Sunday, 10 March 2013

Define the following terms in the income tax ordinance Association of persons, Banking company, Business

Following are included in the association of persons.
  1. firm
  2. Any artificial person
  3. Any body of persons formed under a foreign law.

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.

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.

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

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

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

  1. Manufacturing :-
When any producer converts the raw material in to manufacturing goods it is also called business.
Note : Business does not include employment.


Post a Comment

Google+ Followers

  © Blogger template Blue Surfing by Trade Cycle 2014

Back to TOP