Insurance Business Chapter- 25
Total Income from business and other sources 44,543,000Add: income from capital gain
Gain from sale of PTC vouchers 897,000
Less: Loss on disposal of Modaraba certificates 543,000
Net Capital Gain 354,000
Total income 44,897,000Tax liability
29 % tax on business and other income including capital gain u/r 6B (44, 897 ,000 x
29 %)13,020,130
Total tax liability 1 3, 469 , 100NOTES:
N- 1 Dividend Income falls under normal tax regime.
N- 2 Provision for claims is allowed as a deduction u/c (a) of sub-rule (1) of rule 3 of 4th schedule.
N- 3 Profit on debt from securities of Federal Government is exempt from tax.
N- 4 Payment of claims, paid out of provisions, shall not be allowed as deduction u/c (a) of sub-rule (2) of
rule 3 of 4th schedule.
N- 5 As with-holding tax @ 5% is not deducted so payment of re-insurance premium to an overseas re-
insurance company is inadmissible.
N- 6 Loss on Modaraba certificates can be set off against Capital gain.
N- 7 No super tax has been computed as the taxable income under section 4 C is less than Rs. 150 million
during the tax year 2023.