Tax Book 2023

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

House rent allowance 225,000

Encashment of leave preparatory to retirement 120,000

Gratuity (scheme approved by FBR) 625,000

Exempt U/C 13(iii) of Part I of 2nd Schedule (300,000) 325,000

Total taxable salary (A) 1,440,000

INCOME FROM PROPERTY U/S 15

Rent received (Rs. 12,000 x 12 months) (Note 1) 144,000

Property tax paid by tanent 6,000

12,750

(B) 162,750

Less: 20% repair allowance (32,550)

Interest on borrowed capital (7,000)

(10,000)

(49,550) 113,200

Insurance premium paid to cover the risk for property

damage

Advance not adjustable against rent [150,000 - (75,000

x 3/10)] / 10 =

Conceptual Approach to Taxes _____777

INCOME FROM OTHER SOURCES U/S 39

(C)

(Included for rate purposes) 20,000

Total income (A + B +C) 1,573,200

Less: Zakat (8,000)

Taxable income under NTR 1,565,200

COMPUTATION OF TAX LIABILITY:

Total income taxable under NTR (including share from AOP) 1,565,200

Tax on Rs. 1,565,200 [15,000 + 12.5% x (1,565,200 - 1,200,000)] 60,650

(775)

Balance tax on taxable income (excluding share from AOP) 59,875

Solution: (b)

Share from unregistered firm (AOP) (Assumed

under NTR & before tax)

Less Tax on share from a unregistered firm (AOP) [Rs. 60,650 /

1,585,200 x 20,000] =

Astaxablesalaryismorethan75%ofthetaxableincome,hencethetaxpayerisasalariedperson

and accordingly his tax liability is computed as under.

Spring 2013 Q. 4

Mr.Samiullahisnotentitledtototaxreductionasseniorcitizenunderclause(1A)ofPartIIIof2nd

ScheduletotheIncomeTaxOrdinance, 2001 asthesaidclausehasbeenomittedfromtaxyear

2019.

M/s.Golden GateLimited(GGL) isaprivatelimitedcompany. Thecompanymanufacturesand

supplies consumer goods. GGLsellsitsproductthrough various distributorsinKarachi,Lahore

Conceptual Approach to Taxes _____777