Tax Credits Chapter- 15
CA CAF- 6 PAST PAPERS THEORECTICAL QUESTIONS
Q. NO. 2(c) Spring 2022
List the persons or incomes that are allowed a tax credit equal to 100% of the tax
payable. Also specify the conditions/limitations which are required to be fulfilled for
availing the said tax credit. (Ignore tax credit available to charitable organisation)
Q. NO. 3 Spring 2016
Under the provisions of the Income Tax Ordinance, 2001 explain the following:
(c) Order of application of various tax credits while computing the tax liability of the taxpayer.
Q. NO. 3 Spring 2014 Best Foods Private Limited (BFPL) is an industrial undertaking. It is considering to
increase its production capacity by installing a plant alongside its existing plant. The CFO of the company
has informed the Board that BFPL can claim tax credit equal to 100% of the tax payable on profits
attributable to the new plant.
Required
Under the provisions of the Income Tax Ordinance, 2001 narrate the conditions that BFPL would need to
comply with, in order to be eligible to claim the above tax credit.
Q. 3 (c) Autumn 2012 Explain the provisions of the Income Tax Ordinance, 2001 pertaining to foreign tax
credit available to a resident taxpayer.
Q.3 (b) Spring 2012 A company formed for establishing and operating a new industrial undertaking for
manufacturing in Pakistan is allowed a tax credit equal to 100% of the tax payable on the taxable income
arising from such industrial undertaking for a period of five years.
Required: Narrate the conditions which must be satisfied for availing the above tax credit.
Q.NO. 2 Spring 2010 Mr. Qamar intends to donate an amount of Rs. 10 million to certain educational and
welfare institutions. In your capacity as his tax consultant, explain the tax relief which may be available in
respect of such donation and the conditions he must fulfill to avail such relief.
Q.NO. 5 (a) Spring 2008 Mr. Zulqarnain intends to make donations to certain charitable institutions. You
are required to advise him on the following:
(i) The types of institutions to whom the donation(s) would entitle him for tax credit.
(ii) The method of calculation of tax credit.
Q.NO. 4 (a) Spring 2007 Mr. Hamza intends to donate Rs. 5 million in cash to the following institutions:
An institution whose name is listed in the 2nd Schedule to the Income Tax Ordinance, 2001; and A non
profit organization working for the promotion of education in rural areas of Pakistan.
Explain the impact of the above donations on the tax liability of Mr. Hamza.
Q.NO. 6 Autumn 2005 Mr. Irfan intends to make a donation of Rs. 5 million in cash to certain institutions.
Advise Mr. Irfan, what tax benefits may be available to him and the conditions applicable thereon.
Q.NO.6 Autumn 200 3 Under what circumstances a resident individual is entitled to claim exemption from
tax on his foreign source salary, and when is the foreign tax treated as having been paid?
Q.NO.6 (b)Autumn 2003 Explain the basis on which a foreign tax credit would be allowed to a resident
taxpayer in respect of foreign tax paid on foreign source income.
Q.NO.4 Summer 2002 Mr. Ashraf made the following donation during the income year:
a) Rs. 200,000 in cash to a relief fund sponsored by the Government.