Tax Book 2023

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

7. Colonel Ahmed Ali is receiving pension from Army @ Rs. 10,000 per month.

Property income:

a) Repair and maintenance Rs. 30,000 / -

b) Property tax Rs. 20,000 / -

c) Insurance of flat Rs. 15,000 / -

6. He has been provided with a company maintained car for business and personal use. The
   purchase price of car is 1.2 million. Company also pays salary to driver @ Rs. 8,000 per month.

Colonel Ahmed Ali owns a flat, which has been let out @ Rs. 45,000 per month. He has incurred

following expenses to date on flat during the year.

notified by Federal Government.

5. Company has paid Rs. 850,000 as annual rent for the accommodation provided to Managing
   Director.

Conceptual Approach to Taxes _____807

c) Insurance of flat Rs. 15,000 / -

Other Income:

Solution

Colonel (Retired) Ahmed Ali

Computation of taxable income and tax liabiltiy

For the tax year 2023

Rs. Rs.

INCOME FROM SALARY U/S 12

Basic salary 1,800,000

Dearness allowance (Rs. 1,800,000 x 10%) 180,000

1. Colonel Ahmed Ali has also received Rs. 500,000 as his share u/s 92(1) of Income Tax
   Ordinance, 2001 being the member of an AOP, where the AOP has paid the tax.


2. Colonel Ahmed Ali has won a cash prize of Rs. 200,000 from a company which offered the prize
   for promotion of sales u/s 156 of Income Tax Ordinance.

Required: Compute the expected total income, taxable income and income tax thereon for the tax

year 2023.

Dearness allowance (Rs. 1,800,000 x 10%) 180,000

Medical allowance (Rs. 25,000 x 12 months) 300,000

Less: Exempt upto 10% of basic salary U/C 139 180,000 120,000

Interest free loan (3,000,000 x 10% p.a. for the whole year) 300,000

Accommodation provided

Higher of:

Actual Rs. 850,000; or

45% of basic salary i.e. 810,000 850,000

Conveyance ( 1,200,000 x 5%) U/R 5 60,000

Conceptual Approach to Taxes _____807