CAF-2 · Chapter 10 · Question 10 of 15
Mr. Junaid, a resident individual, earned a profit on debt of Rs. 7,000,000 during the tax year. How will this income be classified and taxed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) The entire Rs. 7,000,000 is taxable under the Normal Tax Regime (NTR) under the head 'Income from Other Sources' at applicable slab rates.
Explanation
Any profit on debt exceeding Rs. 5 million derived by an individual is entirely taxable under the Normal Tax Regime (NTR) under the head 'Income from Other Sources' at the applicable progressive slab rates.
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