From the desk of : Rizwan Manai

Tax Practices (B3 and B4) : 27th Lecture dated June 19, 2023

IFP (8)
Joint Ownership of a Property
Mrs. Arsalan purchased a plot of land in Tax Year 2021, out of her savings from
salary income. Mr. Arsalan financed the construction on the plot of land, which was
completed in Tax Year 2022. The building given on rent in Tax Year 2023 and
fetched monthly rent of Rs. 500,000 commenced from 1st July 2022. Tenant being
an individual paid 2 years’ rent in advance and refundable security deposit of Rs. 1
million. The fair market rent of the location is Rs. 600,000 per month.

Required
Discuss the relevant assessee of the income and computation of taxable income for
the Tax Year 2023.

IFP (9)
Renting out of Agriculture Land
Mr. Arjumand owns an Agriculture Land in Hyderabad, Pakistan. On 1 August 2022
rented out the land for poultry farming at monthly rent of Rs.250,000 whereas FMR
is Rs. 280,000 per month. Tenant has also paid non-adjustable and refundable
deposit of Rs.1,000,000.
Mr. Arjumand has incurred the following expenses in this regard;
1) Ground levelling expenses Rs.80,000;
2) Property tax; Rs.120,000;
3) Provincial Agriculture tax Rs.80,000;
4) Interest on mortgage loan Rs.100,000;
5) Rent collection charges Rs.360,000;
6) Insurance premium against risk of water logging Rs.50,000.

Required
Computation taxable income for the Tax Year 2023.

IFP (10)

Inter head adjustment of Salary and Property

Mrs. Shaheen has provided you the following data, for the tax year 2023;

Income Amount
(Rupees)
Income from salary 4,800,000
Income from property (120,000)
Prize on prize bonds 2,000,000

Required
Computation taxable income and tax payable for the Tax Year 2023.

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