Capital Gains Chapter- 12
CA CAF- 6 PAST PAPERS THEORECTICAL QUESTIONS
Q. NO. 3(b) Autumn 2017
Under the provisions of the Income Tax Ordinance, 2001 compute taxable income or loss, under the correct
head of income for tax year 2017, in each of the following cases:
Zaheer sold a painting to his brother on 10 April 2017 for Rs. 2,000,000. Zaheer had purchased this
painting for his residence, in an auction on 14 August 2013 for Rs. 1,800,000.
Q.4 September 2015
(a) What do you understand by the terms ‘Security’ and ‘Derivative products’ as provided in
the Income Tax Ordinance, 2001 and Rules made there under?
(b) Under th e provisions of the Income Ta x Ordinance, 2001 compute t axa ble gain or loss, under
the correct head of income, in each of the following cases. Also identify, giving r e a son s,
whether the c o m p a n y is a public or private company for tax purposes:
(i) Ashiq has 5 ,000 shares in Rumi (Pvt.) Limited (RPL). 52 % of the shares of RPL are held
by Delta Plc. which is owned by the British Government. Ashiq inherited t h e s e sh a r e s
f r o m h i s father o n 1 January 2014. His f ath e r h a d purchased t h e s e shares on 31 May
2012 at a price of Rs. 250 per share. The market value of these shares at the time of
inheritance was Rs. 300 per share.
On 30 June 2015 Ashiq sold 2 , 500 shares in RPL at a price of Rs. 325 per
Share when the break-up value of RPL was Rs. 350 per share.
(ii) What would be your answer in (i) above, if 40 % of the shares of RPL were held by the
Provincial Government, 48 % by the British Government and 12 % by individual investors.
Q.NO.3 Autumn 2014 Zaman is working as the Chief Executive Officer in Yasir Limited (YL). Following are
the details of sale and purchase relating to his capital assets during the tax year 2014.
(b) He sold 24,000 shares of HQ (Pvt.) Limited on 30 June 2014 for Rs. 200 per share.
He had acquired these shares as follows:
18,000 shares were purchased at Rs. 55 per share on 25 June 2013.
6,000 shares were allotted as bonus shares on 28 February 2014.
(c) A gain of Rs. 300,000 was realized on the sale of shares of Zeeshan Industries Limited (ZIL),
a public listed company, in June 2014. The shares were acquired on 31 May 2013.
(d) Zaman sold a painting to his brother on 23 March 2014 for Rs. 1,800,000. Zaman had purchased
this painting for his residence, in an auction for Rs. 2,000,000 on 10 July 2011.
(e) He sold his old furniture to Furqan for Rs. 285,000 on 25 June 2014. The furniture was purchased in
2012 for Rs. 250,000.
Required: Compute the amount to be included in the taxable income of Zaman for the tax year 2014 and
specify the head of income under which the income would be classified.
Q.NO. 6(a) Spring 2010 Explain the term “Capital Assets” as referred to in the Income tax Ordinance,
2001.
Q.NO. 6(a) Spring 2007 Under the Income tax Ordinance, 2001, a deduction for capital loss is allowed
when consideration received on disposal of a capital asset is less than its cost. What are the exceptions to
this rule?
Q.NO. 4(b) Spring 2005 Discuss which assets are not considered capital assets for the purpose of
determining income under the head Capital Gains.
Q. NO. 4(b) April 2005 Discuss which assets are not considered capital assets for the purpose of
determining income under the head capital gains.
Q. NO. 2(i) March 2000 state the basis of taxation regarding capital gains.