Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
COMPUTATION OF ADVANCE TAX
LIABILITY UNDER SECTION 147:Total Income 120- Dividend Income (12) (12)
Net income (excluding income covered
under SBI / FTR)
108Computation of advance tax Liability
Total Tax 32
1.80Less: Capital Gain (See note - 1 below)Less: Tax on dividend income (assumed from shares and the(^556) ____ _ _Conceptual Approach to Taxes
1.80
30.20
Latest tax year tax liability under NTR 30.20
Tax deducted at source by the customers (3)
Tax paid on import for own use (2)
25.20
6.30
Less: Tax on dividend income (assumed from shares and the
tax rate will be 15%)
Balance tax under NTR (including capital gain covered U/S
37)
As the latest tax year income under NTR of Mr. Yousaf is more
than Rs. 1,000,000 therfore the quarterly advance tax liability on
the basis of latest tax year is as under.
Quarterly advance tax liability shall be 1 / 4th of the above 6.30
Q.NO. 2(b) Autumn 2006
Note-3 In the absence of information it has been assumed that the tax liability under NTR is more than the
minimum tax payable on imports and supplies made during the tax year.
Quarterly advance tax liability shall be 1 / 4th of the above
Mr. Dollar has been working as a senior engineer in a local company. The detail of his monthly emoluments is
as under:
Note-1Intheabsenceofinformationithasbeenassumedthatthecapitalgainisoncapitalassetscovered
undersection 37 thatisunderNTRhencethesamewillalsobeconsideredwhilecomputingadvancetax
under section 147 of the Income tax Ordinance, 2001.
Note-2 As for individual the dividend income is fully covered under SBI hence the same has been ignored for
the computation of advance tax under section 147.
Rupees
Basic salary 100,000
Medical allowance 15,000
Utilities allowance 10,000
In addition to the above cash emoluments, he is entitled to the following perquisites:
(i) A car for his personal and official use, having cost of Rs.700,000 to the employer.
You are required to compute, amount of tax to be deducted each month, from his salary for tax year 2023.
as under:
(ii) Rent free accommodation having monthly rent of Rs.20,000 or cash in lieu thereof. However he has opted
to take rent free accommodation.
(iii) Special allowance of Rs.15,000 to meet travelling, boarding and lodging expenses to be incurred by him in
the normal course of his employment duties.
You are required to compute, amount of tax to be deducted each month, from his salary for tax year 2023.
Solution of Q.NO. 2(b) Autumn 2006
Income year ended : June 30, 2023
INCOME FROM SALARY (Rs.) (Rs.)
Basic salary (Rs.100,000 x 12 months) 1,200,000
180,000
Name of Taxpayer : Mr. Dollar
National Tax Number :
Tax Year : 2023
Personal Status : Individual
Residential Status : Resident
Medical allowance (Rs.15,000 x 12 months)
(^556) __ ___ _Conceptual Approach to Taxes