~~with focus on tax education~~

Introduction to Taxation

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Constitution of Pakistan empowers Federal Government to Levy Tax (for the purpose of federation) through Act or Ordinance.

Act: is approved by the Parliament (eg: Sales Tax Act, 1990)

Ordinance: is promulgated by the President (eg: I.Tax ordinance, 2001)

Income Tax aims at two Roles:

1- Redistribution of wealth: (Through progressive taxation means higher level of income is subject to higher rate of tax)

2- Serve as an instrument of fiscal policy: (through granting exemptions to a particular class of income / person)

Scheme of the Income Tax Ordinance, 2001
  • Chapters (total number are 13 and each chapter deals with particular subject
  • Parts
  • Divisions
  • Section
  • Sub section
  • Clauses

Paper – C7: TAXATION - (Syllabus)

Income Tax
a. Basic concepts of taxation


b. Heads of income, Computation of income, Determination of tax liability
c. Types of persons and their taxation
d. Procedures and Administration
e. Income Tax Rules 2002
Sales Tax

Prescribe chapters of Sales Tax Act and Rules.
* Indicative Grid but not final

(a) Source of Income Tax Law

1- Legislative Law (I Tax Ordin.)
2- Procedural Law (I Tax Rules)
3- Notification, Circulars issued by the board
4- Case Laws: Judgments of tribunal and courts.

(b) Purpose of Income Tax Law: In the society is
  • To levy and collect tax
  • On income of person and
  • Use it for the welfare purpose

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posted @ 12:40 PM,


At March 26, 2010 at 9:33 AM, Blogger Shiirazi said...

Wonderful post for any tax student. But how did you put this chart in blogspot? Wish you write another post and explain for bloggers to learn.

Keep up this good work man.


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