Question :Prepare wealth statement of Mr. Aurangzeb, Filer, 56 age, Head of Corporate Secretary at PSO for the tax year 2020.

The income of current tax year is as below;

Salary 0.98 M

Income from Property 2.3 M

Income from Trading Business 3.3 M

Income from Speculation Business 1.99 M

Income from Other Sources 2 M

Capital Gain acquired from disposal of movable property 0.65 M (Purchasing price was 1 M, Holding period = less than one year)

Following transactions took place in the tax year 2020

Purchased new vehicle of cost Rs. 200,000 and paid 50% of total amount

Borrow loan from Bank of Rs. 1,790,000

Borrow Loan from Mr. A of cost Rs 1.15 Million.

Purchased new equipment from 65% amount of bank loan

Purchased new building of cost Rs. 0.75 Million.

Lend Rs. 600,000 to Mr. C and Rs 500,000 to Mr. B

Mr. B and Mr. C Paid 40 percent of their dues.

Sold new building at 40 percent profit after holding for only three months.

Sold 60 percent jewelry and 30 percent shares at 50% profit each.

Paid 50% of remaining loan to bank.

Also, repay 20% of loan to Mr. A at the end of the tax year.

Mr. B and Mr. C has cleared all the dues by paying their remaining payable.

Plot and flat was sold at 65% profit

House Hold expenses R. 0.2 M

Paid Zakat

WWF 0.1 M

WPF 0.09 M

Drawing 0.4 M

Opening Wealth:

Capital 1.3 M

Cash 1.2 M

Bank 2.3 M

Jewelry 1.2 M (Purchased 6 months ago)

Shares 1.98 M (Purchased 8 months ago)

Cultus- Automobile Rs 800,000

Plot -Bahria Town Rs 1.9 M (Purchasing Date:01-01-2019)

Flat Rs 3.4 M (Purchasing Date:20-09-2016)

Bank Ending 0.3 M

Course: related to Taxation of CA