From the following data, calculate income tax payable by Mr. Wajid Iqbal, an active tax payer for
Question:
From the following data, calculate income tax payable by Mr. Wajid Iqbal, an active
tax payer for the year ended on 30th June, 2020;
(10)
Basic Salary (Rs.) ….………………………………………………..………………………….…… 1,540,000/-
Bonus ……………………………………………………………………………….……………………………….. 40,000/-
Entertainment Allowance ……………………………………………….……………………....... 10,000/-
Medical Allowance………………………………………………………….……………..………...... 250,000/-
Loan obtained from employer @ 8%................................................…………………………..... 800,000/-
Tax deducted at source by employer………………………………………….………………11,512/-
Investment in health Insurance ………………………………………………………………. 95,000/-
Tuition of 04 children paid ……………………………………………………………………… .260,000/-
Remuneration for literary work (non-professional writer)…………………………………….. 18,000/-
Income from sub-lease of property………………………………………………………. 42,600/-
Capital gains on sale of shares of private company (disposed off after 12
months)……………………………………………………………………………………………………………… 82,400/-
Dividend from public company……………………………………….………………………. 120,800/-
A motor vehicle has been provided to him by the employer partly for personal and partly for official use. The cost of the vehicle is Rs. 1,040,000/-
1) Consider IT rate for the year 2020 as 05% of income exceeding Rs. 12,00,000/-
2) Rate of Tax on Dividend under FTR is 15%
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele