Tax Book 2023

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

Solution

Dr. A. A. Qureshi - Resident

Computation of taxable income and tax liability

For the tax year 2023

Rs. Rs.

INCOME FROM BUSINESS U/S 18

Consultation fees (Note - 1) 450,000

Less: Expenses

Rent of clinic 24,000

Household expenses (Not allowed being personal) -

Purchase of motor car (Capital nature payment) -

Purchase of surgical equipments (Capital nature payment) -

Salary to assistant 36,000

Car running expenses (30,000 x 1 / 3 related to business) 10,000

Conceptual Approach to Taxes _____829

Car running expenses (30,000 x 1 / 3 related to business) 10,000

Property tax 12,000

Depreciation:

(Motor car (300,000 x 15% x 1/3 business) U/S 22 15,000

Surgical equipments (initial 40,000 x 25%) U/S 23 10,000

Surgical equipments (normal 30,000 x 15%) U/S 22 4,500

Stationery 5,000

Utilities 25,000

141,500

Net profit from business 308,500

INCOME FROM PROPERTY

Property income (gross amount) - taxable as SBI 72,000

Less: 20% repair allowance (14,400) 57,600

INCOME FROM OTHER SOURCES

Visiting fees 100,000

Remuneration from articles in magazines 12,000

Gifts from patients (Not chargeable to tax because of personal nature liability) -

112,000

Taxable income under NTRTaxable income under NTR 478,100478,100

Conceptual Approach to Taxes _____829