After going through this assignment, the students should be able to:
1. Calculate the gross total income
2. Differentiate the sources of income according to residential status
3. Differentiate between taxable and non-taxable income of a person
Mr. Ali furnishes the following particulars of his income earned during tax Year 2014-15:
1. Income from agriculture in Bangladesh, received there Rs. 3, 80,000, but later on remitted to Pakistan.
2. Interest on Indian Development Bonds, Rs. 90,000, one-sixth of which received in India.
3. Gift of Rs. 70,000 received in foreign currency from a relative in Pakistan.
4. Arrears of salary Rs. 1, 50,000 received in India from a former employer in Pakistan.
5. Income from property received outside India Rs. 3, 00,000 (Rs. 1,00,000 is used in Bahrain for the
educational expenses of his son in Bahrain, and Rs. 2,00,000 later on remitted to Pakistan).
6. Income from business in Iran which is controlled from Pakistan Rs. 2, 00,000 (Rs. 1, 00,000 being
received in Pakistan).
7. Dividends received on 30.06.2014 outside Pakistan from a Pakistani company,
Rs. 2, 50,000.
8. Profit from business in Lahore managed from outside Pakistan Rs. 1, 00,000, 60% of which is received
outside Pakistan. Requirement:
a) Determine the Gross Total Income of Mr. Ali for tax Year 2014-2015, if Mr. Ali is a Resident
individual of Pakistan.
b) Give reasons if any item is not included in the gross total income of Mr. Ali.
DEADLINE:
• Make sure to upload the solution file before the due date on VULMS.
• Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
• Use the font style “Times New Roman” or “Arial” and font size “12”.
• It is advised to compose your document in MS-Word format.
• You may also compose your assignment in Open Office format.
• Use black and blue font colors only.
RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
• It is submitted after the due date.
• The file you uploaded does not open or is corrupt.
• It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
• It is cheated or copied from other students, internet, books, journals etc.

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