Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

A company has employed Mr. John for many years. He receives a basic monthly salary of Rs 70,000. He is as well entitled to an end of year bonus of one-month salary.

Mr. John is provided with a company car, which he uses to attend duty. It was established that his private mileage is 15% of the total mileage. The car of a cylinder capacity of 1,500 cc, cost Rs 600,000 inclusive of registration duties.

Beneath the term of his contract, Mr. John is as well provided with a fully furnished house that is owned by his company.

On 1st December 2008, Mr. John took a seven year loan of Rs 500,000 from his company. The loan was granted at an interest rate of 5% while the outside borrowing rate was 12%. The loan was used partly to buy a house located on a plot of land of 12 perches (that is, 506.5 sq meters). He paid municipal rates amounting to Rs 1,560 on 31st January 2009.

Mr. John has two children. He has a son who is giving a full-time course at the University of Technology, and a daughter at college.

Mr. John has some fixed deposits on which he received interest of Rs 212,500 net of tax for the year to 30th June 2009. Interests earned by his wife was Rs55,000 gross and his children earned Rs 22,000 gross. Throughout the year to 30th June 2009, Mr. John bought shares from a listed company, from which he received dividends of Rs 8,000.

Mr. John received a refund of Rs35,000 gross for sick leave not taken. He as well received a net income of Rs 63,750 from part-time lecturing in two equivalent installments from the other employer.

The amount of tax deducted under the PAYE system was Rs 6,300 per month, apart from the month of December 2008 when it was Rs12,700 and February 2009 when it was Rs11,000. He has not kept a record of the amount of PAYE deducted from his part-time lecturing.

Mr. John is a partner in Singha and Associates, that expects to make a tax adjusted profit of Rs 450,000 for the year to 30th June 2009. Mr. Singh is entitled to 30% of the profit.

Mr. John’s wife works as an administrative officer, earning Rs 20,000 per month.

Required:

a) Make an income tax computation exhibiting clearly the total income tax payable by Mr. John for the year ended 30 June 2009 and also the tax liability shown on his income tax return for that year and which was due for payment on 30 September 2009?

b) Compute the total income tax payable by Mr. John’s wife for the income year ended 30 June 2009.  

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M96298

Have any Question? 


Related Questions in Taxation

Calculating taxmicrotech software corporation msc was

Calculating Tax Microtech Software Corporation (MSC) was founded in 2001. The founder, Chan Li, studied at MIT and worked for a large software corporation before returning to his hometown, Centervale, to set up his own c ...

Discussion forumnote the video has closed captioning to

DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. We are going to examine substitute goods, h ...

State income tax projectthis project will give you some

State income tax project This project will give you some exposure to the differences in income taxes on the state level in the United States as you compare the income tax rates among three states. The starting point is t ...

Assignmentcarrie a morgan age 45 is single and lives with

Assignment Carrie A. Morgan, age 45, is single and lives with her dependent mother at 426 Grouse Avenue, Allentown, PA 18105. Her Social Security number is 111-11-1112. 1. Carrie is a licensed hairstylist and operates he ...

Issue questions1 cable corporation which operates a fleet

ISSUE QUESTIONS 1. Cable Corporation, which operates a fleet of motorized trolley cars in a resort city, is undergoing a complete liquidation. John, who owns 80% of the Cable stock, plans to continue the business in anot ...

Assignment constructive dividends redemptions and related

Assignment: Constructive Dividends, Redemptions, and Related Party Losses Suppose you are a CPA hired to represent a client that is currently under examination by the IRS. The client is the president and 95% shareholder ...

Tax research problem grayling companyi need to do a tax

TAX RESEARCH PROBLEM (Grayling Company) I need to do a tax research problem in the following way: Complete tax research on assigned tax problem utilizing the following tax research methodology, and communicate such in a ...

Tax questionsa1 you are the tax director for a fortune 500

TAX QUESTIONS A 1 You are the tax director for a FORTUNE 500 company and the new CFO comes to you and asks you what ASC 740 is? He also asks you to tell him what a deferred tax asset is and when it can be reflected on th ...

Financial cost tax accounting assignmentlength 400-500

Financial, Cost, Tax Accounting Assignment Length: 400-500 words including a chart Description Knowing that the company's former CFO and CEO not only got in trouble for fiduciary responsibility violations but IRS issues ...

Preferred stock bailouts and personal holding company

Preferred Stock Bailouts and Personal Holding Company" Please respond to the following: From your analysis of Section 306 in the e-Activity. (,http://www.taxalmanac.org/index.php/Tax_Research_Resources, or use the Intern ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen