(a) Compute Tax Payable by Mr. Ahmad for the tax year 2021 by using following data. Balance...
Question:
(a) Compute Tax Payable by Mr. Ahmad for the tax year 2021 by using following data.
Balance b/d
-------
Motor car Expenses
210
Accountancy fee
850,000
Office Expenses
2075
Income from other
Accountancy work
----------------
Membership &
certificate Fees
25
Institute fees
500
Institute Expenses
350
Examiner’s fee
1800
Personal Expenses
2000
Interest on investment
1950
Income Tax
1250
Rent from Property
250,000
Motorcar Purchased
1725
Insurance of
Property
150
Balance c/d
-----------
Total
----------------
Total
----------
Required:
Compute Tax Liability of Mr. Ahmad for the tax year 2021,after taking into account the following additional information
i.
Office Expenses Includes Rs.1000 for furniture purchased for his office use.
ii.
50% of Moto car expenses are in respect of his professional practice.
iii.
His investments are all in commercial securities.
iv.
Depreciation allowance for motor car and furniture is Rs.150.
Note: Assume blank figures(-----) by yourself.
(b) Mr. Sarfraz let out his house at a rent of Rs.10,000 p.m. He received a deposit of Rs.200,000 not adjustable against rent, out of which he refunded Rs.100,000 to previous tenant, who vacated the house after 3 years’ tenancy. Calculate rent chargeable to tax for the tax year 2021
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt