Tax Book 2023

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

Add: non adjustable advance (Rs. 7,200,000 /10) 720,000

8,320,000

Less: 20% repair allowance (1,664,000)

Property tax paid (25,000)

(1,689,000) 6,631,000

Capital Gain:

Disposal of shares:

• Consideration received 550,000
  280,000

Capital Gain: 270,000

(685,000)

(415,000)

Total and taxable Income 9,682,000

Computation of Tax Liability:

• Less: Cost on disposal (Rs. 35 per share x
  8,000 shares)

Less: captial loss on disposal of discarded imported machine (Note

iv)

Balance capital loss to be c/f

Conceptual Approach to Taxes _____751

Computation of Tax Liability:

[1,330,000+[(9,682,000 - 6,000,000) x 35%] 2,618,700

Tax Liability under NTR 2,618,700

Less: Tax credits

Tax credit on Health Insurance policy

Omitted by Finance Act, 2022

0

• Tax credit for investment in approved pension fund
  A / B x C = (2,205,450 / 9,817,000) x C
  C = Lower of:
  a) Contribution paid 100,000

4,647,360

630,150

100,000 (27,047)

Total tax payable 2,591,653

Adjustable Withholding Tax:

• Electricity consumption u/s 235 7,000


• Telephone u/s 236 9,000 16,000

b) 20% + 2% x 14 years of taxable income of current tax

year

c) 30% of taxable income of preceeding tax year x

2,100,500 =

• Telephone u/s 236 9,000 16,000
  Advence tax u/s 147 200,000
  Balance tax payable 2,575,653

(b) (i)

(ii)

A moveable asset in the personal use of the taxpayer is not a capital assets. Therefore,

Tthe amountof Rs. 6,000,000 forfeithed by Mr. Faraz in accordance with the terms of the

contract for the sale of his house to Mr. Raza is to be treated as rent received and taxed

under NTR.

Conceptual Approach to Taxes _____751