Tax Book 2023

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

Profit as per accounts 80,926,000

Add: Inadmissible items U/S 21 & 174

Provision for taxes 10,080,000

Provision for bad debts 4,480,000

Unvouched vehicle expenses 1,881,000

Donation to un-recognised institution 502,000

Accounting depreciation 44,800,000

Finance charges on lease asset 350,000 62,093,000

143,019,000

Less: Admissible items U/S 20

Lease rental 1,750,000

Tax depreciation 32,650,000

Dividend (Taxable as income from other sources) 672,000 35,072,000

Income from business 107,947,000

Conceptual Approach to Taxes _____779

INCOME FROM OTHER SOURCES:

Dividend income 672,000

Taxable income 108,619,000

COMPUTATION OF TAX LIABILITY:

(A) 13,757,420

[Rs. 80,926,000 x 17%]

Tax liability under corporate tax under NTR @ 29% (B) 31,499,510

Actual tax payable under NTR: higher of (A) or (B) 31,499,510

Less: Tax deducted on dividend 1 (100,800)

Balance tax payable 31,398,710

Assumptions and basis

1.

Alternative Corporate tax U/S 113C [Accounting profit under NTR x

17%]

Itisassumedthattaxondividendincomehasdulybeendeductedanddeposited,hence

credit of the same has been claimed against tax liability under NTR.

2.

3.

Itisassumedthatcompanyisresidentandalthoughminimumtaxundersection 113 is

applicable,howeverthesamehasnotbeencomputedintheabsenceofturnoverand

accordingly no comparison with tax under normal tax regime (NTR) has been made.

credit of the same has been claimed against tax liability under NTR.

Itisassumedthatlossonsaleoffurnitureandbaddebtsareinaccordancewiththe

provisions of sections 22 and 29 of the Income Tax Ordinance, 2001.

Conceptual Approach to Taxes _____779