Tax Book 2023

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

Salary to driver (Rs.96,000 x 50% for personal use) 48,000

Pension from Army (exempt) -

Taxable salary income 3,358,000

INCOME FROM PROPERTY U/S 15

Rent (Rs. 45,000 x 12 months) 540,000

Less: 20% repair allowance (108,000)

Property tax paid (20,000)

Insurance of flat (15,000) 397,000

Taxable income 3,755,000

Share in profit before tax from AOP included for rate purposes 500,000

Taxable income (including share from AOP) 4,255,000

Computation of tax liability:

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

salary slab is computed as under.

808___ Conceptual Approach to Taxes

Tax liability under NTR

Tax on Rs. 4,255,000 [405,000 + 25% x (4,255,000 - 3,600,000)] 568,750

Tax on income excluding share from AOP

(568,750 x 4,255,000 / 3,755,000) 501,917

Tax liability under SBI as FTR

Cash prize under section 156 (Rs. 200,000 x 20%) (40,000)

Total tax liability 461,917

Note:

Winter - 2006 Q. 5

Although no information has been provided however the aforesaid liabilityshall be

reduced by Rs. 40,000 for tax deducted at source on cash prize.

salary slab is computed as under.

YouareengagedintheIncomeTaxConsultancyservices.OneofyourclientsMr.A.BMalik,an

employeeof M/s.ExcellentAirlines,Peshawar,asksyoutodeterminehistotalincome,taxable

inocme and income tax payable by him for tax year, 2023 on the basis of the following information:

Salary Income (per month)

Basic salary Rs. 19,500/- (in pay scale of Rs. 15,000 - 750 - 26,250)

Dearness allowance Rs. 1,500/-

Special relief allowance @ Rs. 15% of basic salary.

808___ Conceptual Approach to Taxes