Q-3: Alpha (Pvt.) Ltd. is a manufacturing company. For the Tax Year 2020 the firm declared a net profit before tax of Rs. 4,000,000. The scrutiny of the profit and loss account reveals the following information:

1. Plant & Machinery of Rs. 1,000,000 was purchased and capitalized during the year;

2. Income tax of Rs. 100,000 was paid during the year against the previous years tax liability and expensed out from P&L A/c;

3. A remuneration of Rs. 1,000,000 paid to the director through cross cheque and tax was deducted but not paid to the Govt.;

4. Company has made a contribution of Rs. 800,000 in an approved provident fund and expensed out the same. There are no satisfactory arrangements of tax deduction while making payments to employees from this fund;

5. Freight of Rs. 500,000 was paid in cash;

6. Electricity bills of Rs. 700,000 were paid in cash; out of this amount Rs. 80,000 was withholding income tax which was also expenses out from P&L A/c;

7. Total financial charges of Rs. 1,000,000 expensed out during the year; out of which Rs. 100,000 were bank charges and Rs. 900,000 was interest on asset subject to finance lease;

8. Lease rentals of Rs. 3,000,000 were paid during the year against the asset subject to finance lease

REQUIRED:

Calculate the TAXABLE INCOME from business of the Delta (Pvt.) Ltd. for the Tax Year 2020.