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Exercises on Determination of Income 2 |
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Taxation
Management FIN 623
VU
MODULE
5
LESSON
5.20
EXERCISES
ON RESIDENTIAL STATUS &
TAXATION
Exercise
3: Determine
Gross total income of Mr. A
in the light of following particulars
information
pertaining
to tax year 2006.
Interest
on Australian Bonds (one-third is
received in Pakistan)
24,000
Income
from agriculture in Australia, received
there but later on remitted to
Pakistan
50,000
Income
from property in London
received outside
Pakistan
20,000
Income
earned from business in
London which is controlled
through a PE in Pakistan
30,000
(Rs.10,000
is received in Pakistan)
Profit
on sale of an asset in Pakistan
but received in
Sydney
5,000
Pension
from Pakistan Government but
received in Sydney
20,000
Find
out gross total income of A,
if he is: (i) resident in
Pakistan and (ii)
nonresident
Solution
to Exercise 3:
Computation
of Gross total income of Mr. A
for tax year
2006
Particulars
Gross
total income if
Gross
total income
resident
if
non-resident
a.
Interest on bonds...
24,000
Nil
b.
Agriculture Income in Australia
50,000
Nil
c.
income from
property...
20,000
Nil
d.
income from business...
30,000
30,000
e.
Profit on sale of asset...
5000
5000
f.
Pension from Government of
Pakistan in Sydney..
20,000
20,000
Total
149,000
55,000
Exercise
4: Determine
Gross total income of Mr. A
in the light of following particulars
information
pertaining
to tax year 2006.
a.
Profit
on sale of plot at Sydney
(One-half received in
Pakistan)
250,000
b.
Profit
on sale of plot at Tokyo
(One-half received in
London)
150,000
c.
Salary
from a Pakistani company
received in London. (One-half is paid
for
350,000
rendering
service in Pakistan)
d.
Interest
on Australian Bonds (entire amount
received in London)
100,000
e.
Income
from property in Tokyo
received there.
400,000
f.
Agricultural
income in USA received in
London but later on remitted to
Pakistan.
100,000
Solution
to Exercise 4:
Computation
of Gross Total Income of Mr.
A for tax year
2006
Particulars
Gross
total income if
Gross
total income
resident
if
non-resident
a.
Sale of plot....
250,000
Nil
b.
Sale of plot....
150,000
Nil
c.
Salary from Pakistani
company...
350,000
175,000
d.
Interest on Australian
bond
140,000
Nil
e.
Income from property in
Tokyo
320,000
Nil
Rs
400,000 80,000
30
Taxation
Management FIN 623
VU
(1/5th Subtracted as allowance for
repairs
For
tax year 2006)
f.
Agricultural income in
USA....
100,000
Nil
Total
1,310,000
175,000
31
Table of Contents:
- AN OVERVIEW OF TAXATION
- What is Fiscal Policy, Canons of Taxation
- Type of Taxes, Taxation Management
- BASIC FEATURES OF INCOME TAX
- STATUTORY DEFINITIONS
- IMPORTANT DEFINITIONS
- DETERMINATION OF LEGAL STATUS OF A PERSON
- HEADS OF INCOME
- Rules to Prevent Double Derivation of Income and Double Deductions
- Agricultural Income
- Computation of Income, partly Agricultural,
- Foreign Government Officials
- Exemptions and Tax Concessions
- RESIDENTIAL STATUS & TAXATION 1
- RESIDENTIAL STATUS & TAXATION 2
- Important Points Regarding Income
- Geographical Source of Income
- Taxation of Foreign-Source Income of Residents
- Exercises on Determination of Income 1
- Exercises on Determination of Income 2
- SALARY AND ITS COMPUTATION
- Definition of Salary
- Significant points regarding Salary
- Tax credits on Charitable Donations
- Investment in Shares
- SALARY AND ITS COMPUTATION EXERCISES 1
- SALARY AND ITS COMPUTATION EXERCISES 2
- SALARY AND ITS COMPUTATION EXERCISES 3
- Tax treatment of Gratuity
- Gratuity Exercise
- PROVIDENT FUND
- Exemptions on Business income, Treatment of Speculation Business
- Deductions Allowed & Not Allowed
- Deductions: Special Provisions, Depreciation
- Methods of Accounting
- Taxation of Resident Company
- Taxation of Companies: Exercises
- Computation of Capital Gain
- Disposals Not Chargeable To Tax
- TAX RETURNS & ASSESSMENT OF INCOME UNIVERSAL SELF ASSESSMENT SCHEME
- Normal Assessment, USAS, Provisional Assessment, Best Judgment Assessment
- ADVANCE TAX COLLECTION & RECOVERY OF TAX PENALTIES & PROSECUTION
- What is Value Added Tax (VAT)?
- SALES TAX
- SALES TAX RETURNS