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. Mr. Ali is a non- professional writer. During the tax year 2019, he received a lump sum amount of Rs. 1200,000 on account of
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Mr. Ali is a non- professional writer. During the tax year 2019, he received a lump sum amount of Rs. 1200,000 on account of royalty of a book. He claims that he spent 36 months in completing the book. (10 marks) Compute his tax liability for the tax year 2019 assuming that: 1) He has no other source of income 2) He has rented out certain machinery from which he has a regular annual taxable income of Rs 2,500,000 every year.
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