Tax Book 2023

Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)

2,645,000

Less: Tax depreciation (Working attached) 458,675

Tax loss on disposal of furniture 5,000

Leaser rental 22,000

Bad debts recovered already taxed 37,000

522,675

Taxable Income 2,122,325

Income tax [(2,122,325 - 1,2000,000) x 17.5% + 60,000] (221,407)

Divisible Income 1,900,918

Working:

Tax Depreciation:

Rupees Rupees Rupees

Vehicles

Furniture

and Fixtures

750,000 500,000 90,000

Less: WDV of disposal 100,000 - 15,000

WDV without addtions made 650,000 500,000 75,000

Plant &

Machinery

Opening tax writted down

754___ Conceptual Approach to Taxes

WDV without addtions made 650,000 500,000 75,000

Depreciation on above 15% - (A) 97,500 75,000 11,250

Cost of additions / purchases 50,000 1,700,000 12,000

Less: Initial allowance @ 25% - (B) 12,500 - -

Addition for normal deprecation 37,500 1,700,000 12,000

5,625 255,000 1,800

Rupees Rupees

Initial allowance on plant and machinery - (C) above 12,500

Normal tax depreciation (@ 15%)

• Plant and machinery (A + C above) 103,125


• Vehicle (A+C above) 330,000


• Furniture and fixture (A + C above) 13,050 446,175
  Tax depreciation 458,675

Notes:

Normal depreciation on additions

made (15%) - (C)

2. No affect has also been given to the interest expenses on loan utilized for purchase of fixed


3. No affect has been given to the freight charges as section 21(l) is not applicable on the same.

Q. NO. 1 FALL 2016

2. No affect has also been given to the interest expenses on loan utilized for purchase of fixed
   assets.


3. No affect has been given on liabilites outstanding for more than 3 years related to bank loan and
   advance from customers.

SoftexPakistanLimited(SPL)isarenownedlistedcompany,operatinginPakistan.Assumeinthe

754___ Conceptual Approach to Taxes