Tax Book 2023

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

Income from property (assumed after allowable dudctions) - - 600,000

Share from AOP profit before tax (for rate purpose) - 288,333 432,500

Taxable income for rate purpose / as SBI 1,368,333 1,032,500

Computation of tax liability:

Mr. Arif Mr. Baqar Mr. Umer

Tax liability under NTR:

• 46,833 -

Note: Share from AOP has not been included in income of Arif as he has no other income

chargeable to tax under NTR.

As the salary income of Mr. Baqar constitute more than 75% of the total income hence tax under

salary slab is computed as under.

Tax on Rs. 1,368,333 [15,000 + 12.5% x (1,368,333 -

1,200,000)]

806___ Conceptual Approach to Taxes

• 
  
  
  
  • 10,813
  
  
  
  


• (9,421) -


• 37,412 10,813
  Less: Tax on share profit from AOP
  (37,412 / 1,368,333 x 288,333) - (7,883) -
  Less: Tax on share profit from AOP
  (10,813 / 1,032,500 x 432,500) - - (4,529)
  Balance tax payable - 29,529 6,284

Summer - 2007 Q. 4

Salary income:

1. Basic salary Rs. 1,800,000 per year


2. Dearness allowance 10% of basic salary

Tax on Rs. 1,032,500 [2.5% x (1,032,500 - 600,000)]

Colonel (Retired) Ahmed Ali is the Managing Director of a listed public company and has provided

the following details of his expected income and expenses for the year ending June 30, 2023:

Less: 25% reduction to full time teacher [46,833 /

(1,368,333 x 1,080,000) x 25%]

2. Dearness allowance 10% of basic salary


3. Medical allowance Rs. 25,000 per month

Managing Director is not entitled for any reimbursement of actual expenses of hospitalization or

medical treatment.

4. The company disbursed on July 1, 2022 to Colonel Ahmed Ali, Rs. 3 million interest free loan to
   be recovered from the final dues on retirement. The bench mark rate for the year 2023 is 10% as

806___ Conceptual Approach to Taxes