Tax Book 2023

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

Computation of tax liability:

Tax liability under NTR:

Tax on Rs. 985,000 [10,000 + 12.5% x (985,000 - 800,000)] 33,125

Minimum tax on supplies to Government (Rs. 800,000 x 4.5%) 36,000 36,000

Less: Proportionate tax under NTR on supplies to Government

(33,125 x 800,000 / 6,400,000) 4,141 (4,141)

(A) 64,984

Minimum tax u/s 235(4)

Tax paid with electricity bill (B) 15,000

(C) -

No minimum tax under section 113 has been

computed as the turnover under NTR is less than Rs.

100 million during the tax year.

Conceptual Approach to Taxes _____805

Higher of (A) or (B) or (C) 64,984

Total tax liability 64,984

Less: Tax paid / deducted at source

Tax on supplies ( Rs.800,000 x 4.5%) (36,000)

Tax on electricity bills (15,000)

(51,000)

Balance tax payable 13,984

Divisible Income of AOP:

Taxable income under NTR 985,000

Tax on income under NTR 64,984

Divisible income 920,016

Calculation of share in profit before tax from AOP

TOTAL Mr. Arif Mr. Baqar Mr. Umer

Share 6 1 2 3

Commission 120,000 120,000 - -

Balance divided (in sharing ratio) 865,000 144,167 288,333 432,500

985,000 264,167 288,333 432,500

COMPUTATION OF TAXABLE INCOME and TAX LIABILITY OF MEMBERS

Mr. Arif Mr. Baqar Mr. Umer

INCOME FROM SALARY U/S 12

Pay (Rs. 60,000 x 12 months) - 720,000 -

House rent allowance (Rs. 30,000 x 12 months) - 360,000 -

Taxable income - 1,080,000 -

Conceptual Approach to Taxes _____805