BASIC CONCEPTS OF TAXATION

OBJECTIVES OF TAXATION

Non Revenue Objectives

canons of taxation

principal of levy of taxes

Different Taxation laws in Pakistan

Characteristics of Tax Laws

Principles of sound tax system

kinds of Taxes in Pakistan

history of tax laws in Pakistan

Past papers

Scope of tax, Normal & Special Tax Year

Change of Tax Year

E1, E2 (change of tax year)

Income

Heads Of Income

Total Income, Taxable Income

Zakat, WWF, WPF

Educational Expenses

Liason Office & Educational Expnese(remaining)

Person, AOP, Firm & Board

Company

Trust

NPO, Charitable purpose, IT enabled services

Unit Trust & E 5(a)

Permanent Establishment, Principal Office

Resident Taxpayer, Non Resident person, Resident individual

Resident Company, Resident AOP, E 7(d)

E6, E7

Taxable income to tax liability

NTR, FTR

Dividend

Royality

Acc Profit, Fee for Technical Services, Tax on certain payments to non residents

Women Enterprises and Its Taxation

Apportionment of Deductions

Fair Market Value, Receipt of Income, E 12

Recouped expense to rules to prevent double deviation

Q 3,4,8,9,10,18,19

Salary and It's Components

Allowance

Profit in Lieu

Basis of Chargeability, E 01, Deductions not allowed

Termination of Employment, E 2

Q 01 (Termination of Employment)

Salary in arrear or receipt basis, Amount or Perq..,Deduction not allowed

Tax Borne by Employer

Examples of Tax born by employer

Coneyance

Accomodation, Utilities & Domestic Servants

E 5.1,5.2,6.1,6.2

Interest Free Loan, Concessional Loan

Obligation Waiver Settlement , Transfer of Property, Any other Prequisite

Retirement benefits Schemes, Gratuity

Pension

Provident Fund

E9.2 & Remaining PF

Benovelent fund, other Benefits

Medical Allowance and Reimbursement

E 11

Leave Encashment,WPPF

Foreign Source Salary, Salary earned by citizen...

Employee Share Scheme

E13.1, 13.2, 13.6

E 13.7

Practice Question on ESC

Practice Question

E 14 Mr Mobeen

Q 02

Q 03

Q 06

Q 07

Asjad Spring 2025 Salary Numerical

Principal of taxation of income from property

Principal of taxationof IFP remaining, E 1

Unpaid Rent

Self Hiring

Income of Joint Owners

Deduction of IFP

Advance and Security

Advance Refundable

E2, E4

E 03

Summary of IFP

Q 01, Q 02

Q 03

Q 04

Intro to IFOS, Scope of Basis of Chargability

Treatment of Gift (cont..)

Gift treatment(remaining)

Imp. Aspects of Taxability of IFOS

Profit on Debt and its Taxability

Admissible Deductions

E01 to E05

E6

E 07

E 08

E 10

Q 03

Q 04, Q 06

Capital Gain, Capital Asset, Disposal of Asset

Computation of CG, Determination of cost of CG, Deduction of losses, Treatment of Capital loss

Consideration of Capital Asset

Exemption on CG

CG on Immoveable Property

Purchase of immoveable property in cash

Taxation on deemed income, Exception to deemed income

CG on Securities

Payment of Taxon CG and remaining of CG on sale of securities

Capital Loss Adjustment disallowed, Wash Sale, Cross Trade

Deduction of tax on Sale of Shares transaction other than Securities

Summary of CG and E 1

E 3, E 4, E 5

E7

Q 06

Q 07

Q 8, Q 9

Q 10

INcome From Business

Important Aspects of IFB

Receipts

Speculation Business

E 01

Deductions Concept

Deductions Admissible General Provisions

Inadmissible Deductions (cont...)

Remaining point (inadm. deductions)

Entertainment Expenditure

Utility Bills , Sale to unreg. person

E 2.5

Commission , E 2.4

Contribution to funds (cont...)

Promotions etc & Expenditure under single head

E 2.1, 2.2

Integarated sales

Deduct,Collect Tax

Scientific Research

Employee training and facilities

Amortization and related rules, Gain or Loss on Disposal

Profit on debt and lease

Bad Debt

Bad Debt Subsequent Recovery

Q 07

Tax Acconting, Valuation of stock in trade

Prime and Absorption Cost

Depreciable Assets

WDV

Assets used partly in business

Dep. Asset Exported outside of Pakistan

Immoveable property, E 5.3

Initial Allowance

E 05, E 06

Vehicle Plying For Hire

Industrial Undertaking

Intangible Assets

Pre Commencement Expenditure

Disposal Of Assets, Purchase of assets

Cost Of assets

E 9.1

COA

Consideration received and remaining

E 03

E 5.9

E 08

E 10.3

Q 14

Turnover,MTR

E 10.1, 10.2

Q 12

Agriculture Income

Carry forward of Business losses (PIA)

Condition for Foreign tax Credit, E 01

Diplomatic & UN Exemptions, Foreign Govt Officials, Exemptions under IA

E 1.6

E 1.7 to 1.10

E 2.2

E 03

E 1.1,1.2,1.3,1.4,1.5

Exemptions and tax provisions

Exemptions under FI

Fed., Prov, and local govt

Foreign Loss , E 02

Q 01

ICAP Examples

Q 02

President Honor, Profit on Debt, Scholorship, Govt's Income

Principal of taxation of FSI of res. person, Computation of income, foreign tax credit

