Tax Book 2023

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

150,000

144,000 144,000

• Total salary income 7,366,000

INCOME FROM PROPERTY

Pension of Rs. 12,000 p.m. from a multinational company where

he worked from 1984 to 1999 (Rs. 12,000 x 12 months) (N-3)

Plot inherited from his father was sold for Rs.5,000,000.(N-1)

Pension amounting to Rs. 50,000 per month from the date of his

retirement (Rs. 50,000 x 3 months) (N-3)

Conceptual Approach to Taxes ___ 545

600,000

Less: 20% repair allowance u/s 15A (120,000) 480,000

Total income income under NTR 7,846,000

(250,000)

Taxable income under NTR^ 7,596,000^

COMPUTATION OF TAX LIABILITY:

1,523,700 1,523,700

Less: Tax credits

Rental income (6 months x Rs.100,000) - before deductions

taxable as SBI (N-4)

Less deductible allowance for profit on debt (N-6)

Tax on Rs. 7,596,000 [1,005,000 + 32.5% x (7,596,000 -

6,000,000)]

Invested in new shares offered by a listed company U/S 62 - no

more available

Total tax payable 1,523,700

Less: Tax paid by employer (200,000)

Balance tax payable 1,323,700

NOTES

N-6LowerofactualamountRs.250,000,50%ofTaxableincome(Rs.7,596,000x50%)=3,798,000orRs.

N-5 Loss on sale of painting shall not be recognized.

more available

N-4Advancerentreceivedisadjustableagainstrentthereforeitisignored.Justtherentfor 6 monthswillbe

taxable.

N-3Onlyonepensionwiththehigheramountisexemptedu/c(8)ofPartIofFirstSchedule,Hence

Rs.150,000 is exempt.

N-2 Higher of the FMV of rent or 45% of (MTS or Basic Salary)

N-1Plotinheritedfromfatherwassoldisnottaxableontheassumptionthatthesameisbeingheldformore

than six years.

Q. NO. 3(b) Autumn 2009

During the tax year 2023, Ishaq Enterprise disposed off the following assets:

N-6LowerofactualamountRs.250,000,50%ofTaxableincome(Rs.7,596,000x50%)=3,798,000orRs.

2,000,000 hence Rs. 250,000 has been taken into consideration.

(ii) aplantwasexportedtoNepal.TheexportproceedsamountedtoRs. 28 million.Thecostandwritten

down value of the plant was Rs. 25 million and Rs. 18 million respectively.

(iii)threetrucksweredisposedoffforRs.2.5million.Theywereacquiredintaxyear2022.Thetaxwritten

downvalueoftrucksatthebegningoftaxyear 2022 wasRs.2.4million.Thetruckswerebeingusedpartlyi.

(i) animmovablepropertywassoldforRs. 200 million.ThecostofimmovablepropertywasRs. 100 million.

Upto tax year 2022, tax depreciation of Rs. 10 million had been allowed on the immoveable property.

Required:

Compute the tax gain or loss on disposal of each of the above assets.

Solution:

Rs. Rs.

Consideration received from the sale of

immovable property

200,000,000

Less: WDV of immovable property

Cost of asset U/S 22(13)(d) 200,000,000

(10,000,000) 190,000,000

Gain on sale of immovable property 10,000,000

Consideration received from the export of plant 25,000,000

Less: Depreciation charged upto 2022

downvalueoftrucksatthebegningoftaxyear 2022 wasRs.2.4million.Thetruckswerebeingusedpartlyi.

.e. 60% for business purpsoes. The rate of deprciation for tax purposes is 15%.

Conceptual Approach to Taxes ___ 545