COMSATS University Islamabad
Department of Management Sciences
Assignment: Business Taxation Max Marks 10
Problem 1:
Mr. Asif Kham rented out his property @ Rs 25,000 per month on July 01, 2005 to Mrs. Sadia Akram.
He also received an un-adjustable advance of Rs 950,000 from Mrs. Sadia Akram. Currently he is
charging rent @ Rs 115,000 per month. During the year, he contracted to sell the property for Rs
3,500,000 and received Rs. 500,000 as token money. The fair rental value determined by income
Tax authorities for this property is Rs 95,000 per month. Calculate income from property and tax
payable by Mr. Asif Khan for the year ended on June 30, 2020.
Solution:
Problem 2:
Mr. Shahzad has recently constructed an office complex for the purpose of letting out. NADRA has
taken the whole complex on rent @ Rs. 760,000 per month. Following information relates to
expenses of said office complex:
Collection Charges Rs 150,000
Repair Charges Rs 360,000
Ground Rent Received Rs 523,860
Property Tax Rs 310,000
Lawyers fee to defend the title of land Rs 200,000
Income Tax withheld on Property Rs 240,000
Calculate income from property and tax payable by Mr. Shahzad for the year ended on June 30,
2020. Also compute the withholding tax deducted by NADRA, if any.
Solution:
Page 1 of 3
Department of Management Sciences
Assignment: Business Taxation Max Marks 10
Problem 1:
Mr. Asif Kham rented out his property @ Rs 25,000 per month on July 01, 2005 to Mrs. Sadia Akram.
He also received an un-adjustable advance of Rs 950,000 from Mrs. Sadia Akram. Currently he is
charging rent @ Rs 115,000 per month. During the year, he contracted to sell the property for Rs
3,500,000 and received Rs. 500,000 as token money. The fair rental value determined by income
Tax authorities for this property is Rs 95,000 per month. Calculate income from property and tax
payable by Mr. Asif Khan for the year ended on June 30, 2020.
Solution:
Problem 2:
Mr. Shahzad has recently constructed an office complex for the purpose of letting out. NADRA has
taken the whole complex on rent @ Rs. 760,000 per month. Following information relates to
expenses of said office complex:
Collection Charges Rs 150,000
Repair Charges Rs 360,000
Ground Rent Received Rs 523,860
Property Tax Rs 310,000
Lawyers fee to defend the title of land Rs 200,000
Income Tax withheld on Property Rs 240,000
Calculate income from property and tax payable by Mr. Shahzad for the year ended on June 30,
2020. Also compute the withholding tax deducted by NADRA, if any.
Solution:
Page 1 of 3
