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AIOU SOLVED ASSIGNMENT 1 CODE 456 TAXATION

AIOU SOLVED ASSIGNMENT 1 CODE 456 AUTUMN 2016

Aiou solved assignment 1 code 456 autumn 2016 for the subject of taxation relating to income tax ordinance 2001. This is aiou solved assignment 1 code 456 autumn 2016 which is totally complete. The following tax has been used for google searching:- solved assignment 1 code 456 autumn 2016, aiou solved assignment 1 code 456 spring 2016, aiou code 456 solved assignment 1 code 456 autumn 2016, autumn 2016 aiou solved assignment 1 code 456, b.com code 456 aiou solved assignment 1 autumn 2016.
AIOU SOLVED ASSIGNMENT 1 CODE 456 AUTUMN 2016 QUESTION # 2
Q 2: THE INCOME TAX ORDINANCE 2001 DIVIDES INCOME INTO FIVE MAJOR HEAD: SALARY, PROPERTY, BUSINESS, CAPITAL GAINS AND OTHER SOURCES. EXPLAIN YOUR UNDERSTANDING OF THE INCOME FROM PROPERTY AS PER THE PROVISION OF THE INCOME TAX ORDINANCE 2001. IN YOUR OPINION WHAT TYPE OF DEDUCTION SHOULD BE ALLOWED FROM SALARY INCOME? (20)
ANSWER:
INCOME FROM PROPERTY:- (1) The rent received or receivable by a person 1[for] a tax year, other than rent exempt from tax under this Ordinance, shall be chargeable to tax in that year under the head —Income from Property. (2) Subject to sub-section (3), —rent means any amount received or receivable by the owner of land or a building as consideration for the use or occupation of, or the right to use or occupy, the land or building, and includes any forfeited deposit paid under a contract for the sale of land or a building. (3) This section shall not apply to any rent received or receivable by any person in respect of the lease of a building together with plant and machinery and such rent shall be chargeable to tax under the head —Income from Other Sources. 2[(3A) Where any amount is included in rent received or receivable by any person for the provision of amenities, utilities or any other service connected with the renting of the building, such amount shall be chargeable to tax under the head —Income from Other Sources] (4) Subject to sub-section (5), where the rent received or receivable by a person is less than the fair market rent for the property, the person shall be treated as having derived the fair market rent for the period the property is let on rent in the tax year. (5) Sub-section (4) shall not apply where the fair market rent is included in the income of the lessee chargeable to tax under the head —Salary.

AIOU SOLVED ASSIGNMENT 1 CODE 456 AUTUMN 2016 AND SPRING 2017

(15A. DEDUCTIONS IN COMPUTING INCOME CHARGEABLE UNDER THE HEAD —INCOME FROM PROPERTY.—
(1) In computing the income of a person chargeable to tax under the head —Income from Property for a tax year, a deduction shall be allowed for the following expenditures or allowances, namely:-(a) In respect of repairs to a building, an allowance equal to one-fifth of the rent chargeable to tax in respect of the building for the year, computed before any deduction allowed under this section; (b) Any premium paid or payable by the person in the year to insure the building against the risk of damage or destruction; (c) any local rate, tax, charge in respect of the property or the rent from the property paid or payable by the person to any local authority or government in the year, not being any tax payable under this Ordinance; (d) Any ground rent paid or payable by the person in the year in respect of the property; (e) any profit paid or payable by the person in the year on any money borrowed including by way of mortgage, to acquire, construct, renovate, extend or reconstruct the property; (f) Where the property has been acquired, constructed, renovated, extended, or reconstructed by the person with capital contributed by the House Building Finance Corporation or a scheduled bank under a scheme of investment in property on the basis of sharing the rent made by the Corporation or bank, the share in rent and share towards appreciation in the value of property (excluding the return of capital, if any) from the property paid or payable by the person to the said Corporation or the bank in the year under that scheme; (g) Where the property is subject to mortgage or other capital charge, the amount of profit or interest paid on such mortgage or charge; (h) Any expenditure (not exceeding six per cent of the rent chargeable to tax in respect of the property for the year computed before any deduction allowed under this section) paid or payable by the person in the year for the purpose of collecting the rent due in respect of the property; (i) Any expenditure paid or payable by the person in the tax year for legal services acquired to defend the person’s title to the property or any suit connected with the property in a court; and (j) Where there are reasonable grounds for believing that any unpaid rent in respect of the property is irrecoverable, an allowance equal to the unpaid rent where (i) The tenancy was bona fide, the defaulting tenant has vacated the property or steps have been taken to compel the tenant to vacate the property and the defaulting tenant is not in occupation of any other property of the person; (ii) the person has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or has reasonable grounds to believe that legal proceedings would be useless; and (iii) The unpaid rent has been included in the income of the person chargeable to tax under the head —Income from Property for the tax year in which the rent was due and tax has been duly paid on such income.

AIOU SOLVED ASSIGNMENT 1 CODE 456 AUTUMN 2016 B.COM TAXATION
MY OPINION ON TYPES OF DEDUCTION FROM SALARY INCOME
Although many people consider there should be 0 tax on salary income. But income tax has always been making a significant impact on any country’s economy. Very high or low income tax does not necessarily mean to aid economy of any country. An optimum income tax rate depending upon country’s economic, social goals is necessary in order to realize the real benefits of income tax. I would like to support my views on this topic in following paragraphs. Income tax is a key driver for any country to grow and provide sufficient facilities to its citizens. If there is no income tax in the country then it is very difficult to fund the systems like army, police, industry and agriculture, which are backbones for any country’s economic growth. For example without having police in the society it is almost impossible to protect citizens and provide necessary security for the industries from stealing their products. In absence of police, various industries will have to hire their own security, which will negatively impact on the industries performance since they have to spend lot of money on the security. Same thing with the army; in absence of army it is impossible to protect the people from outside enemies in case of war or terror attacks. Thus in order to have smooth functioning of all the systems mentioned above there must of some income tax posed on countries citizens all over the world.

AIOU SOLVED ASSIGNMENT 1 CODE 456 AUTUMN 2016 IN HARD FORM

However, imposing higher taxes does not necessarily mean strong economic growth. If there is very high income tax imposed on people then many people would not like to work. But it is also important for the government to provide some subsidiaries on the income from specific products for example, solar panels; wind turbines in order reduce negative impact on earth’s environment and also stimulate economy by importing and exporting these products. Overall, income tax plays paramount role on any country’s economy. But very high or low tax rate does not enhance the economy, an optimum income tax rate is essential for country’s potential growth. Accordingly there should be minimum tax on salary income, however allowances may be nominally liable to be imposed tax.

SOLVED ASSIGNMENT 1 CODE 456 AUTUMN 2016

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