Business / Income Taxation Notes for B.Com (Part-II) / ADP / BS / ADC / BBA

Business / Income and Sale Taxation Notes for B.Com Part 2 / B.Com (Part-II) / B.Com (Hons) / ADP / ADC / BS (Accounting and Finance) / BBA / BS (Commerce) / BS (IT).  Students of B.Com (Part-II) / B.Com (Hons) / ADP / ADC / BS (Accounting and Finance) / BBA / BS (Commerce) / BS (IT) Level of any University recognized by Higher Education Commission (HEC), Islamabad belonging to any province i.e. Punjab, Sindh, KPK, Balochistan and Azad Kashmir and can get benefit from these notes. By studying our notes, we can guarantee you for getting maximum marks in your exams.

Taxation Notes for B.Com Part-II / ADP / ADC / BBA / BS (Commerce, Accounting, IT,  Finance)

Please select a topic from below:

Format of Income Tax and Sales Tax Numerical Questions / Problems

Financial Year (FY) 2022-23

1. Format and Rules for Computation Taxable Income and Tax Payable
2. Format of Sales Tax  for Computation of Sales Tax payable

Solved Numerical Questions / Problems Notes of Income and Sales Tax

Tax Year of 2019-2020

Muzzam Mughal 

• Income Tax Numerical Questions by Muzzam Mughal 

Zulifqar Ahmad Bowra

• Income Tax Numerical Questions by Zulifqar Ahmad Bowra
• Sales Tax Numerical Questions by Zulifqar Ahamad Bowrs

 Tax Year of 2020-2021

• Income Tax Notes for Numerical Questions 2020-21

Muzzam Mughal 

• Income Tax Numerical Questions by Muzzam Mughal 
• Sale Tax Numerical Questions by Muzzam Mughal 

Zulifqar Ahmad Bowra

• Income Tax Numerical Questions by Zulifqar Ahmad Bowra
• Sale Tax Numerical Question by Zulifqar Ahmad Bowra

 Tax Year of 2021-2022

Muzzam Mughal 

• Income Tax Numerical Problems or  Questions by Muzzam Mughal 
• Sale Tax Numerical Questions by Muzzam Mughal

Zulifqar Ahmad Bowra

• Income Tax Numerical Questions by Zulifqar Ahmad Bowra
• Sale Tax Numerical Question by Zulifqar Ahmad Bowra

Tax Year of 2022-2023

Muzzam Mughal 

• Income Tax Numerical Problems or  Questions by Muzzam Mughal (Assessment of Salaried Individual)
• Sale Tax Numerical Problems or Questions by  Muhammad Muzzam Mughal

Zulifqar Ahmad Bowra

• Income Tax Numerical Questions by Zulifqar Ahmad Bowra (Assessment of Salaried Individual)
• Sale Tax Numerical Question by Zulifqar Ahmad Bowra

Sales Tax Numerical Problems Notes

2019 – 2020

• Rules of Input Tax
• Rules of Output Tax
• Restriction of Section 8 B
• Withholding Rules of Sales Tax

2020 – 2021

• Rules of Input Tax
• Rules of Output Tax
• Restriction of Section 8 B
• Withholding Rules of Sales Tax

2022 – 2023

• Rules of Input Tax
• Rules of Output Tax
• Restriction of Section 8 B
• Withholding Rules of Sales Tax

Guess Paper for Annual and Supplementary Exams

• Guess paper of  Income / Business Taxation 2021

Solved Past Paper of Punjab University

Solved Annual Paper of Business / Income Tax For B.Com Part – II  Punjab University

• Annual 2013
• Annual 2014
• Annual 2015
• Annual 2016
• Annual 2017
• Annual 2018
• Annual 2019
• Annual 2020
• Annual 2021

Past / Old Questions Paper of Business Taxation Punjab University

Annual 

1. 2014
2. 2015
3. 2016
4. 2017
5. 2018
6. 2019
7. 2020
8. 2021
9. 2022

Supplementary 

1. 2014
2. 2015
3. 2016
4. 2017
5. 2018
6. 2019
7. 2020

Past / Old  Questions Papers Allama Iqbal Open University (AIOU) Business Taxation (456)

