Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
Total income 6,448,750
Less:
Capital gain on sale of shares (Separate block of income) 51,750
Profit on fixed deposit account (FTR) 450,000
Rent received for the agriculture income (Exempt) 980,000
1,481,750
4,967,000
Less: Deductible allowance
Zakat paid / deducted - assumed paid under the Zakat & Ushar Ordinance 93,750
Taxable income for the year 4,873,250(^486) ____ _ _Conceptual Approach to Taxes
Tax liability
Tax on Rs. 4,000,000 680,000
Tax on amount exceeding Rs. 4,000,000@ 32.5% (Rs. 873,250 x 32.5%) 283,806
Reversal of tax credit on purchase of shares / securities 15,000
Tax on capital gain @ 12.5% (Rs. 51,750 @ 0.125) 6,469
Tax on fixed deposit account @15% on Rs. 450,000 67,500
1,052,775
Less: Tax deducted
by customers 875,000
on capital gain 6,750
on fixed deposit account 45,000
926,750 926,750
Balance tax payable 126,025
Farhan Kamran Rehan
Salary 1,000,000 800,000 600,000
Interest on capital 500,000 400,000 300,000
------------------ Rupees ------------------
Q.2 Spring 2020
Farhan, Kamran and Rehan are members of an association of persons (AOP) and share its profit and loss in the ratio of
2:2:1 respectively.
Following information is available with regard to AOP and its members for the tax year 2023
(i) During the year, AOP earned a profit before tax of Rs. 2,000,000 after making following payment to its members:
Interest on capital 500,000 400,000 300,000
(iv) Farhan has no other source of income
Required:
Answer
Income from business Rupees
(ii) Kamran is running a business as a sole proprietor from which he earned Rs. 800,000. Kamran is also a member of
another AOP where his share of profit or loss is 60%. During the year, the other AOP incurred a loss after tax of Rs.
350,000 and paid Rs. 150,000 on account of income tax.
(iii)Rehan received net dividend of Rs. 102,000 from a listed company after deduction of withholding tax @ 15%.
Under the provisions of the Income Tax Ordinance, 2001 compute taxable income and tax liability of AOP and each of its
members for the tax year 2023.
Income from business Rupees
Business profit for the year 2,000,000
Add: Inadmissible expenses - u/s 21
Salary to Farhan 1,000,000
Salary to Kamran 800,000
Salary to Rehan 600,000
Interest to Farhan 500,000
Interest to Kamran 400,000
Interest to Rehan 300,000
3,600,000
Taxable income before tax for the year - Divisible income u/s 88 5,600,000
Tax liability
Tax on Rs. 4,000,000 680,000
32.5% on amount exceeding Rs. 4,000,000 520,000
1,200,000
Taxable income of the AoP after tax 4,400,000
(^486) __ ___ _Conceptual Approach to Taxes