Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)
Other information:.Mr Faraz signed an agreement to rent out his building's first loor to Mr. Faisal on October 01, 202 2
from November 01, 2022. Mr. Faraz received certain amounts from Mr. Faisal, including advance
rent of following 12 months amounting to Rs. 2,400,000 and the non-adjustable deposit of Rs.
7,200,000. For the tax year 2023, repair adn maintenance were Rs. 425,000 and the property tax
was Rs. 25,000.. The advance tax paid by Mr. Faraz under section 147 of the income Tax Ordinance, 2001 is Rs.
. On September 01, 2022, he sold 8,000 shares for Rs. 550,000 out of 17,000 shares of a private
company, which he received in inheritance on August 01, 2022, on the death of his father. The fair
market value of the sahres, on the date of transfer to Mr. Faraz was Rs. 35 per share.
. He also paid Rs. 100,000 to an approved pension funds so that he could have some savings on
his retirement. Presently, his age is 54 years and just six years away from his retirement.
. The taxes paid on onsumption of electricity and on telephone bills are Rs. 7,000 and Rs. 9,000
respectivly.
. Mr. Faraz invested in a health insurance policy, paying the premium, anounting to Rs. 65,000 in
March 2023.
Conceptual Approach to Taxes _____749
. Mr. Faraz's preceding year's taxable income is Rs. 2,100,500.
Required:(b)(i)(ii)In the light of the Income Tax Ordinance, 2001, briefly explain the income tax
implications in respect of each of the following independent situations for the tax year
2023:On July 01, 2022, Mr. Faraz entered into a contract for the sale of his house in Karachi
with Mr. Raza for a consideration of Rs. 60,000,000. Mr. Raza paid Rs. 6,000,000 at the
time of the contract for sale. However, he failed to pay the balance of the amount by
October 30, 2022 and Mr. Faraz forfeited Rs. 6,000,000 in accordance with the terms of
the contract. Subsequently, the house was sold for Rs. 45,000,000 to Mr. Nazir on
December 31, 2022. Mr. Faraz had inherited the house on June 25, 2017, on which date
the cost of asset of the house was Rs. 39,000,000.On July 15, 2022, Mr. Jaffer sold his personal car for Rs. 2,500,000. The car has been
originally purchased for Rs. 2,200,000 on September 13, 2019.Mr. Muneeb sold his antique watch for Rs. 175,000 in the tax year 2023. The watch had
been gifted to him by his mother back in 2008. Its fair market value, at the time fo gift,. The advance tax paid by Mr. Faraz under section 147 of the income Tax Ordinance, 2001 is Rs.
200,000.
Under the provisions of the Income Tax Ordinance, 2001, compute the taxable income and tax
liability of Mr. Faraz for the tax year 2023.(iii)been gifted to him by his mother back in 2008. Its fair market value, at the time fo gift,
was Rs. 300,000.Conceptual Approach to Taxes _____749