Institute of Business Management

College of Business Management

TAXATION
Faculty: Zahid Masood
COURSE OUTLINE
Course Code: Taxation (ACC 503)
Total Credit Hours: 45
Duration: 14 Sessions of 3 Hours each
Overall aims of curse
This course out-line has been drawn, almost exclusively, from the Income Tax Ordinance 2001 which is the
centre piece of the income tax administration in Pakistan.
In this course outline sections and sub-sections have also been mentioned which are the keys to access
comprehensive provisions in the Income Tax Ordinance.
This course outline has been drawn with the primary objective of giving comprehensive understanding of the
Income Tax Law in Pakistan. Furthermore, this may enable one to easily access all the sources of Income
Tax Law for dealing with any income tax problem in real life situations.
A business graduate is expected to adopt a business career either as an entrepreneur or a company executive.
In either case he will have to deal with taxation problems. The completion of this course offers valuable
guidelines in this respect.
Following is the COURSE OUTLINE with course contents divided into topics and sub-topics to be taught in
14 sessions of three hours each. The learning objectives are also mentioned against each topic and the subtopics.

Course Contents:

Session Topic
1.

2.

3.

4.

Sub-Topics Covered

Learning Objectives

PRELIMINARY
History, objective and To offer historical
Definition Charge of sources of income tax perspective, the goal
Tax
law in Pakistan.
the law purports to
Section 2(1) to (74)
achieve
and
the
Section 4(1) to (6)
references and the
sources of the law to
draw upon.
To familiarize with
key words and terms
HEAD OF INCOME
Definition and scope of These section and
Salary
income section 12
subjects being most
Value of perquisites
commonly used, their
Section 13 and Rule 3 knowledge would be
to 7
useful in the same
proportion.
Salary
Employee share scheme Same as above
Section
Exemption and tax
concession
Second Schedule
Provident and other
funds
Sixth Schedule
HEAD OF INCOME
Section 15
The knowledge of
Income from Property Section 16
taxability under this
Chargeability
Non- Meaning and scope.
head is growing in
adjustable
advance Section 18
importance with the
rent
Speculative business
growing number of
Income from Business Section 19
property owners and
widening scope of
taxation
of
this
income.
The knowledge of
taxability of income
from business is by far
the most important
from the point of view
of revenue as well as
the clout of the tax
payers which include
the powerful corporate
sector.

Resource Material
Tex books, Income
Tax
Ordinance
2001, Income Tax
Rule 2002, SROs,
Circulars, and Case
Law & Handouts
on
important
subject.

Session Topic
5.

6.

7.

8.

9.

Sub-Topics Covered

Learning Objectives

Income from Business

Deduction of expenses, Same as above

Section 20
Deduction inadmissible,
Section 21
Deduction:
specific
provision Section 22 to
31
Income from Business Deduction
Same as above
First
Hourly Rule 10 to 13 and Third
Schedule
Examination
Tax Accounting

Section 32 to 36

This subject is related

to
method
of
accounting of business
income and its learning
objection is the same
as that of business
income.
HEAD OF INCOME
Definition
and Learning the taxability
Capital Gain
computation
of income under this
Section 37
head is now more
Deduction of loss
necessary as more
Section 38
cases of Capital Gains
Disposal of Asset, have been brought
Section 75
within the ambit of
Cost of Asset, Section taxation.
76
Consideration
on
Disposal of Asset,
Section 77
HEAD OF INCOME
Definition, Section 39
It is a residual head of
Income from other Deduction, Section 40
income which includes
Sources
Definition
and miscellaneous
Sett-off of losses
explanation, Section 56 incomes. Its learning
Carry Forward of Definition and rules, would add to a
Losses
Section 57, 58 & 59.
comprehensive
knowledge of taxation.
These are to be learnt
in the context of
mostly business and
salary incomes and so
is the importance of its
learning.

Resource Material

Session Topic
10.

11.

12.

13.

Sub-Topics Covered

Deductible
Allowances
Tax Credit

Zakat, Section 60
Workers Welfare Fund,
Section 60A
Workers Participation
Fund, Section 60B
Charitable
donation,
Section 61
Investment in share,
Section 62
Contribution
to
Approved
Funds,
Section 63
Profit on Debt, Section
64
Resident and Non- Section 81 to 84 &
resident persons
Section 11(5)& (6)

Taxation of Individual
Taxation
of
Association
of
Persons
Taxation
of
Companies
Second
Hourly
Examination
Return of Income
Assessment
Presumptive
Income/Taxation
Withholding
Tax,
Advance
Tax,
Deduction of tax at
source

Section 86
Section 92
Section 94 to 97

Section 114 to 119

Section 120 to 126
Section 4(4) & (5)
Section 148 to 156

Learning Objectives
These are to be learnt
in the context of
mostly business and
salary incomes and so
is the importance of its
learning.

Its
learning
is
important
for
the
taxation
of
nonresidents
whose
number is growing
with
foreign
investment
and
globalization.
Its
learning
is
important
for
assessment process

Its
learning
is
important as most of
the taxation in the
country falls under
presumptive
tax
regime.
These
are
very
common for all heads
of income and their
knowledge
is
indispensible to deal
with
taxation
problems.

Resource Material

Session Topic
14.

Recovery,
Penalties
Appeal
Alternate
resolution

15.

Sub-Topics Covered

Learning Objectives

Refunds Section 138, 138A & Handling

of
tax
140 & 170 (Refund)
matters would often
Section 182 to 190
include the refund
Dispute Section 127 to 136
cases
whose
knowledge could be
very useful. Recovery
proceedings are not
very
common
compared
to
the
penalty proceedings.
Appeal
is
very
common in tax cases
and the knowledge of
the procedures for
filing of appeal and
hearing of the cases are
very important.
FINAL EXAMINATION

Student assessment methods

Quizzes

10%

First Hourly

15%
SER

Second Hourly

15%

Final Examination

40%

Class Participation/Assignments

20%

Total

100%

Recommended Texts:
1.
2.
3.
4.
5.

Practical Handbook of Income Tax by Dr. Ikram ul Haq

Income Tax Ordinance 2001
Income Tax Rule 2002
SROs and Circulars
Business pages of English dailies in Pakistan

Resource Material