Mr. Iftikhar; an employee of XYZ Ltd.; received a salary during Tax Year 2019 of Rs. 3,000,000. Further information shows that:

Out of the above received salary, Rs. 600,000 was advance which is adjustable from salaries of next Tax Years

Rs. 300,000 was arrear of the Tax Year 2017 included in above received salary

Mr. Iftikhar has a gardener and a housekeeper to whom he is paying the salary of Rs. 360,000 / annum

The company provided him a rent free accommodation. Market rent of that house is Rs. 50,000 per month

The company has paid college fee of Rs. 350,000 for Mr. Iftikhar’s children

A travelling bill of Rs. 600,000 on behalf of Mr. Iftikhar’s wife was paid by XYZ Ltd.

Mr. Iftikhar had taken a loan of Rs. 1,000,000 from bank in Tax Year 2012 he has repaid Rs. 900,000 but was not able to pay the last installment of Rs. 100,000. The company has paid this last installment to the bank on behalf of Mr. Iftikhar.

You have to calculate

Basic Salary of Mr. Iftikhar.

Taxable Salary of Mr. Iftikhar for the Tax Year 2017.

Tax liability of Mr. Iftikhar for the Tax Year 2017 by using following rates.