Tax Book 2023

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

Solution

Mr. Musaddiqe Noor - Resident

Computation of tax liability

For the tax year 2022

Rs. Rs.

INCOME FROM SALARY

Basic salary (Rs. 20,000 x 12 months) 240,000

House rent allowance (Rs. 8,000 x 12 months) 96,000

Utility allowance (Rs. 1,000 x 12 months) 12,000

Medical allowance (Rs. 1,000 x 12 months) 12,000

Less: Exempt upto 10% of basic salary U/C 139 24,000 -

Conveyance (Value no given hence 5% of Rs.1,000,000 assumed) U/R 5 50,000

Interest free loan from employer (As the amount of loan is Rs. 1,000,000 hence

nothing shall be added as benefit in the salary income of employee U/S 13(7) -

822___ Conceptual Approach to Taxes

nothing shall be added as benefit in the salary income of employee U/S 13(7) -

Un-approved gratuity 75,000

Less: Exempt upto lower of:

Rs. 75,000, OR

50% of the amount receivable i.e. 37,500 37,500 37,500

435,500

INCOME FROM PROPERTY

Rent (with share of HBFC) 120,000

Un-adjustable advance [ 200,000 - (100,000 / 3) / 10] / 10 17,000

137,000 -

Less: 20% repair allowance (27,400)

Admin & collection charges: (lower of actual or 4% of RCT) (5,480)

Ground rent (10,000)

Property tax (15,000)

Rent-sharing with housing finance company (36,000) 43,120

INCOME FROM OTHER SOURCES U/S 39

Lecturing and examination services fees (18,000 x 100 / 90) 20,000

Taxable income 498,620

Gross rent chargeable to tax

COMPUTATION OF TAX LIABILITY:

Tax liability under NTR

Tax on Rs. 498,620 -

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

under salary slab is computed as under.

822___ Conceptual Approach to Taxes