COMSATS University Islamabad, Lahore Capmus

Department of Management Sciences

Business Taxation
Sessional I

SDP-FA18-BAF-6A Time allowed: 60 minutes(15 minutes

extra time will be given due to slow
internet or electricity issues)
Instructor: Ms Hafiza Noshaba Nisar Total Marks: 10

Note: Answer all of the following questions.

Q-1: A person has rented a building at rent of Rs. 20,000/month. Further the following information is given by
the person:

 A repair was made by the tenant and Rs. 60,000 were the charges paid by him
 Collection charges of Rs. 50,000 were also paid by the owner while collecting the rent of the
building
 At the time of letting out the property, the fair market rent in that area was Rs. 25,000/month.
 Rent of Rs. 20,000/- was receivable at the end of the Tax Year 2020
 The person had paid insurance premium of Rs. 10,000/- for the said property in Tax Year 2020.
 The same property was rented in Tax Year 2016 to the same tenant and an insurance premium of
Rs. 2,000 was claimed by the Owner which is still payable

Required:

You have to calculate the Tax on taxable income of the above said person in each of the following case
separately for the Tax Year 2020. IF:

a. The above said person is a company having income from Business of Rs. 950,000 alongwith the
Property Income as mentioned above during Tax Year 2020
b. The above said person is an AOP having income from Business of Rs. 900,000 alongwith the Property
Income as mentioned above during Tax Year 2020
c. The above said person is an individual having income from Business of Rs. 800,000 alongwith the
Property Income as mentioned above during Tax Year 2020
d. The above said person is an individual having the only income mentioned above and no other income
from any other Head during Tax Year 2020

The tax rates applicable for the Tax Year 2020 are given below:

 Rate applicable to companies is 30%

 Rates applicable to individuals (non-salaried)/ AOP are

Sr. Taxable income Rate of tax

No.
1 Where the taxable income does not exceed 0%
Rs. 400,000
2 Where the taxable income exceeds Rs. 5% of the amount exceeding Rs. 400,000
400,000 but does not exceed Rs.600,000
3 Where the taxable income exceeds Rs. Rs. 10,000 + 10% of the amount exceeding
600,000 but does not exceed Rs. 1,200,000 Rs.600,000
4 Where the taxable income exceeds Rs.70,000 + 15% of the amount exceeding
Rs.1,200,000 but does not exceed Rs.1,200,000
Rs.2,400,000

CONT…….
 Rates applicable to the Income from Property are

Sr. Taxable Income Tax Rate

No.
1 Where the gross amount of rent does not 0%
exceed Rs.200,000
2 Where the gross amount of rent exceeds 5% of the rent exceeding Rs.200,000
Rs.200,000 but does not exceed
Rs.600,000
3 Where the gross amount of rent exceeds Rs.20,000 + 10% of the rent exceeding
Rs.600,000 but does not exceed Rs.600,000
Rs.1,000,000
4 Where the gross amount of rent exceeds Rs.60,000 + 15% of the rent exceeding
Rs.1,000,000 but does not exceed Rs.1,000,000
Rs.2,000,000
(08)

Q-2: A- What is the difference between the Collection Authority and the Appellate Authority? (01)

B- What is the difference between “Point of Law” and “Point of Fact”? Explain each with at least one
example. (01)

___The End___

Best of Luck

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.