QUESTION NO. 2 SR Traders are suppliers of uniforms to NH&MP. According to his Sales Tax Returns, his registered purchases are Rs. 483,333 while his purchases from non-registered wholesalers were Rs. 550,000. His turnover was Rs. 5,000,000. He paid Rs. 100,000 for stitching the uniforms. His business expenses amounted to Rs 230,000 and the rent of the business premises is Rs. 144,000 p.a. The private and personal expenses of the proprietor were Rs. 1,000,000. He also paid charity from his business income for Rs 15,000. There is a loss on account of embezzlement by an employee after the working hours of business for Rs. 300,000. Calculate the income/loss and tax liability of SR Traders for Tax Year 2020