CONCEPTUAL
APPROACH TO TAXES
TAX YEAR 2016
6th EDITION
Income Tax
Sales tax
Capital Value Tax
Federal Excise Act & Rules, 2005
By:
NADEEM BUTT
Chartered Accountant
FCA, FPFA, B.Com.
AMAN PUBLICATIONS COMPANY
ALL RIGHTS RESERVED BY THE AUTHOR
No responsibility shall be taken for any mistake, error or
omission regarding any material contained in this book.
6TH Edition: 2016
AUTHOR
NADEEM BUTT
Chartered Accountant
FCA, FPFA, B.Com.
PRICE Rs. 600/-
SALIENT FEATURES OF THIS EDITION
Use of easy & understandable language.
Covers the syllabus of CA Module C, CAM-IV, ICMAP Stage IV & M.Com.
Helpful for the students & teachers of CA - Final, ACCA (PAK), Higher National Diploma
(HND), MBA, MPA, PIPFA & LLB.
Added various examples & solved practice questions to demonstrate the theory.
Reference of relevant provisions of income tax & sales tax law has been given.
Added after each chapter past papers topic wise theoretical questions of ICMA Stage IV from
tax year 2003 to 2015 & CA Module C / Stage-II CAF-06 from tax year 2001 to 2015.
Added past papers numerical questions of ICMA Stage IV from tax year 2003 to 2015 & CA
Module C / Stage-II CAF-06 from tax year 2001 to 2015.
Includes the amendments incorporated by the Finance Act, 2015.
Useful for all who want to learn, teach & practice Income tax & Sales tax.
FACILITY FOR ANY QUESTION OR QUERY FROM THE AUTHOR AT:
Ph No: 042-35408635-6 and 042-35408638-9
Cell: 0333 / 0301 - 4245240
E-mail: info@nbandco.com and
nadeembutt@nbandco.com
PREFACE TO THE SIXTH EDITION
With the grace of Almighty ALLAH and prayers of my family, friends, and students, I am presenting
the Sixth Edition of “Conceptual approach to taxes”. This book is primarily for the students of CAF
- of ICAP, Stage IV of ICMAP and M. Com.
I hope this book will serve the purpose of the students, teachers & other persons related with the
taxation. The book primarily consists of notes on each chapter with examples, multiple choice
questions, practical problems with solutions and topic wise last year questions from tax year 2003
to 2015.
I am grateful to all those who contributed a lot in the completion of this book. My special thanks
are due to my staff.
All positive criticism with suggestions for the improvement will be entertained.
Nadeem Butt
Chartered Accountant
October 01, 2015
THE AUTHOR
Mr. Nadeem Butt qualified as a Chartered Accountant in 1998 & after working with a well
known professional firm as Tax Manager has started his own professional firm under the
name and style Nadeem & Co. Chartered Accountants in 2007 & is practicing as Fellow
member of ICAP mainly in audit, income tax & sales tax for more than 200 various
corporate and non-corporate clients in Pakistan. He is also the life time member of Lahore
Tax Bar Association and Audit & Tax advisor of All Pakistan Cottage Industry & Small
Traders Association.
Member, (special invitees) Taxation Committee of Lahore Chamber of Commerce & Industry
(LCCI).
17 years post qualification teaching experience in the subjects of Taxation..
Visiting faculty member of the following professional educational institutions in providing
coaching for the exams of Taxation:
1.
College of Accountancy & Professional Studies(CAPS)
Module C & F
2.
Institute of Cost & Management Accountants of Pakistan (ICMAP)
Stage – IV
3.
Institute of Chartered Accountants of Pakistan (ICAP)
Module C
4.
Rise School of Accountancy
Module C
5.
Premier DLC (A project of Beacon house)
AFC- CA
6.
The University of Lahore
M. Com.
7.
SKANS School of Accountancy
Module C
8.
Punjab Group of Colleges
M. Com.
9.
GC University, Lahore
Business Taxation Coaching
Appointed as auditor on behalf of the tax department by the Federal Board of Revenue for
Special Audit Under section 4A of the repealed Income Tax Ordinance of various corporate
and non-corporate entities.
Two students of Mr. Nadeem Butt (FCA) got 1st & 2ndpositions all over the Pakistan by
scoring 98% & 97% marks in Taxation exam of ICMAP.
Student of Mr. Nadeem Butt (FCA) got the first gold medal in the history of SKANS School
of Accountancy, Lahore in Financial Accounting Module C exam of ICAP.
INCOME TAX
For CA & ICMAP Students
S. No.
CHAPTERS
Page No.
1
Taxation System
1
2
Ethics in tax Laws
9
3
Constitutional Provisions
17
4
Preliminary
27
5
Introduction & geographical source of income
59
6
Computation of taxable income
71
7
Income from Salary
85
8
Income from property
111
9
Income from business
125
10
Assets and depreciation
147
11
Method of accounting & records
171
12
Capital gains
183
13
Income from other sources
205
14
Losses
219
15
Tax credits
237
16
Common rules
255
17
Returns and Assessments
265
18
Appeals & Revisions
287
19
Income Tax Authorities
301
20
Exemptions other than Covered in Respective Chapters
319
21
Solved Past Papers
C - (2001 to 2015)
Income
Tax
Numericals
of
CA
Module
323
For CA Mod F & ICMAP Students
S. No.
CHAPTERS
Page No.
22
Final Tax Regime & Minimum Tax
383
23
Deduction / Payment of Tax
407
24
Offences and prosecutions
455
25
Insurance business
465
26
Oil, natural gas & other mineral deposits
473
27
Banking business
481
28
Solved Past Papers Income Tax Numericals of ICMAP Stage IV
(2003 to 2015)
489
SALES TAX
For CA & ICMAP Students
S. No.
CHAPTERS
Page No.
1
Preliminary
535
2
Registration
549
3
Sales Tax Returns
561
4
Records & Books
569
5
Scope and Payment of Tax
577
6
Practice questions with solutions
603
7
Solved Past Papers Sales Tax Numericals of ICAP - (2003 to 2015)
615
For CA Mod F & ICMAP Students
S. No.
CHAPTERS
Page No.
8
Recovery of Arrears & Refund
637
9
Offences & Penalties
649
10
Appeals
659
11
Sales Tax Special Procedure Rules, 2007
665
12
Sales Tax Special Procedure (Withholding) Rules, 2007
685
13
Solved Past Papers Sales Tax Numericals
(2003 to 2015)
691
of ICMAP Stage IV
14
Third, fifth and sixth Schedules
705
15
Eighth and Ninth Schedules
715
CAPITAL VALUE TAX & FEDERAL
EXCISE DUTY
For CA Mod F & ICMAP Students
S. No.
CHAPTERS
(A)
CAPITAL VALUE TAX
(B)
FEDERAL EXCISE ACT & RULES, 2005
Page No.
729
1
Definition
733
2
Levy, Collection & Payment of Duty
737
3
Offences & Penalties
745
4
Federal Excise Rules, 2005
751
