Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
Less: WDV of plant
Cost of an asset U/S 22(14) 25,000,000
7,000,000 18,000,000
Gain on sale of plant 7,000,0002,500,000
Less: WDV of trucks 2,400,000
Add:disallowedtaxdepreciationportionin
thetaxyear 2022 (2,400,000x 100 / 85 x
15% x 40/100)Note attached 169,412 2,569,412Less: Depreciation charged upto 2022Consideration received from the sale of trucks(^546) ____ ___ _Conceptual Approach to Taxes
Loss on sale of motor trucks (69,412)
Q. No. 5(a) and (b) Autumn 2009
Rupees
Note:Thereisnolimitationonvalueofmotortrucksastheyarenotpassengertransportvehicle&furtherno
initial allowance has been claimed on the assumption that the motor trucks are not for hiring purposes.
Nature of Income Amount in Equivalent:
Mr.Abdullah,anemployeeofaMalaysianbasedcompany,hasbeenassignedtoworkinKarachi,inits
subsidiarycompanywhichisregisteredundertheCompaniesOrdinance,1984.Theinitialassignmentoftwo
yearscommencedonMarch1, 2022 andwouldbeextendedsubjecttomutualagreement.Mr.Abdullah’s
remuneration will be paid in Malaysia, details of which are given below:
Rupees
5,750,000
17,250,000
12,000,000
3,000,000
Required:
(a) Explain the residential status of Mr. Abdullah under the ITO, 2001 for the tax years 2022 and 2023.
(b) Compute taxable income of Mr. Abdullah for the tax years 2022 and 2023 with supporting comments.
Solution of Q. 5(a) and (b) Autumn 2009
a) RESIDENTIAL STATUS
YEAR 2022
Pakistan source salary income for the tax year 2023
Pakistan source salary income for the tax year 2022
Foreign source salary income for the tax year 2022
Foreign source salary income for the tax year 2023
Mr. Abdullah is a non-resident person because his stay in Pakistan was less than 183 days in tax year 2022.
YEAR 2023
Mr. Abdullah is a resident person because he was in Pakistan for 183 days or more in tax year 2023.
b) TAXABLE INCOME Rs. Rs.
Total
Pakistan source salary 5,750,000
Foreign source salary - 5,750,000
YEAR 2023 - As residnet individual
Pakistan source salary 17,250,000
Foreign source salary (See note below) - 17,250,000
YEAR 2022 - As non resident individual
Note: Foreign source salary of a resident shall be ignored for tax computation as tax on the same has already
Mr. Abdullah is a non-resident person because his stay in Pakistan was less than 183 days in tax year 2022.
Q.NO.1 Spring 2009
Assume that the details of his income for the tax year 2023 are as follows:
(ii) Besides medical allowance, he is also entitled to free medical treatment at approved hospitals.
(i) Basic salary (per month) Rs. 100,000 House rent allowance (per month) Rs. 30,000 Medical allowance
(per month) Rs. 10,000
(iii) He has been provided a company maintained 1600cc car which was used partly for official and partly for
Note: Foreign source salary of a resident shall be ignored for tax computation as tax on the same has already
been paid, however if foreign tax on the same is not paid within two years then the same shall be treated as
taxable in Pakistan.
Mr.MantoworkedasanemployeeinBerlinHotel,Germanyforaperiodoffiveyears.Duringthesaidperiod
hedidnotvisitPakistanforasingleday.HereturnedtoPakistanonJuly1, 2022 andimmediatelyjoinedasa
General Manager in a well-reputed hotel, based in Karachi.
(^546) ____ ___ _Conceptual Approach to Taxes