Terminal Exam-G5-36-34-15-19-29-32

COMSATS University Islamabad, Lahore Capmus
Department of Management Sciences

Contemporary Taxation
Terminal Examination
SDP-FA18-BAF-4A Time allowed: 3 Hrs
Instructor: Ms Hafiza Noshaba Nisar Total Marks: 50
Note: Answer all of followng questions.
(Note: For the convenience of students due to non availability of books during closure of
markets all Rules from Tax Year 2016-2018 are applicable to this assignment)
QUESTION NO.1
Marks: 15
Mr. X has basic salary of Rs. 1,200,000. He has received salary of Rs. 1,100,000 during
the Tax Year 2018. In addition to this following information is obtained from his record:
i. He was sent to an special assignment for which he had been given a work
condition supplement of Rs. 100,000
ii. He encashed his leaves from the company in Rs. 50,000
iii. The company gave him a leased car with FMV of Rs. 1,800,000 for both
official and personal use
iv. The company gave him a rent free accommodation having FMR of Rs.
25,000/month
v. He had taken a loan of Rs. 1,000,000 in Tax Year 2010 from his company. It
was agreed that Mr. X will repay the loan in installments of Rs.
100,000/annum. Upto Tax Year 2017 he repaid each installment regularly but
for the Tax Year 2018 he requested the company to waive off the installment
of this year permanently and the company accepted his request
vi. He has taken a loan of Rs. 200,000 from a freind. The company has repaid
this loan to his friend on his behalf.
vii. A school fee of Rs. 80,000 was paid by the company on behalf of Mr. X child
viii. Mr. X paid salary of Rs. 10,000/month to his sweeper at home
ix. Advance tax of Rs. 2,000 at cash withdrwal and Rs. 1,800 at salary were
deducted from him. All are adjustable
Required:
A. You have to calculate the Taxable Income of Mr. X for the Tax Year 2018 and;
B. Tax Liability and Tax Payable / Refundable by using the following rates
Taxable income Rate of tax
Where the taxable income does not 0%

exceed Rs. 400,000
Where the taxable income exceeds 2% of the amount exceeding Rs.

Rs. 400,000 but does not exceed 400,000
Rs. 500,000
Where the taxable income exceeds Rs. 2,000 + 5% of the amount exceeding
Rs. 500,000 but does not exceed Rs. 500,000
Rs. 750,000
Where the taxable income exceeds Rs. 14,500 + 10% of the amount
Rs.750,000 but does not exceed exceeding Rs. 750,000
Rs.1,400,000
Where the taxable income exceeds Rs. 79,500 + 12.5% of the amount
Rs.1,400,000 but does not exceed exceeding Rs. 1,400,000
Rs.1,500,000
Rs.1,800,000
Rs.2,500,000
Rs.3,000,000
Rs.3,500,000
Rs.3,500,000 exceeding Rs. 3,500,000
QUESTION NO. 2
Marks: 10
A person has following information for the Tax Year 2018
Income from Salary 9,000,000

Total income from business (1,000,000)
Total Capital Gains 2,000,000
Total income from property 5,000,000
Out of the capital gains, Rs. 1,000,000 is from foreign source also exempt from tax as
per Income Tax Ordinance, 2001 as well. Income from property is totally taxable and
coming from both foreign and Pakistani sources in the following manner:
Foreign Source 2,000,000

Pakistani Source 3,000,000
REQUIRED:
Calculate both Total Income and Taxable Income of the person as per Income Tax
Ordinance, 2001 for Tax Year 2018 in both of the following cases separately: If
A. The person is resident; and if

B. The person is non-resident
QUESTION NO. 3
Marks: 25
ABC (Pvt.) Ltd. a manufacturer has started the business as at 15-07-2017.

Accounting record of the tax year 2018 reveals that:
45,000 units were in closing stock at 30-06-2018.
Further information related to those 45,000 units is as follows:
(Rupees)
Estimated Selling price 14,500,000
Cost of completion 5,000,000
Selling expenses 500,000
Date of
Sr. # Units Rate Company made following
Purchase
1 11-08-2017 1,600 200 purchases during the year:
2 25-08-2017 1,500 190
3 10-09-2017 1,000 250
4 19-09-2017 2,500 160
5 05-10-2017 1,500 170
6 17-11-2017 1,800 180
7 28-11-2017 1,000 160
8 15-12-2017 2,700 150
9 29-12-2017 3,000 170
10 12-01-2018 1,500 190
11 15-01-2018 1,000 200
12 28-01-2018 2,500 210
13 18-02-2018 1,800 190
14 22-02-2018 2,000 180
15 27-02-2018 1,700 200
16 02-03-2018 1,200 210
17 10-03-2018 1,900 200
18 13-03-2018 1,000 210
19 22-03-2018 2,000 180
20 26-03-2018 3,000 170
21 31-03-2018 1,300 250
22 01-04-2018 2,000 190
23 12-04-2018 2,200 200
24 30-04-2018 1,400 160
25 20-05-2018 2,000 170
26 01-06-2018 1,000 180
27 15-06-2018 4,000 190
28 21-06-2018 6,000 210
29 25-06-2018 5,000 200
30 10-07-2018 6,500 200
31 20-09-2018 5,000 180
32 30-09-2018 5,500 120
33 10-10-2018 4,000 150
34 20-10-2018 3,000 130
35 25-10-2018 3,500 160
36 01-11-2018 4,000 190
37 10-12-2018 4,500 210
38 15-12-2018 5,000 200
39 20-12-2018 1,500 180
40 31-12-2018 1,000 200
A stock was purchased at 12-02-2017; and used for business purpose as at 31-01-
2018. The fair market values of this stock at different dates were as follows:
Rs. 2,000,000/- at 12-02-2017

Rs. 2,400,000/- at 01-07-2017
Rs. 3,500,000/- at 31-01-2018
Rs. 2,500,000/- at 15-07-2017
Rs. 3,000,000/- at 30-06-2018
REQUIRED:
You have to calculate value of STOCK CONSUMED during Tax Year 2018 as per
Income Tax Ordinance, 2001. Company is using FIFO method as its accounting policy.
THE END
Cheating / Plagiarism Rules for Handwritten Assignments:

1.Duplication (of one’s own work) of the same or almost identical work for more than
one module;
2.Submission of another student’s work, whether with or without that student’s
knowledge or consent;
3.Directly quoting from model solutions/answers made available in previous years;
4. Cheating in Group Discussions / Activities, e.g.
a. When a candidate communicates, or attempts to communicate,
with an individual who is neither an invigilator or member of staff
b. Copies, or attempts to copy from a fellow candidate
c. Personates or allows himself or herself to be impersonated.
5. Fabrication of results occurs when a student claims to have carried out tests,
experiments or observations that have not taken place or presents results not
supported by the evidence with the object of obtaining an unfair advantage.

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COMSATS University Islamabad, Lahore Capmus

Department of Management Sciences

Note: Answer all of followng questions.

ii. He encashed his leaves from the company in Rs. 50,000

viii. Mr. X paid salary of Rs. 10,000/month to his sweeper at home

Where the taxable income does not 0%

Where the taxable income exceeds 2% of the amount exceeding Rs.

A person has following information for the Tax Year 2018

Income from Salary 9,000,000

Foreign Source 2,000,000

A. The person is resident; and if

ABC (Pvt.) Ltd. a manufacturer has started the business as at 15-07-2017.

45,000 units were in closing stock at 30-06-2018.

Further information related to those 45,000 units is as follows:

Rs. 2,000,000/- at 12-02-2017

Cheating / Plagiarism Rules for Handwritten Assignments:

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