Tax Book 2023

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

Computation of tax liability:

29,500

Less: tax paid / deducted at source

200,000

As there is loss under normal law and turnover of the taxpayer

being individual is less than Rs. 100 million hence minimum tax

u/s 113 is not applicable however minimum tax u/s 235(4) on

electricity bills upto monthly Rs. 30,000 or tax on annual Rs.

360,000 bill, as the case may be shall be treated as minimum

tax.

Import of raw materials (for own use)

Conceptual Approach to Taxes ___ 549

200,000

Electricity bills 70,000

Telephone bills 50,000 320,000

Balance tax refundable^ (290,500)

Q.NO. 1: Autumn 2008

(i) He received basic salary of Rs. 65,000 per month.

Note:Businesslossisallowedtosetoffagainstincomefrompropertyandfurthertheunadjustedbusinessloss

shall be carried forward and adjusted against business income only in succeeding six tax years.

Mr.AliRazaisworkingasaSeniorExecutiveinDDPakistanLtd.Thedetailsofhisincome/receiptsduringthe

tax year 2023 are as follows:

Import of raw materials (for own use)

(ii) He was provided with furnished accommodation for which DD Pakistan Limited paid a rent of Rs. 25,000

(vii) He incurred the following expenses on the apartment:

(iii) A company owned car was provided to him which was used partly for official and partly for private

purposes. The car was purchased at a cost of Rs. 500,000 but had a fair market value of Rs. 520,000.

(ii) He was provided with furnished accommodation for which DD Pakistan Limited paid a rent of Rs. 25,000

per month.

(iv) Medical allowance of Rs. 150,000 was paid to him during the year. The actual medical expenses incurred

by him amounted to Rs. 40,000.

(v) He earned an income of Rs. 45,000 on the sale of jewellery but incurred a loss of Rs. 28,000 on sale of

an antique.

(vi) An apartment owned by him was rented on July 1, 2022 at a monthly rent of Rs. 10,000. He received a

non-adjustable security deposit of Rs. 100,000, which was partly used to repay the non-adjustable security

deposit received from previous tenant in July 2020, amounting to Rs. 70,000.

(vii) He incurred the following expenses on the apartment:

Rupees

Repairs 8,000

Share of rent to House Building Finance Corporation 15,000

(viii) Gross dividend of Rs. 12,000 was received from a listed company.

(x) Tax deducted by the company amounted to Rs. 170,000.

Compute his taxable income, total tax payable and tax payable with the return for the tax year 2023.

Solution of Q.NO. 1: Autumn 2008

(ix) Provident fund was deducted @ 12% of his basic salary. An equal amount was contributed by the

company.

Income year ended : June 30, 2023

INCOME FROM SALARY Rs. Rs.

Basic salary (Rs.65,000 x 12 months) 780,000

Rent-free accommodation higher of FMR or 45% of basic salary

higher of (Rs.25,000 x 12 months) 300,000 or (45% x 780,000) 351,000 351,000

conveyance facility partly for personal use (Rs.500,000 x 5%) 25,000

Medical Allowance 150,000

Less: 10% of basic pay (78,000) 72,000

National Tax Number :

Tax Year : 2023

Personal Status : Individual

Residential Status : Resident

Name of Taxpayer : Mr. Ali Raza

Conceptual Approach to Taxes ___ 549