Important-Questions

Income Tax Definitions 1. Definition: Income includes ·         Any amount chargeable to tax under the Income Tax Ordinance, 2001 ·         Any amount treated as income under any provision of the Ordinance ·         Any loss of income 2. Definition: Person ·         An individual; ·         A company or association of persons incorporated, formed, organized or established in Pakistan or elsewhere; ·         The  …

Ploughing back of Profits – Advantages and Disadvantages Q. What is meant by “Ploughing back of Profits”? Discuss the advantages and disadvantages of the policy of Ploughing back of profit. Answer: Ploughing back of profit means the use of profits of the business for its development. Ploughing back of profits is a useful source of getting extra capital for building …

Q. Discuss the Disadvantages / Limitations of Business. Answer: Followings are the limitations of business. 1. DIFFERENE IN INCOME:     آمدنی میں فرق Business is responsible for income disparity)فرق (. The establishment of big companies lead to the concentration(مرتکز)  of wealth in few hands. There is big difference between income of rich and poor people. 2. MONOPOLY IN PRICES:     قیمتوں میں اجارہ …

1. Question: Define Business. Discuss the Scope of the business? 2. Question: Define Business. What are the main Components of the business? 1. Question: Define Business. Discuss the Scope of the business? 2. Question: Define Business. What are the main Components of the business? Answer : BUSINESS The word “Business” includes all human activities concerned with earning money.  In other …

Why Market? Everywhere I go, professionals ask, “Why should we market now? We have more business coming in the door than we can handle. Our phone is ringing off the hook.”         Would you want to motivate your partners and staff to help grow your firm if you are already busy? What Smart Partners Say? Here’s what the top partners of …

Q. Define Business. Discuss the Advantages or Disadvantages of business. Answer: Definition: ADVANTAGES (IMPORTANCE) OF BUSINESS 1. BETTER DEALING: Business forces can affect the life of consumers. The people come to know about prices, products and law relating to business. Such knowledge is sufficient for layman to make better dealing. 2. LEARNING ABOUT NEW PRODUCTS: Business helps consumes to learn …

INCOME FROM BUSINESS and Un-Admissible Deductions Question: Define income from business?  What expenses are not admissible for tax purpose under the head business OR explain un-admissible deductions under the head income from business? Answer: Income from business-section-18         Income from business is a 3rd source of income from which a person can derive income. Income from business is chargeable to …

Commissioner Inland Revenue – Powers and Functions Question: Define “Commissioner Inland Revenue”; explain its powers and functions in detail. Answer: Commissioner Inland Revenue A person appointed officially for a particular zone to supervise the collection of taxes, including income tax, capital gains tax and corporation tax. Commissioner Inland Revenue has a very important place in income tax department. He has both executive and judicial powers. He oversees the performance …

Federal Board of Revenue (FBR) Powers and Functions Question: Define “Federal Board of Revenue”; explain its powers and functions in detail. Answer: Federal Board of revenue (FBR) Introduction The old name of federal board of revenue (FBR) is central board of revenue (CBR). Income tax ordinance, 2001 uses the word ‘Board’ for FBR and CBR. Board is the highest tax authority …

Question: Discuss the composition of “APPELLATE TRIBUNAL INLAND REVENUE”, what are the functions performed by it? Answer:  APPELLATE TRIBUNAL INLAND REVENUE: APPELLATE TRIBUNAL INLAND REVENUE is the second court of appeal. The Federal Government is the appointing authority of the APPELLATE TRIBUNAL. The taxpayer or the Commissioner Inland Revenue, if not satisfied with the decision of the Commissioner Inland Revenue …