4. Mr. Abdul Rehman is Chief Accountant in a multinational company. He is assumed to have received the following perks during the tax year 2012: Income from Salary: Basic salary House rent allowance Utilities Employer's contribution to recognized provident fund Medical allowance Leave encashment T.A/D.A for official duty Bonus Rs. 412,500 182,800 40,600 31,950. 37,300 50,600 33,300 82,500 During the year, tax has been deducted on salary at Rs. 26,500. Further he has paid Zakat at Rs. 35,000 under the Zakat and Ushar Ordinance, and Rs. 56,000 as donation to an approved institution. Mr. Abdul Rehman has been provided with a 1300 cc car which cost Rs. 1,250,000 to the company. The car is used for both personal and official purposes. Capital Gain: On May 23, 2012, Mr. A. Rehman sold Pvt. Ltd company's shares and received net proceeds equivalent to Rs. 140,000 in his bank account. This amount was received after deduction of bank charges of Rs.250 and brokerage commission equivalent to Rs. 1,750. (H.P> 1 YEAR) Income from Property: He rented out his house for a monthly rent of Rs 40,000. At the time of tenancy agreement he also received Rs. 1,000,000 from the tenant as deposit which is not adjustable against monthly rent.. Page 2 of 6 Required: year 2012. Compute taxable income and tax liability of Mr. Abdul Rehman for the tax EXTRACT OF TAX RATES FOR SALARIED INDIVIDUAL Sr. Taxable Income No. 1. Upto Rs. 600,000 2. Rs. 600,001 Rs. 1,200,000 0% Rate of Tax 3. Rs. 1,200,001 4. Rs. 1,800,001 - Rs. 1,800,000 Rs. 2,500,000 5. Rs.2,500,001 - Rs. 3,500,000 6. Rs.3,500,001 Rs. 5,000,000 5% of the amount exceeding Rs.600,000 Rs. 30,000+ 10% of the amount exceeding Rs. 1,200,000 Rs. 90,000+15% of the amount exceeding Rs. 1,800,000 Rs. 195,000+ 17.5% of the amount exceeding Rs. 2,500,000 Rs. 370,000+ 20% of the amount exceeding Rs. Page 4 of 6 7. Rs.5,000,001 - Rs. 8,000,000 8. Rs.8,000,001 Rs. 12,000,000 9. Rs.12,000,001 - Rs. 30,000,000 10. Rs.30,000,001 ----- Rs. 50,000,000 11. Rs.50,000,001 ----- Rs. 75,000,000 12. OVER Rs.75,000,000 3,500,000. Rs. 670,000+22.5% of the amount exceeding Rs. 5,000,000. Rs. 1,345,000+25% of the amount exceeding Rs. 8,000,000. Rs. 2.345,000+27.5% of the amount exceeding Rs. 12,000,000. Rs. 7.295,000+30% of the amount exceeding Rs. 30,000,000. Rs. 13,295,000+32.5% of the amount exceeding Rs. 50,000,000. Rs. 21,420,000+35% of the amount exceeding Rs. 75,000,000