Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
Less advance tax paid (10)
Balance tax payable 9Q.1 CAF September 2014(Note2)Ithasbeenassumedthatturnovertaxu/s 113 duringthetaxyear 2023 islessthantaxundernormal
tax regime hence mimimum tax u/s 113 has not been computed.(Note1)Notaxcreditonforeign(PAR)sourcebusinessincomehasbeencomputedasthetaxonsuch
income in Pakistan is nil as comared to Rs. 3 million in Ber.SultanisworkingaselectronicengineerwithAnsariElectricalCompanyLimited(AECL).Hehasprovidedyou(^520) ____ ___ _Conceptual Approach to Taxes
Rupees
Basic salary 480,000
Medical allowance 48,000
Utilities allowance 55,000
Market value of rent free accommodation 75,000
(iii) He is allowed to use his personal car for office use. Reimbursementofcarrunningand
maintenance expenses amounted to Rs. 550,000. 15% of these expenses pertain to personal use.
(ii) Hospitalizationcostis coveredbyan insurancepolicyuptothe amountofRs.1.5million.The
insurance premium relating to this benefit amounted to Rs. 55,000.
(a) His monthly cash remuneration in AECL is as follows:
(i) Leave encashment amounting to Rs. 300,000.
(b) He was also provided the following benefits in accordance with the terms of his employment:
SultanisworkingaselectronicengineerwithAnsariElectricalCompanyLimited(AECL).Hehasprovidedyou
with the following information for the tax year ended 30 June 2023:
(d) A lump sum amount of Rs. 1.2 million was received as the author of a literary work.
(e) Sultan took three years to complete this literary work.
maintenance expenses amounted to Rs. 550,000. 15% of these expenses pertain to personal use.
(c) Rs. 200,000 were received from a private limited company for attending board meetings.
(f) Sultanisalsoaparttimesingerandownsastudio.Hesoldthepremisesinwhichthestudiowassituated
forRs. 10 millionandshiftedhismusicalinstrumentstonewpremiseswhichhepurchasedforRs. 15 million.
HereceivedRs.2.5millionfromhisfatherincashasloantopayforhisnewstudio.Thepreviouspremises
waspurchasedseveralyearsagoforRs.1.4millionandhadataxwrittendownvalueofRs.600,000atthe
time of disposal.
(g) The net income from the studio for tax year 2023 was Rs. 990,000. The expenses include salaries
of two workers at Rs. 15,000 and Rs. 18,000 per month and utility bills amounting to Rs. 110,000. All expenses
Required:
Answer:
Mr. Sultan
Resident : Individual
Tax Year 2023
(i) He gifted 40 fans having a fair market value of Rs. 100,000 to an approved charitable organisation.
UndertheprovisionsoftheIncomeTaxOrdinance, 2001 computethetaxableincomeandtaxthereonforthe
tax year 2023.
(h) Hewonacar,inacompetitionheldbyStarMotorLimitedforpromotionofitssales.Thefairmarketvalue
of the car was Rs. 850,000.
of two workers at Rs. 15,000 and Rs. 18,000 per month and utility bills amounting to Rs. 110,000. All expenses
were paid in cash.
(j) An amount of Rs. 500,000 was paid by him as contribution to an approved pension fund.
Tax Year 2023
Compitation of taxable income and tax thereon
Rupees Rupees
Income from Salary
Basic Salary 5,760,000
Medical allowance 576,000
Utilities allowance 660,000
Accommodation
Rent free accommodation 900,000
45 % of 5,760,000 2,592,000 2,592,000
Leave encashment 300,000
Conveyance allowance 82,500
Fee for attending BOD meetings 200,000
10,170,500
Income from Business
(^520) ____ ___ _Conceptual Approach to Taxes