Tax Book 2023

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

INCOME FROM PROPERTY U/S 15:

60,000 -

(12,000) 48,000

Taxable income 778,200

COMPUTATION OF TAX LIABILITY:

4,455

Tax liability under NTR

Tax on Rs. 778,200 (as above) (A) 4,455

Balance tax payable 4,455

Less: repair allowance

Tax credit on investment in shares has not been computed as the same under section 62

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

tax has been computed accordingly as under.

Rent (Rs.5,000 x 12 months)

Tax on taxable income Rs. 778,200 [778,200 - 600,000] x 2.5%

810___ Conceptual Approach to Taxes

(Note 1)

Summer - 2006 Q. 4

Salary Income (per month) Rs.

Basic salary 18,000

House rent allowance 10,000

Utility allowance 6,000

Medical allowance 3,000

Conveyance allowance 5,000

Property Income (per month)

Mr.AsgharAbbasisassistantmanagerinanengineeringorganization.Hehasengagedyouashis

tax consultant and provided you with the following information of his estimatedincomes and

expenses for the year ending 30th June, 2023:-

Tax credit on investment in shares has not been computed as the same under section 62

is no more available.

Mr.Asgharownsandmaintainsacar,whichheusespartlyforhispersonalandpartlyforbusiness

useofhisemployer.InJanuary, 2023 heremainedadmittedinthehospitalfor 10 daysandthe

employer reimbursed hospitalization charges of Rs. 25,000.

Flying allowance tax reduction no more available u/c (1) of Part III of 2nd Schedule to the

Income Tax Ordinance, 2001.

Property Income (per month)

He owns 5 shops, which are rented out. His income and expenses in this behalf are as under:

Rs.

Annual rent of 4 shops 96,000

Shop No. 5 remained occupied for 7 months at a rent of Rs. 1,200 per month. It

was vacated through court order for which Mr. Asghar incurred Rs. 6,000 as legal

expenses

810___ Conceptual Approach to Taxes