Tax Book 2023

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

INCOME FROM PROPETY Rs. Rs.

(A) 2,000,000

            Rent received from tenants 1,800,000

Legal Status : AOP

Name of Taxpayer : ABC Associates

National Tax Number :

Income year ended : June 30, 2023

Tax Year : 2023

Annuallettingvalueofthepropertyowned

being as Fair market rent

(^570) ____ _ _Conceptual Approach to Taxes
            Rent received from tenants 1,800,000
Less advance for next two years (Rs. 600,000 / 3 x 2) (400,000)
Add owners burden paid by tenant in the form of taxes 100,000
Actual rent for the tax year (B) 1,500,000
Higher of actual rent or Fair market rent i.e. higher of (B) & (A) 2,000,000
Less: 20% repair allowance (400,000)
Property tax paid (assumed for rented portion of property) (100,000)
Admin and collection charges (lower of actual or 4% of rent chargeable to tax) 80,000
Local Governmen taxes (Rs. 100,000 x 70%) (70,000)
Taxable income from property 1,510,000
Note - 2 Taxes paid on behalf of owner by tenant shall be treated as income in the hands of the owner by
virtue of section 69 of the Income Tax Ordinance, 2001.
Note - 1 It has been assumed that the data given in the question is only related to the rented out portion,
unless where specified.
Q. NO.7(b): Autumn 2002
S G O
(Salary and allowances per month)
Basic salary 37,500 23,000 6,000
House rent allowance 16,875 10,350 2,700
Conveyance allowance - 2,300 300
Utility allowance 4,000 2,500 1,000
Recovery of Provident Fund Loan 2,000 1,500 500
Additional information is as follows:
Unique Ltd. has following salary related data for the period July 1, 2022 to June 30, 2023 of its three
employees.
virtue of section 69 of the Income Tax Ordinance, 2001.
Rupees
Additional information is as follows:
(i) S is provided a fully maintained car of 1000cc which is used both for private and business purpose.
(iii) S, G and O all were entitled for annual bonus due in Sept. 2021, the term of bonus is one basic pay.
Solution of Q. NO.7(b): Autumn 2002:
(ii) G owns his conveyance and also incurs its running and maintenance cost. The conveyance is used partly
for business and private purposes.
On the basis of above, compute tax withholding per month under the CIR read with the Income Tax Rules,
2002.
Name of Taxpayer : S, G & O
National Tax Number :
Income year ended : June 30, 2023
INCOME FROM SALARY Rs. Rs. Rs.
S G O
Basic salary 450,000 276,000 72,000
Bonus 37,500 23,000 6,000
House rent allowance 202,500 124,200 32,400
Conveyance allowance - 27,600 3,600
Utility allowance 48,000 30,000 12,000
Recovery of Provident Fund Loan (N - 1)^ 24,000^ 18,000^ 6,000
50,000 - -
Taxable income 812,000 498,800 132,000
Residential Status : Resident
Conveyance facility (Assumed vehicle cost
Rs.1,000,000 x 5%)
National Tax Number :
Tax Year : 2023
Personal Status : Individual
(^570) __ ___ _Conceptual Approach to Taxes