Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
(C)
On 1 July 2022, Zahid rented out his properties as follows:Q.3 March 2019(i) An apartment was rented to Abdul Qadir at a monthly rent of Rs. 40,000. Zahid received a non-adjustable
security deposit of Rs. 300,000 which was partly used to repay the non-adjustable security deposit amounting
to Rs. 175,000 received from the previous tenant in July 2017. He also spent Rs. 20,000 on repairs of the
apartment in February 2023.(ii) A bungalow was rented to a bank. Zahid and his younger brother are joint owners of the bungalow in the (^494) ____ _ _Conceptual Approach to Taxes
Required:
Answer
Income from property Rupees Rupees
Rental income (40,000 × 12) 480,000
Rental income from joint property (4,800,000 (W-1) × 60%) 2,880,000
(ii) A bungalow was rented to a bank. Zahid and his younger brother are joint owners of the bungalow in the
ratio of 60:40 respectively. The annual rent agreed with the bank was Rs. 6,000,000 which is inclusive of Rs.
100,000 per month for utilities, cleaning and security. Zahid paid Rs. 35,000 per month for providing these
services.
Under the provisions of Income Tax Ordinance, 2001 compute total and taxable income of Zahid for the tax
year 2023 under appropriate heads of income.
21,250
Rent chargeable to tax 3,381,250
Less: 1/5th repair allowance 676,250 2,705,000
Income from other sources
Income from utilites, cleaning and security
[(1,200,000 - 420,000) × 60%]
Total / Taxable income 3,173,000
W-1: Determination of Income from joint property (bungalow)
Total rental income 6,000,000
Less: Amount relating to utilities, cleaning and security (1,200,000)
Add: Un-adjustable security deposits (Rs. 212,500 (W-2) × 1/10)
468,000
Less: Amount relating to utilities, cleaning and security (1,200,000)
Income from property 4,800,000
W-2: Computation of unadjustable security deposit
Received from new tenant 300,000
Less: Amount charged to tax in July 2017 to June 2022 (175,000 × 5/10) (87,500)
212,500
Rupees
Basic Salary 650,000
House Rent Allownace 95,000
Ahmer Ghazi has been working as director production in Delta Pakistan Limited (DPL) for last three years. He
received following monthly emoluments from DPL during the year ended 30 June 2023.
Q.1 September 2018
House Rent Allownace 95,000
Medical Allowance 70,000
Additional information:
(iii). Loan of Rs. 5 million was given to him on 1 August 2022 at 6% per annum
(iv). Withholding tax of Rs. 1,500,000 deducted from his salary was reimbursed to him
(i). Health insurance for him and his family members. The amount of annual premium paid by DPL was Rs.
50,000
(ii). Return air ticket for Dubai worth Rs. 180,000 for him and his family as a reward for achieving the
production target
(^494) __ ___ _Conceptual Approach to Taxes