FIN623 Assigment # 1 2016

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Posted By : Tahir Siddiqui(Mani)

 

Taxation Management

FIN623

Assignment # 1

Tax payer: Mr. Ijaz                                                              Tax year: 2016

Residential Status: Resident                                                 NTN:

Computation the taxable income and tax thereon:

Particulars	Total income	Exempt income	Taxable income
Salary(78000*12)	936000		936000
Bonus	21667		21667
Un-furnished rent-free accommodation(w-1)	421200		421200
Conveyance Allowance(w-2)	120000		120000
Company motor vehicle(w-3)	100000		100000
Medical Allowance(w-4)	96000	93600	2400
Honorarium	170000		170000
Salary of driver	150000		150000
Annual leave encashment	74000		74000
Utilities paid by employer	90000		90000
Total income			2085267
Less: Zakat			(60000)
Taxable income			2025267

Tax Liability:

Tax rate of Rs 137000 + 17.5% of the amount exceeding Rs 1800000.

Income tax payable:

=137000 + (2025267-1800000)*17.5%

=137000 + 225267*17.5/100

=137000+ 39421.72

=176421.72

Tax payable =              176421.72

Deduction at source=  (200000)

Refundable            = (23578.27)

Working:

Accommodation :( w-1)

45% of MTS or Basic salary

=936000*45/100

=421200

Conveyance Allowance :( w-2)

=10000*12

=120000

Motor vehicle: (w-3)

=2000000*5/100

=100000

Medical Allowance: (w-4)

Medical Allowance is exempt up to 10% of basic salary.

=936000*10/100

=93600