ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD (Department of Commerce) BUSINESS TAXATION (456)

CHECKLIST

SEMESTER: SPRING, 2013

This packet comprises the following material: 1. 2. 3. 4. Text book (One) Assignment No. 1, & 2 Assignment forms (Two sets ) Schedule for submitting assignments and tutorial meetings

If you find anything missing in this packet, please contact at the address given below: The Mailing Officer, Allama Iqbal Open University H-8, Islamabad 051-9057611- 12

Muhammad Munir Course Coordinator

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Commerce)
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WARNING
1. 2. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM OTHER(S) AS ONES OWN WILL BE PENALIZED AS DEFINED IN AIOU PLAGIARISM POLICY. Semester: Spring, 2013 Total Marks: 100 Each

Course: Business Taxation (456) Level: BA/B.Com

ASSIGNMENT No. 1
(Units: 14) Note: You are required to solve all questions if you are unable to understand any question of assignment, do seek help from your concerned tutor. But keep in mind that tutors are not supposed to solve the assignment questions for you. Q. 1 a) b) Describe the constituents of Income Tax Law in Pakistan. Explain the following from income tax viewpoint: i) Pakistan Source Income ii) Agricultural Income (10+10)

Q. 2 Enlist the items which are fully exempted from income tax under Income Tax Ordinance, 2001. Also explain the legal provisions governing the exemption of Income of Educational Institutes and Income of Governments. (20) Q. 3 Discuss the allowances and deductions allowed under the head income from business under Income Tax Ordinance. (20) Q. 4 What are the five major heads of income, according to Income Tax Ordinance 2001? Briefly explain each head of income. (20) Q. 5 From the following information, calculate taxable income, tax payable of Mr. Hassan as an individual for the year ending on 30th June 2011. (20) Details Amount (Rs.) 50,000 Basic salary per annum................................................................... 540,000 Bonus..............................................................................................
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Dearness allowance......................................................................... 30,000

Medical Allowance (Actual Expenses Rs. 3000)............................ Professional books purchased.........................................................

8,000 6,000

Fixed education allowance for children.......................................... 10,000 Pay in lieu of leave.......................................................................... 26,000 Entertainment allowance................................................................. 15,000 Donation to Pakistan Bait-ul-Mal................................................... 12,000 Share from AOP.............................................................................. 18,000 Tax Deducted at Source.................................................................. ................................................................................................. Prize on Prize Bonds....................................................................... 3.400 5,000

Notes: i) Employer has provided him a chauffer driven 2000 cc car, partly for private use, costing Rs. 10 lacs. ii) He is provided rent free unfurnished accommodation. iii) The salary of watchman, gardener and sweeper paid by the employer is Rs. 25,000.

Assignment No. 2
(Units: 59) Q. 1 Describe the different stages of assessment cycle. Explain in detail the legal provisions for furnishing the returns of income. (20) Q. 2 Discuss the penalties or prosecution for the following offences committed: i) Penalty for Non-payment of Tax ii) Penalty for Concealment of Income iii) Prosecution for Non-Compliance of Statutory Obligations iv) Prosecution for Obstructing a Taxation Officer Q. 3 Explain functions of Federal Board of Revenue (FBR). (20)

(20)

Q. 4 Define the following terms with reference to Sales Tax (Amendment) Act 1990: (20) i) Exempt Supply ii) Return iii) Input Tax iv) Wholesaler Q. 5 Discuss the legal provisions regarding the charge and collection of Zakat and Ushr under Zakat and Ushr Ordinance, 1980. (20)
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