Tax Book 2023

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

Depreciation 34,000

Net profit:

Tariq 149,000

Hamid 298,000

730,000 730,000

Notes:

ii) Repairs includes Rs.18,000 being cost of a typewriter to be depreciated by 10%.

(iii) Legal expenses include Rs.6,000, on which tax is deductible.

(i) Tariq and Hamid are paid Rs.45,000 and Rs.55,000 respectively as salary. This is included in total salary

expense.

(^574) ____ ___ _Conceptual Approach to Taxes
(iii) Legal expenses include Rs.6,000, on which tax is deductible.
(iv) Tax Depreciation excluding typewriter Rs.14,000.
Compute:
(a) the total income of the firm and taxes payable by it. (b) the total income of each partner and tax thereon.
Solution of Q. NO.8 Autumn 2001:
Income year ended : June 30, 2023
INCOME FROM BUSINESS Rs. Rs.
National Tax Number :
Tax Year : 2023
Legal Status : AOP
Name of Taxpayer : T and H Company
Net profit as per profit and loss Account 298,000
Add: Inadmissible deductions
100,000
Cost of typewritter 18,000
Provision for bad debts 14,000
Super tax paid for last year 5,000
Commission to Tariq 16,000
Premium on life policy of partners 5,000
Accounting depreciation 34,000 192,000
490,000
Less: Admissible expenses
Dividend received (N - 1) 250,000
Tax depreciation (N - 2) 15,800 (265,800)
224,200
COMPUTATION OF TAX LIABILITY:
Salaries to partners (45,000+55,000)
COMPUTATION OF TAX LIABILITY:
(a) Tax on taxable income of Rs.224,200
@ 0%

• Divisible income after tax 224,200

Partners share of profit from AOP T H Total

Salary 45,000 55,000 100,000

Commission 16,000 - 16,000

Life insurance premium 2,500 2,500 5,000

Share of profit on Equal proportion 51,600 51,600 103,200

115,100 109,100 224,200

Tariq

Total income from foreign source 72,000 -

Less: Zakat (26,500) -

Taxable incomeTaxable income 45,50045,500 - -

Add: Share of profit from AOP 115,100 -

Taxable income for rate purposes 160,600 -

(^574) ____ ___ _Conceptual Approach to Taxes