Tax Book 2023

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

assets (excluding burnt

out equipment) 100,000

Property taxes 50,000

Radiology/Lab Expenses 100,000

Professional fees paid 50,000

Expenses on free weekly

clinic for community 100,000

Unsupported payments 50,000

Penalties for non-observance

of good environmental regulations. 50,000

Net profit 700,000

3,100,000 3,100,000

Other informaton / data:

(i) Depreciation includes Rs. 20,000 on a car completely in personal use of partners.

824___ Conceptual Approach to Taxes

(ii) Salaries include drawings of Rs. 100,000 made by each of the partners.

(iv) Taxes withheld by corporate clients aggregated Rs. 200,000.

(ix) Salaries include excess perquisites of Rs. 80,000.

(iii) A Philanthropist donated Rs. 1.0 million through cheque for construction of special cancer ward.

(v) Mr. Waqar, a friend, extended an interest-free loan of Rs. 100,000 to the hospital during the

year.

(vii) A surgical equipment costing Rs. 100,000 was accidentally burnt out, while dacoits took away

Rs. 50,000 from the safe-lockers. Both items are fully insured and the claim has been fully admitted

by the insurance Company.

(viii) The Hospital has added 10 renowned companies to the panel with expected increase of Rs.

2,000,000 in future revenue.

(vi) A foreign patient, being satisfied with Hospital's best quality care gave a cash gift of Rs.

150,000 for further improving the Hospital's services. This amount has not been accounted for so

far.

Required: Work out Hospital's total income and tax liability for tax year 2023.

Solution

Akeel Hospital - Resident AOP

Computation of taxable income and tax liability

For the tax year 2023

824___ Conceptual Approach to Taxes