Tax Book 2023

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

Computation of taxable income and tax liability

For the Tax year 2023

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

Basic salary 412,500

House rent allowance 182,800

Utilities 40,600

Employer's contribution to recognized provident fund 31,950

Exempt upto lower of:

• Rs. 150,000 OR


• 10% of Basic salary i.e 41,250 41,250 -

Medical allowance 37,300

Exempt upto lower of 10% of basic salary U/C 139 41,250 -

Leave encashment 50,600

T.A / D.A for official duty (Exempt) -

Conveyance (1,250,000 x 5%) U/R 5 62,500

Bonus 82,500

786___ Conceptual Approach to Taxes

Bonus 82,500

Total taxable salary (A) 831,500

CAPITAL GAIN U/S 37

Capital gain on buying and selling of shares of an unlisted

company (shares were held for eight months) (B) 52,000

INCOME FROM PROPERTY U/S 15

Rent received 288,000

Advance not adjustable against rent (120,000 / 10) 12,000

300,000

(60,000)

(C) 240,000

(A + B + C) 1,123,500

Less: Zakat paid (35,000)

Taxable income under NTR 1,088,500

Less: 20% repair allowance

Rent chargeable to tax

As taxable salary is more than 75% of the total taxable income, hence the taxpayer is salaried

person

COMPUTATION OF TAX LIABILITY:

Total income taxable under NTR 1,088,500

Tax on Rs. 1,088,500 [2.5% x (1,088,500 - 600,000)] 12,213

12,213

Less: Tax credit on donation U/S 61:

Tax credit shall be allowed on lower of the following:

786___ Conceptual Approach to Taxes