SEMESTER SPRING 2012
Taxation Management (623)
Assignment No. 2
Due Date: 14 June, 2012 Maximum Marks: 25
Assignment:
Mr. Jamal is now 62 years old and he is working on contract basis
in a multinational group of
companies. He has to stay in different cities for more than one year for performing
his duties. Rent
free accommodation and medical facility is provided to him by the company as per contract
agreement. He is also entitled to accommodation allowance of Rs. 17,000 per month, if, in case
the
company’s accommodation is not available. For tax purpose, the house rent a
llowance is admissible at
the rate of thirty percent. Further, the following information is available for the tax year 2012:
Particulars Rs.
Basic salary (per month) 40,000
Medical expenses reimbursed 90,000
Children fee paid 10,000
Bonus 70,000
Free food during duty hours paid by employer 50,000
Gratuity approved from Commissioner of Income Tax received 50,000
Agricultural income 150,000
Loan payable to previous employer @ 14% for purchase of an asset paid by
current employer
50,000
Loan amount waived off 10,000
Cheque received as performance award from president of the company 50,000
Fair market value of Jeep provided by employer for personal and official use 950,000
Annual lease payment of jeep by the employer 90,000
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