X is an employee of company and he disclosed the following incomes and expenditures for the tax
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Question:
X is an employee of company and he disclosed the following incomes and expenditures for the tax year 20X9:
- Monthly basic salary Rs.200,000.
- Medical allowance per month Rs.25,000.
- Medical bills of Rs.540,000 reimbursed by company in accordance with the terms of employment. NTN of medical practitioner and employer’s attestation are available.
- X has been provided a company maintained car which is being used for office as well as personal use. The details of company maintained car is as under:
- Fair market value of the car was Rs.3,600,000 at the inception of lease.
- Company has obtained this car from a leasing company.
- The leasing company is charging monthly lease rentals from company. Gross lease rentals are Rs.4,800,000.
- Company has reimbursed running and maintenance cost of the car of Rs.280,000 during the year.
- Driver’s salary paid by company amounting to Rs.25,000 per month.
- An accommodation has been provided to him by company having monthly fair market rent of Rs.100,000.
- Zakat paid to his poor relatives who are eligible for zakat Rs.125,000.
- Zakat deducted by the banks Rs.70,000.
Required: Compute the tax liability for the tax year 20X9 ( Under INCOME TAX ORDINANCE, 2001).
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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