Tax Book 2023

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

N-1:

Wharehouse constructed

Initial allowance @ 0% (1,040,000 x 0%)

Add: Zakat paid (Rs.4,000,000)

Add: Advance tax deducted

15% withholding tax

Gross dividend before tax

120,000

N-2:Dividend received

• Tax depriciation @ 10 % [(1,040,000-0) x 10% 104,000

1,040,000

104,000

680,000

Rupees

800,000

Grossed up with amount of tax deducted @ 15%

580,000

100,000

Conceptual Approach to Taxes ___ 501

Gross dividend before tax

Rupees

Basic salary 440,000

Conveyance allowance 44,000

Medical allowance 44,000

Q. No. 1 September 2017

(ii)  During the year, daily allowance of Rs. 400,000 was received to meet the expenses for working on 

800,000

TaqiAhmedisworkingasDirectorMarketingwithZeeTextilesLimited(ZTL)forthelasttwentyfiveyears.

Details of his monthly emoluments during the year ended 30 June 2023 are as under:

(i)   He and his family members are covered under the health insurance policy in accordance with the terms of 

employment. The amount of annual premium paid by ZTL was Rs. 200,000.

In addition to the above, Taqi Ahmed has provided the following information:

(vi)  Amount of tax withheld by ZTL from his salary amounted to Rs. 2,000,000.

(ii)  During the year, daily allowance of Rs. 400,000 was received to meet the expenses for working on 

assignments at ZTL’s factories located in Lahore and Multan.

(iii) On 31 July 2023, the HR Committee approved a performance bonus for all employees for the year ended 

30 June 2023. Taqi received Rs. 1,200,000 as performance bonus on 15 August 2023.

(iv)  On 31 March 2023, in recognition of completion of twenty five years of his service with ZTL, the board of 

directors approved to waive the outstanding amount of loan taken by Taqi Ahmed. This interest free loan of Rs.

2,500,000 was taken on 1 January 2020 and was repayable in fifty equal monthly instalments commencing

from May 2020. The prescribed benchmark rate is 10% per annum.

(v)   During the year, he received Rs. 100,000 for attending board meetings of ZTL. No tax was withheld from 

this amount.

Conceptual Approach to Taxes ___ 501