Tax Book 2023

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

Income year ended : June 30, 2023

INCOME FROM SALALRY Rupees Rupees

Basic Salary (Rs. 70,500 x 6 months) 423,000

Rent of furnished accommodation (30,000 per month) higher of

Fair market rent or 180,000

National Tax Number :

Tax Year : 2023

Personal Status : Individual

Residential Status : Resident

Conceptual Approach to Taxes ___ 553

Fair market rent or 180,000

45% of MTS or basic salary 190,350 190,350

Utilities allowance (Rs.12,000 x 6 month) 72,000

Medical benefits reimbursed during the year (fully exempted) -

Gratuity from the approved fund (N - 1)

A compensation for early termination (included in current year 150,000

income in the absence of last 3 year's income and tax thereon)

50,000

700,000

Total taxable income 1,585,350

COMPUTATION OF TAX LIABILITY:

Interest on interest free loan (As the loan is less than Rs.

1,000,000 and rate is within benchmark rate hence no addition

in the income has been made)

Amount waived of loan (Rs. 200,000 x 25%)

Conveyance facility retained by employee at FMV

Tax on Rs. 1,585,350 [15,000 + 12.5% x (1,585,350 - 1,200,000)] 63,169

NOTES

Q NO. 3(a) Autumn 2007

Cost Fair Market Value

(Rs.) (Rs.)

25,000 shares of a private limited company 1,000,000 2,500,000

Mr.Ziainheritedcertainassetsfromhisfatherintheyear2019.Thecostandfairmarketvaluesoftheassets

on the date of inheritance were as follows:

N-1 Assumed that Gratuity received from the Fund is approved by Commissioner, therefore it is totally exempt

from tax.

25,000 shares of a private limited company 1,000,000 2,500,000

21,000 shares of a public listed company 210,000 462,000

Membership card of Karachi Stock Exchange 15,000,000 20,000,000

Jewellery 1,000,000 1,500,000

During the tax year 2023, Mr. Zia undertook the following transactions:

Fair Market Value

(Rs.)

10,000 shares of the private limited company 2,000,000

10,000 shares of the public listed company 1,700,000

Membership card of Karachi Stock Exchange 40,000,000

(2) The remaining shares were sold as follows:

−    shares of private limited company for Rs. 3,000,000,

(1) He gifted some of the assets to his 20-year old son Mr. Ishaq. The detail and fair market values of the

assets are as follows:

−    shares of private limited company for Rs. 3,000,000,

−    shares of public limited company for Rs. 1,500,000.

Sales Proceeds

(Rs.)

10,000 shares of a private limited company 2,500,000

10,000 shares of a public listed company 1,500,000

Membership card of Karachi Stock Exchange 55,000,000

Required:

(ii) Give brief explanation for the items not included in the taxable income.

Mr. Ishaq sold all the assets transferred through gift in the same year. The assets fetched the following

amounts:

(i) Based on the above information, compute the taxable income of Mr. Zia and Mr. Ishaq for the tax year

2023.

Conceptual Approach to Taxes ___ 553