BENCH MARK QUESTIONS OF THE TOPIC "AOP" UNDER ONE SHEET
SOLVED BY SHAYAN ZAKIR
JAFFAR ASSOCIATES
COMPUTATION OF TAXABLE INCOME
FOR THE YEAR 2025
INCOME FROM BUSINESS
PROFIT BEFORE TAX 13,000,000
LESS / ADD :
RAW MATERIAL WITHOUT WH TAX (2900X20%) 580,000
SALARY TO MANZOOR 1,140,000
RENT PAID TO ASSOCIATE -
COMMISSION TO ADEEB 860,000
DIVIDENT INCOME - FTR - 6,000,000
9,580,000
DIVIDENT INCOME - FTR (6000000/75%) 8,000,000
TOTAL INCOME 17,580,000
LESS DIVIDENT INCOME - 8,000,000
TOTAL TAXABLE INCOME 9,580,000
MANZOOR
COMPUTATION OF TAXABLE INCOME
FOR THE YEAR 2025
CAPITAL GAIN
GAIN ON SALE OF SECURITIES (600-500)X5000 500,000
LESS BROKERAGE (5000X2) - 10,000
CAPITAL GAIN - SB 490,000
TAX LIABLITY
HOLDING PERIOD 2 TO 3 YEARS (490000X10%) 49,000
ADEEB
COMPUTATION OF TAXABLE INCOME AND TAX LIABLITY
FOR THE YEAR 2025
INCOME FROM PROPERTY
RENT RECEIVED FROM JA - FMV 2,000,000 W1
LESS : REPAIR EXPENSES - 400,000 MANZOOR ADEEB TOTAL
INCOME FROM PROPERTY 1,600,000 SALARY 1,140,000 - 1,140,000
COMMISSION - 860000 860000
CAPITAL GAIN TOTAL INC (BAL FIG ) 1,895,000 5,685,000 7,580,000
GAIN ON SALE OF PAINTING 300,000 3,035,000 6,545,000 9,580,000
TOTAL TAXABLE INCOME 1,900,000
W2
(A/B)XC A= TAX
TAX LIABLITY (W1&W2) ( 1900000 X 34.22%) 650,263 B= TAXABLE INCOME+ SHARE FROM AOP TAX ON 5600 1,610,000
C = TAXABLE INCOME TAX ON EXCEEDING 1,280,250 (8445-5600)X45%
TAX 2,890,250
A 2,890,250
B 8,445,000 (6545000+1900000)
C 1,900,000
RATE ON WHICH TAX LIABLITY SHOULD BE COMPUTED (A/B)
34.22 %
JAMSHED CHEMICAL
COMPUTATION OF TOTAL INCOME ,TAXABLE INCOME AND TAX LIABLITY
FOR THE TAX YEAR 2024
INCOME FROM BUSINESS
NON SPECULATIVE BUSINESS
PROFIT BEFORE TAX 13,000,000
PROVISION AGAINST STOCK 250,000
SALARY PAID TO EACH PARTNER (450000X2) 900,000
INTREST PAID TO EACH PARTNER (325000X2) 650,000
REVERSAL OF BAD DEBT RECOVERED - 225,000
BAD DEBTS RECOVERED 225000-(400000-300000) 125,000
LOSS OF DERIVATIVE CONTRACT 1,325,000
GAIN ON DISPOSAL OF FURNITURE W1 844,000 W1
TOTAL NON SPECULATION BUSINESS 16,869,000 COST 1,600,000
DEP 2022 240,000
SPECULATIVE BUSINESS DEP 2023 204,000
LOSS ON DEREVATIVE PRODUCT - 1,325,000 WDV 1,156,000
FMV 2,000,000
TAX LIABLITY GAIN 844,000
TAX UPTO 5600000 1,610,000
TAX ON EXCEEDING (16869000-5600000)X45% 5,071,050
TAX PAYABLE 6,681,050
SURCHARGE 10% 668,105
TAX PAYABLE 7,349,155
SULTANA
COMPUTATION OF TOTAL INCOME ,TAXABLE INCOME AND TAX LIABLITY
FOR THE TAX YEAR 2024
INCOME FROM BUSINESS
SHARE FROM AOP ( FOR RATE PURPOSE ONLY ) 8,434,500
INCOME FROM PROPERTY
RENT FROM PLOT (170000X12) 2,040,000
NON ADJUSTABLE RENT ( IN CASE OF LAND ) -
INCOME FROM PROPERTY 2,040,000
CAPITAL GAINS
GAIN ON DISPOSAL OF SHARES 2000(200-120) 160,000
INCOME FROM OTHER SOURCES
ROYALTY 504,000
TOTAL INCOME 11,138,500
LESS SHARE FROM AOP - 8,434,500
TAXABLE INCOME 2,704,000
TAX LIABLITY
2704000X37% 995,887
W1
TAX LIABLITY
UPTO 5600000 1,610,000
TAX ON EXCEEDING (11138500-5600000)X45% 2,492,325
TOTAL TAX 4,102,325
RATE 0.37
SWEET BAKERS
COMPUTATION OF TOTAL INCOME , TAXABLE INCOME 7 TAX LIABLITY
FOR THE YEAR 2023
INCOME FROM BUSINESS
PROFIT BEFORE TAX 77,000,000
ADD/LESS
RENT RECEIVED FROM FARMER (500000X12)+(120X7200X12) - 16,368,000
MKT VALUE OF EGGS USED AS RM - 10,368,000
PURCHASE OF RM WITHOUT WHT 24M OR (200X20%) W/E/L 24,000,000
PURCHASE OF MILK FOR PERSONAL USE 10MX10% 1,000,000
SALARIES GIVEN TO ASSOCIATES (8.2+6+4.8) 19,000,000
PURCAHSE OF PLANT 15,000,000
PLANT DEPRECIATION (15M-(15MX25%)X15% - 1,687,500
INITIEAL ALLOWANCE PLANT (15MX25%) - 3,750,000
PURCHASE OF POS MATCHHINES 400,000
DEP ON POS MATCHINES -
PAYMENT TO IT COMPANY 5,500,000
AMMORTIZATION ON SOFWARE -
VAN DEPRECIATION (9MX15%) - 1,350,000
108,376,500
EXEMPT INCOME :
RENT FROM AGRICULTURAL LAND 16,368,000
TAXABLE INCOME 124,744,500
LESS EXEMPT INCOME - 16,368,000
TAXABLE INCOME 108,376,500
TAX LIABLITY
TAX ON 5600000 1,610,000
TAX ON EXCEEDING (108376500-5600000) 46,249,425
47,859,425
LESS TAX CREDIT (400000 OR (150000X3) W/E/L - 400,000
TAX LIABLIY 47,459,425
SURCHARGE 4,745,943
TAX PAYABLE 52,205,368
