Income Tax Numerical Format

Mr. Name
Resident Individual
Tax year 20XX

Sr. Taxable
No Particulars Rs. Rs
Calculation of Taxable Income and Tax Payable

1. Income from Salary

Allowances X
Perquisites X
Terminal Benefits X
Employee Share Scheme X
Total Income from Salary XXX

2 Income from Property

S.U.R.F X
Less: Allowable deduction (X)
Total Income from Property XXX

3 Income from Business

Revenue X
Less: Expenditure (X)
Total Income from Business XXX

4 Income from Capital Gain

Gain U/S 37 X
Gain U/S 38 X
Gain U/S 37-A (SBOI) X
Gain immovable property (SBOI) X
Total Income from Capital Gain (Including SBOI) XXX

5 Income from Other Source

Other source income under FTR X
Other Source income under NTR X
Income from other source (Including FTR) XXX

Total Income (NTR,FTR & SBOI only) XXX

Less : Separate Block of Income & FTR
Golden Handshake (X)
Capital Gain U/S 37-A (X)
Capital Gain on immovable property (X)

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FTR Income (X) (XXX)
Total Income Excluding (SBOI and FTR) XXX

Less: Deductible allowances

Zakat Paid under Zakat & Ushr Ordinance (Sec-60) (X)
Worker’s Welfare Fund (WWF) (Sec-60A) (X)
Worker’s Profit Participation Fund (WPPF) (Sec-60B) (X)
Deductible allowance for educational expense (Sec-60D)
➢ 5% of tuition fee paid by the individual
➢ 25% of Taxable Income
➢ Rs. 60,000 multiplied by the number of children of the
individual lower one will be allowed (X)
Total Taxable Income (NTR Only) XXX

Taxation [ Sal/Non Sal]

(Income x Rate ) XXX

Total Tax Liability XXX

Less: Full time Teacher Allowance (XXX)

XXX
Less: Foreign tax credit (XXX)
XXX
Less: Rebates
➢ Charitable Donation U/S 61 X
➢ Approved Pension fund X

Add: Tax on FTR + SBOI XXX

Total Tax liability XXX

Less : Tax Deducted at source (XXX)

Less: FTR (XXX)
Less: All WHT (XXX)
XXX
Add: Tax Credit disallowed (If any) (X)

Tax Payable XXX

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 Key Concepts Tested in Numerical ICAP CAF

Q. No. Reference Marks Remarks i.e. special features in the question

1 Q.15 Sept 2004 17 Fee for attending BOD meetings

2 Q.2 Sept 2005 16 Foreign source salary
TV and VCR provided for use
3 Q.1 March 2006 15 Quiz Prize, Profit in Lieu of Salary
4 Q.2(a) March 2007 12 Forfeited deposit Foreign source salary
5 Q.1 March 2009 18 Foreign source salary
Tax borne by the employer
6 Q.1 Sept 2009 21 Specified amount of tax borne by the company & Two
pensions
7 Autumn 2010 Q. 1 21 Leave Encashment, Profit on Debt, Employee share
scheme
8 Spring 2011 Q. 1 20 Commission, gratuity, employment switching
9 Autumn 2011 Q. 1 19 Medical Facility not under the contract, Final Settlement
10 Spring 2013 Q. 1 20 Employee Share Scheme, Mutual Units
11 Autumn 2013 Q. 1 21 Tax borne by the employer
Employee share scheme
Best employee award
12 Autumn 2014 Q. 1 20 B.O.D Meeting fee, literary work, winning Prize
13 Autumn 2015 Q. 1 20 Car given for use and transfer, Appliances given for use,
Agriculture Income
14 Spring 2016 Q. 1 16 Provident Fund, Dividend, Contribution to Approved fund
15 Q.1 Sept 2016 15 Employment bond
Employee share scheme
Termination benefit taxable at last 3 years' average rate of
tax
16 Q.1 Sept 2017 16 Effect of annual increment, Loan from Employer
17 Q.1 Sept 2018 16 Specified amount of tax borne by the employer
18 Q.1 Sept 2019 17 Foreign source salary income
19 Q.1 Sept 2020 19 Full time teacher allowance
Interest free loan with the waiver of interest on provident
fund balance
Foreign tax credit
20 Q.1 Sept 2021 19 Relocation allowance
21 Q.1 March 2022 17 Allowance for office duties as a % of salary
Foreign source salary of a resident person
22 Q.2 Sept 2022 16 Expenses for work from home
Gifts received in kind and in cash
23 Q.1 March 2023 19 Employment bond
Deemed interest expense
24 Q.1 September 14 Free Food, Insurance, Provident fund, Employee training

