Tax Credits Chapter- 15
b) personal car to an institution (approved). This car was purchased by Mr. Ashraf four year ago at the
cost of the Rs. 80,000. The fair market value is Rs. 60,000.
c) Medicines to a private hospital (unapproved) purchased at the total cost of Rs. 10,000.
Advice Mr. Ashraf regarding the allowance for donation which may be claimed by him if his salary income is
Rs. 800,000 after considering all admissible deductions.
Q.3 Spring 2002 Briefly explain the provisions of Income Tax Ordinance regarding the claim of:
a) Rebate for legal and educational expenditure incurred during the income year by an assessee.
b) Allowance for sum expended by an assessee on the purchase of books.
Q.4 Spring 2002 Mr. Ashraf made the following donations during the income year 2000-2001:
a) Rs. 200,000 in cash to a relief fund sponsored by the Government.
b) Personal car to an institution referred to in Clause (91) of the Second Schedule. This car was
purchased by Mr. Ashraf four years ago at the cost of Rs. 80,000. The fair market value is Rs.60,0 00
c) Medicines to a private hospital purchased at the total cost of Rs. 10,000.
Please advice Mr. Ashraf regarding the allowance for donation which may be claimed by him keeping in
view the requirement of Section 47 of the Income tax Ordinance, 1979 if his income for the relevant income
year has been assessed at Rs.800,000.