Mr. R purchased 10,000 shares of ABC Limited (a non-listed company) @ $15 per share. He incurred $1,000 on the acquisition/ transfer of shares. During the year he disposed of all the shares @ $20 per share and paid $1,500 as commission to the broker. Compute the amount of capital gain.

1.  
2. Considering the facts of the earlier question, assume that Mr. R sold the shares after one year of the purchase.
3.  
4. Mr. A purchased 50,000 shares of $10 each, of an unlisted public company in July 2007 at the rate of $150 per share. In August 2008 he received bonus shares, in the ratio of 1 bonus share for every 5 shares held. In May 2012 he sold 80% of his bonus shares at a price of $135 per share.
5.  
6. Ms. S inherited a painting from her father after his death nine years ago. The painting was valued at $500,000. On April 1, 200B she gifted the painting to her brother who came from Canada after five years. He went back to Canada after staying in Pakistan for a period of two months. The value of the painting was $1 million when it was gifted.
7.  
8. In 200D, Mr. F the father of Mrs. Vakeel gave her 1,000 shares of furniture Inc. USA, a company listed on the New York Stock Exchange, by way of a gift. Mr. Fazil had purchased those shares in 200A at a cost of USD 10 per share when he was working in the USA. The dollar-rupee parity at the time of purchase was USD 1 = PKR 58. The fair market value of the shares at the time of transfer to Mrs. Vakeel was USD 25 (USD 1 = PKR 60). Mrs. Vakeel disposed of the shares during the year at a price of USD 60 per share. The dollar-rupee parity on the date of disposal was USD 1 = PKR 80.
9.  
10. Mr. A purchased a building on 5.5.20X2 at a cost of $8 million and incidental expenses of $700,000 were also incurred. On 30.5.20X5 he disposed of the building at $31 million and incidental expenses were $900,000. He also paid 1% advance tax on sale value at the time of sale. Calculate his tax liability on this transaction.
11.  
12. Zaheer sold a painting to his brother on 10.4.20X7 for $2,000,000. Zaheer had purchased this painting for his residence, in an auction on 14.8.20X3 for $1,800,000. Under the provisions of the income tax ordinance 2001, compute taxable income or loss, under the correct head of income for the tax year 20X7.
13.  
14. Haris sold two of his personal vehicles during the current year and earned a profit of $550,000. Discuss the taxability of profit earned by Haris in the context of capital gain or loss.
15.  
16. On 1.7.20X4, Mr. A purchased two sculptures for $410,000 and $475,000 respectively, on 30.11.20X8, during the shifting of his house, he lost both the sculptures. On 15.1.20X9, he received an insurance claim of $940,000 in a single transaction against the loss of two sculptures. The fair market value of both the sculptures at the time of loss was estimated at $360,000 and $540,000. Compute Mr. A's taxable income or loss for this transaction.
17.  

EMPLOYEE SHARE SCHEME (CAPITAL GAIN)

1. For several years, Mr. S has been the CEO of AF Pakistan Ltd. (AFPL). He was given 2,000 shares on 1.6.2016 by AF AG, Germany (the parent company of AFPL) at a price of 2.5 per share. The market price on that date was 8.2 per share. The shares were transferable on completion of one year of service, from the date of issue of shares. The market price of the shares as of 1.6.2017 was 12.5 per share. On 10.4.2018, Mr. Saadiq sold all shares at 13 per share. He paid a commission of 50 to the brokerage house. The relevant exchange rates are as follows: 1.6.2016 1= Rs.118.10 1.6.2017 1= Rs.121.40 10.4.2018 1= Rs.123.90 
2. 
   
3. Required: 
4. Compute the amount to be included in the taxable income of Mr. S for tax years 2016, 2017, and 2018 and specify the head of income under which the income would be classified.

Answer rating: 100% (QA)

Mr Rs Capital Gain Purchase price 15 per share 10000 shares 150000 Acquisitiontransfer expenses 1000 Selling price 20 per share 10000 shares 200000 Br... View the full answer