Compute the taxable income of a person who has provided the following income (determined as per tax
Question:
Compute the taxable income of a person who has provided the following income (determined as per tax rules) and other information for one fiscal year. He has earned Rs.1500,000 as a salary. He has also earned an income of Rs.65,000 from the sales of shares of a private company and Rs. 40,000 from miscellaneous sources. During his income, he has also paid Rs.35,000 as Zakat privately to the poor. The employer also bears the expense of his children's education fee which is adjusted in his salary as an education allowance that is Rs. 700,000. He also has borrowed a loan for the construction of a house that is Rs. 10,000,000 on which he pays monthly installments of Rs.45,000 where the bank charges 25% as a profit on debt on each monthly installment. During the tax year, he has also made a contribution to the Workers’ Welfare Fund that is 12,000. Compute the taxable income.
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach