provisions of Income Tax Ordinance, 2001 compute the taxable
income and neta payable for the tax year 2024. Give brief reasons for the treatment of items above As
explain the treatment of any items that are not appearing in your computation.