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Pakistan taxation KL is an Association of Persons having two partners, Mr. K and Mr. L sharing profit and loss equally. During the tax year
Pakistan taxation
KL is an Association of Persons having two partners, Mr. K and Mr. L sharing profit and loss equally. During the tax year 2017, KL's Pakistan source income amounted to Rs. 2,500,000 and tax payable thereon amounted to Rs.722,500. Following are the details of its foreign source incomes, tax paid thereon for the tax year 2017 and foreign losses brought forward from tax year 2017: Heads of Income Foreign income / Foreign tax paid (loss) Foreign losses brought forward Speculation business 500,000 125,000 (250,000) Non-speculation business (1,000,000) 1,250,000 187,500 Income from other source Capital gain 750,000 75,000 (1,500,000) Tax credit amounting to Rs. 100,000 relating to income from other source remained unadjusted during the last tax year. Required: Calculate KL's total tax payable and foreign tax losses to be carried forward to the next year (if any)Step by Step Solution
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