Scribd
Upload
7 views

Test

The document outlines a taxation test for Mr. Aslam, detailing his employment history, income sources, and benefits for the tax year 2022. It includes specific instructions for examinees and provides tax rates for salaried individuals and capital gains based on holding periods. The test requires the computation of taxable income, tax liability, and tax payable, as well as a description of foreign source salary under the income tax ordinance.

Uploaded by

SR TG
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
7 views

Test

The document outlines a taxation test for Mr. Aslam, detailing his employment history, income sources, and benefits for the tax year 2022. It includes specific instructions for examinees and provides tax rates for salaried individuals and capital gains based on holding periods. The test requires the computation of taxable income, tax liability, and tax payable, as well as a description of foreign source salary under the income tax ordinance.

Uploaded by

SR TG
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Rise School of Accountancy

20TH MAY 2023


40 MINS–20 marks
Additional reading time – 9 minutes

PRINCIPLES OF TAXATION
Instructions to examinees:
(i) Answer all questions.
(ii) Answer in black pen only.
(iii) Multiple Choice Questions must be answered in answer script only.

TEST 3

Q.1 Mr. Aslam was employed with Sahal Ltd (SL) as a Marketing Manager. On 30th June, 2021. He resigned
from his employment with SL. On 1st July 2021, He joined Ahsan Ltd, HPL a quoted company as a
marketing Director. He has provided you the following information in respect of the tax year 2022.

i. In July, 2021 he received following amount from SL in final settlement:

• Leave encashment amount Rs.95,000.


• Gratuity of Rs.500,000 from an unapproved gratuity funds made by SL.

ii. In accordance with the terms of the his employment income tax related to his salary and
benefit is to be borne by HPL. His enrollment benefits during the tax year were as follow.

▪ Basic salary of Rs. 200,000 per month.


▪ Medical Allowance of Rs. 60,000 per month.
▪ Rent free accommodation with annual letting value of Rs.480000.
▪ Travelling Allowance of Rs.20,000 per month. 60% of the amount was spent in the
performance of official duty.
▪ Provident Fund @10% of basic salary an equal amount contributed by HPL.

iii. Under an employee share scheme, Mr. Aslam was awarded 5000 share by HPL on 1st Jan,
2022.Under the scheme he was not allowed to sell the share up to 31 march 2022. He sold all
the Share HPL on 1st May ,2022. The fair value of the share on the above dates was as follows.

▪ Rs.20 per share on 1 January 2022


▪ Rs.28 Per share on 31March 2022
▪ Rs.32 Per share on 1 May 2022

iv. On 31 December 2021, He received a loan of Rs.400,000 from HPL. The loan carries a mark-
up of 4% per annum. The prescribed benchmark rate is 10%.

v. He won the best executive employee award of HPL and received a laptop having a fair market
value of Rs.150,000.

Required:
Compute the taxable income, Tax liability and tax payable for the Tax year 2022. (15)

Q.2 Describe the term foreign source salary of resident individual Under the income Tax ordinance,2001.
(05)
Tax rates for salaried individuals
S. No. Taxable income Rate of tax
1. Where the taxable income does not exceed Rs. 600,000 0%
Where taxable income exceeds Rs. 600,000 but does not 2.5% of the amount exceeding
2.
exceed Rs. 1,200,000 Rs. 600,000
Where taxable income exceeds Rs. 1,200,000 but does not Rs. 15,000 plus 12.5% of the
3.
exceed Rs. 2,400,000 amount exceeding Rs. 1,200,000
Where taxable income exceeds Rs. 2,400,000 but does not Rs. 165,000 plus 20% of the
4.
exceed Rs. 3,600,000 amount exceeding Rs, 2,400,000
Where taxable income exceeds Rs. 3,600,000 but does not Rs. 405,000 plus 25% of the
5.
exceed Rs. 6,000,000 amount exceeding Rs. 3,600,000
Where taxable income exceeds Rs. 6,000,000 but does not Rs. 1,005,000 plus 32.5% of the
6.
exceed Rs. 12,000,000 amount exceeding Rs. 6,000,000
Rs. 2,955,000 plus 35% of the
7. Where taxable income exceeds Rs. 12,000,000
amount exceeding Rs. 12,000,000

S. Holding period Rate of tax


No.
1. Where the holding period does not exceed one year 15%
2. Where the holding period exceeds one year but does not exceed two 12.5%
years
3. Where the holding period exceeds two years but does not exceed three 10%
years
4. Where the holding period exceeds three years but does not exceed four 7.5%
years
5. Where the holding period exceeds four years but does not exceed five 5%
years
6. Where the holding period exceeds five years but does not exceed six 2.5%
years
7. Where the holding period exceeds six years 0%

You might also like