There is a property in Lahore measuring 1 KANAL. During TY, monthly per Kanal FMR of the
Question:
There is a property in Lahore measuring 1¾ KANAL. During TY, monthly per Kanal FMR of the whole property was: 1 st Quarter: Rs. 47,100; 2 nd Quarter: Rs. 48,100; 3 rd Quarter: Rs. 49,100; 4 th Quarter: Rs. 50,100. As per the rent deed, this property has been rented out to Mr. Door on September 1, 2019, @ Rs. 144,330 per quarter per kanal. Question # 3(a) Mr. Toor is the sole owner of this property. Mr. Toor received an advance of Rs. 115,330 from this tenant which was not adjustable against rent. Mr. Toor paid an insurance premium of Rs. 2000 per month to ensure this property is against the risk of damages. During the TY, the Property Tax of this property was Rs. 68,000 out of which Mr. Door paid 30%.
During TY, Mr. Toor entered into an agreement with Mr. Poor for the sale of this property and received Rs. 500,000 as token money. Later on, Mr. Poor breached the contract and as per the terms of the agreement, ¾th token money was not forfeited by Toor.
REQUIRED
(a): Calculate the total RCT of Mr. Toor for TY 2020. (All Workings are required)
(b) Mr. Toor is the co-owner of this property with Mr. Noor (brother) and Ms. Joor (Sister). Ms. Joor holds 20% ownership of this property whereas Mr. Noor holds 60% of the ownership of Mr. Toor. Mr. Toor owns the remaining portion. Mr. Door vacated half of the property on 31st March 2020.
(c): Calculate the total RCT of Mr. Toor for TY 2020. (All Workings are required) Calculate the total RCT of Mr. Noor for TY 2020. (All Workings are required)
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill