Tax Book 2023

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

e)    Penalty levied under Section 182 of the Income Tax Ordinance, 2001 for failure to file statement under 

Section 165 shall not be admissible under section 21 of the income tax ordinance, 2001.

d) Provision in respect of doubtful debt is not allowed. Only actual bad debts are allowed.

c)Dividendisnotanallowabledeductionwhilecalculatingthebusinessincomebecauseitisaftertax

transaction related to profit and loss approprriation account.

b) Sales tax paid on the purchase of raw material to be used in the production of exempt supply shall be

allowed as admissible expense.

(^572) ____ ___ _Conceptual Approach to Taxes
Q. NO.6: Spring 2002
Rs.
Basic Salary 130,500 p.m
Bonus 325,500 full year
House rent allowance 43,500 p.m
Utilities 13,050 p.m

• Mr. Javaid has been provided with free use of a Company maintained car of 1,600 C.C.


• In accordance with terms of his employment Mr. Javaid was paid Rs. 60,000 being the cost of air ticket in
  connection with a foreign tour. He last undertook a foreign tour three years ago.


• During the year Mr. Javaid sold 180,000 shares of Rs. 10 each purchased at par three years ago of
  M/s Azmat (Pvt) Ltd for Rs. 65 per share.

Mr.Javaid,ManagingDirectorofamultinationalCompanyhassubmittedthefollowingdatafortheincome

year ending 30 June 2023:

M/s Azmat (Pvt) Ltd for Rs. 65 per share.

• Zakat paid Rs. 12,000
  Required:
  You are required to calculate the total income of Mr. Javaid and tax payable thereon.

Solution of Q. NO.6: Spring 2002

INCOME FROM SALARY Rs. Rs.

Tax Year : 2023

Personal Status : Individual

Residential Status : Resident

Name of Taxpayer : Mr. Javed

National Tax Number :

Income year ended : June 30, 2023

INCOME FROM SALARY Rs. Rs.

Basic Salary (Rs. 130,500 p.m) 1,566,000

Bonus 325,500

House rent allowance (43,500 p.m) 522,000

Utilities (13,050 p.m) 156,600

• Cost of air ticket in connection with a foreign tour (N-2) -
  Total salary income 2,570,100

CAPITAL GAINS

11,700,000

1,800,000

Capital Gain 9,900,000

Taxable Capital Gian (9,900,000 x 75%) 7,425,000

Free use of a Company maintained car of 1,600cc (N-1)

Consideration received (180,000 shares x 65)

Less: cost of shares (180,000 shares x 10)

7,425,000

9,995,100

Less: Zakat paid (12,000)

Total Taxable Income 9,983,100

COMPUTATION OF TAX LIABILITY:

Tax on Rs. 9,983,100 [1,330,000 + 35% x (9,983,100 - 6,000,000)] 2,724,085

Notes

N-1: The value of car not provided and further it is assumed that the car was being for office use only.

N-2: Air ticket for foreign trip treated as exempt as it is for the discharge of official duties.

Taxable Capital Gian (9,900,000 x 75%)

(^572) ____ ___ _Conceptual Approach to Taxes