Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
● Leave encashment amounting to Rs. 95,000.
● Gratuity of Rs. 500,000 from an unrecognized gratuity fund maintained by SL.● Basic salary of Rs.200,000 per month.
● Medical allowance of Rs. 60,000 per month.
● Rent free accommodation with annual letting value of Rs. 480,000.(ii) In accordance with the terms of her employment, income tax related to her salary and benefits is to be
borne by HPL. Her emoluments / benefits during the tax year were as follows:● Reimbursement of Rs. 100,000 against a health insurance policy. The insurance claim was lodged
by SL on behalf of Mrs. Aslam in January 2022.(^524) ____ _ _Conceptual Approach to Taxes
● Rent free accommodation with annual letting value of Rs. 480,000.
● Travelling allowance of Rs. 50,000 per month. 60% of the amount was spent in the performance of
official duties.
● Provident fund @ 10% of basic salary. An equal amount was contributed by HPL.
● Rs. 20 per share on 1 January 2023
● Rs. 28 per share on 31 March 2023
● Rs. 32 per share on 1 May 2023
(iii)Underanemployeesharescheme,Mrs.Aslamwasawarded5,000shareinHPLon 1 January2023.
Undertheschemeshewasnotallowedtosellthesharesupto 31 March2023.shesoldallthesharesinHPL
on 1 May 2023. Fair value of the shares on the above dates was as follows:
(iv) On 31 December 2022, she received a loan of Rs. 400,000 from HPL. The loan carries a mark-up of 4%
per annum. The prescribed benchmark rate is 10%.
(v) She won the best executive employee award of HPL and received a laptop having a fair market value of
(vii) She paid Rs. 105,000 as zakat under the Zakat and Ushr Ordinance, 1980.
(viii) Donation of Rs. 70,000 was paid to an approved organization.
Required:
Compute the taxable income, tax liability and tax payable for the tax year 2023.
Note: Show all relevant exemptions, exclusion and disallowances.
Solution
MRS. ASLAM
(vi)AnamountofRs.355,000wasreceivedfromherspouseassupportpayment,underanagreementtolive
apart.
(v) She won the best executive employee award of HPL and received a laptop having a fair market value of
Rs. 100,000.
MRS. ASLAM
SALARIED RESIDENT INDIVIDUAL
COMPUTATION OF INCOME & TAX THEREON
FOR THE TAX YEAR 2023
Rupees Rupees Rupees
Total income Exempt / income not taxable Taxable income
INCOME FROM SALARY U/S 12
From sahal limited (SL)
Leave encashment 95,000
Gratuity (N-1) 500,000 75,000 425,000
Reimbursement of insurance -
From hassan pakistan (HPl)From hassan pakistan (HPl)
Basic salary 2,400,000
Medical allowance (N-2) 720,000 240,000 480,000
Rent free accommodation 480,000
1,080,000 1,080,000
Travelling allownce (N-3) 600,000 360,000 240,000
Contribution to Provident fund (N-4) -
Employee share scheme 140,000 - 140,000
Loan from employer (N-5) 400,000 -
Award of best executive employee (N-6) 100,000
Total salary 4,960,000
CAPITAL GAINS U/S 37
Higher of Rs. 480,000 or Rs. 1,080,000
(45% of 2,400,000)
(^524) __ ___ _Conceptual Approach to Taxes