Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)
Rs.
Basic salary 20,000
House rent allowance 8,333
Utility allowance 2,000
Medical allowance 2,000
32,333He was provided maintenacne cost of his private car used wholly for the company business on
actual basis aggregating Rs. 20,000. He received bonuses equivalent to three basic salaries, plus
two basic salaries as special merit rewards during the year.The company disbursed funeral expenses of his parents in the amount of Rs. 20,000 and also
medical costs on birth of his twin sons in the sum of Rs. 100,000 latter being as per employment
terms.The company has also provided him with free furnished accommodation costing Rs. 200,000 per
annum. The company also paid his tax liability of Rs. 20,000.Conceptual Approach to Taxes _____819
He earned capital gains on sale of listed shares (Rs. 20,000) and on sale of land (Rs. 100,000).Tax deducted from salary Rs. 40,000He paid following amounts evidenced by receipts bearing payees N.T.Ns, wherever, applicable:- School fees @ Rs. 3,000 per month, for each of his two daughters.
- Fee to personal silicitor and tax adviser Rs. 20,000.
- Prior year income and penalties Rs. 50,000.
- Donation to approved institutions Rs. 500,000.
- Purchase of second car for Rs. 1,000,000 for family use.
SolutionMr. Qais Mansoor - Resident
Computation of taxable income and tax liability
For the tax year 2023
Rs. Rs.He was decorated with the President's Award, in August 2021 and March 2022 worth Rs. 500,000.Required: As a tax consultant you are required to calculate total income, and tax liability of Mr. Qais
Mansoor for tax year 2023.Rs. Rs.
INCOME FROM SALARYBasic salary (Rs. 20,000 x 12 months) 240,000
Bonus (20,000 x 3) 60,000
House rent allowance (Rs. 8,333 x 12 months) 99,996
Utility allowance (Rs. 2,000 x 12 months) 24,000
Medical allowance (taxable as medical re-imbursment separately provided) (Rs. 2,000 x 12) 24,000Conceptual Approach to Taxes _____819