Tax Book 2023

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

Income from business - foreign source income

Online teaching (4,260×168) 715,680

Add: Withholding tax [4,260×(8/92)×168] 62,233

Total income from business 777,913

Capital gain

1,000,000

Gain on sale of inherited property [(18,000,000-5,000,000)] - u/s 37(2) & 79 13,000,000

Gain on sale of shop [15,000,000-(19,000,000-5,000,000)] - u/s 37(2) & 75A

Conceptual Approach to Taxes ___ 481

14,000,000

Capital gain from sale of securities

Loss on disposal of shares (W-2) -

Total income 18,822,913

(14,000,000)

Taxable income 4,822,913

(2,500,000)

Net taxable income 2,322,913

Less: Separate block of income - Capital gain from sale of immovable property

Less: Zakat - Paid under the Zakat & Ushar Ordinance

Since salary income is more than 75% of the taxable income, the slab applicable to salaried individuals shall

be applied.

Tax liability

On Rs. 1,200,000 15,000

On remaining Rs. 1,122,913 @ 12.5% 140,364

100,000

1,625,000

Total tax liability 1,880,364

Less: Reduction in tax liability because of full time professor(W-3) (38,841)

1,841,523

Less: Foreign tax credit (W-4) 0

Less: Withholding tax (160,000)

Total tax payable 1,681,523

Rs.

Tax on gain on sale of immoveable property [13,000,000 x 12.5%] - sold after one

year but before two years

Tax on gain on sale of shop 1,000,000 x 10% - sold after one year but before two

years

W-1: Rs.

Employer's contribution [15,000×12] 180,000

In excess of lower of:

• 1/10th salary 240,000
  -150,000 150,000 (150,000)
  Taxable under income from salary 30,000

W-2: Rs.

Cost of 5,000 shares of ZL:

Consideration paid for shares [105×5,000] 525,000

Consideration paid to acquire option [175,000×(5,000/10,000)] 87,500

Taxable amount included in salary income [195,000×(5,000/10,000)] 97,500

710,000

Consideration received for disposal 675,000

Loss on disposalLoss on disposal (35,000)(35,000)

W-3:

Tax payable on salary Rs. 2,322,913:

On Rs. 1,200,000 15,000

On remaining Rs. 1,122,913 @ 12.5% 140,364

155,364

Tax reduction because of employment as full time professor @ 25% 38,841

W-4:

Foreign tax credit lower of;

Foreign tax payable 62,233

Pakistan tax payable 0 0

Q.2 Autumn 2020

Conceptual Approach to Taxes ___ 481