Tax Book 2023

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

Balance tax refundable (57,823)

Summer - 2003 Q. 5

Particulars Rs.

Per month

(i) Salary income

Basic salary 20,000

House rent allowance 8,000

Utility allowance 1,000

Medical allowance 1,000

Note: There is no treatment of fee to solicitor and tax adviser, prior year income and penalties and

Mr. Musaddiqe Noor is a consultant in a group of companies. He derived following income during

the income year July 1, 2022 to June 30, 2023:

Conceptual Approach to Taxes _____821

Tax deducted at source from salary amounted to Rs. 15,000.

(ii) Property income Rs.

Rent from a house letout (per month) 10,000

He incurred following expenses on this property during the year:

Repairs 30,000

Collection charges: 7% of rent

Ground rent 10,000

Property tax 15,000

Rent-sharing with housing finance company (per month) 3,000

(iii) Other income Rs.

Profit on PLS Bank account (net of 15% tax withheld) 8,500

Commission from insurance Company and from sale of plots

Heisalsoprovidedwitha1,000ccCar,whichispartlyusedforcompany'sbusiness.Hehasalso

been granted with a housing loan of Rs. 500,000 on which no profit/interest has been charged.

In addition to above, he also received gratuity of Rs. 75,000 from his previous employers during the

year. The gratuity fund is not approved by the Commissioner of Income Tax or CBR.

He received a deposit of Rs. 200,000, not adjustable against rent, out of which he refunded

Rs. 100,000 to previous tenant, who vacated the house after 3 years' tenancy.

Commission from insurance Company and from sale of plots

(net of 12% taxes withheld) 19,000

Lecturing and examination services fees from professional

institutes (net of 10% tax withheld) 18,000

Required:

As a tax consultant you are required to compute Mr. Musaddique's total income and his income tax

liability for the tax year 2023.

Conceptual Approach to Taxes _____821