Tax Book 2023

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

Lecturing and examination services fee (18,000 / 90%) 20,000

Birthday present cash bonds (Not taxable as a sort of liability) -

Taxable income 483,420

COMPUTATION OF TAX LIABILITY:

Tax liability under NTR

Tax on Rs. 483,420 (A) -

Less tax under NTR on services income (assumed same amount

as profit on services) Rs. 20,000 x 0 / 440,300 (B) -

Net tax under NTR (A - B) (C) -

Asthetaxablesalaryincomeoftheindiviualconstitutemorethan75%ofthetotaltaxableincome

hence tax under salary slab is computed as under.

796___ Conceptual Approach to Taxes

Minimum tax on services (Rs. 20,000 x 10%) = (D) 2,000 2,000

Tax liability (C) plus higher of (B) and (D) 2,000

Tax liability under FTR / SBI

Tax on profit on PLS account (8,500 x 15% / 85%) 1,500

Tax on commission (17,600 x 12% / 88%) 2,455

Tax on gain on shares of public listed company

(assumed that holding period is more than 6 years) -

Total tax liability 5,955

Less: Tax deducted at source

On salary 15,000

Profit on PLS account 1,500

On commission income 2,455

On sevices 1,200

20,155

Balance tax refundable (14,200)

Winter - 2008 Q. NO. 3 (b)

Fourpartners firm comprising Mr.JS, KK,TT,RR aresharing profit and lossesequally. The

Required: 1- State the Set off and Carry forward of losses of AOP’s.

2- Compute the amount of loss to be carried forward by the firm.

Solution

Fourpartners firm comprising Mr.JS, KK,TT,RR aresharing profit and lossesequally. The

unadjustedloss of “AOP”stands at Rs.444,000. Mr.RRsubmitsresignation and retiresfrom

business.

796___ Conceptual Approach to Taxes