Tax Book 2023

Chapter 21 ___Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)

Total income (A+B+C) (71.60)

Less: Capital gain on sale of property

(separate block of income)

(20.00)

(91.60)

Rs. in million

Tax Liability

0.00

Since Aakash’s taxable income for tax year 2023 is negative, his share of profit from associate is ignored.

Tax on capital gain on sale of property (separate block of

income) (20×0%)

Conceptual Approach to Taxes ___ 475

W-1: Loss / Gain on disposal of vehicle

Insurance claim 6.00

Cost 10.00

Depreciation TY 2021 (10× 15%) (1.50)

TY 2022 (10×85%×15%) (1.30)

TY 2023

WDV 7.20

Loss on disposal of vehicle (1.20)

Note: Answers in which loss has been computed by treating the vehicle as passenger transport not plying for

hire, has also been considered correct.

Rs. 600,000 as leave encashment.

Rs. 8,510,000 from recognized provident fund.

Rs. 1,300,000 and Rs. 1,700,000 as salary arrears relating to tax year 2020 and 2021 respectively.

Tax year 2019 2020 2021

Q.1 (a) Spring 2021

On 31 December 2022, Dr. Jamal resigned from his employment with General Hospital Limited. In January

2023, he received following amounts in final settlement:

Dr. Jamal had received a monthly salary of Rs. 500,000 from July 2022 to December 2022. His taxable income

and tax liability during the preceding four tax years were as under:

Tax year 2019 2020 2021

Total taxable income (Rs.) 2,800,000 3,200,000 3,800,000

Total tax paid 359,500 404,500 300,000

Tax year 2022

Total taxable income (Rs.) 4,800,000

Total tax paid 630,000

Required:

As a tax consultant, advise Dr. Jamal about the amount of income tax payable by him for the tax year 2023,

under the Income Tax Ordinance, 2001.

Conceptual Approach to Taxes ___ 475