Bilal is an employee of King Brands Ltd. (a listed Co). In tax year 2021, his basic salary aggregated to Rs. 1,500,000. The company offered him shares option for acquiring 5,000 shares under employee share scheme. Cost of option amounted to Rs. 1,000. He exercised the option @ Rs. 50/share on 1st September, 2020. Fair market value (FMV) at the time of exercise of shares was Rs. 70/share. After holding the shares for a period of 202 days, he disposed them off at: a) Rs 90 / share b) Rs 40 / share Required In each of the above scenarios, compute Mr. Bilal's taxable income and tax liability for tax year 2021. need answer fast plz
Bilal is an employee of King Brands Ltd. (a listed Co). In tax year 2021, his basic salary aggregated to Rs. 1,500,000. The company offered him shares option for acquiring 5,000 shares under employee share scheme. Cost of option amounted to Rs. 1,000. He exercised the option @ Rs. 50/share on 1st September, 2020. Fair market value (FMV) at the time of exercise of shares was Rs. 70/share. After holding the shares for a period of 202 days, he disposed them off at: a) Rs 90 / share b) Rs 40 / share Required In each of the above scenarios, compute Mr. Bilal's taxable income and tax liability for tax year 2021. need answer fast plz
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
Transcribed Image Text:Bilal is an employee of King Brands Ltd. (a
listed Co). In tax year 2021, his basic salary
aggregated to Rs. 1,500,000. The company
offered him shares option for acquiring 5,000
shares under employee share scheme. Cost of
option amounted to Rs. 1,000. He exercised
the option @ Rs. 50/share on 1st September,
2020. Fair market value (FMV) at the time of
exercise of shares was Rs. 70/share. After
holding the shares for a period of 202 days,
he disposed them off at:
a) Rs 90 / share
b) Rs 40 / share
Required
In each of the above scenarios, compute Mr.
Bilal's taxable income and tax liability for tax
year 2021. need answer fast plz
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