Tax Credits Chapter- 15
ICMAP PAST PAPERS THEORECTICAL QUESTIONS
Q.NO.3 (a) August 2014 Discuss any two types of tax credits available under section 61, 62, 63 and 64 of
the Income Tax Ordinance, 2001.
Q.NO.3 (b) August 2014 Ms. Saleha has an investment of Rs. 600,000 in the Mutual Funds. Her employer
assessed her annual tax liability amounting Rs. 250,000 before allowance of any tax credit. However, her
total taxable income is Rs. 2,500,000.
Required:
(i) What is the formula for calculation of tax credit for investment in shares?
(ii) Calculate the benefit of tax credit that can be availed by Ms. Saleha under the provision of the
Income Tax Ordinance, 2001.
(iii) Describe the condition where amount of tax payable, by the person for the tax year in which
the shares were disposed of, shall be increased by the amount of the credit allowed.
Q. No. 2 (b) Spring 2013 A company formed for establishing and operating a new industrial
undertaking for Manufacturing in Pakistan is allowed a tax credit equal to 100% of the tax payable on the
taxable income arising from such industrial undertaking for a period of five years from the date of setting
up or commencement of commercial production, whichever is later.
Required:
Specify the conditions which must be satisfied for availing the above tax credit.
Q. NO. 3 (d) SUMMER 2008 Define the types of tax credits available u/s 61 to Section 64 of the Income tax
Ordinance, 2001.
Q. NO. 4 (b) SUMMER 2004 What are the requirements to avail Tax Credit on investment in shares by a
person other than a company u/s 62 of Income tax Ordinance, 2001? Also explain how tax credit is
computed on acquisition and its treatment on disposal of shares.