Tax Book 2023

Method of Accounting and Records Chapter- 11

CA CAF- 6 PAST PAPERS THEORECTICAL QUESTIONS

Q. NO. 4 Autumn 2019
Under the provisions of the Income Tax Ordinance, 2001 and Rules made there under, briefly explain the
following:

i. Requirement of books of account to be maintained by a taxpayer who has business income upto

Rs. 500,000.

ii. General provisions/rules which may apply to income subject to Final Tax Regime.

iii. Provisions regarding Special Audit Panel

Q. No. 4 (a) Spring 2013 Inspired Pakistan Limited (IPL) wants to change its accounting year from 30 June
to 31 December as the income year of its parent company in USA ends on 31 December.

Required:

Advise IPL about the requirements of the Income Tax Ordinance, 2001 regarding the change for tax year
from Normal to special.

Q. No. 5 (a) Spring 2013 Describe the methods of accounting that may be adopted under the Income Tax
Ordinance, 2001 by following persons deriving income chargeable to tax under the head ' Income from
Business'.

(i) A company

(ii) Any person other than a company

(iii) An AOP deriving business income from a ' Long Term contract'

(b) State the provisions of the Income Tax Ordinance, 2001 relating to the change in method of accounting
for income chargeable to tax under the head ' Income from Business'.

Q.2 (b) March 2007 Discuss the provisions of the Income tax Ordinance, 2001 relating to the computation
of opening and closing stock.

Q. NO. 2(b) Spring 2007 Discuss the provisions of the Income tax Ordinance, 2001 relating to the
computation of opening and closing stock.

Q.3 (b) March 2006 What is the basis of stock-in-trade computation under the Income Tax Ordinance when
the taxpayer follows the cash basis of accounting?

Q. NO. 4(a) Spring 2004 Briefly explain when the expenditure is considered as incurred with reference to
accrual basis of accounting defined in the Income tax Ordinance, 2001.

Q. NO. 4(b) Spring 2004 Please mention the costing method(s) and stock valuation method(s) to be
applied by a person following accrual basis of accounting to account for income chargeable to tax under the
head ‘income from business’ under the Ordinance.

Q. NO. 7(b) Spring 2004 For how many years the tax payer is required to maintain accounts and
documents under the relevant provision of the ITO, 2001.

Q. NO. 9 Autumn 2003 Briefly describe the minimum books of accounts, documents, and records that are
required to be maintained by the following taxpayers?

(a) Taxpayer (other than a company) deriving business income up to Rs.200,000.

(b) Taxpayer (other than a company) deriving business income exceeding Rs.200,000.

Q. NO. 6(b) Spring 2003 What method of accounting is required to be employed by a company deriving
income from business.