Question 2 Income Tax on Multiple Sources of Inccome (8 Marks)

Mr. Bakhtawar, a Individual Person, has following information for the Tax Year 2020.

• His Annual Tax Certificate from Employer shows, Annual Gross Salaried Income of Rs. 1450,000.
• His employer has deducted WHT under Section 149 (Salary of Employee) Rs. 97200.
• His Mobile Tax Certificate shows WHT under Section 236 (Prepaid Telephone Card) Rs. 2355.
• He received share of Profit from Investment in a Business Rs. 750,000.
• He received Rent from Property as follow:
  • Shop Rent of 20,000 per month (Shop was rented for 11 Month Only)
  • Rent from Owned Flat Rs. 18,000 permonth (Flat was rent for full year)
• The details of his Personal Assets as follow:

Balances	June 30, 2019	June 30, 2020
Cash at Hand	150,000	180,000
Bank Account (Salaried)	421,000	659,000
Bank Account (Saving)	850,000	1265,000
Investment Securities (Saving Certificates and Prize Bonds)	1255,000	1550,000
Investment in Business	4,000,000	4,000,000
Property (Residential)	4,200,000	4,200,000
Property (Shop Rented)	3,500,000	3,500,000
Property (Flat Rented)	2,800,000	2,800,000

Calculate:

• Total Income subject to Normal Income Tax (1 Mark) (Note: exclude from Income from Property as this is subject to Fixed/Final Tax)
• Tax Chargeable (2 Marks)
• Normal Income Tax (on Income from Salary + Business) (1 Mark)
• Fixed Income Tax (on Income from Property) (1 Mark)
• Admitted Income Tax (Remaining Tax Liability) (1 Mark)
• Total Inflow during the Tax Year 2020 (Reconciliation of Net Assets) (1 Mark)
• His estimated Personal Expenses (Reconciliation of Net Personal Assets) (1 Mark)