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 Sales Tax (Numerical Format)

Mr name
Tax period

Calculation of sales tax payable and refundable

Sales Tax Credits [Input Tax] Value Rate Amount

purchase from Registered Persons of Taxable Goods xxx 18% xxx

Purchases from Registered Person of Exempt Goods xxx Exempt
Packaging Material xxx 18% xxx
Import of raw material (XXX x 120%) xxx 18% xxx
Sales tax on utility bill xxx Given xxx
Purchase from Suspended seller xxx disallowed
purchase from blacklisted seller xxx disallowed
Purchase of zero-rated goods xxx 0% 0
Purchase from unregistered person xxx disallowed
Stationary purchased xxx disallowed
payment after 180 days xxx 18% ( xxx)
Tax not deposited by supplier xxx 18% ( xxx)
discrepancy indicated xxx 18% ( xxx)
Goods destroyed xxx disallowed
tax paid on crookery utensils and furniture xxx disallowed

Less : Purchase return (xxx) 18% (xxx)

Common Input tax XXX

Add: Input tax fixed assets xxx

total Input tax xxx

Sales tax debits (Output tax)

value Rate Amount

Sales to registerd person xxx 18% xxx
Sales to un registerd person xxx 18% xxx
Wrong discount given xxx 18% xxx
Sales of 3rd schedule xxx 18% xxx
Specified goods (Imports) xxx 25% xxx
sales to Reg in EPZ xxx 18% xxx

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Free Replacement xxx N/A N/A
Advance Received xxx N/A N/A

total taxable supplies XXX XXX

Exempt supplies xxx N/A N/A

zero rated supplies xxx 0% 0

Total Supplies XXX XXX

Sales tax Payable/Refundable

Total output tax xxx
Less: Sales return (xx)
Net output tax xxx
Less : Input Tax Credit (Lower Of)
b/f input tax xx
Add: Input tax for the period xx

90% of output tax xx (xx)

Less : Input tax on fixed asset (xx)

Add : further tax sales to unreg(4%) xx

sales tax payable xxx

Input tax C/F xx

input tax C/F on fixed assets xx

Sales tax refundable xx

Less: Penalty , surcharge (xx)
net tax Refundable xxx

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 CHAPTER 15
INCOME TAX PRACTICAL
QUESTIONS [AOP & BUSINESS]
Income from Business (Summary)
Taxable
Rs.
Sr. No Particulars Rs
Accounting profit/ Loss After (Before tax) XXX
ADD
BACK
a) In-Admissible expenses already charged to Profit/Loss Account
Tax Charge or levy paid to the Govt. on profits
• Cess, rate or income tax calculated and paid as a percentage of Profit
• Income tax deducted at source
• Provision for income tax
Note: XX
a) Custom duties on import of raw material and property tax on business premises is allowed
expense because these taxes are not based on profit.
b) Professional tax or subscription payments to trade associations working or welfare of
business is allowed expense

b) Amount of any tax deducted from an income earned by person XX

c) Tax deductions from payments
• Taxable Salaries {more than Rs. 600,000 p.a.) paid without deduction of tax at source
• Any other expenditure subject to withholding tax is paid without tax deduction
XX
• Purchases of raw materials and finished goods are paid without deduction of tax -
Disallowance should not exceed 20% of purchases cost.

d) Entertainment expenditure, XX
e) Contribution to Employee welfare funds XX
f) fine or penalty for the violation of any law, rule or regulation
• Penalty for late payment of sales tax
• Penalty for violation of environmental law XX
Note: Penalties for breach of contract in ordinary course of business, Late payment surcharge
with utility bills is an allowable expense.
g) Personal expenses (Drawings) of owner and his dependents charged as expense in P&L
• Repairs cost of personal vehicle ·.
• Medical expenses of himself' and any other family member · XX
• Personal legal expenses.
• School fee of children.
h) Amount transferred to a Reserve fund or capitalized
• Amount transferred to general reserve
XX
• Amount transferred to dividend equalization fund
• Amount transferred to debenture sinking fund
i) Payment to a member (partner) by an AOP
• Salary given to partner (member) of AOP XX
• Interest on loan (profit on debt) given to partner (member) of AOP

