Semester “Spring 2010”

“Taxation Management (FIN623)”

Question:
“Mr. Shadab Khan is 67 years old and his
taxable salary for the tax year 2009 is Rs.
300,000. Discuss that whether he is
entitled for the tax credit of 50% being a
senior citizen and justify your answer
according to the law. ”

ANSWER:
Reduction in Tax Liability under Second Schedule Part 3
“Senior citizen-age 60 years &above where taxable income not exceeding Rs. 500,000/-
tax liability reduced by 50%.”

According to above mentioned law Mr. Shadab is a citizen so he will be granted tax credit
of 50%.