FIN623 Taxation Management Assignment 2 Solution 6th January 2013

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:

Particulars                                                         Rs.

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.

Requirment

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

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