A Power Company XYZ (Pvt.) Ltd. agreed to its employees to provide free electricity at Fair Market Rate. The company has fulfill its agreement with all other employess except Mr. Ilyas.

Fair Market Rate of the Electricity bill of Mr. Ilyass House was Rs. 120,000 for the Tax Year 2020 out of which Rs. 100,000 was paid by Mr. Ilyas himself and rest of Rs. 20,000 was paid by the Company.

Further information regarding salary, perquesites and benefits of Mr. Ilyas is as follows:

1. An overtime was taken from Mr. Ilyas and the pay of the same was agreed as Rs. 500,000, but the company has paid him only Rs. 300,000 and the rest of the amount is still disputed.

2. The company gave him a leased car for both official and personal use. At the time of the inception of lease term, the cost price of the car was Rs. 2,400,000 and the fair market price was Rs. 2,500,000

3. The company took a house at rent of Rs. 25,000/month and gave the same to its employee Mr. Ilyas, as a rent free accommodation. Although, the rent is paid by the company and Mr. Ilyas had not paid even a single penny to the house owner. The fair market rent in the area in which this house exists, is Rs. 30,000/month.

4. Mr. Ilyas has two domestic servants at a salary of Rs. 240,000/annum and Rs. 120,000/ annum. The first one is paid by the Company and the second one is paid by Mr. Ilyas himself.

5. He encashed his leaves from the company in Rs. 100,000

6. Mr. Ilyas has taken a loan of Rs. 300,000 from a bank. The company has repaid this loan to the bank on his behalf.

7. A college fee of Rs. 200,000 was paid by Mr. Ilyas for his child

8. A travelling bill of Rs. 300,000 was paid by the company on behalf of Mr. Ilyass wife

1. In addition to all above transactions, Mr. Ilyas has received a salary of Rs. 2,400,000 during the Tax Year 2020, the same is the Basic salary of Mr. Ilyas.

Required:

1. You have to calculate the Taxable Income of Mr. Ilyas for the Tax Year 2020 and; (11)

2. Tax Liability and Tax Payable / Refundable by using the following rates (04)

Cont..

Taxable income	Rate of tax
Where the taxable income does not exceed Rs. 600,000	0%
Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000	5% of the amount exceeding Rs. 600,000
Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000	Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000
Where the taxable income exceeds Rs.1,800,000 but does not exceed Rs.2,500,000	Rs. 90,000 + 15% of the amount exceeding Rs. 1,800,000
Where the taxable income exceeds Rs.2,500,000 but does not exceed Rs.3,500,000	Rs. 195,000 + 17.5% of the amount exceeding Rs. 2,500,000
Where the taxable income exceeds Rs.3,500,000 but does not exceed Rs.5,000,000	Rs. 370,000 + 20% of the amount exceeding Rs. 3,500,000
Where the taxable income exceeds Rs.5,000,000 but does not exceed Rs.8,000,000	Rs. 670,000 + 22.5% of the amount exceeding Rs. 5,000,000
Where the taxable income exceeds Rs.8,000,000 but does not exceed Rs.12,000,000	Rs. 1,345,000 + 25% of the amount exceeding Rs. 8,000,000
Where the taxable income exceeds Rs.12,000,000 but does not exceed Rs.30,000,000	Rs. 2,345,000 + 27.5% of the amount exceeding Rs. 12,000,000
Where the taxable income exceeds Rs.30,000,000 but does not exceed Rs.50,000,000	Rs. 7,295,000 + 30% of the amount exceeding Rs. 30,000,000

(NOTE: Some deviation in the tax rates may be made only for examination purpose and feasibility of calculation.)