Tax Book 2023

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

5. There is no impact of reveune to be increased in future due to new clients induction.

Summer - 2003 Q. 4

Rs.

Basic pay / wages 210,000

BeingataxconsultantyouhavebeenprovidedwiththefollowinginformationinrespectofMr.A.D

Chughtai,aseniormanagerofalocalcompanyfortheperiod1stJuly, 2022 to30thApril, 2023

(Tax year, 2023):

7. No trunover tax u/s 113 has been computed as the revenue of the AOP's to corporate clients is
   covered under 10% minmum tax whereas the total revenue (including corporate clients) is less than
   Rs. 100 million during the tax year.

applicable.

6. Sale of scrap has not been shown as income from other sources as already included in the net
   profit.

826___ Conceptual Approach to Taxes

Basic pay / wages 210,000

Houes rent 115,500

Medical allowance 4,800

Cost of living allowance 7,860

Utilities 31,500

Orderly / Servant allowance 30,000

Bonus / ex-gratia 70,000

Company car 1300 cc

(Partly used for company's business)

Leave fare assistance 17,500

Employer's contribution to provident fund 21,786

Employer's contribution to pension fund 27,300

Income tax deducted u/s 149. 60,000

In addition to the above you have been provided with the following data:

i) Dividend income 17,500

(Withholding tax deducted Rs. 2,625, Zakat deducted Rs. 250)

ii) Profit on PLS Account 20,000

(Withholding tax deducted Rs. 3,000, Zakat deducted Rs. 1,520)

iii) Professional fee received 10,000

(Withholding tax deducted Rs. 1,000)

iv) School fee paid for two childreniv) School fee paid for two children 25,00025,000

(Receipts show National Tax Number)

Legal expenses (consultant fee) 12,500

(Receipts show National Tax Number)

vi) There is no time scale for this position

Solution

Required: Work out the taxable income and tax liability of Mr. A. D. Chughtai for the Tax year,

2023..

826___ Conceptual Approach to Taxes