FIN623 Assignment no 2 Solution-Semester Fall 2021-vu-taxation Management

FIN623 Assignment no 2 Solution-Semester Fall 2021-vu-Taxation Management

FIN623 Assignment no 2 Solution-Semester Fall 2021-vu-taxation Management
#Fin623, #VU, Semester Fall 2021, FIN623 Assignment no 2 Solution,-taxation Management, virtual university, ITO 2001, Income Tax Rule 2002,
income tax ordinance 2001, taxable income, residential status,
tax liability,


Question
Mr. Anonymous the Manager of a Multinational Company in Pakistan was deputed on the official task in Italy in 2016. He returned to Pakistan in June 2021 and remained in Pakistan for the period of 1 year. For the tax year 2022, the following are the details of his incomes and other particulars:
Monthly basic salary 120,000
2. Bonus 90,000
3. Adhoc allowance 50,000
4. Furnished accommodation provided by employer 200,000
5. Utilities paid by employer 80,000
6. Monthly medical allowance 50,000
7. Conveyance provided for personal use
Value of car purchased by the employer 2,150,000
8. Interest-free loan is taken from employer 4,000,000
9. Rental income from building 550,000
10. Non- adjustable advance received 100,000
11. Zakat paid 50,000
12. Investment in shares of a public company listed on
Stock Exchange of Pakistan 100,00

Requirement:
For the tax year 2022, determine for Mr. Anonymous:
a) Residential status (1 Mark)
b) Taxable income (6.5 Marks)
c) Tax liability (2.5 Marks)