Tax Book 2023

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

Other information:

  Rs. 20 per share on 1 January 2022

Rs. 23 per share on 1 January 2023

Rs. 29 per share on 30 June 2023

(i) Under an employee share scheme 10,000 shares of DPL were allotted to Ahmer Ghazi on 1 January 2021.

According to the scheme, he was not allowed to sell/transfer the shares up to 31 December 2022. On 1 April

2023, he sold 6,000 shares of DPL for Rs. 33 per share. The face value of each share is Rs. 10. Fair market

values of each share on different dates were as follows

(ii). On 30 October 2021 Ahmer Ghazi let out his apartment at a monthly rent of Rs. 30,000 to his friend. The

Conceptual Approach to Taxes ___ 495

REQUIRED:

a. Total income

b. Taxable income

c. Net tax payable or refundable

Note:

i. Ignore minimum tax under section 113

(iv). He purchased Sukuks of a listed company amounting to Rs. 1,400,000 as an original allottee, on 30

June 2023

Under the provisions of the Income Tax Ordinance, 2001 and Rules made thereunder, compute the following

for the year ended 30 June 2023.

(ii). On 30 October 2021 Ahmer Ghazi let out his apartment at a monthly rent of Rs. 30,000 to his friend. The

fair market rent of the apartment is Rs. 40,000 per month

(iii). He is a part time singer and earned Rs. 225,000 by allowing a private TV channel to use his song in a

TV drama

i. Ignore minimum tax under section 113

ii. Show all the relevant exemptions, exclusions and disallowances

Answer

Income from Salary Rupees Rupees

Basic Salary (650,000×12) 7,800,000

House rent Allowance (95,000×12) 1,140,000

Medical allowance (70,000×12) 840,000

Health insurance -

Award for meeting sales target 180,000

Ahmer Ghazi

Computation of income tax liability

For the tax year 2023

Award for meeting sales target 180,000

Grant of concessional loan by DPL [Rs. 5 million @ 4% (10–6)] 183,334

Tax of Ghazi paid by DPL 1,500,000

11,643,334

Income from property

320,000

Less: 1/5th repair allowance (64,000)

Net income from property 256,000

Income from capital gain

Sale of 6,000 shares @ Rs.33–23 =10 (Taxable under SBI) 60,000

Income from other sources

Rent of apartment (40,000 × 8)

Income from other sources

Amount received for his song (Royalty) 225,000

Total income for the year from all sources 12,124,334

Taxable income under NTR 12,124,334

Tax liability under

Normal tax regime

on 12,000,000 2,955,000

exceeding 12,000,000 at the rate of 35% 43,517

2,998,517

Less: Tax credit for investment in Sukuks (no tax credit available) -

2,998,517

Separate block – Income

Capital gain tax Rs. 60,000 x 12.5% Acquired before 1st July, 2022 7,500

Total tax payable 3,006,017

Conceptual Approach to Taxes ___ 495