Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
Utility allowance 111,724
55,000
362,500
Taxable Income 2,612,045COMPUTATION OF TAX LIABILITY:Tax on Rs. 2,612,045 [165,000 + 20% x (2,612,045 - 2,400,000)] 207,409
Less: tax withheld by employer 695,000
Balance tax refundable (487,591)Employee stock option (1,250 shares x 58 x (41 - 36))Conveyance facility for both official and for business use (5% of
1,100,000)(^564) ____ _ _Conceptual Approach to Taxes
Balance tax refundable (487,591)
Notes
Q.NO. 6 Spring 2004
Solution of Q.NO. 6 Spring 2004
Note 1: Deductible allowance under section 60C is no more available under the Income tax law.
Mr.AandBareequalpartnersofaRegisteredFirm(RF).TheprofitandlossaccountofRFshowsprofit
beforetaxofRs. 10 millionfortheyearendedJune30,2023.Assumingnoothertaxadjustment,theprofit
shownintheaccountsisliabletotax.Youarerequiredtocomputethetax,ifany,payablebytheRF,Mr.A
andMr.B,assumingMr.AandBhavenoothersourceofincome.Alsogivebriefexplanationofthetreatment
made in the computation.
Name of Taxpayer : AOP
Divisible Income of the Firm (Rs.)
Profit before tax 10,000,000
Tax on Rs. 10,000,000 [1,330,000 + 35% x (10,000,000 - 6,000,000)] 2,730,000
Profit after tax 7,270,000
Share of each Partner in profit before tax
Share of A (10,000,000 x 1/2)^ 5,000,000^
Share of B (Rs. 10,000,000 x 1/2) 5,000,000
10,000,000
Note: The partners are not required to pay any tax liability as they have no other source of income. Income
Name of Taxpayer : AOP
National Tax Number :
Income year ended : June 30, 2023
Tax Year : 2023
Personal Status : AOP
Q.NO. 2 Autumn 2003
Description Company “A” Company “B”
Rs. Rs.
Basic Salary 714,158 572,572
Bonus 150,000 71,800
House Rent Allowance 258,663 222,746
Mr.BashirAhmedisanemployeewhohadjoinedhiscurrentemploymentduringthetaxyear2023.Hisdetails
ofsalary,allowanceandperquisitesreceivedfromcompany“A”hispreviousemployerandcompany“B”his
present employer are as follows:
Note: The partners are not required to pay any tax liability as they have no other source of income. Income
from AOP shall be exempt from tax in the hands of partners as the tax paid by the AOP. If the partners have
any other source of income then the share in profit before tax from AOP shall be added in taxable income for
rate purposes.
House Rent Allowance 258,663 222,746
Utility Allowance 71,415 57,257
1,100,000
Leave encashment 77,783 NIL
Medical reimbursement as per the terms of employment 35,000 25,000
Ex-gratia payment received under Golden Handshake Scheme 2,048,300 -
The details of assessed income and assessed tax in respect of past three years is as follows:
Tax year Assessed
Income
Tax assessed
Rs. Rs.
2020 1,309,570 269,902
2021 1,545,850 371,255
2022 2,264,940 557,633
Conveyance provided by employer partly used for business and
private use- Cost of the car purchased by the company
(^564) __ ___ _Conceptual Approach to Taxes