10. Mr. Faizan is the Head of Taxation of RX Limited. During the financial year...
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10. Mr. Faizan is the Head of Taxation of RX Limited. During the financial year 2019-20 he earned followingincome:Mr. Faizan received Taka 12,00,000 as cash salary out of which basic pay was 60%, medical allowancewas 20%, transport allowance was 15% and education allowance for children was 5%. The companyprovided him with a car for official and his family use. He was also provided with a residential houseagainst which the company incurred rental expense of Taka 3,10,000. Though the company has aRecognized Provident Fund, Mr. Faizan did not apply for becoming the member of that Fund. As per theProvident Fund Rules, the contribution to the Fund by the employer is 8% of basic pay. In addition, he made the f@llowing transactions relating to financial year 2019-2020:Donation made to the Zakat Fund Taka 10,000, purchased share of a private limited company Taka20,000 and paid Taka 15,000 as Life Insurance Premium. Please compute total income and tax liability of Mr. Faizan for the assessment year 2020-21 consideringthe above information
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