Tax Book 2023

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

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.

Rs.

Total unadjusted loss 440,000

Less: share of Mr. RR ( 440,000 / 4) 110,000

Loss to be carried forward 330,000

Winter - 2008 Q. 4

Mr.ShahbazisanofficerinaPakistaniAirline.Heprovidedthefollowingparticularsofhissources

An AOP,beingtaxable independentof itsmembers,isentitled toset-offand carryforward its

lossesasotherpersonsareentitled.Asthesharereceivedbyamemberoutoftheincomesofan

AOPisexemptfromtax,thememberisnotallowedtoset-offand carryforwardhisrespective

shareinlossesoftheAOP.OnlyAOPcanset-offandcarryforwarditslossesinaccordancewith

the rules specified in sections 56 to 59 of the Income Tax Ordinance, 2001.

Conceptual Approach to Taxes _____797

Rs.

Salary 210,000

Bonus 10,000

Reward on passing an examination required by the terms of his employment 35,000

House allowance (per month) 10,000

Conveyance allowance (per month) 1,500

Medical allowance (Actual expenses Rs. 17,000) 20,000

Entertainment allowance 12,000

Flying allowance 60,000

Property income (including Rs. 2,000 per month for rent of furniture and fittings) 120,000

Expenditures claimed:

· Legal expenses 7,500

· Property tax 5,000

· Insurance premium 3,000

· Water charges paid (current Rs.10,000 + arrears Rs. 2,000) 12,000

Dividend (Zakat deduction Rs. 250 and tax deduction Rs. 1,500) 10,000

Leave encashment 25,000

Birthday present 10,000

Insurance money received on maturity of policy 100,000

Capital gain on sale of shares of a private ltd., co.

(Shares were retained for 18 months) 25,000

of income pertaining to the tax year 2023:

(Shares were retained for 18 months) 25,000

Expenses on children education (receipts are available) 40,000

Professional books purchased (receipts are available) 5,000

Zakat paid 10,000

Tax deducted at source 10,000

Required:

Compute total income and tax liability of Mr. Shahbaz for the tax year 2023.

Conceptual Approach to Taxes _____797