Taxation System Chapter- 04
Q. NO. 3 Spring 2016
Under the provisions of the Income Tax Ordinance, 2001 explain the following:
(a) Special tax year
(b) Transitional tax year
Q. NO. 7 Spring 2014 Certain payments made by a private limited company to its shareholders can be
treated as ‘dividend’. Explain the above in the context of ITO, 2001. Also identify the exceptions to this rule.
Q. No. 2 (b) Spring 2013
Explain the term ‘Associates’. State the circumstances under which a shareholder in a company and the
company may be regarded as associates.
Q. No. 5 (a) Spring 2013 Differentiate between ‘public company’ and ‘private company’ within the meaning
of Income Tax Ordinance, 2001.
Q. No. 4(b) Spring 2013 What do you understand by the term ‘Dividend’ as referred to in the Income Tax
Ordinance, 2001? Briefly discuss the provisions relating to imposition of tax on dividend.
Q.2 (a) Autumn 2012 What do you understand by the term “Royalty” as described in the Income Tax,
2001?
Q.2 (a) Spring 2012 Briefly discuss concepts of ‘Public Company’ and ‘Small Company’ as explained in
ITO, 2001.
Q.6 (b) Spring 2012 Under the Income Tax Ordinance 2001, where a person is reasonably expected to
act in accordance with the intentions of another person, both persons are considered as associates.
Required: (i) Explain the term “person” in the above context. (ii) State the circumstances in which a
company and its shareholder shall be considered as associates.
Q.4 (b) Autumn 2011 Explain the term industrial undertaking as specified in the Income Tax Ordinance,
2001.
Q.1 Spring 2002 Define the following with reference to the Income Tax Ordinance 1979:
(a) Assessee (b) Capital asset (c) Dividend (d) Public Company
Q.1 Autumn 2002 (a) Under what circumstances Advance or Loan to a shareholder by a private company
would be treated as ‘dividend’ with reference to the provision of the Income Tax Ordinance, 1979.
(b) Rose Company Ltd. has a paid up capital of Rs. 5,000,000 consisting 500,000 shares of Rs.10 each.
On 30.6.2001 the company’s balance sheet shows accumulated profits of Rs. 1,500,000. Last year the
company also created a reserve of Rs. 1,000,000 for issue of Bonus shares. The company has to be
liquidated. The official liquidator realized Rs. 6,500,000 and distribution among the shareholders was made
at the rate of Rs.13 per share. Shewani Group owns 200,000 shares in the company.
How much of the amount received by Shewani Group is dividend? Please explain your answer.
(c) Please define terms ‘Co-operative Society’ and ‘Finance Society’ with reference to ITO, 1979 and
compare the same.
Autumn 2001 Q.1 Define and explain the following with reference to the Income Tax Ordinance, 1979:
(a) Assessment Year
(b) Special Income Year
(c) Resident
(d) Tax
(e) Average rate of tax