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 ...

Accountancy assignment 1tax returnjoon age 51 is an

Accountancy Assignment 1 Tax Return Joon, age 51, is an unmarried, cash basis, calendar year taxpayer. Joonhas one 9-year-old qualifying child who lives with him full-time and is claimed on Form 1040. Joon has the follow ...

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 ...

Question 1corporations have been scrutinized as to the

Question 1 Corporations have been scrutinized as to the recording and valuation of taxes they owe. The determination of how much they will pay is a combination income and expenses they report. There are many tax rules an ...

Assignment tax-planning client letter on irrevocable trusts

Assignment: Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax Suppose you are a CPA, and your client has requested advice regarding establishing an irrevocable trust for his two grandchildren. He ...

Partnerships and tax-exempt organizations please respond to

"Partnerships and Tax-Exempt Organizations" Please respond to the following: • Imagine that your new client would like to form a partnership. The client has asked you to assist in avoiding transactions that might result ...

New taxesdecisions related to taxes have a far-reaching

New Taxes Decisions related to taxes have a far-reaching impact on all U.S. citizens. Therefore, it is important to weigh the pros and cons of such decisions and ensure that they will be beneficial to the majority of cit ...

Complete the previous template that has the respective tax

Complete the previous template that has the respective tax forms and schedules required to complete the return. Complete all of the parts of your respective business tax return for which there is information. In the spac ...

Discussion question 1a law practice was incorporated on

Discussion Question 1 A law practice was incorporated on January 1, 2016, and expects to earn $25,000 per month before deducting the lawyer's salary. The lawyer owns 100% of the stock. The corporation (a personal service ...

Assignmentpaige turner is single and has two children from

Assignment Paige Turner is single and has two children from her previous marriage. Ali, her daughter, lives with Paige and provides more than half of her support. Leif lives with his father, Will (Leif lived with Will fo ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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