Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)
Utilities allowance 38,000
Cost of living allowance 25,000. Market value on rent free accommodation provided is Rs. 185,000 per month in 2023.
(d)
Require
Compute the deductible allowance, if any, to be allowed to Mr. Aslam for the tax year 2023.. As per the terms of employment, tax liability of Mr. Atif to the extent of Rs. 250,000 is to be borne
by the FSML.
. An amount of Rs. 900,000 was invested in new shares offered by a listed company in August
2022.
. He paid donation amounting to Rs. 600,000 through banking channel to a hospital, established by
the provincial government, in September 2018.
Required:
In the light of Section 149 of the Income Tax Ordinance 2001, compute the income tax payable by
Mr. Atif for the tax year 2023.
Mr.Aslam has obtained a loan from a scheduled bank for the construction his new house.
The monthly interest, to be paid in the tax year 2023, amount to Rs. 200,000 Taxable
income of Mr. Aslam for the tax year 2022 is Rs. 3,000,000.
Conceptual Approach to Taxes _____747
Compute the deductible allowance, if any, to be allowed to Mr. Aslam for the tax year 2023.Answer 2(c) Fall 2017Computation of Taxable Income and Tax Liability
For the tax year 2023
Salary: Rupees Rupees
Basic salary (430,000 x 12) 5,160,000
Medical allowance (70,000 x 12) 840,000
Less: Exempt upto 10% of basic salary 516,000 324,000
Utilities (38,000 x 12) 456,000
Cost of living allowance 300,000Accommodation : Higher of:
FMV (185,000 x 12) 2,220,000
45% of basic salary 2,322,000 2,322,000
Tas borne by employer 250,000
Taxable salary income 8,812,000
Less: Profit on debt as deductible allowance [omitted by FA, 2022] -
Taxable income 8,812,000Tax Liability:Mr. Atif1,431,400
Less: Tax credit
Tax credit on charitable donations
C = Lower of:
a) Amount of donation 600,000
b) 30% of taxable income of year 2,643,600
600,000Salary (salaried case) [1,005,000 + (7,312,000 - 6,000,000) x 32.5%]Conceptual Approach to Taxes _____747