Tax Book 2023

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

Computation of tax liability (lower of A

or B ):

under normal case:

Tax liability:

(A)

S [2.5% x (812,000-600,000)] 5,300

G -

O 0

5,300 0 -

Conceptual Approach to Taxes ___ 571

• Tax per month to be deducted (Annual
  tax / 12 months)

442 -

Q. NO.4: Spring 2002:

Mr. Ashraf made the following donations during the income year 2022-2023:

(a) Rs. 200,000 in cash to a relief fund sponsored by the Government.

(c) The fair market value is Rs.60,000

Medicines to a private hospital purchased at the total cost of Rs. 10,000.

(b) Personal car to an institution referred to in Thirteenth Schedule. This car was purchased by Mr. Ashraf four

years ago at the cost of Rs. 80,000.

Medicines to a private hospital purchased at the total cost of Rs. 10,000.

Solution of Q. NO.4 Spring 2002:

Income year ended : June 30, 2023

Rs. Rs.

Income assessed 800,000

Tax Year : 2023

Personal Status : Individual

Residential Status : Resident

Name of Taxpayer : Mr. Ashraf

National Tax Number :

PleaseadviceMr.Ashrafregardingthetaxcreditfordonationwhichmaybeclaimedbyhimkeepinginview

the requirement of the ITO, 2001 if his income for the relevant income year has been assessed at Rs. 800,000.

Income assessed 800,000

(200,000)

Cost of car 80,000

24,000 (56,000)

Total donation paid (256,000)

240,000

Less: depreciation 3 years straight line method (Rs. 80,000 x

10% x 3)

c) No tax credit is allowed for the donation of medicines to

private hospital

(a) Donation amounting Rs. 200,000 in cash to a relief fund

sponsored by the Government.

(b) Donation of persoal car to an institution referred to in

Thirteenth Schedule of the ITO, 2001

Value of deduction will be cost less depreciation of 3 years

Donation entitled for tax credit for an individual shall be restricted to 30% of taxable 240,000

Q. NO.5: Spring 2002

Explain whether the following are admissible as business expenditure under the ITO, 2001:

(e) Penalty levied u/s 182 of the ITO, 2001 for failure to file statement u/s 165.

Solution of Q. NO.5: Spring 2002:

(a) Repaymentofprincipalamountofleaserentalsofplantandmachinery.(b)Salestaxpaidonthe

purchaseofrawmaterialtobeusedintheproductionofexemptsupply.(c)Dividend(d)Provisioninrespectof

doubtful debts.

Donation entitled for tax credit for an individual shall be restricted to 30% of taxable

income. (Rs. 800,000 x 30%)

Conceptual Approach to Taxes ___ 571