Income From Property Chapter- 08
CA CAF- 6 PAST PAPERS THEORECTICAL QUESTIONS
Q. NO. 3 (e) Autumn 2019
Farhan and Imran jointly own a building in Quetta. The building has been rented out to a company. Discuss
the tax treatment of income from such property
Q.NO.3 (a) Spring 2017
On 1 June 20X6 Dawood and Dewan jointly purchased a bungalow for Rs. 35 million. They paid the
amount in the ratio of 65:35 respectively. To arrange funds for the deal, Dawood borrowed Rs. 3,000,000 in
cash from Shameem who is in the business of lending money. The rate of interest is agreed @ 20% per
annum.
On 1 July 20X6, the house was let out to a company at annual rent of Rs. 4,500,000 inclusive of an amount
of Rs. 75,000 per month for utilities, cleaning and security. For providing these services Dawood and
Dewan paid Rs. 35,000 per month. During the tax year 20X7 they also paid Rs. 10,000 as collection
charges and Rs. 230,000 for administering the property.
Required: Compute taxable income of Dawood and Dewan under appropriate heads of income for the tax
year 20X7.
Q.NO.3 (b) Spring 2017
Najam had purchased a house in 20X2 for Rs. 20 million.
On 1 July 20X6, Najam entered into an agreement with Zameer for sale of the house for Rs. 25 million. As
per the terms of the agreement, Najam received Rs. 5 million on the day the contract was signed and
balance amount was to be paid on 30 September 20X6. However, due to financial difficulties, Zameer failed
to pay the balance amount on the due date and consequently, Najam forfeited the advance in accordance
with the terms of the agreement.
On 15 February 20X7 Najam sold the house to Farid for Rs. 30 million.
Required: Advise Najam about the taxability of the above transaction under the Income Tax Ordinance,
2001.
Q.NO.4 (a) Spring 2015
(i) Explain the term ‘Rent’ in context of ‘Income from property’.
(ii) Specify the head of income under which the following amounts would be chargeable to tax:
rent from sub lease of a building.
amount included in rent for the provision of amenities, utilities and any other service
connected with renting of the building.Q. No. 4 (b) Spring 2012 Yaqoot and Loha are joint owners of a bungalow which has been rented out for
Rs. 70,000 per month.
Required: Discuss the taxability of Yaqoot and Loha in respect of above income, in the light of Income Tax
Ordinance, 2001.
Q.NO. 4(a) and (b) Spring 2009 Mr. Bukhari is a resident person and owns a property abroad. During the
year, he received rent amounting to Rs. 3 million from that property. The tax on rental income has been
duly paid abroad and there is no tax treaty between Pakistan and the country in which the property is
situated.
(a) Explain the tax treatment of rental income received by Mr. Bukhari in Pakistan.