Tax Book 2023

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

Bonus 80,000

Entertainment allowance 10,000

Dearness allowance 180,000

House rent allowance 225,000

Gratuity (scheme approved by FBR) 625,000

Encashment of leave preparatory to retirement 120,000

B. Property Income:

Rupees Rupees

Mr. Samiullah rented his house @ Rs. 12,000 per month w.e.f 1st July, 2022. He

receivedadepositofRs.150,000notadjustableagainstrent,outofwhichherefunded

Rs.75,000toprevioustenant,whovacatedthehouseafter 3 years'occupancy.Tenant

alsopaidpropertytaxofRs.6,000asperleaseagreement.AssumethatMr.Samiullah

claimed the following expenditure for the year ended 30th June, 2023:-

776___ Conceptual Approach to Taxes

Interest on borrowed capital 7,000

10,000

Repair and maintenance expenses 25,000

C. Other information

Share from unregistered firm (AOP) 20,000

D. Zakat deducted at source 8,000

Required:

(a)    

(b)    

Solution: (a)

Mr. Samiullah (Resident)

Computation of taxable income and tax liability

For the Tax year 2023

Insurance premium paid to cover the risk for property

damage

Calculate the taxable income and tax liability of Mr. Samiullah for the year ended June

30, 2023.

Mr. Samiullah is 62 years. Can he claim a tax rebate @ 50% available to senior citizens?

Why or why not? State the reasons in support of your answer.

For the Tax year 2023

INCOME FROM SALARY U/S 12 (Rupees) (Rupees)

Basic salary 500,000

Bonus 80,000

Entertainment allowance 10,000

Dearness allowance 180,000

776___ Conceptual Approach to Taxes