Tax Book 2023

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

Mr. A.D. Chughtai

Computation of taxable income and tax liability

Tax year 2023

Rs. Rs.

INCOME FROM SALARY

Basic pay / wages 210,000

House rent 115,500

Medical allowance 4,800

Less: exempt upto 10% of basic salary U/C 139 21,000 -

Cost of living allowance 7,860

Utilities 31,500

Orderly / Servant allowance 30,000

Bonus / ex-gratia 70,000

Company car 1300 cc (5% of assumed value of Rs. 1,200,000) U/R 5 60,000

Leave fare assitance 17,500

Employer contribution provident fund 21,786

Less: exempt upto lower of:

Conceptual Approach to Taxes _____827

Employer contribution provident fund 21,786

Less: exempt upto lower of:

Rs. 150,000, OR

10% of (basic salary + dearness allowance) i.e 21,000 21,000 786

Employer's contribution to pension fund (assumed not maintained by employer) 27,300

570,446

INCOME FROM OTHER SOURCES

Professional fee 10,000

Total income 580,446

Less Zakat paid on profit on PLS account and dividend receipts (Rs. 250 + 520) 1,770

Taxable income 578,676

COMPUTATION OF TAX LIABILITY:

Tax liability under NTR

Tax on Rs. 578,676 (A) -

As the salary income of the individual constitute more than 75% of the taxable income hence tax

under salary slab is computed as under.

Less proportionate tax on professional services (B) -

Mimimum tax u/s 153

Tax deductible (professional income services (C)^ 1,000

Rs.10,000 x 10%)

Conceptual Approach to Taxes _____827