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.

1. firm
2. Any artificial person
3. 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 :

1. A company which is formed under the banking companies ordinance.
2. A company which transacts the business in their own country.
3. It includes any body corporate and formed under his country law.

BUSINESS :-

According to income tax ordinance following terms are included in the business :

1. Trade :-

Any activity between the buyers and sellers of goods earn profit is also called business.

2. Commerce :-

Business also includes those activities which facilitate the exchange of goods between consumer and producers.

Example : Banking, insurance, marketing, storing and transport.

3. Profession :-

Professional and vocational education also generates income. So the profession of doctor, lawyer and charted accountant is also included in business.

4. Manufacturing :-

When any producer converts the raw material in to manufacturing goods it is also called business.

Note : Business does not include employment.