Tax Book 2023

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

Summer - 2009 Q. 4

Particulars

(i) Salary Income (per month):

Rs.

· Basic Salary

Ashis stayin Pakistanhasmet the condition ofminimum 183 days, thereforehe is resident

individual under Rule 14 of the Income Tax Rules, 2002.

Mr. Jamshaid is an executive in a group of companies. He derived following incomes during tax

year 30-06-2023.

EvenifhisstayinPakistanwillbelessthan 183 days,eventhen heisaresidentindividualin

Pakistan under Rule 14 of the Income Tax Rules, 2002, if he will met the following condition.

being a citizen of Pakistan is not present in any other country for more than more than one hundred

and eighty-two days during the tax year or who is not a resident taxpayer of any other country.

794___ Conceptual Approach to Taxes

· Basic Salary 20,000

· House rent allowance 8,000

· Utility allowance 1,000

· Medical allowance 1,000

· Expenses on children books 400

Tax deducted at source from salary amounted to Rs.15,000.

(ii) Property Income:

Rs.

· Rent from a house let out per month 10,000

· He incurred following expenses on this property during the year:

• Repairs 30,000


• Collection charges 7% of rent


• Ground rent 10,000


• Property tax 15,000

He is also provided with a 1000cc car, which is partly used for company business. As per books of

accounts, the cost of the car is Rs.650,000. He has also been granted with a housing loan of

Rs.500,000 on which no profit/ interest has been charged.

Inadditiontoabove,healsoreceivedgratuityofRs.70,000fromhispreviousemployerduringthe

year.The gratuityfund isnotapprovedbytheCommissionerIncome TaxorFederalBoardof

Revenue.

• Property tax 15,000


• Rent-sharing with housing finance company 3,000 per month

Rs.

(iii) Other Income:

· Profit on PLS bank account (net of 15% tax withheld) 8,500

· Commission from sale of plots 17,600

He received a deposit of Rs.200,000, not adjustable against rent, out of which he refunded

Rs.100,000 to previous tenant who vacated the house after 3 years tenancy.

794___ Conceptual Approach to Taxes