Tax Book 2023

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

(N - 6)

APRIL - 2012 Q. 5

Income from Salary: Rs.

Basic salary 412,500

House rent allowance 182,800

income.Lossonsuch sharesmaybeset-off byapersonagainst gainonsecurities

chargeabletotax.Thereisnotreatmentofthesaidlossasthereisnogainonsaleof

securities.

ProfitonPLSbankaccountreceivedaretaxableunderFinalTaxRegimehencearenot

includedin totalincome. Taxdeducted @15%willcostituteasfinal discharge oftax

liability for such income.

Mr. Abdul Rehman is Chief Accountant in a multinational company. He is assumed to have

received the following perks during the tax year 2023:

Conceptual Approach to Taxes _____785

House rent allowance 182,800

Utilities 40,600

Employer's contribution to recognized provident fund 31,950

Medical allowance 37,300

Leave encashment 50,600

T.A / D.A for official duty 33,300

Bonus 82,500

Capital Gain: Rs.

Capital gain on buying and selling of shares of an unlisted company

(shares were held for eight months). 52,000

Income from Property:

During the year, tax has been deducted on salary at Rs.26,500. Further he has paid Zakat at

Rs.35,000 under the Zakat and Ushar Ordinance and Rs.56,000 as donation to an approved

institution.

Mr. Abdul Rehman has been provided with a 1300cc car which cost Rs.1,250,000 to the

company. The car is used for both personal and official purposes.

Four years ago he rented out his house for a monthly rent of Rs.24,000. At that time he also

received Rs.120,000 from the tenant as deposit which is not adjustable against monthly rent.

Required:

Compute taxable income and tax liability of Mr. Abdul Rehman for the tax year 2023.

Solution:

Mr. Abdul Rehman (Resident)

received Rs.120,000 from the tenant as deposit which is not adjustable against monthly rent.

During the current tax year he received Rs.288,000 as rent.

Conceptual Approach to Taxes _____785