6 Mr. Arshad is an employee of a public listed company. He submitted the following data for computation of his taxable income for the tax year 2017: Basic pay per annum Bonus Dearness allowance Rent Free unfurnished accommodation Watchman wages paid by employer Page 3 of 6 480,000 240,000 50,000 75,000 36,000 Gardner wages paid by employer 24,000 Sweeper wages paid by employer 6,000 Employer's contribution towards recognized provident fund 24,000 Interest on Provident fund balance @18% 18,000 Company maintained car for official and private use 1300CC. The said car was acquired three years earlier. The cost of acquisition of vehicle was Rs. 850,000. Reimbursement of medical expenditure 50,000 Utilities bills paid by the company: Telephone Electricity bills paid by employer Gas Bills paid by employer Water bills paid by employer 12,000 15,000 6,000 9,000 Leave fare assistance (for the first time) Commission income for securing a contract paid by the employer 50,000 30,000 Due to some health issue, he resigned from the job and following further sums were paid to him: Provident Fund recognized Gratuity Fund unrecognized 150,000 70,000 Another company car has also been handed over to Mr. Arshad for a consideration of Rs. 285,000 whereas the book value of the said car was Rs. 435,200. He immediately sold the car at Rs. 600,000. Required: Compute the taxable income of Mr. Arshad for the tax year 2017. 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