Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are required to compute the taxable income and tax liability for the tax year Mr. A is the Chief Executive of a multinational private

image text in transcribed

You are required to compute the taxable income and tax liability for the tax year

Mr. A is the Chief Executive of a multinational private company. Details of his emoluments are as follows: Rs. Basic salary 4,004,520 b) Bonus 1.980,642 c) Utility allowance 400,452 d) Leave encashment 538,083 e) Other allowance 90,000 f) House rent allowance 1,802,040 Apart from the above he has received Director's Fee amounting to Rs.52,000 During the year he has sold shares that were acquired through exercise of a 'Stock Option' (being the shares of a UK company) two years ago. The gain on sale amounts to Rs.4,206,000. He also owns a property which has been let out on rent. The details of rent received and expenses incurred are as follows: (a) Rent Rs.10,000 per month. The property was let out on rent for the whole year. (b) He has paid property tax amounting to Rs.11,500. (c) During the year he has paid Rs.6,000 for repairs and maintenance. During the year the tax withheld at source from salary income is Rs.3,600,000 Required: You required to compute the taxable income and tax liability for the tav vaar

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_2

Step: 3

blur-text-image_3

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

Modern Auditing

Authors: Graham W. Cosserat, Neil Rodda

3rd Edition

0470319739, 9780470319734

More Books

Students also viewed these Accounting questions

Question

List the ways that perception is an active mental process.

Answered: 1 week ago

Question

=+What needs to be said first?

Answered: 1 week ago

Question

=+You couldn't expect more from a cow, could you?

Answered: 1 week ago