Tax Book 2023

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

Initial allowance of imported plant (2,500,000+375,000)×25% (718,750)

Depreciation of imported plant (2,500,000+375,000–718,750)×15% (323,438)

Dividend received from a listed company (174,000)

Gain on sale of shares in APL (660,000)

(4,456,188)

Taxable Income from Business 6,646,812

Income from other sources

Dividend received - FTR income (174,000+30,000=204,000/0.85) 240,000

Capital gain

Conceptual Approach to Taxes ___ 479

Capital gain

660,000

Total income for the year from all sources 7,546,812

Less: Separate block of income

Dividend received - FTR income 240,000

Gain on disposal of public company 660,000

900,000

6,646,812

Less: Deductible allowance

Zakat paid/deducted (30,000)

Taxable income under NTR 6,616,812

Tax liability

Gain on disposal of APL (Treated as a public company because 60% shares of APL

are held by Fed Govt.)

Tax liability

Tax on Rs. 6,000,000 1,330,000

On balance [Rs. 616,812 x 35%] 215,884

Tax liability under normal tax regime 1,545,884

Less: Tax credit on donation

(463,765)

1,082,119

Dividend income: Tax at the rate of 15% - FTR [Rs. 240,000 x 15%] 36,000

82,500

Total tax payable 1,200,619

Less: Advance tax paid (200,000)

Withholding tax deducted (1,400,000)

Withholding tax deducted (Dividend) (36,000)

Gain on sale of shares of public company [Rs. 660,000 x 12.5%]-Date of purchase

is before June 30, 2022

Lesser of 2,300,000 or 30% of the taxable income i.e. Rs. 1,985,043 (1,545,884/

6,616,812×1,985,043)

Withholding tax deducted (Dividend) (36,000)

Tax collected at import stage (150,000)

Balance tax refundable (585,381)

Details of his monthly remuneration during the year ended 30 June 2023 are given below:

Rupees

Basic salary 200,000

Medical allowance 20,000

Q.1 Autumn 2020

Sageer, a resident individual, is working as a full time professor at Knowledge Institute (KI) which is a non-profit

education and research institution and is duly recognized by Higher Education Commission. KI is entirely

owned and funded by Zinger Limited (ZL), a company listed on the Pakistan Stock Exchange.

Medical allowance 20,000

Fair market rent of accommodation 100,000

In addition to the above, he was also provided the following:

Additional information

(i) Health insurance for Sageer and his dependents as per the terms of employment. For this purpose, KI is

paying annual insurance premium of Rs. 40,000.

(ii) Provident fund contribution of Rs. 15,000 per month to a recognized provident fund. An equal amount was

also contributed by Sageer to the fund.

(i) On 1 July 2022, Sageer was granted an option to acquire 10,000 shares in ZL at a price of Rs. 105 per

share under an employee share scheme. Sageer bought the option on the same date by paying Rs. 175,000 to

KI when the fair market value of the option was Rs. 200,000. He exercised the option on 30 September 2022

when the fair market value was Rs. 130 per share.

Conceptual Approach to Taxes ___ 479