Preliminary Chapter- 04
(7) The Commissioner Inland Revenue may, after providing to the person concerned an opportunity of
being heard, by an order, withdraw the permission granted.
(8) An order shall take effect from such date as may be specified in the order.
(9) Where the tax year of a person changes as a result of an order the period between the end of the last
tax year prior to change and the date on which the changed tax year commences shall be treated as
"transitional tax year",
(10) A person dissatisfied with an order of Commissioner Inland Revenue may file a review application to
the Board, and the decision by the Board shall be final.
Explanation: It refers to the definition given in section 74.
Example: Differentiate between normal and special tax year.
(i) From 01- 07 - 2022 to 30- 06 - 2023
(ii) From 01- 09 - 2022 to 31- 08 - 2023
Solution: (i) is normal tax year while (ii) is special tax year.
"Total income" [U/s 2(69) and 10] The total income of a person for a tax year shall be the sum of the
(a) Person's income under each of the heads of income for the year; and
(b) Person’s income exempt from tax under any of the provisions of this Ordinance;
Explanation: It means as defined in section 10 which reads as under:
"The total income of a person for tax year shall be the sum of the person’s income under each of the heads
of Income for the year".
"Trust" [U/s 2(70) and 80] "trust" means an obligation annexed to the ownership of property and arising
out of the confidence reposed in and accepted by the owner, or declared and accepted by the owner for the
benefit of another, or of another and the owner, and includes a unit trust;
Explanation: It means as defined in section 80 reproduced below:
"trust" means an obligation annexed to ownership of property and arising out of the confidence reposed in
and accepted by the owner, or declared and accepted by the owner for the benefit of another, or of another
and the owner, and includes a unit trust;
"Turnover" [U/s 2(70A) and 113] Means,
(a) the gross receipts, exclusive of Sales Tax and Federal Excise duty or any trade discounts shown on
invoices, or bills, derived from the sale of goods, and also excluding any amount taken as deemed
income and is assessed as final discharge of the tax liability for which tax is already paid or payable;
(b) the gross fees for the rendering of services for giving benefits including commissions; except covered
by final discharge of tax liability for which tax is separately paid or payable;
(c) the gross receipts from the execution of contracts; except covered by final discharge of tax liability for
which tax is separately paid or payable; and
(d) the company's share of the amounts stated above of any association of persons of which the
company is a member.
Example: Compute turnover for the purpose of section 113 from following information:
Sales (including sales tax @ 17%) 117,000
Half of the sales (including sales tax) are chargeable to tax under final tax regime.
Solution:
Turnover for section 113
Sales (117,000 x 100 / 117) 100,000