Académique Documents
Professionnel Documents
Culture Documents
By
Abdul Moueed
PhD (Finance)
Academic Background
What is tax?
Taxation in Pakistan
Income tax was introduced for the first time in the year 1860 by British
Rulers in undivided India (Income Tax Act, 1860).
Revised in 1886
Replaced by Income Tax Act 1918
Revised in 1922
In 1947 after independence from British Rule, Pakistan Government adopted
the Income Tax Act, 1922
Chapter 1:
Taxation in Pakistan (Cont..)
Custom duty
Excise duty
Income tax
Sales tax
Corporate income tax
Zakat and Ushar (Islamic obligations)
Chapter 2:
Definitions
ACCUMULATED PROFITS
ASSESSMENT YEAR
Means the period of 12 months, beginning on the first date of July
ASSOCIATION OF PERSONS
It includes a firm, artificial judicial person, body of persons formed under foreign
law
Does not include a company
Chapter 2:
Definitions (Cont…)
AGRICULTURE INCOME
It means income
1. Derived from land
2. Land is situated in Pakistan
3. Land is used for agriculture purposes
It does not include;
1. Income from stone quarries
2. Income from fisheries
3. Income from flour mills
4. Income from brick making
Chapter 2:
Definitions (Cont…)
AGRICULTURE INCOME
Types of Agriculture income
1. Rent
2. By agriculture
3. To make product fit for market, cultivator or facilitator
4. Sale of product
5. Building required for agriculture purpose
Chapter 2:
Definitions (Cont…)
BANKING COMPANY
Which transacts banking nosiness in Pakistan
BOARD
Central board of revenue now federal board of revenue (FBR)
BUSINESS
It includes trade, commerce, manufacture, profession
Does not include employment
Chapter 2:
Definitions (Cont…)
CAPITAL ASSET
Property of any type held by a person
It does not include;
1. Stock in trade
2. Raw materials
3. Wearing apparel, jewelry
CHARITABLE PURPOSE
Chapter 2:
Definitions (Cont…)
COMPANY
1. A COMPANY
2. A MODARABA
3. A TRUST
4. A COOPERATIVE SOCIETY
5. A SMALL COMPANY
6. A FOREIGN COMPANY
Chapter 2:
Definitions (Cont…)
COMMISSIONAR
CO-OPERATIVE SOCIETY
Under co-operative societies Act, 1925
DEBT
DEPRECIABLE ASSET
DIVIDEND
Profits distributed to share holders
Chapter 2:
Definitions (Cont…)
FILER
FIRM
FOREIGN SOURCE INCOME
INCOME
NON-PROFIT ORGANIZATION