Tax Book 2023

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

116,525

Tax on Rs. 1,061,500 [10,000 + 12.5% x

(1,061,500 - 800,000]

42,688

Less tax on share from AOP 99,025 /

1,423,000 x 623,000

(43,354) -

Less tax on share from AOP 116,525 /

1,523,000 x 623,000

(47,666)

Less tax on share from AOP 42,688 / (8,505)

Tax on Rs. 1,523,000 [60,000 + 17.5% x

(1,523,000 - 1,200,000)]

(1,423,000 - 1,200.000]

Conceptual Approach to Taxes ___ 543

Less tax on share from AOP 42,688 /

1,061,500 x 211,500

(8,505)

Tax liability under NTR (A) 55,671 68,859 34,183

Minimum tax under NTR (B) - - 60,000

Tax liability: higher of (A) or (B) 55,671 68,859 60,000

Q.NO. 6(b) Spring 2010

Mr. Shahbaz, a resident individual, earned Rs. 700,000 from the sale of assets as shown below:

Purchase Price in Gain /

(loss)

Date Rupees

Date Rupees Rupees

Sale Price in

Date Rupees

Shares of a listed company 10-12-22

350,000

31-07-22 200,000 (150,000)

Shares of an unlisted company 15-07-22

500,000

30-11-22 900,000 400,000

Jewellery 15-05-22 750,000 20-12-22 1,400,000 650,000

Sculpture 01-07-22 400,000 31-01-23 300,000 (100,000)

Shares of a (Pvt.) Ltd. Co. 01-01-23

1,300,000

15-02-23 1,200,000 (100,000)

Solution:

Discuss the treatment and the implications of each of the above transactions with brief reasons under the

Income Tax Ordinance, 2001.

Tax Year Ednded on : 30th June, 2023

INCOME FROM CAPITAL GAIN

Shares of a listed company U/S 37A

Shares of unlisted company, private limited company and Jewellery U/S 37

Personal Status : Individual

Residential Status : Resident

Loss on sale of shares of a listed company (securities) can only be adjusted against gain from any other

securities chargeable to tax under section 37A and any unadjusted loss shall be carried forward in the

succeeding three tax years..

• Although the holding period of shares of unlisted company (not being a public company) is more than one

Name of Taxpayer : Mr. Shahbaz

National Tax Number :

Tax Year : 2023

Loss on Sculpture U/S 38(5)

Loss on sale of Sculpture shall not be recognized.

Rupees

400,000

Loss on shares of private company (100,000)

Gain on Jewellery 650,000

Capital gain chargeable to tax 950,000

Gain on shares of unlisted company (not being a public company)

• Although the holding period of shares of unlisted company (not being a public company) is more than one
  year, hence 100% of the capital gain shall be taxable.


• Similarly the holding period of jewellery is although more than one year, hence 100% of the capital gain shall
  also be taxable.


• Loss on sale of shares of private company (not being a public company) shall be adjusted against gain on
  disposal of 'unlisted company and jewellery.

Conceptual Approach to Taxes ___ 543