• Business Taxation (456) Spring 2023 for ADC  / BS and B.Com

Chapter / Topic Wise Multiple Choice Question (Mcqs) with Answer

Mcq’s of Business Taxation

• History of Taxation
• Definitions of Business Taxation 
• Income from Salary (u/s 12)
• Income from Property (u/s 15)
• Income from Business (u/s 18)
• Income from Capital Gain (u/s 37)
• Income from Other Source (u/39)
• Depreciation
• Capital and Revenue
• Assessment
• Assessment Procedure
• Return of Income / Filling a Return 
• Set Off and Carried Forward of Losses, Authorities and Appeals 
• Property, Business, Capital Gain and Other Source

MCQ’s Sales Tax

• Sales Tax

Chapter / Topic Wise Multiple Choice Question (Mcqs) with Answer

• Short Question with Answer 

 Tax / Slab Rates for Income and Sales Tax

2019 – 2020

1. For Salaried Individual / Person
2. For Non – Salaried Individual / Person
3. For Companies
4. Property / Rental Income
5. Share of Association of Person (AOP)

2020 – 2021

1. For Salaried Individual / Person
2. For Non – Salaried Individual / Person and Share of Association of Person (AOP)
3. For Companies
4. Property / Rental Income

2021 – 2022

1. For Salaried Individuals / Persons
2. For Non – Salaried Individual / Person and Share of Association of Person (AOP)
3. For Companies
4. Property / Rental Income

2022 – 2023

1. For  Individuals Salaried Persons / Salaried Class
2. For Non – Salaried Individual Person and Share of Association of Person (AOP)
3. For Companies
4. Property / Rental Income

Format and Rules for Computing Taxable Income Under Income Tax Ordinance

• Format and Rules for Computing Salary Income Under Section – 12 (u/s 12)
• Format and Rules for Computing Property Income Under Section – 15 (u/s 15)
• Format and Rules for Computing Business Income Under Section – 18 (u/s 18)

Topic / Chapter Wise Long Questions Notes

Chapter # 02 – Definition

1. Define and Explain Agricultural Income and Its Types with Examples and Tax Treatment
2. legal provisions governing the residential status of individual, Association of Persons and company

Chapter # 03 – Income From Salary

1. Explain the major features of the salary income with the help of suitable quantitative examples.
2. Discuss various types of relief and allowances which may be claimed as tax credit by an individual?
3. What are the different types of perquisites enjoyed by the salaried individual. Discuss
4. Explain the Tax treatment of (i) Loan to Employee (ii) Accommodation (iii) Conveyance (iv) Entertainment  (v) Medical
5. Define Provident Fund. Explain different types of Provident Fund with tax treatment.

Chapter # 05 – Income From Property 

• What do you mean by rent chargeable to tax?
• List down the income from property exempt from tax.
• list down the income from property, not taxable u/s 15.

Chapter # 06 – Depreciation  

1. Explain the various types of depreciation allowance. Narrate the conditions for admissibilit? of depreciation under the Income Tax Ordinance.
2. Define depreciation. Explain the conditions for allowability of depreciation.
3. What are the conditions laid down under the Income Tax Ordinance, 2001 for depreciation allowance?
   • What are the conditions laid down under the Income Tax Ordinance, 2001 for depreciation allowance?
   • Explain the conditions and rates regarding the initial allowance for depreciation.
4. Define depreciation. Discuss the kinds of depreciation allowances under section 22 of the Income Tax Ordinance. ( Write only matter related to normal depreciation.)

Chapter # 07 – Income From Business

1. Discuss at least ten allowable deductions under the head “Income from Business” under section 20 of the Income Tax Ordinance, 2001.
2. Discuss at least ten not allowable deductions under the head   “Income from Business” u/s 21 of the Ordinance.

Chapter # 09 – Income From Other Source

1. Give ten examples of Income from Other Source U/s 39 of the Income Tax Ordinance, 2001.
2. What are the allowable deductions under the head “Income from Other Sources”
3. What are the inadmissible deductions under the head “Income from Other Sources”.

