Tax Book 2023

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

INCOME FROM PROPERTY

Rental income 870,000

Advance against property (700,000 -

150,000) / 10

55,000

500,000/10 = 50,000 x 3 = 150,000

925,000

(185,000)

Property tax paid (8,000)

Net income from property 732,000

Less: 20% repair allowance

Conceptual Approach to Taxes ___ 535

Net income from property 732,000

INCOME FROM OTHER SOURCES

Other income 75,000 75,000

2,088,889

1,671,111

3,760,000

Less: proportionate expenses:

16,419

34,206

3,709,374 3,709,374

Surgery fee from hospital (assumed net of tax hence grossed up

1,504,000 x 100 / 90)

Fee from hospital (assumed net of tax hence grossed up

1,880,000 x 100 /90)

Depreciation on motor vehicle 38,400 / 8,510,000 x 3,638,710

Car expenses (Rs.200,000 x 40%) = 80,000 / 8,510,000 x

3,638,710

3,709,374 3,709,374

8,404,332

COMPUTATION OF TAX LIABILITY:

2,171,516

2,171,516

(2,171,516 / 8,404,332 x 300,000 (77,514)

Tax payable 2,094,002

Less: proportionate tax on hospital services

[(2,094,002 / 8,404,332 x 3,709,374)

(A) 924,218

Balance tax under NTR 1,169,784 1,169,784

Tax on Rs. 8,404,332 [1,330,000 + 35% x (8,404,332 -

6,000,000)]

Less: Tax credit on donation made of Rs. 300,000

Total taxable income

Balance tax under NTR 1,169,784 1,169,784

Minimum tax deducted on hospital

services:

(3,760,000 x 10%) (B) 376,000

Add: higher of A and B 924,218

Balance tax payable 2,094,002

Notes

1. Rental income


2. House hold expenses

Therentreceivedorreceivablebyapersonforataxyearshallbechargeabletotaxinthatyearunderthe

head “Income from property”.

2. House hold expenses


3. Purchase of motor car

Q. NO. 1 Autumn 2011

Mr.Khursheed,aPakistaninational,wasemployedasthechieffinancialofficerinZulfiqarGasCompany

(ZGC), since 1997. Following information pertains to his income for the tax year 2023:

House hold are expenses not allowable against any head of income, so there is no treatment made in solution.

Motor car purchased is not a business expense.

Conceptual Approach to Taxes ___ 535