Tax Book 2023

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

Balance tax refundable (30,455)

NOTES

N - 1 No dedutible allowance on fee for childern eduction u/s 60D has been claimed as the taxable income of

the taxpayer is more than Rs. 1,500,000.

N - 2 Leave encashment has been ignored as received after the tax year. Salary and perquisites are charged

on the receipt basis.

Conceptual Approach to Taxes ___ 541

Q.1 Spring 2010

Rupees

Rental income 2,000,000

Related expenses:

Property tax 40,000

Depreciation 457,500

(i) The AOP suffered loss before tax amounting to Rs. 1,500,000. The loss has been arrived at after

adjusting rental income earned by the AOP, the details of which are as follows:

Sohail,KhaledandQaziaremembersofanAOPandshareprofitandlossintheratioof2:2:1.Theprincipal

activityoftheAOPistradingofriceandwheat.Followingarethedetailsoftheannualincome/(loss)ofthe

AOP and its members:

Depreciation 457,500

Net rental income 1,502,500

No tax was withheld on the rental income.

Sohail Khaled Qazi

Rs. Rs. Rs.

Salary 900,000 600,000 -

Interest on capital 300,000 300,000 500,000

(iii) Sohail earned Rs. 800,000 from another business, of which he is the sole proprietor.

(iv) Khaled received an amount of Rs. 255,000 as share of income after tax, from another AOP where he is

entitled to 40% of the total profit. Tax on annual income of that AOP amounted to Rs. 112,500. He also earned

(ii) The expenses debited to profit and loss account include the following amounts paid to the members

of the AOP.

entitled to 40% of the total profit. Tax on annual income of that AOP amounted to Rs. 112,500. He also earned

income of Rs. 900,000 from a sole proprietorship concern owned by him.

(v) Qazi works as a Freelance IT Consultant and provides consultancy services to corporate clients. He

received Rs. 940,000 from his clients after deduction of tax amounting to Rs. 60,000. The total expenses

incurred in providing the consultancy services amounted to Rs. 150,000.

Required:Assumingthattheabovedatapertainstothetaxyear2023,computethetaxableincomeandtax

liability of the AOP and each of its members.

Conceptual Approach to Taxes ___ 541