Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ms. Fatima Hasan was working as a Marketing Head with Consumer Products Limited (CPL) atfollowing emoluments: (i) Basic salary Rs. 100,000 per month; (ii) House

Ms. Fatima Hasan was working as a Marketing Head with Consumer Products Limited (CPL) atfollowing emoluments:

(i) Basic salary Rs. 100,000 per month; (ii) House rent allowance Rs. 40,000 per month; and (iii) Utilities allowance Rs. 15,000 per month. In addition to the above cash emoluments, she was provided with a Honda Civic car, exclusively for official use. The cost of car to the company was Rs. 1,000,000. As per company's policy, the car was sold to Fatima in January at the written down value of Rs, 100,000 whereas the fair market value of the same at the time of sale was Rs. 300,000. In May, Fatima was approached by Pharma Industries (Pvt.) Limited (PIL). They offered her employment at a higher salary and some extra benefits, along with a one-time payment of Rs 200,000 was, an inducement to accept their offer. Fatima accepted PIL's offer by resigning from CPL with effect from June 1, 20x1. She joined PIL from July 1, 20x1 . The amount of Rs. 200,000 was, however, paid to her on June 29, 20x1. During the year, Fatima has also undertaken the following transactions: I. A residential plot inherited 5 years ago was sold for Rs. 1,000,000. The fair value of the plot at the time of inheritance was Rs. 200,000. II. She had won a cash prize of Rs. 250,000 in a quiz show. Tax of Rs.50,000 was deducted from the prize money under section 156. III. An amount of Rs. 50,000 was donated to an approved charitable institution. In the light of above information, compute the taxable income of Ms. Fatima for the tax year 20x1.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Lawrence A. Tomassini

4th Edition

0072994029, 9780072994025

More Books

Students also viewed these Accounting questions

Question

2. I try to be as logical as possible

Answered: 1 week ago