VU VICKY Virtual University Assignment Solution, Past Papers, Handouts and other material

Assignment

Fin623

Solution:

a)      Residential status of Akram under related provisions of the ITO 2001

Ans. Non Residential Status as per section 82, an employee or official of the federal govt or a provincial govt posted in aboard during tax year.

b)     Type of tax year adopted by Arshad for his company

Ans. Tax Year 2018

c)      Taxable income of Bashir

Particulars	Total Income	Exempt Income	Taxable Income
Basic salary	504,000	-	504,000
Annual medical allowance (note -1)	108,000	50400	57,600
Rent free unfurnished accommodation- annual value	220,000	-	220,000
car for personal and official use (note-2)	-	-	37,500
Driver’s monthly salary paid by employer	96,000	-	96,000
Total			915,100

Note- 1

Medical allowance is exempt up to 10% of Basic salary, if free hospitalization services or reimbursement of Medical expenses not provided by employer.

Note -2

Valuation of Conveyance Partly for personal and partly for official use: 5% of cost or 5% of FMV of Vehicle, in case of Lease.

d)     Tax payable by Bashir on his taxable income

Sr # 4 Where the taxable income exceeds Rs.750,000 but does not exceed Rs.1,400,000 Rs.14,500 + 10% of the amount exceeding Rs.750,000

Tax payable income =14500+ (165100*10%) =14500+16510=31010