Tax Book 2023

Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)

Required:

Solution

MR. GULZAR

NON SALARIED RESIDENT INDIVIDUAL

COMPUTATION OF INCOME & TAX THEREON

FOR THE TAX YEAR 2023

Rupees Rupees

Computetheamountofcapitalgain/lossarisingontheabovetransactionsundertheprovisionsoftheIncome

Tax Ordinance, 2001.

(^526) ____ ___ _Conceptual Approach to Taxes
Rupees Rupees
Immoveable property:
50,000,000
Less: WDV of immovable property
Cost of asset U/S 22(13)(d) 50,000,000
(4,000,000) 46,000,000
4,000,000
Antique sculpture:
Sale price U/S 76(10) 1,500,000
365,000
Gain on sale of immovable property taxable under the head
Business income U/S 18
Cost of antique (including disposal expenses)
(Rs. 350,000 + 15,000)
Consideration received from the sale of immovable property
Less: Depreciation charged upto 2022
1,135,000

• Capital gain on sale of antique 1,135,000

Depreciable motor vehicle:

1,200,000

Less: WDV of motor vehicle

1,058,824

Less tax depreciation allowed upto tax year

2022 (Rs.1,058,824 x 15% x 70%)

Note attached (111,177)^ 947,647^

252,353

Cost of motor vehicle (Rs. 900,000 x 100 / 85)

(Rs. 350,000 + 15,000)

Consideration received from the sale of depreciable motor

vehicle

Gain on sale of depreciable motor vehicle taxable under the

head Business income

Listed Companies shares: Company C

Sale price 700,000

Less: cost of shares at the date of disposal 650,000

50,000 50,000

Listed Companies shares: Company A

Sale price 400,000

Less: cost of shares at the date of disposal 500,000

Note: The cost of motor vehicle not plying for hire is well within the maximum limit of Rs.7.5 million for

pessanger transport vehicle & further no initial allowance has been claimed on the assumption that the motor

vehicles are not for hiring purposes. Although the normal depreciation rate of 20% on motor vehicles has been

given however 15% applicable rate as per 3rd Schedule has been used for the solution.

head Business income

Less: cost of shares at the date of disposal 500,000

(100,000) (100,000)

As holding period is less than four years therefore its loss may

be adjusted against capital gain from other taxable securities

Listed Companies shares: Company B

Sale price 600,000

Less: cost of shares at the date of disposal 320,000

As holding period is less than 1 year, therefore its gain may 280,000 280,000

be adjusted against capital loss of Company A

Taxable capital gain under section 37A 230,000

Q.1 Spring 2013

Mr.CreativeisworkingasDirectorHumanResourcesatArtisticTechnologiesLimited(ATL).Followingarethe

details of his income / receipts during the tax year 2023.

(^526) ____ ___ _Conceptual Approach to Taxes