@Rabia-Dar said in FIN623 GDB 1 Solution and Discussion:

@Aqsa-Farhat said in FIN623 GDB 1 Solution and Discussion:

What is the taxable income of Mr. Khurram for the tax year 2020 who is earning a monthly basic salary of Rs. 70,000, earning the income from agricultural land used for growing flowers and creepers in Pakistan of Rs. 500,000 and is entitled to annual medical allowance of Rs. 30,000. (Show complete calculations)

Basic pay x 12= annual salary?
OR
Net pay after deduction x 12 = annual salary?
Grand pay x 12 = annual salary
Define any person.

GROSS INCOME *12= PERSON (SALARY INDIVIDUAL ).
PERSON CAN BE A BUSINESS INDIVIDUAL

It looks wrong as per fbr?
Saw different Fix amounts on fbr.
6 Lacs - No Tax
6 - 8 Lacs - 2000 PKR
8 - 14 Lacs - 14500 PKR
14 - 15 Lacs - 79500
etc.
Please confirm

@Aqsa-Farhat said in FIN623 GDB 1 Solution and Discussion:

What is the taxable income of Mr. Khurram for the tax year 2020 who is earning a monthly basic salary of Rs. 70,000, earning the income from agricultural land used for growing flowers and creepers in Pakistan of Rs. 500,000 and is entitled to annual medical allowance of Rs. 30,000. (Show complete calculations)

Basic pay x 12= annual salary?
OR
Net pay after deduction x 12 = annual salary?
Grand pay x 12 = annual salary
Define any person.

GROSS INCOME *12= PERSON (SALARY INDIVIDUAL ).
PERSON CAN BE A BUSINESS INDIVIDUAL

What is the taxable income of Mr. Khurram for the tax year 2020 who is earning a monthly basic salary of Rs. 70,000, earning the income from agricultural land used for growing flowers and creepers in Pakistan of Rs. 500,000 and is entitled to annual medical allowance of Rs. 30,000. (Show complete calculations)

Basic pay x 12= annual salary?
OR
Net pay after deduction x 12 = annual salary?
Grand pay x 12 = annual salary
Define any person.

What is the difference between tax avoidance and tax evasion?

Tax avoidance is defined as legal measures to use the tax regime to find ways to pay the lowest rate of tax, e.g putting savings in the name of your partner to take advantage of their lower tax band. Tax evasion is taking illegal steps to avoid paying tax, e.g. not declaring income to the taxman.

Briefly answer the following questions. (1 + 1 + 2)

1. What is the difference between tax avoidance and tax evasion?
2. Jee Ltd. ends its accounting year on November 30 each year. Determine the tax year of this company for the income year starting on Dec. 1, 2018 and ending on Nov. 30, 2019.
3. What is the taxable income of Mr. Khurram for the tax year 2020 who is earning a monthly basic salary of Rs. 70,000, earning the income from agricultural land used for growing flowers and creepers in Pakistan of Rs. 500,000 and is entitled to annual medical allowance of Rs. 30,000. (Show complete calculations)