07-08-2009, 02:30 PM
bahi i m not here to quarell with u.i said what i read and understand. u said all those will be dealt with as per section 149(SALARY) in calculating his taxable income.
i think u confusing me further than before. i give u figures u plz solve it.only then i will be able to understand.
A buiding of Rs. 500,000 and land of Rs. 1,000,000 belonging to a company is being used by only director (of a private company) and his family for personal purpose.it is used for business purpose only when foreign visitors come to pak and stay there for 2-3 days. this happens only once or twice in a year.
Company has installed Air conditioner,computers,equipments,electricial instruments, etc amounting to Rs. 2,000,000 there. The director is drawing a Basic salary of Rs. 125,000 per month.
For sake of simplicity assume all those assets are depreciable assets as per section 22 and tax depreciaton rate on all those assets is 20%.
Accounting profit before depreciation and salary of director is Rs. 9,000,000 and assume accounting depreciation is charged on all those assets at rate of 10%. Further assume that tax and accounting treatment of all other items (except depreciation and salary)is same.
Now would u please calculate following witt justication for each figure
Accounting profit
Tax profit
Taxable income of director
and please dont mind but be specific. dont try to show that u know other things not asked.
i think u confusing me further than before. i give u figures u plz solve it.only then i will be able to understand.
A buiding of Rs. 500,000 and land of Rs. 1,000,000 belonging to a company is being used by only director (of a private company) and his family for personal purpose.it is used for business purpose only when foreign visitors come to pak and stay there for 2-3 days. this happens only once or twice in a year.
Company has installed Air conditioner,computers,equipments,electricial instruments, etc amounting to Rs. 2,000,000 there. The director is drawing a Basic salary of Rs. 125,000 per month.
For sake of simplicity assume all those assets are depreciable assets as per section 22 and tax depreciaton rate on all those assets is 20%.
Accounting profit before depreciation and salary of director is Rs. 9,000,000 and assume accounting depreciation is charged on all those assets at rate of 10%. Further assume that tax and accounting treatment of all other items (except depreciation and salary)is same.
Now would u please calculate following witt justication for each figure
Accounting profit
Tax profit
Taxable income of director
and please dont mind but be specific. dont try to show that u know other things not asked.
