Chapter 21 ___ Solved Past Papers Income Tax Numericals of CA Module C - (2001 to 2022)
Solution of Q NO. 3(a) Autumn 2007Mr. Zia
Gain on disposal of Assets Rupees Rupees
Gain from sale of shares of public listed company is taxable as 1,400,000
SBI @ 12.5% as it was purchased before July 01, 2022 (Rs.
1,500,000 - 100,000 Cost of shares to father at the date of gift)(^554) ____ _ _Conceptual Approach to Taxes
Consideration received 3,000,000
(600,000)
Gain on disposal 2,400,000
Gain on Acquisition of Jewellery
No gain or loss shall be recognized on the acquisition of any asset received by way of inheritance or gift.
Mr. Ishaq
No gain or loss shall be recognized on the acquisition of any asset received by way of inheritance or gift.
Gain on disposal of Assets
Gain on sale of shares of public listed company shall be 500,000
separetly taxable under section 37A (1,500,000 - 1,000,000)
Disposal consideration less cost of shares till the date of
Gain on sale of shares of private company
Less: Cost at the time of inheritance Rs.(1,000,000 / 25,000 x
15,000)
Consideration received 2,500,000
Less: Cost at the time of inheritance
(1,000,000 / 25,000 x 10,000)
(400,000) 2,100,000
Consideration received 55,000,000
(15,000,000) 40,000,000
No gain or loss shall be recognized on the acquisition of any asset received by way of inheritance or gift.
Q.NO. 4(b) Autumn 2007
Disposal consideration less cost of shares till the date of
disposal.
Less: Cost at the time of gift
Gain on sale of shares of private company
Gain on membership card of stock exchange
Solution of Q.NO. 4(b) Autumn 2007
National Tax Number :
Income year ended : June 30, 2023
Name of Taxpayer : Mr. Yahya
Tax Year : 2023
Personal Status : Individual
Note: Applicable Tax Rate in Pakistan = 25%; US$ 1 = Pak Rupees 60.
Duringthetaxyear2023,Mr.Yahya,aresidentperson,derivedanincomeofRs.1,500,000fromhisbusiness
inPakistan.HehasalsoearnedanamountofUS$30,000fromhisbusinessinaforeigncountryonwhichhe
paid income tax to tax authorities of that country, amounting to US$ 10,500.
Compute the tax liability of Mr. Yahya for the tax year 2023.
Rupees Rupees
Pakistan source business income 1,500,000
1,800,000
Total taxable business income 3,300,000
COMPUTATION OF TAX LIABILITY:
Tax on Rs. 3,300,000 [405,000 + 27.5% x (3,300,000 - 3,000,000)] 487,500
Less: Foreign tax credit i.e. Lower of
630,000
Rs.(487,500 x 1,800,000 / 3,300,000) 265,909 265,909
TOTAL TAXABLE BUSINESS INCOME
Personal Status : Individual
Residential Status : Resident
Foreign source business income ($ 30,000 @ Rs. 60)
(A) Foreign income tax paid ($10,500 x Rs.60)
(B) Pakistan income tax (tax liability x Foreign source income
/ Taxable income)
(^554) __ ___ _Conceptual Approach to Taxes