Tax Book 2023

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

(N-1) Tax depreciation on plant and machinery:

Normal Initial Total

W.D.V. depreciation allowance depreciation

15% 25%

Rs. Rs. Rs. Rs.

U/S 22 U/S 23

Opening WDV 1,350,000

Less addition during the year (650,000)

700,000 105,000 - 105,000

Addition during the year 650,000

Less 25% initial allowance 162,500

487,500

Less: Initial allowance (650,000 x 25%) - 162,500 162,500

Normal depreciation on addition during the year

(WDV Rs.487,500 x 15%) 73,125 - 73,125

178,125 162,500 340,625

782___ Conceptual Approach to Taxes

178,125 162,500 340,625

February - 2013 Q. 4

Salary Income Rupees

Basic salary 840,000

Bonus 100,000

Dearness allowance 84,000

House rent allowance 420,000

Medical allowance (actual expenses Rs.30,000) 80,000

168,000

Interest credited during the year (provident fund) 300,000

Other Income

N-3:Asthelegalfeefordefendingtaxpayer'sappealinIncometaxAppellateTribunalisadmissble

expense hence the same has no effect on the taxable income.

Mr.Noorhasbeenworkingasa seniorManagerinKarachi TerminalLimited, Assumehehas

proivded following information about his income pertainig to year ended June 30, 2023:

Contribution by Mr, Noor towards recognized provident

fund (including equal conribution by the company)

N-2: Inthe abscenceof informationit hasbeen assumedthat taxon dividendhasdulybeen

deducted & deposited.

Other Income

Remuneration for literary work. (Mr. Noor is a non-professional writer) 120,000

Profit on profit & loss sharing bank account (net of 15% tax withheld) 8,500

Capital loss on sale of shares of public listed company 35,000

Rent from house let out 192,000

Expenditure claimed against property income :

Property tax 15,000

Repair & maintenance 5% of rent

782___ Conceptual Approach to Taxes