Mr. Ijaz is an employee of Regional International Airline (RIA). Following is the detail of his salary received and other receipts during the year ended on 30th June 2012:
Basic salary (35000-5000-70000) 45,000
Medical allowance 70,000
Special allowance 10,000
Overtime payment 50,000
Entertainment allowance 40,000
Zakat paid under Zakat Ordinance 10,000
Flying allowance 250,000
Agricultural income 400,000
Dearness allowance 120,000
Investment in share of public company 147,000
Concession loan availed form employer @5 % 1,000,000
Employer has provided vehicle for personal use costing 1,000,000
Free passage 02 tickets were provided by airline to its employee @ Rs. 50,000 per ticket
during the year.
Free accommodation is also provided by the employer. He is entitled to accommodation
allowance at 55% of his basic salary.
You are required to calculate his taxable income and tax payable. Also show
complete working to support your values.
FIN623 Taxation Management Assignment 2 Solution 6th January 2013