Tax Book 2023

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

Tax liability under NTR

Tax on Rs. 595,550 -

Tax on dividend (SBI under FTR) 1,500

Total tax liability 1,500

Less: Tax deducted at source

Tax on dividend 1,500

Other tax deducted at source 10,000

11,500

Balance tax refundable (10,000)

(Note 1)

(Note 2)

Birthday present, insurance policy on maturityand expenses on professional books

purchased have no impact on computation of taxable income and tax thereon.

Flyingallowancetaxreductionnomoreavailableu/c(1)ofPartIIIof2ndScheduletothe

Income Tax Ordinance, 2001.

Conceptual Approach to Taxes _____799

Summer - 2008 Q. 2(b)

Required:

Solution

Salary?

Tax @ 14%? x 14%

Total amount paid 1,535,000

? + (? x 14%) = 1,535,000

Further where the flying allowance and other allowances received as Pilot of any

PakistaniAirlinethesameshallbetaxableastaxreductioncaluse(1AA)ofPartIIIof

2nd Schedule to the ITO, 2001 is no more available.

Mr. Naseer is an employee of M/s. ABC (Pvt) Limited, the terms of employment provide that the tax

will be paid by the company. The company paid a total of Rs. 1,535,000/= to Mr. Naseer and the

Income Tax Department. The rate of tax is 14%.

Calculate the amount of tax paid by ABC (Pvt) Limited u/s 149 of the Income Tax

Ordinance, 2001 on account of salary on account of salary and the amount of salary paid

to Mr. Naseer.

Income Tax Ordinance, 2001.

? + (? x 14%) = 1,535,000

1.14? = 1,535,000

? = 1,535,000 / 1.14

? = 1,346,491

Salary paid (as calculated above) = 1,346,491

Conceptual Approach to Taxes _____799