Question

Taxation

Mr. Samiullah had been working as Assistant Manager Marketing for last 15 years in M/s. Moonlight Limited, a public limited company. In addition to salary, perks and allowances given to him by the company, he has various other sources of income. Assume that Mr. Samiullah is 62 years old and has been retired from the company services on June 30, 2019. You are his Tax Consultant. He has submitted the following information for the tax year ended June 30, 2019 in order to seek your advice in respect of the calculation of his taxable income and tax liability.
Rupees
A. i) Basic salary per annum 500,000 500,000
ii) Perquisites and allowances paid by the employer:
Bonus 80,000
Entertainment allowance 10,000
Dearness allowance 180,000
House rent allowance 225,000
Gratuity (scheme approved by FBR) 625,000
Encashment of leave preparatory to retirement 120,000
B. Property Income:
Mr. Samiullah rented his house @ Rs. 12,000 per month w.e.f 1st July, 2018. He received a deposit of Rs.150,000, not adjustable against rent, out of which he refunded Rs.75,000 to previous tenant, who vacated the house after 3 years' occupancy. Tenant also paid property tax of Rs. 6,000 as per lease agreement. Assume that Mr. Samiullah claimed the following expenditures for the year ended 30th June, 2019.
Rupees Rupees
Interest on borrowed capital 7,000
Insurance premium paid to cover the risk for property damage 10,000
Repair and maintenance expenses 25,000
C. Other information
Share from unregistered firm (AOP) 20,000
D. Zakat deducted at source 8,000
Required: (20)
Calculate taxable income and tax liability of Mr. Samiullah for the year ended June, 30, 2019.

(kindly solve in the context of pakistan)


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