Tax Book 2023

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

Required:

Answer

Note: Ignore minimum tax under section 113.

Show all the relevant exemptions, exclusions and disallowances.

compute the total income, taxable income and net tax payable by or refundable to QE for the year ended 30

June 2023.

(vii)        Advance income tax paid during the year amounted to Rs. 480,000.

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

(^500) ____ ___ _Conceptual Approach to Taxes
Answer
Accounting profit before taxation
Add: Inadmissible expenses/admissible
income
Fine paid – violation of the contract
Vehicle tax
Accounting depreciation
Renewal of license fee
Replacement of transformer (KESC) – security deposit
Advance tax collected (KESC)
Donation paid in cash - Tax credit also not allowed
Donation paid in cash - Tax credit also not allowed
2,809,297

450,000

200,000

300,000

64,600

Rupees

2,000,000

• 1,900,000

For the tax year 2023

Computation of income tax liability

Qateel Enterprises

Penalty paid to CIR for late filing of return

Dividend income - Gross

Finance charges on lease machinery

Less: Admissible expenses & inadmissible/FTR income

Renewal of license fee [450,000/15]

Tax depreciation as given

N-1

Lease rental paid 270,000

15,000

Donation paid in cash - Tax credit also not allowed

Tax depreciation on warehouse constructed

Entertainment expenditures – foreign customer

(3,759,000)

6,975,303

800,000

30,000

1,200,000

1,560,000

104,000

1,200,000

2,000,000

25,000

Gain on sale of a private limited company shares Rs. 1,200,000.

Dividend income

Tax depreciation on leased machinery acquired by paying residual value

35,703

580,000

Gain on sale of a private limited company shares

Total income for the year

Less: Dividend income (FTR income)

Zakat deducted on dividend

Taxable income under NTR

Computation of tax liability

Tax on 4,000,000

Tax payable under NTR

Tax on dividend – FTR (15%)

Total tax liability

Advance tax collected on electricity bill

Advance tax paid

5,125,600

6,025,600

Tax on income exceeding 4,000,000 (5,125,600 - 4,000,000) x 32.5%

(100,000)

(3,759,000)

5,225,600

(800,000)

(480,000)

1,045,820

120,000

1,165,820

(300,000)

680,000

365,820

Advance tax paid

Advance tax on dividend

(900,000)

Balance tax payable

(480,000)

265,820

(120,000)

(^500) ____ ___ _Conceptual Approach to Taxes