Q: Carrot Ltd (CL) is engaged in the manufacture, import and sale of electronic appliances for the past twenty years. While reviewing the company's tax provisions, you noticed the following amounts appearing in the tax calculation for the year ended June 30, 2021. Expenditure of Rs. 450,000 on promotion of a product which is expected to generate revenue for twelve years. (1) Bad debt in respect of a staff loan, Rs. 25,000. (iii) Reimbursement of expenses of Rs. 300,000 to CL by the parent company. This amount was incurred by CL in 2017 on marketing a new product imported from Dubai. (iv) Initial allowance of Rs. 4,000,000 on a used equipment acquired locally from MSD Limited. (v) Financial charges amounting to Rs. 100,000 and depreciation amounting to Rs. 200,000 on a vehicle acquired on finance lease from Radish Leasing. Lease rentals paid during the year amounted to Rs. 400,000. The principal cost of finance leased motor vehicle not plying for hire is within maximum upper limit of Rs. 2,500,000 Required: Under the provisions of Income Tax Ordinance, 2001 discuss the admissibility of each of the above amounts for tax purposes Q:Short Questions a. Determine the tax year for the period 1.09.2019 to 31.08.2020 6. Explain the residential status for tax year 2021: Mr. Raza is working as Director Operations in the Ministry of Tourism. On 15 July 2020 he was posted to Pakistan Embassy in Italy for two years. c. XYZ purchased a second hand car from M's ABC Ltd, an associated company. The cost of that car is Rs.500,000 in the books of ABC Ltd whereas written down value of the said car is Rs.350,000. One of the car dealers told the company that the value of the said car in the market is Rs. 250,000. What is the value of the car as per the Income Tax Ordinance, 2001? d. What is benchmark rate for tax purposes in case of interest free loan to employees? e. Calculate the amount which will be treated as rent chargeable to tax under the head "Income from Property for the tax year 2021 if On August 2020 Mr. Islam received Rs. 345,000 as rent for leasing out factory, land, building and machinery