BA B.COM BS Business Taxation Course Code 456 Solved Assignments No.1 Autumn 2017

Question no.1

Understanding the legal terms in taxation provides a way forward for determining the tax liability of a person. Keeping this view, define the following terms with reference to Income Tax Ordinance 2001: b. Capital Asset b. Taxable Income c. Total Income d. Dividend e. Small Company f. Resident Person g. Public Company i. Tax Year

Answer.

a. Capital Asset

b. Taxable Income

c. Total Income

d. Dividend

e. Small Company

f. Resident Person

g. Public Company

i. Tax Year

Question no.2

The Income Tax Ordinance 2001 divides income into five major head: salary, property, business, capital gains and other sources.

Explain the components of property and their taxation treatment as per the provisions of the Income Tax Ordinance 2001.

Answer:

Question no 3.

Calculate the tax liability for the tax year 2006 of Mr.Ali, a senior citizen, from the following records:

(Tax rates are given at the end)

1. Basic salary   40,000 per month

2. Dearness allowance 5,000 per month

3. House rent allowance 8,000 per month

4.Overtime 10,000 per year.

Answer

;

Question no 4.

Suppose you can own a business earning monthly income of Rs.100,000. The FBR sends you a notice to pay your tax liability. Under the Income Tax Ordinance 2001,

how would you calculate your income from business on which the tax will be payable by keeping in mind the deductions allowed in calculating the tax on such income ?

Answer:

Question no 5.

What is an income tax return ?. Who is required to file the income tax return ? What are the requirements of a valid of income ? Also, wrote down the penalty for non-filing of the income tax return.

Answer:

This is the end of assignment no 1 of business taxation