Mr.
Khaled Hameed, General Manager of Puma Industries (Private) Limited has disclosed the following
for the year ended 30th June, 20x1.
Rs.
Basic salary 900,000
House rent allowance 360,000
Utilities 90,000
Entertainment allowance 20,000
Dividend from public company 36,000
Profit from profit & loss sharing bank account 7,935
Prize money from prize bonds 15,000
Rent income from open plot let out to an Oil Company for parking of their oil tankers. 36,000
Property tax on open plot 360
Collection charges 3,000
Company has provided a fully maintained car.
He has paid the following:
1) Zakat 10,000
2)Life insurance premium 30,000
3) Tax deducted at source on salary 20,000
Required:
Compute total income and tax payable for the Tax Year 20x1.
Question 2
Mr. Khawaja, the Managing Director of K Hi-Tech. Ltd. Karachi, has the following incomes:
Salary Rs. 800,000
Bonus 72,000
Performance award 28,000
Dividend Gross (Zakat Rs. 1,250 Income Tax Rs. 1,500) 10,000
House rent paid direct by the company to Landlord @ Rs. 12,000 p.m. 144,000
Income from poultry farm 25,000
Company has provided him two maintained cars. One is used exclusively for the company business and
the other one is used for Mr. Khawaja's family with cost of Rs. 400,000. Mr. Khawaja paid the followings:
Life Insurance, 10,000
Accident insurance 3,000
Donation to an approved charity organization 10,000
Zakat paid 10,000
Provident fund contribution 27,500
Tax deducted at source by the company 5,000
Required:
Prepare in proper format computations of taxable income and tax liability for 2001.
Question 3
Based on the information stated below, prepare the information for the purpose of tax return of
'A' who derives income from various sources.
a) Income from articles writing. 90,000
b) Net of tax deduction credit by the bank as interest on bank deposit.45,000
Income from property let out in September 20x1 @ Rs. 10,000 per month, repairs of which are to be
borne by the tenant under the agreement. Other information are as below:
property tax paid 5,000
water charges 2,000
telephone expenses prior to letting out 3,500
electricity bills paid prior to letting out 10,000
tax advisory fee paid 5,000
d) ½ share of accounting profit received from a joint venture between :
Mr. 'A' and M/s. B (Private) Limited. 500,000
i) the joint venture has an unapproved gratuity scheme for which payments made during the year was
Rs. 50,000 as against the provision of Rs. 45,000.
ii) the joint venture made a provision for deferred taxation in its books at Rs. 25,000.
ill) the bad debts not recovered Rs. 50,000, which were written off in the books but not allowed as
admitted expense in tax.
iv) the joint venture had acquired assets on finance loan, the lease payments were Rs. 40,000 as against
the financial charges of Rs. 8,000.
Question 4:
Given below is the information in respect of Mr. A and Mr. B for tax year 20x1.
Mr. A Mr. B
Employee of a Company Employee of a Registered
Salary Income: Rs. Firm Rs.
Basic Salary 600,000 300,000
House rent allowance 300,000 135,000
Utilities allowance 75,000 30,000
Bonus 100,000 50,000.
Conveyance allowance ---- 12,000
Company car provided used for 500,000 ----
business and private purpose with
cost
Employer's contribution to approved 50,000 25,000
Provident Fund
Other Income:
Dividends ---- 50,000
Rent from property (ALV 150,000). 125,000
Property remained vacant for two
months.
Capital gains / (capital loss) on sale of 50,000 (20,000)
shares of public listed companies.
Other information:
Zakat deducted / paid 25,000 10,000
Investment made in NDSCs. 50,000 ----
Investment made in shares of a ---- 30,000
public listed company
Required: Compute tax liability in both cases.
