Income Tax Numerical Questions

Problem No. 1:
From the following information compute the taxable income and tax payable by Mr.
Suleman for tax year 2014:
1.
2.
3.
4.

Basic Salary p.m.

Rs. 20,000
Commission
50,000
House Rent Allowance
24,000
Conveyance provided by employer for personal use. Cost of Acquisition
10,
00,000
5. Entertainment Allowance p.m.
1000
6. Medical Allowance
25,000
7. Special Allowance
10,000
8. Salary of personal servant paid by employer
20,000
9. Special pay
12,000
10.
Reward for passing departmental examination
10,000

Problem No. 2:
From the following information compute the taxable income and tax payable by Mr.
Akram for tax year 2014:
1.
2.
3.
4.

Basic Salary [20,000 2000 40000]

Rs. 3, 60,000
Bonus
72,000
Conveyance Allowance p.m.
5,000
Rent free furnished accommodation is provided by the employer. The
accommodation allowance will be Rs. 10,000 p.m. if this accommodation was not
provided to him.
5. Medical Bills reimbursed
10,000
6. Hotel bill paid by company for pleasure trip
2,000
7. Professional books purchased
5,000
8. Interest free loan taken from employer
6, 00,000
9. Qualifications pay
12,000
10.
Ad-hoc relief Allowance
36,000
11.
Pick and drop facility provided by employer
5,000
12.
Management course fee paid by employer
6,000

Note:

According to terms of employment, tax liability of Mr. Akram shall be paid

by employer.

Problem No. 3:
You are required to calculate the taxable income and tax payable of Mr. Ali (Age = 62
years) working in a hotel:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Basic Salary
Rs. 4, 80,000
Dearness Allowance
30,000
Rent free furnished accommodation is provided by the employer.
--------Conveyance provided by employer for personal and Business use.
10,
00,000
Free Medical Treatment
10,000
Lunch Facility
5,000
Travelling Allowance
3,000
Loan taken from employer @ 7%
6, 50,000
Employers contribution to recognized provident fund
60,000

10.
11.
12.

Equal contribution by employee

Interest on recognized provident fund @ 18%
Membership fee of a club paid by employer

---------40,000
36,000

Problem No.4:
You are required to calculate the taxable income and tax payable of Mr. Asad working
as a researcher:
1. Basic Salary
Rs. 6, 00,000
2. Cost of living Allowance
40,000
3. Car provided by employer for personal and business use.
Cost of acquisition of conveyance is Rs. 12, 00,000. Employer took this
Car on lease basis and annual lease rent is Rs. 2, 00,000
4. Lunch Facility
10,000
5. Special Allowance given by employer
15,000
(Actual expenses incurred in the performance of official duty are Rs. 12,000)
6. Loan taken from employer @ 10%
7, 00,000
7. Employers contribution to un-recognized provident fund
10,000
8. Employees contribution to un-recognized provident fund
10,000
9. Interest on un-recognized provident fund @ 20%
8,000
10.
Income from property p.m.
10,000
11.
Un-adjustable advance received
50,000
12.
Collection charges
4,000
13.
Water charges
2,000
14.
Donation under clause 61 schedule II
5,000

Problem No. 5:
You are required to calculate the taxable income and tax payable of Mr. Nadeem
Ahmed whose age is 60 years and working as a teacher in a recognized educational
institution:
1. Basic Salary
Rs. 5, 76,000
2. Bonus
50,000
3. Conveyance Allowance p.m.
2,000
(Conveyance owned and maintained by employee himself)
4. Loan is provided by employer @ 15%
6, 00,000
5. Qualifications pay
10,000
6. Leave encashment
12,000
7. Property income
1, 50,000
8. Foreign income from business (foreign tax paid is Rs. 12,000)
1,
30,000
9. Gain on the sale of NIT units
10,000
(Holding period is more than one year)
10.
Gain on the sale of a private company shares
5,000
(Shares were purchased two years before)
11.
Agricultural income
20,000
12.
Birthday present received
3,000
13.
Donation for charitable purpose
10,000
14.
Contribution to approved pension fund
15,000
15.
Amount withdrawn from bank
60,000