Tag Archives: B.COM

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 …

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 …

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 …

 Question: What is income from business; explain scope and tax-ability of income from business? Answer:    Income from business-section-18 Income from business is a 3rd source of income and it is chargeable to tax under sectin-18 of income tax ordinance 2001. Let us define business and then income from business. Business: Business includes any trade, commerce, manufacture, profession, vocation or adventure or …

 Question: Explain capital gain, how it is computed and what is its allowable deduction and exempted capital gain? Answers: Capital gain: (Sec 37) According to section 11 of income tax ordinance 2001, capital gain is the 4th source of income of a person and it is chargeable to tax under section 37. “Capital gain means any gain arising from the …

Define income from business?  What expenses are not admissible for tax purpose under the head business? OR Explain in-admissible deductions under the head income from business? 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 and …

INTRODUCTION Banking occupies one of the most important positions in the modern economic world. It is necessary for trade and industry. Hence it is one of the great agencies of commerce. Although banking in one form or another has been in existence from very early times, modern banking is of recent origin. It is one of the results of the Industrial …

INTRODUCTION A bank deals in money and the number of transactions is very large. As such there are greater chances of fraud. To check this there should be an efficient system of internal check and internal control. Banks follow continuous audit system. Therefore, there is an imperative need to have foolproof and elaborate accounting system for a bank. The accounting …

INTRODUCTION – LETTER OF CREDIT Modern banks facilitate trade and commerce by rendering valuable services to the businesscommunity. Apart from providing appropriate mechanism for making payments arisingout of trade transactions, the banks gear the machinery of commerce, specially in case ofinternational commerce, by acting as a useful link between the buyer and the seller, whoare often too far away from …