A taxpayer's gross tax liability is Rs. 95,000 and allowable tax deducted at source is Rs. 20,000. Ignoring credits and other adjustments, what amount remains payable?
Correct answer: A. Rs. 75,000
- A. Rs. 75,000
- B. Rs. 95,000
- C. Rs. 115,000
- D. Rs. 20,000
Explanation
Tax deducted at source is generally credited against the taxpayer's gross tax liability. Therefore, Rs. 95,000 minus Rs. 20,000 leaves Rs. 75,000 payable.
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Taxation covers the principles used to assess and collect taxes from individuals, businesses and transactions, with emphasis on income tax and sales tax concepts in Pakistan. Questions involve taxable income, exemptions, deductions, tax liability, withholding, returns, assessment, tax avoidance versus evasion, and the distinction between direct and indirect taxes.
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