Download - Corporate Tax_ Prob_Assignment -2
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7/26/2019 Corporate Tax_ Prob_Assignment -2
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Perquisite-Related Problem-1 Expenditure by Employer
Items of Salary Mr. A Mr. B Mr. C Mr. Mr. E
Basic Salary [BS] 900,000 840,000 720,000 600,000 480,000
House Rent Allowance 240,000 216,000 168,000
Meical Allowance !0,000 !0,000 2",000 20,000 1",000
#on$eyance Allowance !2,000 !2,000 2",000 17,000%ntertain&ent Allowance 2",000 2",000 20,000 18,000 10,000
'ele()one Bill ",000 4,000 !,"00 !,000 1,"00
*t)er +tility Bill 7,"00 6,"00 6,000 ","00 4,000
o&estic 'ra$el Allowance 2",000 2!,000 21,000 19,000 17,000
-orei.n 'ra$el Allowance//s(ent y e&(loyer
2"0,000 22",000
-esti$al Bonus 1"0,000 140,000 120,000 100,000 80,000
3ncenti$e Bonus// 12",000 100,000
ea$e %ncas)&ent 20,000
ea$e -are Assistance "0,000 40,000 !0,000
*$erti&e 10,000
%&(loyer5s #ontriution to R- 10 o BS 90,000 84,000 72,000 60,000 48,000
'rans(ort or oice (ersonal use 70,000 6",000 "",000Rent:ree Acco&&oation 420,000
Acco&&oation at #oncessional Rent !00,000
!"!A# $%1$&%'(( 1%)*+%'(( 1%,,$%'(( 1%1(%'(( &((%'((
Employees Contribution to/
Reco.ni;e ro$ient -un R- 10 o BS 10 o BS 10 o BS 10 o BS 10 o BS
A((ro$e Su(erannuation -un AS- 2 o BS
is0losed profit by Employer 1,200,000
A0tual forein tra2el expense
3spent by employee4240,000 1"0,000
A0tual rental 2alue 400,000 !24,000
Rent paid by Employee 24,000
Actual Meical %
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Solution/
Perquisite Expenditure by Employer Perquisite by Employer
Items of Salary Mr. A Mr. B Mr. C Mr. Mr. E
Basic Salary [BS]
House Rent Allowance 240,000 216,000 168,000
Meical Allowance !0,000 !0,000 2",000 20,000 1",000
#on$eyance Allowance !2,000 !2,000 2",000 17,000
%ntertain&ent Allowance 2",000 2",000 20,000 18,000 10,000
'ele()one Bill ",000 4,000 !,"00 !,000 1,"00
*t)er +tility Bill 7,"00 6,"00 6,000 ","00 4,000
o&estic 'ra$el Allowance 2",000 2!,000 21,000 19,000 17,000
-orei.n 'ra$el Allowance// 187,"00 168,7"0
-esti$al Bonus
3ncenti$e Bonus// ",000 0
ea$e %ncas)&ent
ea$e -are Assistance
*$erti&e
%&(loyer5s #ontriution to R- 10 o BS
'rans(ort or oice (ersonal use 70,000 6",000 "",000Rent:ree Acco&&oation 420,000
Acco&&oation at #oncessional Rent !00,000
!"!A# )(*%((( '+%$'( ,*(%'(( ,(%'(( $,$%'((
Maximum Perquisite per Employee $'(%((( $'(%((( $'(%((( $'(%((( $'(%(((
Perquisite disallo5ed u6s ,(3e4 ''*%((( +(+%$'( 1$(%'(( '%'(( nil
-orei.n 'ra$el Allowance isallowe u=r 6" $%'(( '%$'(
Problems on Corporate !axation/ A7 $(11-1$
Problem 8 C!-1
')e train. an (roit an loss accounts o >)an #o? t?, a (ri$ate li&ite co&(any notenlistedwit) any stoc@ e
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2 aw c)ar.es inclue '@? !",000 (ai as co&(ensation or inEury recei$e y a (erson run o$er y
one o t)e irectors o t)e co&(any w)ile co&in. to t)e oice? ')e car elon.s to t)e co&(any?
'a< aut)ority treate it as t)e irectorFs (ersonal e
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Sour0e of in0ome Amount 3!a;a4 !ax 3!a;a4
i$ien inco&e 9!,"00 G 20 [(ai at source] 2!,!7"*t)er inco&e 22,20,000 G 27?" [(ai as a$ance] 610,"00
!otal in0ome $,%1,%'(( !otal tax payable u6s *+ ,,%)*'
'a< (ai on t)e asis o return ,,%)*'
8 ')e co&(any (ai i$ien G 12 wit) res(ect to t)e last inco&e year? 3ts accu&ulate (roit an
ree reser$e u( to t)e en o t)e last inco&e yearwere '@? 2"1,278 an '@? !,700,000 res(ecti$ely?
Required/ #alculate total inco&e an ta< (ayale y t)e co&(any or t)e rele$ant assess&ent year?
Problem 8 C!-,
Dreen Ban.laes) t? is a (ulicly trae co&(any )a$in. (ai:u( ca(ital o '@? 9,000,000? ')e net
(roit o t)e co&(any was '@? 1,8"0,000 or t)e last inco&e year? *n scrutiny, t)e ollowin. acts were
re$eale
1 Accountin. e(reciation as (er auite accounts was '@? "40,000, ut it s)oul e '@?
499,200 as (er ')ir Sc)eule?
2 'ele()one %