Tax Book 2023

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

Solution

Mr. Shahbaz

Computation of taxable income tax liability

For the tax year 2023

Rs. Rs.

INCOME FROM SALARY U/S 12

Salary 210,000

Bonus 10,000

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

House allowance (totally taxable) (Rs. 10,000 x 12 months) 120,000

18,000

Medical allowance (Actual expenses shall be ignored) 20,000

Less: Exempt upto 10% of basic salary U/C 139 21,000 -

12,000

Conveyance allowance (assumed not for discharge of official

performance) (Rs. 1,500 x 12)

Entertainment allowance (assumed not for discharge

of official performance)

798___ Conceptual Approach to Taxes

Leave encashment 25,000

Flying allowance (Note 2) 60,000 60,000

490,000

INCOME FROM PROPERTY U/S 15

Income from property (including furniture & fixtures) 120,000

Less: rent of furniture and fittings (Rs. 2,000 x 12 months) 24,000

96,000

(19,200)

Property tax (5,000)

Insurance premium (3,000) 68,800

CAPITAL GAINS U/S 37

Gain on sale of shares of private company 25,000

(Holding period has no impact on its computation)

INCOME FROM OTHER SOURCES U/S 39

Rent of furniture and fittings (receipt basis 2,000 x 12) 24,000

Total income 607,800

Less: 20% repair allowance

of official performance)

Rent chargeable to tax

Total income 607,800

Less: Zakat (including zakat paid on shares) (10,250)

Expenses incurred on childern education u/s 60D (5% x Rs. 40,000) (2,000)

Taxable income under NTR 595,550

COMPUTATION OF TAX LIABILITY;

As the salary income of the individual constitute more than 75% of the total income hence tax

under salary slab is computed as under.

798___ Conceptual Approach to Taxes