Tag Archives: Important-Questions

 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 …

Banking Transactions – Short Questions with Answers Q.1      WHAT IS BANK.? Answer:   Bank is a financial institution which deals in money. It takes money from the people their savings on low rate of interest and lends to the needy people At high rate of interest. This difference of rate of interest its income. Q.2  WRITE THE KINDS OF …

Bills of Exchange – Short Questions with Answers Q.1      WHAT IS BILL OF EXCHANGE? Answer:-    A bill of exchange is a negotiable instrument which is written in evidence Of credit sales. It is an un condition order by the drawer to drawee to certain sum Only to or the order of a certain person  or to the bearer …

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 …

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 …