HomeworkLib
Question

Taxation

Mr. Samiullah had been working as Assistant Manager Marketing for last 15 years in M/s. Moonlight Limited, a public limited company. In addition to salary, perks and allowances given to him by the company, he has various other sources of income. Assume that Mr. Samiullah is 62 years old and has been retired from the company services on June 30, 2019. You are his Tax Consultant. He has submitted the following information for the tax year ended June 30, 2019 in order to seek your advice in respect of the calculation of his taxable income and tax liability.
Rupees
A. i) Basic salary per annum 500,000 500,000
ii) Perquisites and allowances paid by the employer:
Bonus 80,000
Entertainment allowance 10,000
Dearness allowance 180,000
House rent allowance 225,000
Gratuity (scheme approved by FBR) 625,000
Encashment of leave preparatory to retirement 120,000
B. Property Income:
Mr. Samiullah rented his house @ Rs. 12,000 per month w.e.f 1st July, 2018. He received a deposit of Rs.150,000, not adjustable against rent, out of which he refunded Rs.75,000 to previous tenant, who vacated the house after 3 years' occupancy. Tenant also paid property tax of Rs. 6,000 as per lease agreement. Assume that Mr. Samiullah claimed the following expenditures for the year ended 30th June, 2019.
Rupees Rupees
Interest on borrowed capital 7,000
Insurance premium paid to cover the risk for property damage 10,000
Repair and maintenance expenses 25,000
C. Other information
Share from unregistered firm (AOP) 20,000
D. Zakat deducted at source 8,000
Required: (20)
Calculate taxable income and tax liability of Mr. Samiullah for the year ended June, 30, 2019.

(kindly solve in the context of pakistan)


0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 9 more requests to produce the answer.

1 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Taxation
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Calculate taxable income and tax liability

    Mr. Haris, a non-resident of Pakistan, was doing job in UCP as lecturer with a taxable salary of Rs.200,000/- month from July 2019. He has also started a business in UK from where he earned income of Rs.1,200,000/- and paid tax Rs:35,000/- in UK. He paid Zakat of Rs:8,000 to a needy family. Tax deducted on registration of car was Rs. 10,000/- and tax collected by cellular company was Rs.2,000/-. Compute his taxable income and tax liability? 

  • Taxation

    Michael owns a pizza restaurant. He has several employees working in the kitchen and delivering pizzas. He also owns various assets, including a rental property. During the year ended 30 June 2019 Michael received $915,000 in cash from the sale of pizzas and other related products.Eric is Michael’s head chef and he is provided with the use of a motor car as well as his salary of $100,000 per year. The car was purchased by Michael on 1 April 2018...

  • TAXATION

    Paden, who is single and has been employed as an accountant for 27 years with Harper, Inc., lost his job due to company downsizing. His last day of employment is July 31, 2018, and Harper provides a $9,000 severance payment. The severance payments are based on an employee’s time of employment. During the year, Paden received a salary from Harper of $56,000. Harper also paid $8,500 of Paden’s medical insurance premiums. In May 2018, Paden, who had always wanted to...

  • Compute property business income for three properties (9 marks) 1) Matthew Hartzog rents out as an...

    Compute property business income for three properties (9 marks) 1) Matthew Hartzog rents out as an individual taxpayer, a furnished room in his main residence. This is as living accommodation for a male colleague at £7,500. Matthew also paid allowable expenses of £400. (2 marks)    2) Matthew also lets out a first house throughout the tax year 2018/19 at a monthly rental of £2,800. Matthew has a mortgage loan on the house and in 2018/19 he makes capital repayments...

  • Mr. Jackson died on June 19 when the total FMV of his property was $23 million...

    Mr. Jackson died on June 19 when the total FMV of his property was $23 million and his debts totaled $2.789 million. His executor paid $23,000 funeral expenses and $172,000 accounting and legal fees to settle the estate. Mr. Jackson bequeathed $500,000 to the First Lutheran Church of Milwaukee and $1 million to Western Wisconsin College. He bequeathed his art collection (FMV $6.4 million) to his wife and the residual of his estate to his three children. Compute Mr. Jackson’s...

  • 1. FOREIGN-EARNED INCOME Christian Okoye is given a temporary assignment to work in a foreign country....

    1. FOREIGN-EARNED INCOME Christian Okoye is given a temporary assignment to work in a foreign country. He arrives on October 12, 2019, and departs on October 1, 2020. Mr. Okoye does not establish a permanent residency in the foreign country, but he is present for at least 330 days out of a 12-month period, beginning on October 13, 2019. (I.e. one day after he arrived in the foreign country.) Required: Based on the above information, how much income can Mr....

  • Tim bought a house for $500,000 in 2005 in California. When his daughter Mary got married...

    Tim bought a house for $500,000 in 2005 in California. When his daughter Mary got married in August 2014, he gave the house to Mary as a gift. The fair market value of the house was $800,000. Mary and her husband Jerry have lived in the house since then. The house is Mary and Jerry’s community property (True or False) How much is the taxable gift? If Mary and Jerry sell the house for $900,000 in April 2019: What is...

  • Hallick Inc. has a fiscal year ending June 30. Taxable income is $6,000,000 for its year...

    Hallick Inc. has a fiscal year ending June 30. Taxable income is $6,000,000 for its year ended June 30, 2018, and it projects similar taxable income for its 2019 fiscal year. Compute Hallick’s regular tax liability for its June 30, 2018 tax year. Compute Hallick's projected regular tax liability for its June 30, 2019 tax year.

  • As at 30 June 2017, Joe Tang had disposed of the following assets: (a) A holiday house. The house was purchased on 1 Mar...

    As at 30 June 2017, Joe Tang had disposed of the following assets: (a) A holiday house. The house was purchased on 1 March 2001 for $200,000 and was sold for $600,000. At the time of acquisition Joe spent $2,000 on surveyor’s cost, $15,000 on stamp duty and $3,000 for a valuation. On 1 February 2010, Joe spent $100,000 adding a second floor to the house. On 15 June 2014 he spent $20,000 in a successful court action to establish...

  • Frederick failed to file his 2018 tax return on a timely basis. In fact, he filed...

    Frederick failed to file his 2018 tax return on a timely basis. In fact, he filed his 2018 income tax return on October 31, 2019, (the due date was April 15, 2019) and paid the amount due at that time. He failed to make timely extensions. Below are amounts from his 2018 return: Taxable income - $120,000; Total tax liability on taxable income - $28,346; Total tax withheld from his salary - $25,000. Frederick sent a check for $3,346 in...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT