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Question: Explain procedure of carry forward of losses under the provision of income tax ordinance 2001? How different losses can carry forward? Carry Forward of Losses: Sometime a taxpayer sustains a loss and fails to set off the whole amount of loss against the income of the same year. It may be due insufficiency of income under the same source …

Define “Commissioner Inland Revenue”; explain its powers and functions in detail. 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 and functions of all the income tax authorities working …

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 tax under section-18 of income tax ordinance 2001.Let us define business …

Accounting is the Key subject in business Management Studies and Commerce. The role and significance of accounting can’t be ignored. A good businessman must be aware the key terms of accounting in this era of business. Students can enhance their Accounting skills with the help of following Multiple Choice Questions (MCQs) and Answers. Note: Click Here to Test Your Knowledge I.COM …

Question: Define and differentiate between capital and revenue expenditure according to business taxation point of view.          ‘OR’ Why and how we differentiate between capital and revenue expenditure for tax point of view. CAPITAL AND REVENUE EXPENDITURES: Capital and revenue expenditures have different accounting treatment in the books of account. Financial statements cannot present fair view unless capital …

Accounting is the core subject in the field of business and commerce. You can check your knowledge with the help of following Multiple Choice Questions (MCQs) with Answers. Specially for Newbies –  For Students of I.COM Part -1.  Chapter NO. 1 – Introduction to Accounting  FOR ANSWERS CLICK BELOW Answers  1.The Pioneer of Accounting is:             (a) Arthur Field House (b …

Question: Define Capital and Revenue Receipt. How we can differentiate between capital and revenue receipts? Answer:  CAPITAL RECEIPT An inflow of money from the sale of fixed asset or on account of capital by owner or long-term loan from the bank etc. is called capital receipt. REVENUE RECEIPT An inflow of money from the sale of goods or services in …

Question: EXPLAINS DEPRECIATION WHAT ARE THE CONDITIONS RULES WHICH ARE LAID DOWN UNDER THE ORDINANCE FOR DEPRECIATION ALLOWANCE? Answer : DEPRECIATION A gradual decrease in value of asset due to use or wear and dear is known as depreciation. Generally the term depreciation also includes amortization and depletion. Depreciation of fixed tangible asset such as building, plant and machinery. Amortization of …

Accounting Equation is a formula in which a firm’s assets must be equal to the sum of its liabilities and the owners’ equity. Different expert define it differently. we define Accounting equation properly as follows: ” The expression of the equality of an entity’s assets with the claims against them is referred to as the Accounting Equation. The financial position …

When a person buys or sells goods or acts some business activities, it is said that a business transaction has occurred. We can define Business Transaction properly as, “An exchange of goods or services between persons for price is called a transaction.” After the completion of transaction, it is necessary to record this transaction in the books of accounts. All …