Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4. Marks 7 Ms. Shaheena incurred following transactions during the tax year 2020. Jan 2020 - Sold 1,000 shares of Sitara Ltd. at listed

image text in transcribed

Question 4. Marks 7 Ms. Shaheena incurred following transactions during the tax year 2020. Jan 2020 - Sold 1,000 shares of Sitara Ltd. at listed price of Rs. 150 per share which were acquired in 2015 at cost of Rs. 50 per share. Paid commission to broker amounting to Rs. 5,000. Apr 2020 - Sold a plot for Rs. 20,000,000 which she purchased during Feb 2018 for 14,500,000. Paid commission to dealer Rs. 100,000. May 2020 - Sold 2,000 shares of Surkhaab (Pvt) Ltd. for Rs. 150 each. These shares were gifted by her husband 2 year ago when the fair value of these shares was Rs. 90 each. June 2020 - Sold personal car for Rs 1,800,000 to a family friend, however, market value of the car was at the time sale was 2,100,000. Required: a) Compute capital gain arisen to Ms. Shaheena and income tax thereon. (Marks 5) b) Which tax regime shall apply to each of the capital gain. (Marks 2)

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

Applying IFRS Standards

Authors: Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Jance Loftus, Leo Van Der Tas

4th Edition

1119159229, 9781119159223

More Books

Students also viewed these Accounting questions

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago