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

Overviewthe final project for this course is broken into

Overview The final project for this course is broken into two parts. The first part is the creation of a memorandum, which is outlined below. The second part is a PowerPoint presentation, which is outlined in Final Proje ...

Accounting questionearthfriendly inc an irc sec 501c3

Accounting Question: EarthFriendly, Inc., an IRC Sec. 501(c)(3) organization, incurred lobbying expenses of $150,000 and exempt purpose expenditures of $1.2 million in carrying out its exempt mission. What are the tax co ...

Depreciation and nontaxablecompanies buy use and sell many

Depreciation and Nontaxable Companies buy, use, and sell many types of property as a part of business operations. The amount involved can be substantial as can be the tax implications. Based on your readings for the modu ...

Assignemnt corporation tax returnrequiredbull using the

Assignemnt: CORPORATION TAX RETURN Required: • Using the information provided below, complete Salt Source Inc.'s (SSI) 2010 Form 1120S. Also complete Kim Bentley's Schedule K-1. • Form 4562 for depreciation is not requir ...

Tax memoentity formationyou are a cpa in private practice

Tax Memo:Entity Formation You are a CPA in private practice and a client of yours comes into your office and tells you he is starting a new business. He tells you that he will be starting a bungee jumping school. He says ...

Criterion 11 which of the following is not a primary tax

Criterion 1 1. Which of the following is NOT a primary tax authority? a. Treasury Regulation b. Revenue Ruling c. a Tax Court Memorandum decision d. an IRS publication 2. Congress' authority to enact an income tax was es ...

Assigmn a letter to the board of directorsdecisions

Assigmn: A Letter to the Board of Directors Decisions involving capital expenditures often require managers to weight the costs and benefits of different options related to the same goal or project. For instance, decidin ...

Federal taxescongress has asked you to evaluate the

Federal Taxes Congress has asked you to evaluate the individual tax brackets in the federal tax code and make several recommendations to improve the fairness of the tax brackets. Using the Internet and Strayer Library, r ...

Assignmenttax form problem devon bishop age 40 is single he

Assignment Tax Form Problem Devon Bishop, age 40, is single. He lives at 1507 Rose Lane Devon Bishop, age 40, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1111. Devon ...

Dq1respond to the ethics discussion case at the end of

DQ1 Respond to the Ethics Discussion Case at the end of chapter 9 in the textbook. Assume you are a CPA. A new client, Mark, a local chiropractor, has brought you the financial information for his business at the close o ...

  • 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