Tax Book 2023

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

House rent allowance 1,802,040

Director’s fee (assumed as employee) 52,000

Total income 8,867,737

INCOME FROM PROPERTY

120,000

(24,000)

Property tax (11,500) 84,500

8,952,237

Rental Income (Rs.10,000 p.m x 12 months)

Less: 20% repair allowance

Taxable income under normal tax regime

Conceptual Approach to Taxes ___ 563

COMPUTATION OF TAX LIABILITY:

1,964,477

525,750

Tax on profit on debt @ 15% 975

Total tax liability under NTR and FTR 2,491,202

Less: tax deducted at source from salary 3,600,000

975 3,600,975

Balance tax refundable (1,109,773)

NOTES

Tax on Rs. 8,952,237 [1,005,000 + 32.5% x (8,952,237 -

6,000,000)]

Tax on capital gain on disposal of Listed Company shares under

section 37A security acquired before 1-7-2022 (Rs. 4,206,000 x

12.5%)

Less: tax deducted at source on PLS profit on debt

NOTES

Q.NO. 2 Spring 2004

1 Basic Salary 1,117,245

2 Reward 22,062

3 Bonus 300,000

(N-2) Profit on PLS is covered as SBI under final tax regime at 15%.

(N-1) In the absence of information, it has been assumed that the shares of the company on which gain is

given in the question is in the definition of Public company hence tax has been levied accordingly u/s 37A of

the Ordinance.

Mr. A is an employee of a multinational company incorporated in Pakistan. His remuneration during the year

was as follows -

3 Bonus 300,000

4 House Rent Allowance 643,514

5 Utility Allowance 111,724

During the year the company has withheld tax from his salary amounting to Rs. 695,000.

You are required to compute his taxable income and tax thereon for the Tax Year 2023.

Solution of Q.NO. 2 Spring 2004

TheCompanyhasprovidedhimacarforpersonalandbusinessuse.ThecostofthecarwasRs.1,100,000.

DuringtheyearMr.AhaspaidinterestonloanborrowedforconstructionofahouseamountingtoRs.115,000.

Inadditiontotheabove,Mr.AwasgrantedStockOptionof 2500 sharesbytheHeadOfficeoftheCompanyat

US$ 36 pershares.Outoftheabovestockoption, 1250 sharesvestedtohimduringtheyearwere

immediatelyexercisedbyhim.ThepriceoftheshareatthetimeofexercisewasUS$ 41 pershare.The

exchangeratebetweenUS$andPakRupeeonthedateonwhichMr.AexercisedhisoptionwasUS$ 1 =

Rs.58.

Solution of Q.NO. 2 Spring 2004

(Rs.) (Rs.)

INCOME FROM SALARY

Basic Salary 1,117,245

Reward 22,062

Bonus 300,000

House Rent Allowance 643,514

Name of Taxpayer : Mr. A

Income year ended : June 30, 2023

Tax Year : 2023

Personal Status : Individual

Residential Status : Resident

Conceptual Approach to Taxes ___ 563