Tax Book 2023

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

Required:

You are required to compute his taxable income and tax thereon. Show all computations and assumptions, as

necessary.

CashpaidtoanonprofitorganizationbywayofdonationRs.20,000.Motorvehicleprovidedbyemployerand

usedpartlyforpersonalandpartlyforbusinesspurpose.RunningcostbornebyemployeeRs.30,000.During

theyearMr.Mushtaqwasissued5,000sharesunderanemployeeshareoptionschemewherebyhewas

offeredsharesat25%discounttothemarketvalue.ThemarketvalueofsharesisRs.11pershare.House

loan taken by Mr. Mushtaq Rs.200,000. Interest paid on such loan during the year amounted to Rs.6,000.

Conceptual Approach to Taxes ___ 569

Solution of Q.NO. 7 Spring 2003

Income year ended : June 30, 2023

INCOME FROM SALARY

Rs. Rs.

Basic salary 225,000

Bonus 50,000

Conveyance allowance (N - 1) 50,000

Tax Year : 2023

Personal Status : Individual

Residential Status : Resident

Name of Taxpayer : Mr. Mushtaq

National Tax Number :

Conveyance allowance (N - 1) 50,000

House rent allowance 101,250

Leave fare assistance 60,000

Benefit from share option (N - 2) 13,750

Taxable Income 500,000

COMPUTATION OF TAX LIABILITY:

Tax on Rs. 500,000 -

NOTES

N-2 Benefit from share option

FMV of shares 55,000

N-1 The value of conveyance facility is not provided so there will be no treatment. Conveyance allowance is

fully taxable.

FMV of shares 55,000

41,250 13,750

Q. NO.4: Autumn 2002

The following information is available:

Rupees

 Annual letting value of the property owned 2,000,000

ABC Associates owns a building which is 30 percent occupied for its business. The rest 70 percent is on rent.

Less: Cost of shares (5,000 shares x 11 x 0.75)

N-3 Donation paid in cash is not entitled for tax credit

N-4Deductibleallowanceonmarkuponhouseloanhasnotbeenclaimedasthesameinnomoreavailable

under section 60C of the ITO, 2001.

 Annual letting value of the property owned 2,000,000

Rent received from tenants 1,800,000

Depreciation on building under the

Third Schedule to the Ordinance 400,000

Property Tax 100,000

100,000

General and administration expenses 200,000

Required:

Please compute the income of ABC Associates under the head ‘income from house property’.

Solution of Q. NO.4: Autumn 2002

Municipal / local government taxes (agreements with tenants provide that tenants

should pay the taxes, cost to be allocated proportionately)

RentreceivedincludesRs.600,000forthreeyearscommencingfromJuly 01 ofthecurrentyear.ABC

Associates follow accrual basis of accounting and its income year is July-June 2023.

Conceptual Approach to Taxes ___ 569