Mr. A worked in a company as assistant manager accounts.

For the tax year 2024 his salary package was as follows:

Basic Salary 40,000 Per Month

Bonus 50,000 Onetime

Overtime 20,000 For the year

Refrigerator provided free of cost

- Market Value 50,000

Company maintained Vehicle (For personal use)

- Cost of Vehicle 1,200,000

- Salary Of Driver paid by employer 10,000 Per Month

Rent Free Accommodation

- Market Rent 15,000 Per Month

Medical Allowance 5,000 Per Month

At the end of tax year Mr.A resigned from job and was paid 1,000,000 as golden
handshake.

Calculate the tax liability of Mr. A for tax year 2024.

PREVIOUS YEARS DATA:

YEAR TAX Liability TAXABLE Income

2021 2,500 700,000

2022 5,000 800,000

2023 7,500 900,000

SOLUTION:
Computation of tax liability of Mr.A for tax year 2024 under NTR:

Income from salary (N-1) 1,844,000

Taxable income 1,844,000

Tax liability 144,700

(N-1)
Basic salary 360,000

Bonus 50,000

Over time 20,000

Gift 50,000

Conveyance 120,000

Driver 120,000

RFA 180,000

Medical allowance 24000

G.H.S 1000,000

1,844,000

Method 2:

Computation of tax liability of Mr.A for tax year

2024 under N.T.R:
Income from salary (N-1) 844000

Taxable income 844000

Tax liability 23900

UNDER S.T.R
1000,000 X Average rate = 7.77%

Total tax liability =7777+23900 = 31677