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    Test 4 (QP)

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    iamneonking
    The document provides details of capital gains and losses realized by Ali, the CEO of Yasir Limited, during the 2021 tax year from the sale of shares, furniture, paintings, and employee share schemes. It also provides questions to compute taxable gains and losses under different scenarios and identify if companies are public or private. The questions require determining taxable amounts under various heads of income and tax liability based on ownership percentages of different companies.

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    Test 4 (QP)

    Uploaded by

    iamneonking
    30 views2 pages
    The document provides details of capital gains and losses realized by Ali, the CEO of Yasir Limited, during the 2021 tax year from the sale of shares, furniture, paintings, and employee share schemes. It also provides questions to compute taxable gains and losses under different scenarios and identify if companies are public or private. The questions require determining taxable amounts under various heads of income and tax liability based on ownership percentages of different companies.

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    9. Test 4 (QP)

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    The document provides details of capital gains and losses realized by Ali, the CEO of Yasir Limited, during the 2021 tax year from the sale of shares, furniture, paintings, and employee share schemes. It also provides questions to compute taxable gains and losses under different scenarios and identify if companies are public or private. The questions require determining taxable amounts under various heads of income and tax liability based on ownership percentages of different companies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views2 pages

    Test 4 (QP)

    Uploaded by

    iamneonking
    The document provides details of capital gains and losses realized by Ali, the CEO of Yasir Limited, during the 2021 tax year from the sale of shares, furniture, paintings, and employee share schemes. It also provides questions to compute taxable gains and losses under different scenarios and identify if companies are public or private. The questions require determining taxable amounts under various heads of income and tax liability based on ownership percentages of different companies.

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    © All Rights Reserved
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    Download as pdf or txt
    of 2

    RISE SCHOOL OF ACCOUNTANCY

    Section: All Batches of Spring 2022


    Marks : 15
    Subject: Principles of Taxation
    Time : 30 Minutes
    Teacher: Mr. Zahid Qavi
    Test 04 Date: 26 November 2021

    Name: ___________________________________ Rise ID: ____________________

    Question 01
    Ali is working as the Chief Executive Officer in Yasir Limited (YL). Following are the details of sale and
    purchase relating to his capital assets during the tax year 2021.
    a. Under an employee share scheme, 25,000 shares of YL were allotted to Ali, on 1 December 2018 for Rs.
    25 each. According to the scheme, he was not allowed to sell/transfer the shares before completion of two
    years from the date of transfer. The face value of each share is Rs. 10 per share. Fair market value of the
    shares was as follows:
     Rs. 40 per share on 1 December 2018
     Rs. 48 per share on 30 June 2019
     Rs. 55 per share on 30 November 2020
     Rs. 61 per share on 30 June 2021
    b. He sold 20,000 shares of HQ (Pvt.) Limited on 30 June 2020 for Rs. 200 per share. He had purchased
    24,000 shares were at Rs. 55 per share on 25 June 2017.
    c. A gain of Rs. 300,000 was realized on the sale of shares of Zeeshan Industries Limited (ZIL), a public
    listed company, in June 2020. The shares were acquired on 31 Jan 2020.
    d. Ali sold a painting to his brother on 23 March 2021 for Rs. 1,800,000. Ali had purchased this painting for
    his residence, in an auction for Rs. 2,000,000 on 10 July 2016.
    e. He sold his old furniture to Furqan for Rs. 285,000 on 25 June 2020. The furniture was purchased in 2016
    for Rs. 250,000.
    Required:
    Compute the amount to be included in the taxable income of Ali for the tax year 2021 and specify the head of
    income under which the income would be classified. (06)

    Question 02
    UndertheprovisionsoftheIncomeTaxOrdinance,2001 compute taxable gain or loss, under the correct head of
    income, in each of the following cases. Also identify, giving reasons, whether the company is a public or private
    company for tax purposes:
    (i) Ashiq has 5,000 shares in Rumi (Pvt.) Limited (RPL). 52% of the shares of RPL are held by Delta
    Plc. which is owned by the British Government. Ashiq inherited these shares from his father on 1
    January 2014. His father had purchased these shares on 31 May 2012 at a price of Rs.250 per share.
    The market value of these shares at the time of inheritance was Rs.300 per share. On 30 June 2015
    Ashiq sold 2,500 shares in RPL at a price of Rs. 325 per share when the break-up value of RPL was
    Rs. 350 per share. (04)
    (ii) What would be your answer in (i) above, if 40% of the shares of RPL were held by the Provincial
    Government, 48% by the British Government and 12% by individual investors. (03)
    RISE SCHOOL OF ACCOUNTANCY
    Question 03
    Shares of ABC (Pvt.) Limited were purchased by Mr. Ali on 2nd August 2015 at a cost of Rs. 200,000. 53% of
    the shares of ABC Company are held by a foreign company, Gamma Limited which is owned by Government of
    Belgium. Shares were sold by Mr. Ali on 8th November 2017 at a price of Rs. 350,000. Calculate tax liability of
    Mr. Ali. (2)

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