Tax Book 2023

Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)

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(A x 15) / 85

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Amount paid or to be paid to electronic or print madia for advertising

services (excluding commission) on which tax is deductible under Section

Where, A= 153(1)(b).

Tax deducted shall be minimus tax on the income of the advertising agaent.

Any tax so collected shall be the minimum tax on the income of the agent.

JPL being principal shall withhold the tax at the rate specified from the payment made

on account of the commission to the MPL.

If the MPL retains Commission or brokerage from any amount remitted by him to the

JPL, he shall be deemend to have been paid the commission or brokerage by the JPL

and the JPL shall collect advance tax from the MPL.

Where the JPL is making payment on acccount of commission to MPL being an

advertising agent, directly or through electronic or print media, the JPL shall deduct tax

(in additiion to tax required to be deducted for rendering of or proving of services under

section 153(1)(b) on advertising services excluding commission), at the rate specified

onthe amount equal to -

Conceptual Approach to Taxes _____743

(c) Mr. Haider

Computation of taxable Income and Tax payable

for the tax year 2023

Rupees Rupees

pakistan

Source

Income

Foreign

Source

Income Total

Salary

1,750,000 1,540,000 3,290,000

Normal business 1,540,000

175,000 1,365,000

Speculation business - Foreign source 700,000

450,000 250,000

Capital gain 1,100,000

1,600,000 (500,000) C/F to next

period

Income from other sources 1,375,000 (1,375,000) Not to be

Sum of all heads C/F

(1,750,000+1,365,000+250,000) 3,365,000

Exempt income 1,540,000

(175,000x10;770,000 x 2)

Exempt income 1,540,000

Total Income 4,905,000

Taxable Income (4,905,000 - 1,540,000) 3,365,000 B

Liability 505,375 A

Tax

Normal Business

Lower of:

Foreign tax payable, or 225,000

(405,000+(3,365,000-3,000,000) x 27.5%

Conceptual Approach to Taxes _____743