Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
CAPITAL GAIN U/S 37AFMV of shares at the time of sale 875,000
(400,000)
(350,000) 125,000
Total income under the head Capital Gain (B) 125,000
TOTAL INCOME (A+B) 7,039,250Amount taxable under the head of Salary income (437,500 /
2500 x 2000)Less: Amount paid against option and shares (200,000 +
300,000) x 2,000 / 2,500(^510) ____ ___ _Conceptual Approach to Taxes
TOTAL INCOME (A+B) 7,039,250
Less: Capital gain to be taxed as separate block of income (125,000)
TAXABLE INCOME 6,914,250
Option - 1
1,005,000
Tax @ 32.5% on the amount exceeding Rs. 6,000,000 (i.e. on 914,250) 297,131
1,302,131
Option - 2
405,000
Tax @ 25% on the amount exceeding Rs. 3,600,000 (i.e. on 2,304,250) 576,063
Since salary income more than 75% of the taxable income, therefore, the slab
applicable to salaried individuals shall be applied:
Computation of net tax liability:
Tax on Rs. 3,600,000
Tax on Rs. 6,000,000
Tax payable under NTR
Tax @ 25% on the amount exceeding Rs. 3,600,000 (i.e. on 2,304,250) 576,063
981,063
121,200
1,102,263
Tax liability
1,102,263
0
Tax Liability^ 1,102,263^
15,625
Tax on gratuity and terminal benefit amount: ( tax of last 3 years / Taxable
Income of last 3 years x 100) x Amount of gratuity and golden hand shake Rs.
(1,260,000 / 10,500,000 x 1,010,000)
Tax payable under NTR
As tax under option 1 is higher than from tax payable under option 2 hence the tax
payer shall opt to pay tax under option 2.
Less: tax credit on investment in shares and life insurance-tax
credit no more available
Tax on capital gain on disposal of Listed Company shares under
section 37A after one year of acquisition (Rs. 125,000 x 12.5%) -
Purchased before 1st July, 2022
Tax payable under NTR
Total tax payable 1,117,888
Tax deducted on salaries 1,105,000
Balance tax payable 12,888
Q. 4 September 2016
Purchased before 1st July, 2022
Less: tax already paid or deducted at source
On 1 July 2022 FarrukhborrowedRs.8,000,000fromstarBankLimitedandacquiredaplotoflandinhub
industrialzoneofRs.6,500,000.Heinvestedtherestoftheloaninabusinessventurewithhisfriend.The
aboveloancarriesmark-upatarateof12%perannumandisrepayableineightequalquarterlyinstallments
startingfrom 1 July2023.On 1 August 2022 FarrukhdecidedtoselltheplotoflandtoZufiqarMotorsforRs.
10,000,000andreceivedadepositofRs.500,000formthem.On 15 August 2022 Farrukhforfeitedthedeposit
on refusal of Zulfiqar Motors to purchases the plot of land.
Required:
ANSWER.
National Tax Number :
UndertheprovisionsoftheIncomeTaxOrdinance, 2001 andRulesmadethereunder,computeunderthe
relevant head of income, taxable income of Farrukh of tax year 2023.
on refusal of Zulfiqar Motors to purchases the plot of land.
On 1 September 2022 FarrukhletouttheplotoflandtohisfriendAtifatamonthlyrentofRs.150,000.He
receivedanun-adjustabledepositofRs.200,000fromAtifandpaidRs.80,000forlevelingtheground,
Rs.50,000asgroundrent,Rs.12,000asinsurancepremiumagainsttheriskofdamageordestructionby
waterloggingandRs.140,000againstrentcollectioncharges.FarrukhhadpaidRs.25,000toafirmof
professional valuers which determined the annual rental value of the plot of land at Rs. 2,160,000
Name of Taxpayer : Farrukh
(^510) ____ ___ _Conceptual Approach to Taxes