Tax Book 2023

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

Ground rent 2,000

Collection charges paid 6,000

Property tax (This amount includes Rs. 5,000 of last year's tax not paid ) 10,000

Agricultural Income 60,000

Dividend received on investment in shares of a public limited company (gross) 20,000

The employer has deducted tax at source from salary amounting to Rs. 12,000.

Solution

Required: You being a tax consultant of Mr. Asghar Abbas, calculate his taxable income and tax

payable along with this payable along with his tax return.

Conceptual Approach to Taxes _____811

Mr Asghar Abbas

Computation of taxable income and tax liability

For the tax year 2023

INCOME FROM SALARY U/S 12 Rs. Rs.

Basic salary (Rs. 18,000 x 12 months) 216,000

House rent allowance (Rs. 10,000 x 12 months) 120,000

Utility allowance (Rs. 6,000 x 12 months) 72,000

Medical allowance (Rs. 3,000 x 12 months) 36,000

Less: Exempt upto 10% of basic salary U/C 139 (Note - 1) 21,600 14,400

Conveyance allowance (Rs. 5,000 x 12 months) 60,000

Hospitalization charges reimbursed (Note- 1) 25,000

(Assumed that it is not in accordance with the terms of employment) 507,400

INCOME FROM PROPERTY U/S 15

Rent of 4 shops 96,000

Rent of shop No. 5 (1,200 x 7) 8,400

104,400

Less: 20% repair allowance (20,880)

Ground rentGround rent (2,000)(2,000)

(4,176) 77,344

INCOME FROM OTHER SOURCES U/S 39

60,000 60,000

Taxable income 644,744

Admin. & collection charges (maximum 4% of rent chargeable to

tax

Agricultural income (included to compute the total income)

Less agricultural income (exempt u/s 41 & assumed tax paid under

respective provincial law)

Conceptual Approach to Taxes _____811