COMPUTE TAXABLE INCOME FOR THE YEAR 2019-20                      

• Mr. Adeel is working as Govt. Teacherr at pay scale of 50000-15000-85000
• He’s provided with rent free accommodation in Islamabad.
• He is also entitled of medical allowance of Rs. 15,000/- p.m.
• The office has provided him a vehicle Rs. 1,500,000/- for both the personal and private use. 
• He received Rs.25000 as utilities allowances. 
• Gain on sale of plot bought in 2001 Rs. 500,000/-
• The tea and coffee is free at the premises but still he is getting entertainment allowance of Rs. 5,000/- p.m. 
• He received Bonus of Rs. 60,000/- this year and pride of performance presidential award Rs.75, 000/-.
• Moreover, Adeel is entitled of Rs.45, 000/- as Project allowance. 
• He has introduced a formula of chemistry and receiving Rs. 100, 000/- as royalty for this formula.
• Rental income from agriculture land is 500,000/-
• The following information is also given:
• Employee’s contribution   15,000 
• Employer’s contribution             15,000
• Interest credited                          90,000 annual
• Donation given to Edhi center 100,000/-
• Last year in March 23, 2019 he purchased the shares of a public limited company which he has sold in January 31, 2020.
• He owned a house which he rented out for Rs. 25, 000/- p.m. and 100,000/- as token money. 
• He has also received an amount of 1000$ as birthday gift by his parents as foreign remittances.
• In a while, he started his business of pharmacy in evening and earned 800, 000/- annual profit.
• He has won the prize bond of Rs. 250, 000/- 
• He has paid Zakat of Rs. 70, 000/- 
•  
• Calculate taxable income.

Answer rating: 100% (QA)

Mr Adeel Taxable Income Computation for the year ended 201920 Particulars Rs Rs Income Tax 8500012 m... View the full answer