Tax Book 2023

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

Other Information :

Zakat paid 10,000

Note: It is assumed that literary work was started and completed during the tax year.

Required:

Solution

Name of Taxpayer Mr.Noor

Nation Tax Number xxx

Tax year 2023

Personal status Individual - salaried

Residential status Resident

Computation of income & tax thereon

Being a tax consultant you are required to calculate Mr. Noor's taxable income and his income tax

liability for the tax year 2023.

Conceptual Approach to Taxes _____783

Computation of income & tax thereon

Rs. Rs.

INCOME FROM SALARY U/S 12

Basic salary 840,000

Bonus 100,000

Dearness allowance 84,000

House rent allowance (N-1) 420,000

Medical allowance (N-2) -

(N-3) -

Interest on provident fund (N-4) -

1,444,000

CAPITAL (LOSS) U/S 37 (N-5) -

INCOME FROM OTHER SOURCES U/S 39

Remuneration for literary work 120,000

INCOME FROM PROPERTY U/S 15

Rental income 192,000

Employer contribution towards recognized provident

fund

Less: 20% repair allowance (38,400)

Property tax (15,000) 138,600

Total Income 1,702,600

Less zakat paid (assumed under Zakat & Ushar Ordinance) (10,000)

Taxable Income 1,692,600

COMPUTATION OF TAX LIABILITY:

Conceptual Approach to Taxes _____783