Tax Book 2023

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

Solution

Tax Year Ednded on : June 30, 2023

TAXABLE INCOME OF THE FIRM

INCOME FROM BUSINESS Rupees Rupees

Name of Taxpayer : AOP

National Tax Number :

Tax Year : 2022

Personal Status : AOP

(^542) ____ ___ _Conceptual Approach to Taxes
INCOME FROM BUSINESS Rupees Rupees
Loss as per P and L A/c (1,500,000)
Less: net rental income (1,502,500)
(3,002,500)
Add: Inadmissible Expenses
Salaries to partners:
Sohail 900,000
Khalid 600,000 1,500,000
Interest on Capital
Sohail 300,000
Khalid 300,000
Qazi 500,000 1,100,000
(402,500)
INCOME FROM PROPERTY
Loss under the head "Income from Business"
INCOME FROM PROPERTY
Rental income 2,000,000
(400,000)
Property tax paid (40,000) 1,560,000
Taxable income under NTR 1,157,500
COMPUTATION OF TAX LIABILITY:
54,688
54,688
Less: 20% repair allowance
Total tax liability of firm
In the absence of information no minimum tax under section 113 has been computed.
Less: admissible deductiions u/s 15A
Tax liability [Rs. 10,000 + (1,157,500-800,000) x 12.5%
1,157,500
Less firm tax liability 54,688
Net income after tax of AoP 1,102,812
COMPUTATION OF INCOME and TAX
LIABILITY OF PARTNERS
Sohail Khaled Qazi
Rs. Rs. Rs.
Net income from another business as
proprietor covered under NTR (before
taxable) - (A)
800,000 900,000 850,000
Share from another AOP under NTR
before tax (included for rate purposes) -

• 300,000 -

Income of the firm

COMPUTATION OF SHARE FROM AOP

before tax (included for rate purposes) -

(B)

Share from AoP as above - salary 900,000 600,000 -

Share from AoP as above - interest on

capital

300,000 300,000 500,000

Balance share in loss before tax (577,000) (577,000) (288,500)

Share from AoP as computed above

(C)

623,000 323,000 211,500

Total share from AOP included for rate

purposes (B + C)

623,000 623,000 211,500

Total taxable income (A+B+C)^ 1,423,000^ 1,523,000^ 1,061,500^

COMPUTATION OF TAX LIABILITY OF

EACH PARTNER:

Tax on Rs.1,423,000 [60,000 + 17.5% x 99,025

(1,423,000 - 1,200.000]

(^542) ____ ___ _Conceptual Approach to Taxes