Tax Book 2023

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

Other information relevant to tax year 2023 is as under:

(ii) 10% annual increase was given to him effective 1st July in each of the last three years.

(iii)  Taqi has given his house on rent to his cousin at annual rent of Rs. 1,500,000. The rent was inclusive of 

amenities and utilities of Rs. 25,000 per month. However, annual rent for a similar house with same amenities

and utilities, in the vicinity, is Rs. 1,800,000.

(i)  Salary is transferred to the bank account on 10th of the following month.

(iv) Heacquired15,000sharesofalistedcompanyfromPrivatizationCommissionofPakistanatapriceof

Rs. 60 pershareon 15 January2021.HeclaimedtaxcreditofRs.90,000onsuchinvestment,againstthetax

payable for the tax year 2021. On 15 June 2023 he sold all the shares at the rate of Rs. 85 each.

(^502) ____ ___ _Conceptual Approach to Taxes
Answer
Ans.1 Taqi Ahmed
Under the provisions of the Income Tax Ordinance, 2001 and Rules made thereunder,compute under correct
head of income, the total income, the taxable income and net tax payable by or refundable to Taqi Ahmed for
the year ended 30 June 2023.
Required:
(v)  On 31 August 2022, he was entitled to receive 5,000 interim bonus shares from Arian Limited (AL) a listed 
company. The market value of these shares on that date was Rs. 22 per share.
(vi)  He also received Rs. 150,000 as cash dividend declared by AL. The share registrar incorrectly treated 
Taqi as not in the Active Taxpayers List and deducted withholding tax accordingly.
payable for the tax year 2021. On 15 June 2023 he sold all the shares at the rate of Rs. 85 each.
Rupees
Income from Salary:
Basic Salary [(400,000+(440,000 × 11)] 5,240,000
524,000
Medical allowance [(40,000+(44,000 × 11)] 524,000

• Daily allowance (Special allowance) -


• 
  

  Director's fees for attending board meeting - ZTL 100,000
  Loan waived by ZTL (50,000 × 27) (Repayment is made in advance for each month)

  
  

Performance bonus for tax year 2023 but received on August 2023

Conveyance allowance [(40,000+(44,000 × 11)]

Health insurance benefit (Exempt u/c 139 Part I of Second Schedule - being as

medical facility as per terms of employment)

For the tax year 2023

Computation of total income, taxable income and net tax payable/refundable

1,350,000

37,500

7,775,500

Income from property

Rental amount (1,800,000−300,000) 1,500,000

Less: 20% repair allowance (300,000)

1,200,000

1,200,000

Bonus shares received (Not taxable) -

214,286

Imputed/deemed interest on loan (1,200,000×10% x 1/12) + (1,150,000 x 10% x

1/12) + (1,100,000 x 10% x 1/12) + (1,050,000 x 10% x 1/12) from July 2021 to

October 2021

Income from other sources

Dividend received (150,000/0.70) - 30% rate of wihholding tax for non filer given

214,286

300,000

514,286

1,275,000

(900,000)

375,000

9,864,786

(214,286)

(375,000)

(589,286)

Taxable income under NTR 9,275,500

Tax liability as a salaried individual:

Value of amenities and utilities included in rent

Less: cost of acquisition [15,000 × 60]

Gain on disposal of 15,000 shares

Less:

Dividend received - FTR income

Total income for the year from all sources

Consideration received on disposal [15,000 × 85]

Gain on disposal of 15,000 shares - Covered under separate block of income

Capital gain

(^502) ____ ___ _Conceptual Approach to Taxes