Tax Book 2023

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

Commission expense 1,500,000

Taxable gain on disposal 150,000 11,850,000

17,850,000

Less: Admissible items

Accounting gain on disposal 200,000

Tax depreciation 10,000,000

Bad Debts 500,000 (10,700,000)

7,150,000

Less: Dividend income cover under SBI (500,000)

6,650,000

Less: Apportionment of taxable income in sales ratio

(6,650,000 x 20 / 60 ) (2,216,667)

Total Taxable Income 4,433,333

Computation of tax liability:

Tax on Rs. 4,433,333 @ 29% A 1,285,667

Alternate Coporate tax u/s 113C

Conceptual Approach to Taxes _____775

Alternate Coporate tax u/s 113C

Tax on Rs. 6,000,000 x 17% B 1,020,000

Minimum Tax u/s 113

Tax on Rs. 60,000,000 @ 1.25% C 750,000

Tax liability higher of A, B or C 1,285,667

Higher of:

642,833

800,000 800,000

2,085,667

75,000

2,160,667

Less: advance tax (800,000 + 300,000 + 75,000 + 30,000) (1,205,000)

Balance tax payable 955,667

Q. NO.4 Spring 2014

Proportionate tax on supplies covered under

MTR Rs.2,216,667 x 29%

Tax on supplies under MTR on Rs.

20,000,000 @ 4%

Tax on dividend income Rs. 500,000 @ 15%

Mr.SamiullahhasbeenworkingasAssistantManager-Marketingforlast 15 yearsinM/sMoonlight

Limited,apubliclimitedcompany.Inadditiontosalary,perksandallowancesgiventohimbythe

company,hehasvariousothersourcesofincome.AssumethatMr.Samiullahis 62 yearsandhas

beenretiredfromthecompanyservicesonJune30,2023.YouarehisTaxConsultant.Hehas

Rupees

A. i) Basic salary per annum 500,000

ii)Perquisites and al allowances paid by the employer:

beenretiredfromthecompanyservicesonJune30,2023.YouarehisTaxConsultant.Hehas

submittedthe followinginformationforthetaxyearendedJune30, 2023 inordertoseekyour

advice in respect of the calculation of his taxable income and tax liability.

Conceptual Approach to Taxes _____775