Income From Other Sources Chapter- 13
PRACTICE QUESTIONS WITH SOLUTIONS
Q # 1 Mr. C incurred following transactions during the year:
Mr. C has agricultural land in Lahore. Mr. C received Rs.100,000 as agricultural income under the tenancy
agreement.
Mr. C is also an irregular writer in the Daily Jang. He received an aggregate sum of Rs. 65,000 on this
literary work from the said newspaper. Mr. C incurred expenses of Rs.15,000 on stationery and Rs.4,500
for the courier's service to send these articles.
Mr. C received a loan of Rs.600,000 from his sister through bearer cheque. His sister is a housewife and
she is not an income tax payer.
You are required to compute the taxable income of Mr. C for the year 20 22.
Solution:
Agricultural income exempt u/s 41 (Subject to payment of tax to
Provincial Govt. where applicable) -
Amount received from newspaper 65,000
Add: loan from sister received through bearer cheque 600,000
Less: expenses incurred on
Stationery (15,000)
Courier services (4,500)
Taxable income 645,500
Q # 2 X, an individual, furnished the following particulars of his income for the year ended 30.06.20 22.
(a) Dividends from a company listed on stock exchange Rs.20,000
(b) Interest on fixed deposit account 65,000
(c) Salary income 250,000
Calculate total income of X for the relevant tax year and tax thereon.
Solution:
(A). Dividend received by a taxpayer from a company shall be treated as a separate block of income and
charged to tax at the rate of 1 5 %.
(B) Profit on fixed deposit received by a taxpayer from any person shall be treated as a separate block of
income and charged to tax at the rate of 1 5 %.
(C) Salary income is taxable, but in this case as the income is below the threshold so no treatment is
required for this.