Contemporary Taxation

Assignment 02

Assignment Title here

By

KashafTaj
SP19-BAF-007

Submitted to,

Mr. Shoukat Amir

July 24, 2020

Department of Management Sciences

COMSATS University Islamabad,
Attock Campus
 QUESTION
Please determine Tax Liability on Taxable Income for the Tax Year 2020 in following cases.

Amount in Rupees
 500,000   
,1,300,000 
 5,000,000   
 7, 000, 0000   
 9,000,000 
 12,000,000

ANSWERS:

1. 500,000

TAX RATE:

There will no tax charge for the amount lower than 600,000. So, tax liability on
500,000 will be zero.

2. 1,300,000

TAX RATE:

Rs. 30,000 plus 10% on amount exceeding Rs. 1,200,000.

Then the amount that exceed is 100,000

10% of 100,000 will be

10/100*100,000 = 10,000

Now we add 10,000 into 30,000 the tax liability will be Rs. 40,000 for taxable
income 1, 30,000.

3. 5,000,000

TAX RATE:

Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000

Then the amount that exceed is 1,500,000

20% of 1,500,000 will be

20\100*1,500,000 = 300,000

Now we add 3, 00,000 into 370,000 the tax liability will be Rs. 670,000 for
taxable income 5,000,000

4. 7, 000, 0000

TAX RATE:

Rs. 670,000 plus 32.5% of the amount exceeding Rs. 5,000,000

Then the amount that exceed is 2, 000, 000

32.5% of 2,000,000 will be

32.5\100*2, 000, 000 = 6,500,000

Now we add 6,500, 000 into 670, 000 the tax liability will be Rs. 19, 795, 000
for taxable income 7,000,0000

5. 9,000,000

TAX RATE:

Rs. 1, 345, 000 plus 25% of the amount exceeding Rs. 8,000,000

Then the amount that exceed is 1,000,000

25% of 1,000,000 will be

25\100*1,000,000 = 250,000

Now we add 250,000 into 1, 345, 000 the tax liability will be Rs. 1,595,000 for
taxable income 9,000,000

6. 12,000, 000

TAXRATE:

Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000

Then the amount that exceed is 4,000,000

25% of 4,000,000 will be

25\100*4,000,000 = 1,000,000
Now we add 1,000,000 into 1,345,000 the tax liability will be Rs. 2,345,000 for
taxable income 12,000,000