Consolidated Question
Mr. Hasan has been employed at Eiwan Limited since last many years. He has provided the
following details for his income and expenses for the tax year 2023:
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His monthly salary is Rs. 200,000.
He gets a monthly medical allowance of Rs. 25,000.
He was provided with a company-maintained Honda City car till 31st December 2022 for both
personal and official use. Eiwan Limited bought Honda City four years ago at a cost of 1,600,000.
On 1st January 2023, Mr. Hasan was provided a new Honda Civic car costing Rs. 3,600,000.
Mr. Hasan was provided a driver from 15th January 2023. Eiwan Limited pays the driver Rs. 25,000
per month. Eiwan deducts Rs. 5,000 per month from Mr. Hasan's salary, as he uses the driver for
personal purposes.
Mr. Hasan paid Rs. 120,000 for sending his children to different tuition courses during the year.
Eiwan runs a provident fund for all employees who are required to pay 12% of their salary into
the fund.
On 15' August 2022, Eiwan Limited gave all employees shares of the company under employee
share ownership scheme. Employees cannot sell the shares received under the scheme for ten
months. The shares were given at no cost to employees and had a market value of Rs. 78 on 15'
August 2022, Rs. 83 on 15' February 2023, and Rs. 96 on 15' June 2023. Mr. Hasan received 10,000
shares under the scheme.
Mr. Hasan paid a donation of Rs. 28,000 to an organization that is listed in the second schedule
of Income Tax Ordinance, and donation of Rs. 15,000 to his neighborhood mosque during the tax
year 2023.
During tax year 2023, Mr. Hasan paid life insurance premium of Rs. 150,000.
He owns a flat which was given on rent to Zahid on 31st Jan 2020 at Rs. 50,000 per month. He
received a non-adjustable deposit of Rs. 1,000,000 on the first day of rent.
On 1st January 2023, Hasan requested the tenant, Zahid, to vacate the property. As compensation
Hasan paid Rs. 2,500,000 to Zahid.
On 1 April 2023, Hasan gave the flat to Ahmed, for a period of 20 years at a monthly rent of Rs.
100,000. Hasan received Rs. 3,000,000 as non-adjustable deposit.
Mr. Hasan also owns a house that has been given on a monthly rent of Rs. 60,000 since 2021.
During this tax year, Mr. Hasan spent Rs. 120,000 on repairs of the flat, and paid Rs. 15,000 in
respect of Property Tax and water charges and sold house for Rs. 50 million on 1st Jan 2023.
He also sold gold coins on 1st Jan 2023 for Rs. 0.2 million which he inherited on 1st Jan 2022. The
FMV of gold coins on 1st Jan 2022 was Rs. 0.25 million.
He also has a side business of grocery store. During TY2023, it generated revenue of Rs. 2 million.
The following are the expenses incurred during TY203.
 Rent of Store Rs. 240,000
 House-hold expenses 996,000
 Purchase of car 3,000,000
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Purchase of secondhand laptop 60,000
Property Tax 12000
Stationery Expense 5000
Utilities bill of store 85000
He estimates 60% of the car is use for business purposes.
During the year, he also received dividends of Rs. 10,000 from ABCO Ltd on his investment in
shares.
Required: Find out Income Tax Liability for Mr. Hasan for the tax year 2023.