Mr. Bakhtawar, a Individual Person, has following information for the Tax Year 2020. Given His Annual Tax Certificate from Employer shows, Annual Gross Salaried Income of Rs. 1450,000. His employer has deducted WHT under Section 149 (Salary of Employee) Rs. 97200. His Mobile Tax Certificate shows WHT under Section 236 (Prepaid Telephone Card) Rs. 2355. He received share of Profit from Investment in a Business Rs. 750,000. He received Rent from Property as follow: Shop Rent of 20,000 per month (Shop was rented for 11 Month Only) Rent from Owned Flat Rs. 18,000 permonth (Flat was rent for full year) The details of his Personal Assets as follow: Balances June 30, 2019 June 30, 2020 Cash at Hand 150,000 180,000 Bank Account (Salaried) 421,000 659,000 Bank Account (Saving) 850,000 1265,000 Investment Securities (Saving Certificates and Prize Bonds) 1255,000 1550,000 Investment in Business 4,000,000 4,000,000 Property (Residential) 4,200,000 4,200,000 Property (Shop Rented) 3,500,000 3,500,000 Property (Flat Rented) 2,800,000 2,800,000 Calculate: Total Income subject to Normal Income Tax (Note: exclude from Income from Property as this is subject to Fixed/Final Tax) Fixed Income Tax (on Income from Property) Admitted Income Tax (Remaining Tax Liability) Total Inflow during the Tax Year 2020 (Reconciliation of Net Assets) His estimated Personal Expenses (Reconciliation of Net Personal Assets)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 58P

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Mr. Bakhtawar, a Individual Person, has following information for the Tax Year 2020.

Given

His Annual Tax Certificate from Employer shows, Annual Gross Salaried Income of Rs. 1450,000.
His employer has deducted WHT under Section 149 (Salary of Employee) Rs. 97200.
His Mobile Tax Certificate shows WHT under Section 236 (Prepaid Telephone Card) Rs. 2355.
He received share of Profit from Investment in a Business Rs. 750,000.
He received Rent from Property as follow:
- Shop Rent of 20,000 per month (Shop was rented for 11 Month Only)
- Rent from Owned Flat Rs. 18,000 permonth (Flat was rent for full year)

The details of his Personal Assets as follow:

*Balances*	*June 30, 2019*	*June 30, 2020*
Cash at Hand	150,000	180,000
Bank Account (Salaried)	421,000	659,000
Bank Account (Saving)	850,000	1265,000
Investment Securities (Saving Certificates and Prize Bonds)	1255,000	1550,000
Investment in Business	4,000,000	4,000,000
Property (Residential)	4,200,000	4,200,000
Property (Shop Rented)	3,500,000	3,500,000
Property (Flat Rented)	2,800,000	2,800,000

Calculate:

Total Income subject to Normal Income Tax (Note: exclude from Income from Property as this is subject to Fixed/Final Tax)
Fixed Income Tax (on Income from Property)
Admitted Income Tax (Remaining Tax Liability)
Total Inflow during the Tax Year 2020 (Reconciliation of Net Assets)
His estimated Personal Expenses (Reconciliation of Net Personal Assets)

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