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404 Assignment 2

The document provides income and tax details for Rebecca Williams who works for an LLC in the US but lives in Pakistan. It lists her various sources of income totaling $172,800 and deductions of $16,248, leaving a gross taxable income of $156,552. Her total tax payable is calculated as PKR 6,553,799.38.

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Mirza Mushahid Baig
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28 views2 pages

404 Assignment 2

The document provides income and tax details for Rebecca Williams who works for an LLC in the US but lives in Pakistan. It lists her various sources of income totaling $172,800 and deductions of $16,248, leaving a gross taxable income of $156,552. Her total tax payable is calculated as PKR 6,553,799.38.

Uploaded by

Mirza Mushahid Baig
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Forman Christian College

BUSN-404 Taxation

Assignment 2

Mirza Mushahid Baig

22-11296

Section A

Submitted to: MR. Iftikhar Ahmed

Description: Rebecca Williams works for LLC Corporation, Kalamazoo – MI, USA. She is based in
Pakistan since 2018 and has asked to work out her tax liability for the year 2020/21.

Income ($) Tax Taxable


exemptions income ($)
1.Pay
Basic pay 88350 No 88350
Special pay 2500 Yes (up to 0
6000)
House rent 12500 No 12500
Bonus 15000 No 15000
Medical 5000 Yes ( less than 0
allowance 15 % of basic
pay) .
Other income
2. Property
Rent 12000 No 12000
Land lease 6000 No 6000
3. Business
Profit 20450 No 20450
Capital gains 15000 No 15000
Dividend 4000 No 4000
4 Agriculture 7000 Yes (according 0
to section 41)
Total Taxable $172800
income
Deductions
and credits
Zakat/charity 3000 30% of taxable 3000
income / 15%
made by
individual to
Associate
Insurance 1000 Full amount 1000
premium ( section 62)
Interest paid 4000 Full amount 4000
HBL (section 28)
Hospital 3248 Full amount 3248
charges
5.Donations
NGO’s 2000 Full amount 2000
( section 61)
Associates 3000 15% of taxable 3000
income
Total $16248
Deductions

Gross Taxable income = Total Taxable income – Deductions

Gross Taxable income= 172800 – 16248 = $ 156552

Total Taxable income = Gross Taxable income – capital gains (Tax charged by NCCL)

Total Taxable income = 156552 – 525 = $156027

= $156027@ 175 PKR

=PKR 27,304,725

Total taxable amount = PKR 27,304,725

TAX( Tax not over PKR 30,000,000) = PKR 2,345,000

Tax @ 27.5% over and above minimum of the range PKR 12,000,000

= PKR 4208799.38

Total Tax Payable

= 2,345,000 + 4208799.38

= PKR 6553799.38

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