Tax Book 2023

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

[[Accounting profit under NTR Rs. 129,100 x 17%]

Tax on taxable income @ 29% (B) 75,977

Turnover tax u/s 113 @ 1.25% of Rs.2,300,000 (C) 28,750

Tax liability higher of (A), (B) or (C) 75,977

Less: Tax credit on donation to institution convered u/s 61

Tax credit shall be allowed on lower of:

• 20% of taxable income i.e Rs. 52,398


• Rs. 400

Hence tax credit (400 x 75,977 / 261,990) (116)

Balance tax payable 75,861

Winter - 2009 Q. 4

Conceptual Approach to Taxes _____791

Winter - 2009 Q. 4

Rs. Rs.

Sundry expenses 8,000Gross Profit 840,000

Office salaries 104,000Casual income 2,000

Rent, rates and taxes 32,000Premium on issue of debentures 40,000

Income tax 10,400Recovered bad debts

Legal charges 7,200(allowed in the past) 1,600

Advertisement 20,000Dividend 8,000

Auditor's fees 24,000

Cost of issue of debentures 20,000

Loss on sales of furniture 8,000

P. F. contribution 28,000

Bad debts 16,000

Vehicle expenses 32,000

Fire insurance premium 28,000

Communication 3,600

Provision for taxes 36,000

Provision for bad debts 16,000

Liquidated damages 12,000

Depreciation 160,000

Following is the Profit and Loss account of M/s Fast Track Company (Pvt.) Ltd for the year ended

on 30-06-2023.

Depreciation 160,000

Net Profit 326,400

891,600 891,600

Required:

(i) Sundry expenses include Rs.1,600 paid to an institution not recognized u/s 61.

Compute the net taxable income of the company for the tax year 2023 from the above data after

keeping in view the following notes:

Conceptual Approach to Taxes _____791