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 • Interest on capital given to partner (member) of AOP
• Brokerage (commission) given to partner (member) of AOP
• Any other remuneration of partner (member) of AOP
Any expense under single head more than Rs. 250,000 as well as individual payment exceeding
j) XX
Rs. 25,000 paid in cash
k) Salaries exceeding Rs. 32,000 per month paid through cash XX
l) Capital expenditures
• Purchase cost of depreciable asset charged as expense in P&L
• Construction cost of depreciable asset charged as expense in P&.L
• Installation cost of depreciable asset charged as expense in p &L
XX
• Additions of depreciable asset charged as expense in P&L
• Improvement cost of depreciable asset charged as expense in P&L
• Acquisition/Renewal/Development cost of intangible assets charged as expense in
P&L
Advertisement-and sales promotion expense by. a pharmaceutical manufacturer in
m) XX XXX
excess or 10% of sales revenue ·

Depreciable assets (Sec 22 & 23)

Add Accounting Depreciation of depreciable assets - disallowed expense XX
Add Accounting Depreciation of asset taken under finance lease - disallowed expense XX
Add Accounting loss on disposal of depreciable assets - disallowed expense XX
Add Tax gain on sale of depreciable assets - allowed income not credited in P&L
Sale proceeds
Less: Tax Written Down Value , XX
{Written down value + Tax depreciation for non-business use}

Add Tax gain on sale of immovable business properly (Sales proceeds are more than its original
cost)
Sale Proceeds
XX
Less: Tax Written Down Value
Original cost (taken equal to sales .proceeds)
Less: Accumulated tax depreciation
Add Tax gain on export (transfer out) of depreciable asset outside Pakistan
Consideration received (taken equal to its original cost) XX
Less:' Tax Written Down· Value
Accounting gain on disposal of depreciable assets- disallowed incomes
Less (XX)
Less Tax depreciation of depreciable assets allowed expense not charged in P&L (XX)
Less Tax loss on sale of depreciable assets - allowed expense not charged in P&L
Scrap proceeds
(XX) XXX
Less: Tax Written Down Value
{Written down value+ Tax depreciation for non-business use]

Intangibles (Sec 24)

Accounting amortization of intangibles - disallowed expense
Add XX
Add Accounting loss on disposal of intangibles - disallowed expense XX
Tax gain on disposal of intangibles (Sale proceeds - Tax WDV of intangibles) -
Add allowed income not credited in P&L XX
Note: Ignore non - business use for the purpose of tax gain.
Less Accounting gain on disposal of intangibles (XX)
Tax amortization of intangibles - allowed expense not charged in P&L ·
Less (XX)
Tax loss on disposal of intangibles (Sale proceeds - Tax WDV of intangibles}-allowed expense
Less (XX) XXX
not charged in P&L

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 Pre-commencement expenditures (Sec 25)
Add Accounting amortization of pre-commencement expenditures – disallowed Expense XX
Less Tax amortization of Pre-commencement expenditure – allowed expense not charged in P&L
(XX) XXX
(Cost of Expenditure * 20% on straight line basis)

Scientific research expenditure (Sec 26)

Scientific research expenditure incurred and paid to institution outside Pakistan -
Add XX
disallowed expense
Scientific research expenditure paid to Pakistani institution not certified by FBR- disallowed
Add XX
expense·
Add Computer purchased for scientific research for business - disallowed expense XX
Cost of land purchased for construction of scientific research institution in Pakistan-disallowed
XX
Add expense
Cost of scientific research expenditure .not used for development of business disallowed
XX
Add expense
Cost of research conducted to ascertain quality of natural deposits in Baluchistan disallowed
XX XXX
Add expense

Bad Debts (Sec 29)

