Define the following terms in the income tax ordinance Association of persons, Banking company, Business
ASSOCIATION OF PERSONS :-
Following are included in the association of persons.
- Any artificial person
- Any body of persons formed under a foreign law.
BANKING COMPANY :-
Income tax ordinance and banking companies ordinance consider the same meanings of “Banking Company”.
Main Features :
- A company which is formed under the banking companies ordinance.
- A company which transacts the business in their own country.
- It includes any body corporate and formed under his country law.
According to income tax ordinance following terms are included in the business :
- Trade :-
Any activity between the buyers and sellers of goods earn profit is also called business.
- Commerce :-
Business also includes those activities which facilitate the exchange of goods between consumer and producers.
Example : Banking, insurance, marketing, storing and transport.
- Profession :-
Professional and vocational education also generates income. So the profession of doctor, lawyer and charted accountant is also included in business.
- Manufacturing :-
When any producer converts the raw material in to manufacturing goods it is also called business.
Note : Business does not include employment.