SUKKUR INSTITUTE OF BUSINESS

ADMINISTRATION
SUKKUR
Faculty of Business Administration

LAW 470 Laws of Taxation

Programs & Class: BBA VII Semester: Fall 2014

Credit Hours: 3(3+0)
Pre-requisite Courses: None
Co-requisite Courses: None
Office Hours: 9 am 5 pm
Office Location: 101, Academic
Block II
Instructor: Syed Zain ul Abdin Shah
Post-requisite Courses: None
e-mail: zainulabdin@iba-
suk.edu.pk
Consulting Hours:

EVALUATION
1. Project
2. Assignments/Class participation 10%
3. Quizzes 10%
4. First Term 20%
5. Second Term 20%
6. Final Examination 40%

RECOMMENDED BOOKS:

S.N Publisher Name & Edition

Book Name Author/s Name
o
Income Tax & Sales
1. Khalid Petiwala Petiwala Book Depot
Tax

REFERENCE BOOKS:

Official Course Outline Template Page 1 of 9

 Income Tax Ordinance
1. Government of Pakistan
2001

2. Sales Tax Act 1990 FBR, Govt. of Pakistan

3. Sales Tax Rules 2006 Govt. of Pakistan

DIGITAL & WEB RESOURCES:

www.fbr.gov.pk
www.pakcustoms.org

COURSE DESCRIPTION:
Laws of Taxation are the codified system of laws that describe government levies on economic
transactions. Tax law covers the rules, policies and laws that oversee the tax process, which
involves charges on estates, transactions, property, income, licenses and more by the government.
Taxation also includes duties on imports from foreign countries and all compulsory levies imposed
by the government upon individuals for benefit of the state

COURSE OBJECTIVES:
To provide basic knowledge in the understanding of objectives of taxation and core areas of Income Tax
Ordinance, 2001, Income Tax Rules 2002

LEARNING OUTCOMES
1. Compute taxable income and tax thereon relating to salary, income from property, income from
business, capital gain, dividend, profit on debt, ground rent, rent from sub-lease, income from
provision of amenities, utilities or any other services connected with rented building and
consideration for vacating the possession of building.
2. Understand and apply on simple scenarios provisions for income of joint owner, apportionment of
deductions, fair market value and receipt of income
3. Explain using simple examples the provisions relating to tax year
4. Explain with simple examples the provisions relating to disposal and acquisition of assets, cost
and consideration received
5. Describe with simple examples the meaning of persons, resident and non-resident persons and
associates
6. Describe with simple examples the principles of taxation of individuals
7. Describe with simple examples the principles of taxation of association of persons
8. Identify persons required to furnish a return of income

Official Course Outline Template Page 2 of 9

 9. Understand the applicability of tax on foreign salary income, credit against foreign tax.
10. Apply rules relevant to learning outcomes specified against each topic on well explained
scenarios

Numbe Program Objectives Focus Coverag

r e
Calculation of
Taxable Income
1 TT, A, PP
of Salaried
Person, Tax on
Property
Income, Tax on
Capital Gains &
Taxable business
5.4 Students should demonstrate basic understanding of laws of income.
taxation especially in Pakistan and should be able to calculate taxes Business
for individuals and organizations. Practical
Questions.
2.1 Given real or simulated business situation; students should be Taxability of
T, A,P
able to identify relevant issues, rigorously analyze those issues, resident & non
2 generate viable solutions to the issues and implement the solutions. resident person,
Return of
income &
assessment
7.5 Students should demonstrate basic understanding of concepts, Rebates & Tax
T,A,P
numerical procedures, theories, models, researches and practices of exemptions on
3
financial decision making in the organizations in different financial various options.
markets across the globe and should be able to properly apply them
in business situations.

7.8 Students should demonstrate basic understanding of Tax

Concepts and principles of financial accounting, procedures of depreciation, TT,A,PP
4
record keeping and making financial statement, analysis of amortization, pre

Official Course Outline Template Page 3 of 9

 financial statement and taking good business decisions based commencement
upon financial information. expenditure,
Admissible &
inadmissible
expenditure for
tax purposes.

LEARNING OUTCOMES

Coverin Level of
g BBA, learning
Number ILO
Objecti
ves
1 Compute taxable income and tax thereon relating 5.4,7.5,
Understandi
to salary, income from property, income from 2.1
ng, Applying
business, capital gain, dividend, profit on debt,
ground rent, rent from sub-lease, income from
provision of amenities, utilities or any other
services connected with rented building and
consideration for vacating the possession of
building.

2 Understand and apply on simple scenarios 5.4,

provisions for income of joint owner, apportionment Understanding,

of deductions, fair market value and receipt of Applying

income

3 Explain using simple examples the provisions 5.4,

Understanding
relating to tax year

4 Explain with simple examples the provisions 7.5, 7.8

Understandi
relating to disposal and acquisition of assets, cost
ng Applying
and consideration received
5 Describe with simple examples the meaning of 2.1,
Understanding,
persons, resident and non-resident persons and
Applying
associates

