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MODULE 3 LESSON 3.7 DETERMINATION OF LEGAL STATUS OF A PERSON Exercise: Determine legal status of the following persons under the provisions of section 80 of the ordinance. i. ABC University, Karachi ii. XYZ Bank Limited iii. A joint family of Mr. H (a Hindu), Comprising Mr. H, his sons Mr. C & Mr. D iv. XYZ Modaraba v. XYZ Mills Ltd. vi. Federal Government vii. Government of Sind viii. Government of Punjab ix. ABC Trust x. KDs an unregistered firm of K and D xi. Mr. A Serving as a Manager in a Textiles Company xii. Mr. Z, a Director in Private Company xiii. Mr. y, Running his Business as Sole Proprietor xiv. ABC Welfare Trust xv. Mr. A & B Joint Owners in Immovable Property xvi. XYZ Cooperative Housing Society Answer to exercise on legal status: A (i) A (ii) A (iii) A (iv) A (v) A (vi) A (vii) A (viii) A (ix) A (x) A (xi) A (xii) A (xiii) A (xiv) A (xv) A (xvi) Company Banking Company Hindu Undivided Family Company Public Company person Company Company Company Firm Individual Individual Individual Company Association of persons Company

Tax on Income

Income Tax is a tax on a person in respect of his income during a tax year Income of a tax year as computed under the provisions of this ordinance is Taxable Income, it is total
income reduced by total of any deductible allowances. It is charged to tax in a tax year according to applicable rules. Copyright Virtual University of Pakistan 15

Taxation Management FIN 623

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'Income Sec. 2 (29) Income has been defined in section 2 (29) of the ordinance as under: (29) income includes any amount chargeable to tax under this Ordinance, any amount subject to collection or deduction of tax and any loss of income but does not include, in case of a shareholder of a company, the amount representing the face value of any bonus share or the amount of any bonus declared, issued or paid by the company to the shareholders with a view to increasing its paid up share capital;

Any amount chargeable to tax under this ordinance Any amount subject to deduction and collection under various sections of this ordinance. Any loss of Income.

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