Tax Calculation

Tax Calculation

TABLE OF CONTENTS
Question 1..................................................................................................................................3
Question 2..................................................................................................................................4
Question 3..................................................................................................................................6
Question 4..................................................................................................................................6
Question 5..................................................................................................................................7
REFERENCES...........................................................................................................................8

Question 1
Trading profit
Net profit 22800
Other electrical work income 150
Overcharged motor expenses 800
Over charged other expenses 300
Telephone expenses not being charged (7639)
Capital allowance not included 2100
Trading profit 18511
2017 to 2018 Trading profit: 8700
2018 to 2019 Trading profit: 16800
2019 to 2020 Trading profit: 18511
Treatment for double charged income
In case of any income get double charged than such income would be found liable
for the income tax purpose. In the next year income tax return this over charged could be
challenged by providing reasonable evidences.
Garry’s adjusted total profit:
18511
Garry income tax liability:
Salary 18000
Interest income 1100
Dividend 3200
Private pension scheme expenses (4000)
Net income 18300
Tax @ 20% 3660
Garry’s capital gain/ loss of shares
Sales 22000 (20000 + 2000)
Less:
Purchase cost
(18000 / 1500 * 100) * 301 / 220 16418