Tax Book 2023

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

75,000,000

3,375,000

Total tax liability under the Ordinance 3,375,000

Less: Tax deducted at source

On import of raw materials fow own use 900,000

55,000

Gross receipts of AOP on sale of goods manufactured

Rs.3,375,000 x 100 / 4.5

On property income 15,000 + 10% x (Rs. 1,000,000 - 600,000)

4.5% tax on gross receipts as above that is more than tax on

taxable income under NTR

(^552) ____ _ _Conceptual Approach to Taxes
55,000
On sale of goods 3,375,000 (4,330,000)
Balance tax refundable (955,000)
TAX LIABILITY OF PARTNERS
Saleem
ignored -
Share in AOP income before tax 1,310,000
325,000
1,635,000
On property income 15,000 + 10% x (Rs. 1,000,000 - 600,000)
The income of the AOP is coverved under NTR therefore share of each partner shall be included for rate
purposes.
Rs. 6,550,000 x 2/10
Business income from sole proprietorship
Loss on sale of personal car shall not be recognized.
Taxable income (including share from AOP) 1,635,000
Rashid
Share from another AOP 200,000
Share in AOP income before tax 1,965,000
Dividend Income (Rs. 50,000 not to be included in income) -
2,165,000
Moin
Share in AOP income before tax 3,275,000
Q.NO.1 Autumn 2007
Mr.Ayub,afterretirementfromamultinationalcompanyasaseniorexecutive,wasrehiredoncontractfora
periodofthreeyears.However,duetocertainreasons,thecontractwasprematurelyterminatedsixmonths
Rs. 6,550,000 x 3/10
Rs. 6,550,000 x 5/10
Taxable income (including share from AOP)
Taxable income (including share from AOP)
Rupees
Basic salary (per month) 70,500
Rent of furnished accommodation (per month) 30,000
Utilities allowance (per month) 12,000
Medical benefits reimbursed during the year 25,000
Houserentwaspaidbythecompanydirectlytothelandlord.Medicalbenefitswerereimbursedagainstbills
submitted by Mr. Ayub.
periodofthreeyears.However,duetocertainreasons,thecontractwasprematurelyterminatedsixmonths
earlieri.e.onDecember31,2022.Thedetailofemolumentsreceivedbyhimduringthetaxyear 2023 are
given below:
Onhisretirementasapermanentemployee,hehadbeenpaidgratuityfromtheapprovedfund.Accordingto
therulesofthefund,hewasalsoentitledtoaspecialgratuityinlieuofhisservicesrenderedunderthe
contract. Accordingly, an amount of Rs. 120,000 was also paid out of the fund, on termination of the contract.
In lieu of premature termination, the following additional benefits were allowed to Mr. Ayub:
(i) A compensation for early termination of Rs. 150,000 was paid.
Required: Compute the taxable income and tax liability for the tax year 2023.
Solution of Q.NO.1 Autumn 2007
(iii) He was allowed to retain a 1600cc car which was in his use, at accounting book value of Rs. 650,000.
The fair market value of the car at the time of settlement was Rs. 700,000.
(ii) Mr. Ayub had obtained an interest free loan of Rs. 200,000 on July 1, 2022 which was payable in
lumpsum on March 31, 2023. 25% of the outstanding balance was waived and remaining amount of loan was
deducted from his final settlement. The benchmark rate according to the ITO, 2001 is 10%.
Name of Taxpayer : Mr. Ayub
(^552) __ ___ _Conceptual Approach to Taxes