Income tax on multiple sources of income

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Reference no: EM132779823

Income Tax on Multiple Sources of Income

Mr. Bakhtawar, a Individual Person, has following information for the Tax Year 2020.

  • His Annual Tax Certificate from Employer shows, Annual Gross Salaried Income of Rs. 1450,000.
  • His employer has deducted WHT under Section 149 (Salary of Employee) Rs. 97200.
  • His Mobile Tax Certificate shows WHT under Section 236 (Prepaid Telephone Card) Rs. 2355.
  • He received share of Profit from Investment in a Business Rs. 750,000.
  • He received Rent from Property as follow:
  • Shop Rent of 20,000 per month (Shop was rented for 11 Month Only)
  • Rent from Owned Flat Rs. 18,000 permonth (Flat was rent for full year)
  • The details of his Personal Assets as follow:

Balances June 30, 2019 June 30, 2020

Cash at Hand 150,000 180,000

Bank Account (Salaried) 421,000 659,000

Bank Account (Saving) 850,000 1265,000

Investment Securities (Saving

Certificates and Prize Bonds) 1255,000 1550,000

Investment in Business 4,000,000 4,000,000

Property (Residential) 4,200,000 4,200,000

Property (Shop Rented) 3,500,000 3,500,000

Property (Flat Rented) 2,800,000 2,800,000

Calculate:

  • Total Income subject to Normal Income Tax (1 Mark) (Note: exclude from Income from Property as this is subject to Fixed/Final Tax)
  • Tax Chargeable
  • Normal Income Tax (on Income from Salary + Business)
  • Fixed Income Tax (on Income from Property)
  • Admitted Income Tax (Remaining Tax Liability) 
  • Total Inflow during the Tax Year 2020 (Reconciliation of Net Assets)
  • His estimated Personal Expenses (Reconciliation of Net Personal Assets)

Reference:

https://taxsummaries.pwc.com/pakistan/individual/taxes-on-personal-income

Reference no: EM132779823

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