6 Describe with simple examples the principles of 5.4, 7.5

Official Course Outline Template Page 4 of 9

 taxation of individuals Understanding,

Applying

7 Describe with simple examples the principles of 5.4, 7.5

Understand
taxation of association of persons
ing & Applying

8 Identify persons required to furnish a return of 5.4, 2.1,

Understand
income
ing, Applying

9 Understand the applicability of tax on foreign 5.4, Understanding

salary income, credit against foreign tax. & Applying

10 Apply rules relevant to learning outcomes specified 5.4, Understanding

against each topic on well explained scenarios & Applying

IMPORTANT POLICIES
1. Expectations. I expect a class atmosphere of respect for your fellow human
beings as we travel this road together. I also expect a class atmosphere of
critical thought and your best efforts. Please come prepared to participate.
2. Readings: You are expected to read the assigned materials before the class
period. This helps you grasp the material more fully and creates a better
classroom environment.
3. Attendance: Your attendance in class is critical to fulfillment of course
objectives. You will not be eligible to appear in the exam if you cross six
absences. Late coming, even for two minutes, would strictly be marked as
absent.
4. Due dates: No late work will be accepted. Assignments are due at the start
of class. Presentations cannot be made up. This is the real world. When
speakers accept speaking assignments, they are obligated to be ready to speak
on that date at that time. If you are not prepared to speak, you receive a zero
on that presentation. Talk to me in advance if there are problems.
5. Plagiarism and cheating: Plagiarism is defined by Webster's New
Collegiate Dictionary as:
a. To steal or pass off the ideas or words of another as one's own.
b. To use a created production without crediting the source.
In your writing and speaking I expect the ideas you express to be your own and
to properly cite the sources you use. Cheating will not be tolerated in any form.

Official Course Outline Template Page 5 of 9

In case if your work is found plagiarized your case will be referred to
disciplinary committee and strict action will be taken against you.
6. Study and preparation: Allow yourself enough time for thoughtful,
unhurried reading of the materials. Reading to "beat the clock" and complete
the materials in time for class is useless. Read with an open but not empty
mind to understand and evaluate class ideas. Please make the time to prepare
for discussion ahead of time. Your lack of preparedness will be painfully
obvious to you and the class, so save yourself from the embarrassment and
poor grade.
7. Discussion: Since, discussion is vital to the learning process and I want to
hear your input in class. Therefore, interactive sessions would be used rather
than talking from one end and listening at the other.
8. Course Etiquette: Students are expected to have good conduct and
manners consistent with those expected in business interactions. This is
particularly true when we have guest speakers. Such conduct includes;
Respecting the views of other students.
Behaving in a way that does not make others uncomfortable
Not interrupting while others are speaking
Asking for clarification or commenting on assignments in a courteous
manner
Arriving in class on time
Showing interest in the class discussions
Turning off your cell phone or turning it on vibrate

MY COMMITMENT TO STUDENTS:
I am committed to teach Taxation subject to the best of my ability. I shall strive
to treat every student with dignity and respect and to help every one of you to
be successful one in their practical life. Success comes through many forms
and is not simply getting an A or A+ grades. Moreover, I shall put my all effort
to share my practical knowledge, case studies to extend your knowledge, scope
of thinking and help you to become a valuable citizen, employee and a human
being. If I am lacking behind in these claims, please let me know at any stage
of the course.

SESSION / WEEK WISE DETAILS:

Sessi Date Topics Assignments Suggested

on / / Readings

Official Course Outline Template Page 6 of 9

 Quizzes /
Wee
No. Digital
k
Library work
- Concept of Revenue
Receipt & Capital Receipt
- Tax Year & Residential
01-04 1 Status (Section 74, 83, 84, Chapter 1
107, 50, 51, 102)
- Definitions (Section 2)

Income Tax Rates &

Rebates
- Senior citizen allowance
- Full time teacher
allowance
- Foreign tax credit (Section
103)
- Tax Credit on;
1. Charitable donations
05-08 2 (Section 61) Quizzes Chapter 2
2. Investment in Shares
(Section 62)
3. Approved Pension Fund
(Section 63)
4. Profit on debt for housing
(Section 64)
5. Manufacturer registered
under the Sales Tax Act
(Section 65A)
Salary (Section 12 & 13)
- Rule 4 & 5 of Income Tax
Rules, 2002
09-12 3 - Exemption under 2nd Quizzes Chapter 3
Schedule (clause 8, 12, 13,
26, 39, 53A, 139)

13-16 4 Salary (Section 12 & 13) Chapter 3

- Rule 4 & 5 of Income Tax

Official Course Outline Template Page 7 of 9

 Rules, 2002
- Exemption under 2nd
Schedule (clause 8, 12, 13,
26, 39, 53A, 139)

& Practical Questions on

Salary
- Employee Share Scheme
17-22 5 (Section 14) Quizzes Chapter 4
Practical Questions
- Concept of Tax on Tax &
chargeability
23-28 6 Chapter 5
Practical Questions

First Term

- Share of Profit from

29-34 7 Association of Persons (AOP) Chapter 6
Practical Questions
- Income from Property
35-38 8 ( Section 15 & 16) Chapter 7
Practical Questions
Capital Gains (Section 37,
39-42
9 37A & 38 ) Quizzes Chapter 8
Practical Questions
Income from Other Sources
43-46 10 Chapter 9
( Section 39 & 40)
Chapter
Income Tax Practical 10
47-52 11
Question of Individuals

Business Income (Section

53-58 12 18, 20,21, 67) Chapter 11

Second Term

Official Course Outline Template Page 8 of 9

 Tax depreciation,
amortization & pre
59-62 13 commencement expenditure Quizzes Chapter 12
(Section 23, 24,25)

Deductions not Admissible

63-66 14 Chapter 13
from Business Income

67-70 15 Business other aspects Chapter 14

71-74 16 Sales Tax

Official Course Outline Template Page 9 of 9