Virtual University of Pakistan

Semester “SPRING 2022”

TAXATION MANAGEMENT (FIN623)

Assignment 01 Marks: 10

“Residential Status and Taxable Income”

Question
1. Using the following data, determine taxable income of Shujaa, if he is (a) resident; & (b)
non-resident for the tax year 2022 (Show complete calculations) (6 Marks)
 Monthly basic salary Rs. 350,000
 Income from cheese making earned in Malaysia Rs. 600,000
 Profit on security paid in Japan Rs. 800,000
 Monthly medical allowance Rs. 40,000

Resident

Income Rs
income from salary 350000
Income from cheese making earned in Malaysia 600000
Profit on security paid in Japan 800000
Medical Allowanc e 40000
Less 10% of basic salary 35000 5000
955000

Non Residen t

Income Rs
income from salary 350000
Income from cheese making earned in Malaysia 600000
Profit on security paid in Japan 800000
Medical Allowanc e 40000
Less 10% of basic salary 35000 5000
355000

2. A Federal Minister of the Govt. of Pakistan remained on a foreign tour to USA for 45 days
during the tax year 2022. Considering the related section of the ITO 2001, determine his
residential status for the tax year 2022. (2 Marks)

An individual shall be a resident individual for a tax year if the individual• is present in
Pakistan for a period of, or periods amounting in aggregate to, one hundred and eighty-three
days or more in the tax year; or • Is an employee or official of the Federal Government or a
Provincial Government posted abroad in the tax year?

3. Identify legal status of the following persons in light of the Sec. 80 of the ITO 2001 for the
tax year 2022: (2 Marks)
i. Marketing Manager of a local company individual
ii. Sahara Trust, a non-profit organization (NPO) A (xiv) Company

You MUST provide all the calculations in DETAIL as

each calculation carry marks.
You MUST mention the relevant section/clause of the ITO
2001 and Income Tax Rules 2002 for the tax year 2022 to
support your answer and calculations as these carry marks.
IMPORTANT
24 hours extra / grace period after the due date is usually available to overcome uploading
difficulties. This extra time should only be used to meet the emergencies and above mentioned
due dates should always be treated as final to avoid any inconvenience.

IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL

INSTRUCTIONS
BE NEAT IN YOUR PRESENTATION

OTHER IMPORTANT INSTRUCTIONS:

DEADLINE:
Make sure to upload the solution file before the due date on VULMS.
Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
Use the font style “Times New Roman” or “Arial” and font size “12”.
Do not add watermarks, backgrounds, page colors, page borders, and etcetera.
It is advised to compose your document in MS-Word format ONLY.
You may compose your assignment in Open Office format.
Use black and blue font colors only.

RULES FOR MARKING:

Please note that your assignment will NOT be graded or graded as Zero (0), if:
It is submitted after the due date.
The file you uploaded does not open or is corrupt.
It is in any format other than MS-Word, Excel, or Open Office; e.g. PowerPoint, PDF, and
etc.
It is cheated or copied from other student(s), internet, given article, books, journals, and
etc.

Note related to load shedding: Please be proactive

Dear Students,
As you know that load shedding problem is prevailing in our country, therefore,
you all are advised to post your activities as early as possible without waiting for
the due date. For your convenience, course calendar has already been uploaded
on VULMS for the current semester, therefore no excuse will be entertained
after due date of assignment.

BEST OF LUCK