Q 01, Q 06

Q 05 chp 12

Q 05

Q 06

Q 07

Q 08,11

Q 08

Set Off Losses intro

Speculation Losses, Carry forwrad of CL & BL

Tax Credit for approved pension fund, Tax Credit for POS

Tax Credit for certain Persons

Tax Credit

Table (set off losses) Reading

AOP and basic principles of taxation , E 01

Change of Constitution, Discontinuance of Business..., Succession of business

Deceased Individual, Legal Rep.., Authors, Income of Minor Child

E 03

E 04

E 05

E 06

E 07

Individual as a Member of AOP

Losses in AOP, MIscellanous provisions & tax credits..

Q 04

Q 06

Q 07

Q 08

Transfer of Assets

Reading after E 01

Adr

Amendment of Assessment, Detailed explanation

Appeal to AT, Disposal of Appeal by AT

Assess. giving affect to an order, Burden of proof

Assessment, Normal Ass,(in case of incomp...)

Concealed Asset

Decision in Appeal, Appointment of AT

Filing of revised return or statement

Foreign income and asset, Buisness bank account

E 02

Audit and Special Audit panel

Best Judgment Assessment

Circumstances giving rise to appeal to the comm

Inroduction to tax return, Person liable to file tax return

Intro to Appeal

Methods of filing of tax return

Normal Assessment (Adjustment to be made...)

Pecuniary Jurisdiction in Appeal

Notice of disc.. of business, Etension of time for

Forums of App., What's Appeal

In addition to above ...(file tax return)

Person not liable to file tax return

Power to call return & statement & to enforce filling of return

Prescribed books of acc, Categories

Procedure for disposal of appeal, decision in appe

Procedure for filing of revised return

Q 04

Record, Prescribed Book of AC

Reference applied before HC, SC

Return Filing (Flow Chart) & Example

Rev by Cheif Comm, Agreed Assess

Wealth Statement

Procedure for filling of appeal before the comm

1. Intro,FCF & Public Acc, Exp charged upon FCF

2.Custody of FCF&PA, Ann. Budget Statement, Auth

3.Secretariat of Parliament,FC

4.Power of Fed&Prov

5. Nfc

6. Topic 3.3 to 3.8

7. Intro & Ethics for legislators

8. Cannon of Taxation

9.Ethics for tax administration, Pillars of tax a

10.Ethical Issues, Resp of tax implementing auth

11.Ethics for tax Practitioner

12.Ethics for Tax Payer

13.Tax Evasion & Tax Avoidance

14.Ethics For CA(concept)

15. Tax Services

16. Tax Return prep., tax calc threat&action to th

Supp & excess grants, Votes on Acc

1)Preamble 1.1,1.2,1.3,Basic Concepts

2) Definitions 2.6,2.7 Manufacturer

3) Registered Person,Taxable Activity

4)Company, 2.12 Definitions

5) Supply

6) Value of Supply

7) Open Market,Sim Supply,Pro ST, E 1.1,1.3

8) Time Of Supply

9) Normal Sale tax,Further tax,Liability to paytax

10)Third Schedule Items

11) Special Rates of Tax

12) 3.4 To 3.10

13) Associates

14) Collection of excess ST,E2, 4.3Joint and Sev

15) 5.1 To 5.4

16) Registration 6.1, 6.2

17) 6.3 & 6.4

18) 6.5 Compulsory Reg

19) Topic 6.6 To 6.8

20) De Registration 7.1

21) 7.3 Suspension of Reg

22) Topic 7.4 & 7.5

23) 1.1 Determination of TL,Payment through

24) Restriction on Input

25) Change in Rate

26) E 4, Topic 1.3, 2.1, 3.1, 2.2

27) Topic 2.2.1, 2.2.2, 2.2, 2.2.3

28) E 8.1 to 8.5

29) E 8.6 to 8.8

30) E 8.11

31) E 8.9

32) E 8.10

33) Topic 2..2.4

34) Topic 2.2.5

35) Topic 3.3

36) Prov Adj.&fianl Adj. Topic 3.4

37) E 5, E 6

38) E 07

39) Topic 3.5 Adjustable input tax

40) Topic 4.1

41) Best Jud.,Topic 4.3,4.7,4.8

42) 2.1 Record

43) Topic 2.2 remaining, 2.3

44) Topic 3.1

45) Topic 3.2, 3.3

46) Topic 1.1 1.4

47) Topic 1.5 1.9

Q 07 Cyma Associates

Q 09 Abid Khan

1) Q 11

2) Q 12

Q 14 Hadi Associates

Q 15 Meharban

Q 17 Zahid Enterprises

Q 18 Confidence Eng

Q 19 Zeenat Enterprises

Q 20

Sales Tax Format

sarmaya Associates Aut 24

Bilal & Sons Spring 25 Question

Important Clarification on Income Tax Numericals

CAF 02 TAX By Sir Ali Imran Live Session 1

CAF 02 TAX By Sir Ali Imran Live Session 2