Add Increase in Provision for doubtful debts charged as expense in P&L XX
Add Actual bad debts written off.in P& L but not allowed by Commissioner XX
Add Actual bad debts written off in P& L but previously debt was not included in taxable income
• Advance given to employee written off
• Loan to employee written off• XX
• Advance given to supplier for purchase of raw material Written off
• Loan to associates written off
Less Decrease in Provision for doubtful debts credited as income in P& L (XX)
Less Accounting recovery of bad debts previously written off (XX)
Tax Recovery of bad debt previously written off
Add/ Amount received against bad debts previously written off
Less Less: Previously inadmissible bad debt expense XX/
Actual Bad debts expenses charged in P&L (XX)
Las: Actual Bad debts allowed as per tax law

Add Accrual basis of Accounting (Sec 34)

Expense charged in P& L but outstanding for more than 3 yea.rs
Note: Any outstanding amount (e.g., Advance from customer) not charged as expense in P&L is
outside the scope of this provision. XX XXX
Note: Where unpaid liability, for more than 3 years, added in income (as above) 'and the
person subsequently pays the liability, a dedication will be allowed in year of payment

Profit on debt financial cost and lease payments (Sec 28)

Add Interest clement paid in lease rental under finance lease - disallowed expense XX
Add Profit on debt (Interest expense) acquired for personal use of owner XX
Less Full payment of lease rental under finance lease - allowed expense but not
(XX) XXX
charged in P&L

INADMISSIBLE INCOMES INCLUDED & CREDITED IN PROFIT AND LOSS

Less ACCOUNT
Income chargeable under any other head of income but credited in P& L
(XXX) (XXX)
• · Rental income of land/building

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 • Rental income of personal property together with plant and machinery
• Gain on sale of shares (securities) of other listed or private Ltd. company
· • Interest income from bank deposits

Total Income from business XXX

FIXED ASSETS SCHEDULE

Dat Particular Building Plant & Furnitur Compute Motor Motor Total Tax
e s s Machiner e& r& Vehicle Vehicl Depreciatio
y Fittings allied (plying e (Not n
Items for hire) plying
for
hire)
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Opening Tax
WDV X X X X X X
Less: WDV
of disposal (X) (X)
X X

Add:
Additions
Purchase
Cost X X X X X (X)
Less: Initial - (X) - (X) (X) - (X)
allowance
X X X X X X
Total TAX
WDV X X X X X X

Less: Normal (X) (X) (X) (X) (X) (X)

Depreciation

Ending Tax X X X X X X
WDV
(X)

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 Key Concepts Tested in Numerical ICAP CAF

Q. No. Reference Marks Remarks i.e. special features in the question

1 Spring 2010 Q. 1 19 Divisible Income calculation

2 Spring 2012 Q. 1 20 Calculation of Income from PL, Segregation of Income
and Apportionment of expenses
3 Autumn 2012 Q. 1 17 Apportionment of expenses, B.O.D Meeting Fee
4 Autumn 2012 Q. 5(b Unabsorbed Depreciation
5 Spring 2014 Q. 1 (15) Personal Expenses, Advance Taxes, Depreciation
6 Spring 2015 Q. 1 18 Bad Debts, Amortization, Initial Allowance
7 Spring 2016 Q. 4 10 Speculation Business
8 Spring 2016 Q. 8 12 Provisions, bad debts, commissions
9 Spring 2017 Q. 1 16 Salaries, bad debts, assets exported
10 Spring 2018 Q. 1 18 Lease, Donation, Fixed Deposits
11 Autumn 2018 Q. 5 12 Securities, Vehicle Not Plying for Hire
12 Spring 2019 Q. 1 (10) Costing Methods, Amortization, entertainment
expenditures
13 Spring 2020 Q. 1 18 Costing methods, withholding taxes, financial cost
14 Spring 2021 Q. 3 19 Penalty, dividend, pre-commencement expenditures
15 Autumn 2021 Q. 4 18 In-house research, partly used assets, donations
16 Spring 2022 Q. 3 18 Bad debts, lease, commission of third schedule items
17 Autumn 2022 Q. 1 15 Minimum tax, exchange of assets, partly used leased
assets
18 Spring 2023 Q. 3 20 Unabsorbed Losses, foreign exchange, penalties
19 Autumn 2023 Q. 4 19 Women Enterprises, P.O.S, Amortization, Agriculture
Produce

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