Tax Book 2023

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

Income year ended : 30th June 2023

Tax year : 2023

Personal Status : Individual

Residential Status : Resident

Computation of taxable income and tax thereon

Rs. Rs.

Income from Salary

Basic Salary 500,000

House rent allowance 110,000

Utilities 25,700

Entertainment allowance 13,000

Reimbursement of medical expenses 7,750 -

Conveyance for personal use (350,000 x 10 % ) 35,000

683,700

Income from Other Sources

Non-professional writer fee 20,000

Conceptual Approach to Taxes _____773

Non-professional writer fee 20,000

20,000

Total income 703,700

Less: Zakat (10,000)

Taxable Income 693,700

Computation of tax liability

Tax on Rs. 693,700 [2.5% x (693,700 - 600,000)] 2,343

Less: Rebate only on life insurance premium

(2,343 / 693,700 x 12,000) 41

Less: Rebate on donation

(2,343 / 693,700 x 15,000) 51 (91)

Tax payable under NTR 2,251

Add tax FTR on PLS account on Rs. 11,300 @ 15% 1,695

Balance tax payable 3,946

Note - 1

Q.NO. 4 August 2014

Car provided by the employer which was wholly used for business purpose will not be

added in the income of Mr. Hassan as the same was used for the discharge of offical

duties.

Note Amount (Rs.)

1 60,000,000

2 -40,000,000

20,000,000

Prime Leather Works (Pvt.) Limited has provided following information for the tax year 2023 to

calculate its taxable income and tax liability:

Description

Sales

Less: Cost of sales

Gross Profit

Conceptual Approach to Taxes _____773