Tax Book 2023

Income From Other Sources Chapter- 13

c. Insurance (already claimed under the head business income) Rs. 60,000

d. Salary to collect the rent (one month salary to employee to collect the rent paid in cash) Rs. 50,00 0

He also received Rs. 15,000 as additional payment on delayed refund from income tax department.

Solution:

Mr. Imran (Resident)

Tax year 20 23

Computation of taxable income and tax liability:

Income from other sources: Rs.

Rent of building with plant and machinery 600,000

Less: Admissible deductions:

Repair and maintenance of building 35,000

Insurance (see note 1 below) -

Salary to collect rent (see note 2 below) -

35,000

565,000

Additional payment on delayed refund 15,000

Taxable income 580,000

Computation of tax liability:

Tax on Rs. 580,000 x 0 % __ 0 ___

Note 1 The insurance has already been claimed under the head business income so the same now shall

not be allowed under the head income from other sources.

Note 2 Salary to collect rent is inadmissible as salary more than Rs.15,000 per month should be paid

through crossed cheque.

Example: Mr. Hasnat Nadeem, an individual, furnishes the following particulars of his income for the year

ended 30- 06 - 2023.

Rs.

(a) Dividends from a company listed on stock exchange (gross amount) 20 ,000

(b) Interest on fixed deposit account (net amount after tax deduction) 45,000

(c) Taxable salary 135,000

(d) Prize on prize bond (gross amount before tax deduction) 20,000

(e) Income as shareholder from bonus issue 100,000

Calculate total income of Hasnat Nadeem for the tax year 20 23 and tax thereon.

Solution:

Mr. Hasnat Nadeem (Resident)
Tax year 20 23
Computation of taxable income and tax liability:
Income from salary: Rs.

Taxable salary 135,000
Taxable income 1 35,000
Computation of tax liability:
Tax on Rs. 1 35,000 (taxable income is below taxable limit) nil

Incomes covered under Separate block of income:

Tax on gross dividend Rs. 20 ,000 @ 1 5 % 3,000
Tax on gross interest on fixed deposit @ 1 5 % (45,000 x 100 / 90) 7 , 500
Tax on gross amount of prize on prize bond @ 1 5 % 3 ,000
Tax on income as bonus issue Rs.100,000 @ 0% -- 0 --
Total tax liability 13 , 500