Assets and Depreciation Chapter- 10
(b) Mr. Saulat acquired production machinery by utilizing a loan repayable in euro. The
loan is expressed in rupees and is repayable in two years’ time. Mr. Saulat also received
20 % subsidy on such machinery from the Provincial Government.
(c) On 1 July 2015 Mr. Talha started using his personal computer for business purposes.
He also had to upgrade the operating system to comply with his business needs.
(d) Mr. Rahi constructed a furnace for his factory in Korangi Industrial Area.
Q.NO.4 Autumn 2014 In Income Tax Ordinance, 2001 the term “disposal” has a wider connotation
than sale because it includes exchange, relinquishment, and extinguishment.
List the situations under which an asset owned by a person shall be treated to have been disposed of.
Q.6 Autumn 2012 In the context of Income Tax Ordinance, 2001,
(a) state the meaning of “Intangible”.
(b) discuss the rules relating to claiming of amortization deduction on intangibles.
Q. NO. 3(a) Autumn 2009 State the conditions which a tangible asset should meet to qualify as a
depreciable asset.
Q. NO.6(b) Autumn 2007 A person who places an eligible depreciable asset into service in Pakistan for the
first time in a tax year shall be allowed initial depreciation allowance. List down the assets which do not
come under the purview of “eligible depreciable assets” for the purposes of initial allowance.
Q. NO.4(a) Spring 2005 Describe the assets that are not eligible for the purpose of claiming initial
depreciation allowance.
Q. NO.3(a) Autumn 2004 List down the assets on which ‘Initial allowance’ can not be claimed?
Q. NO.3(b) Autumn 2004 What are the prescribed rates of normal depreciation on the following assets as
per the Third Schedule to the Income Tax Ordinance, 2001?
(i) Factory building
(ii) Residential quarter for labour
(iii) Furniture
(iv) Plant and machinery
(v) Computer and hardware
(vi) Technical books
(vii) New ships
(viii) Motor vehicle
Q.4 Nov 1995 For each of the following questions / select the correct answer from the choices given:
Where a fixed asset (on which tax depreciation is allowed) is actually sold, sales proceed is determined to
be:
(a) Sale price
(b) Fair Market Value (FMV)
(c) Sale price or Fair Market Value (FMV) whichever is higher
(d) Amount deemed to be the sale proceeds by the tax authorities.