Chapter # 10 – Return of  Income 

1. Requirements / Conditions / Legal Provisions Governing Filling of A Return 

Chapter # 11 – Assessment 

1. Definition and Types of assessment made by the Commissioner of Inland Revenue (CIR)

Chapter # 13 –  Refund of Tax 

1. Discuss in detail the legal procedure of refund of tax under section 170 of the Income Tax Ordinance.
2. What do you understand by “Refund”? Explain procedure of “Refund”

Chapter # 15 –  Set Off and Carry Forward of Losses 

1. What are the various types of losses? How can these losses be set off and carried forward?
2. Discuss the legal provisions regarding the set off and carry forward of losses under the Income Tax Ordinance, 2001.
3. Taxation Rules for Set Off and Carry Forward of Losses

Chapter # 17 –  Penalties, Prosecution and Offences

1. Types or Kinds of Penalties Imposed Under Income Tax Ordinance, 2001
2. Types or Kinds of Prosecution Imposed Under Income Tax Ordinance, 2001

Chapter # 19 –  Administration (Income Tax Authorities)

1. Powers and Functions of FBR (Federal Board of Revenue)
2. Powers and Functions of CCIR (Chief Commissioner of Inland Revenue)
3. Powers and Functions of CIR (Commissioner of Inland Revenue)

Accounting Treatment of Sales Tax and Income Tax

Sales Tax 

Output Tax (Sales)

1. Definition and Journal Entries of Output Tax
2. Accounting Treatment of Inclusive of Sales Tax 
3. Accounting Treatment of Exclusive of Sales Tax

Topic / Chapter Wise Theory, Taxtion Rates and Procedure of Tax  Notes

Basic Theory of Business or Income Taxation

• Tax and Types of Taxes
• Types of Tax System to Charge Income Tax

Income From Salary (U/s – 12)

Basic Theory

• Employment Definition with Explanation
• Employer Definition with Explanation
• Employee Definition with Explanation
• Salary Definition with Explanation 
• Minimum Time Scale Salary and Basic Salary
• Salaried Person / Individual
• Non-Salaried Person / Individual

Salary Allowances

• Salary – Allowance Definition with Detail Explanation
• Brief Explanation of some Basic Salary Allowances
• Tax Treatment of Basic Salary Allowances

Salary Perquisites

• Salary – Perquisites Definition with Explanation

Tax Treatment of Salary Perquisites 

1. Salary of Domestic Assistants (Servants)
2. Obligation of an Employee Paid by Employer
3. Waiver of an Amount by Employer
4. Transfer of Property to Employee
5. Utilities Facility 
6. Provision of Service Facility
7. Accommodation / House Facility 
8. Medical Facility 
9. Conveyance Facility 
10. Entertainment Facility 
11. Loan Received from Employer
12. Perquisites under Clause – 53A of the Second Schedule/Perquisites having Zero Marginal Cost

Salary – Miscellaneous

1. Leave Encashment
2. Leave Fare Assistance 
3. Reimbursement by Employer
4. Consideration for Employment Agreement
5. Consideration for Restrictive Covenant
6. Consideration for Condition of Employment

Employment Termination Benefits

1. Compensation for Redundancy
2. Golden Handshake 

Employment Retirement Benefits

1. Gratuity
2. Pension
3. Commutation of Pension 
4. Provident Fund

Exemption – Income From Salary

1. Salary of Seafarer
2. Salary of Foreign Government Officials
3. Salary for Services Under An Aid Agreement
4. Perquisites in Foreign Country
5. Facility of Accommodation
6. Conveyance Facility and Entertainment (Sumptuary) Allowance
7. Compensatory Allowance Abroad
8. Employee of Agha Khan Development Network of Pakistan
9. Annuity 
10. Funds 
11. Gratuity, Commutation of Pension
12. Leave Encashment
13. Medical Allowance
14. Medical Facility or Reimbursement of Medical Charges
15. Pension
16. Special Allowance
17. Perquisites without Marginal Cost Incurred by the Employer

Format of Computation of Income Tax FY 2019-2020

Average Relief / Rebate

Income From Property (U/s – 15)

1. Definition and Explanation of Property Income
2. Rental / Property Income not Taxable u/s -15
3. Property Income Exempt from Tax
4. Condition / Rule for Chargeability of Tax on Property Income
5. Forfeited Income / Forfeited Deposit / Token Money
6. Non-Adjustable / Un-Adjustable Advance
7. Computation of Rent / Property Income Chargeable to Tax
8. Allowable / Admissible Deduction from Property Income 
9. Slab Rate / Taxation Rate on Property Income

Important Questions for Annual and Supplementary Exams

• Business Taxation Important Question (Subjective and Objective)

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