Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
(ii) On 1 July 2022, Sageer obtained an interest free loan of Rs. 1,500,000 from KI in exchange for which he
agreed to waive the interest receivable on his provident fund balance maintained with KI. Interest provided on
provident fund balance for the year was 8%. The prescribed benchmark rate is 10%.(iii) On 31 August 2022, he received leave encashment of Rs. 100,000 relating to previous year.
(iv) During the year, tax of Rs. 160,000 was deducted at source by KI.As per the scheme, he was not allowed to sell or transfer the shares before 31 December 2022. On 3 1
December 2022, the fair market value of ZL's shares was Rs. 142. On 30 May 2023, he sold 5,000 of these
shares at Rs. 135 per share.(^480) ____ _ _Conceptual Approach to Taxes
Other information relevant to tax year 2023:
Relevant exchange rates were as follows:
(i) On 15 January 2023, he sold a shop situated in Karachi for Rs. 15,000,000. He had purchased this shop in
December 2021 for Rs. 19,000,000 out of which Rs. 5,000,000 was paid in cash.
(ii) On 1 March 2023, he sold a residential plot situated in Faisalabad for Rs. 18,000,000. The plot was
inherited from his father in December 2021. Fair market value of the plot at the time of inheritance was Rs.
7,000,000. The cost of plot to the father till the date of death was Rs. 5,000,000.
(iii) In June 2023, Sageer independently developed learning courses for sale through a web based marketplace
managed by a company situated outside Pakistan. On 25 June 2023, he received USD 4,260 into his dollar
account from sale of these courses. Withholding income tax @ 8% was deducted from the receipt as per the
income tax laws of the foreign country.
Sunday, June 25, 2023 USD 1 = PKR 168
Friday, June 30, 2023 USD 1 = PKR 169
Average exchange rate for June 2021 USD 1 = PKR 168.5
Required:
Answer
Sageer
(iv) On 1 June 2023, Zakat paid Rs. 2,500,000 under the Zakat & Ushar Ordinance.
Under the provisions of the Income Tax Ordinance, 2001 and Rules made there under, compute the taxable
income and net tax payable by or refundable to Sageer for the year ended 30 June 2023. Show all relevant
exemptions, exclusions and disallowances.
Sageer
For tax year 2023
Rs.
Income from salary
Basic salary [200,000×12] 2,400,000
240,000
1,080,000
Insurance premium - Exempt u/c (139) Part I of Second Schedule -
Employer's contribution to provident fund - under Sixth Schedule (W-1) 30,000
Employee share scheme [(142×10,000)-(105×10,000)-175,000] 195,000
Concessional loan -
Computation of total income, taxable income and net tax payable/refundable
Medical allowance [20,000×12] - As medical facility has been given so the medical
allowance shall be totally taxable
Rent free accommodation - Higher of 45% of Basic pay Rs. 1,080,000 or FMR of
accommodation Rs. 1 million
Concessional loan -
Leave encashment [chargeable on receipt basis] 100,000
Total income from salary 4,045,000
(^480) __ ___ _Conceptual Approach to Taxes