PRINCIPLES OF TAXATION

SYLLABUS ANALYSIS

SR. NO GRID

1
Objective, System And Historical Background, ConstitutionalProvisions And Ethics

2 Income Tax

3 Sales Tax
RELEVENT ACT/ORDINANCE/RULES/SCHEDULES WEIGHTING

N/A 8-12

Income Tax Ordinance, 2001

Income Tax Rules, 2002 (Selected)
60-70
First Schedule (Income Tax Ordinance, 2001)
Second Schedule (Income Tax Ordinance, 2001)
Sales Tax Act, 1990
20-30
Sales Tax Rules, 2006
OBJECTIVE, SYSTEM AND HISTORICAL BACKGROUND,
CONSTITUTIONAL PROVISIONS AND ETHICS
ICAP BOOK REF.
SR. NO DESCRIPTION
CHAPTER

Objectives
Basic concepts
Chapter # 01
"System of taxation in
1
System of taxation in Pakistan (Income Tax, Pakistan"
Sales Tax, Federal Excise Tax, Capital Value Page # 01
Tax, Customs)
Historical background

Federal financial procedures (Article 78 to 88

of the Constitution of Pakistan)

Provincial financial procedures (Article 118 to

127 of the Constitution of Pakistan) Chapter # 02
"Constitutional
2
Distribution of revenues between Federation provisions on taxes"
and the Provinces (Article 160 to 165A of the Page # 13
Constitution of Pakistan)

Federal legislative lists relating to revenue

generating measures (related part of Fourth
Schedule to the Constitution of Pakistan)
Ethics for tax legislation
Chapter # 03
Ethics for taxpayers and tax practitioners
3 "Ethics"
Ethics for tax implementing authorities Page # 31
Tax evasion and avoidance
Return
INCOME TAX SYLLABUS CONTENTS
SUB
SR. NO. CHAPTERS PARTS SECTIONS DESCRIPTION
SECTION
1 CHAPTER 1 N/A 2
1
PRELIMINARY accumulated profits"
5 assessment
5A assessment year
6 association of persons
7 banking company
9 bonus shares
10 business
11A charitable purpose
15 debt
19 dividend
19C electronic record
20 employee
21 employer
22 employment
23 fee for technical services
23A Filer
28A imputable income
29 income
29A Income Year
29C Industrial undertaking
33 minor child
35C non-filer
36 non-profit organization
37 non-resident person
38 non-resident taxpayer
41 permanent establishment
 44A principal officer
46 profit on a debt
47 public company
49 rent
50 resident company
51 resident individual
52 ―resident person
53 resident taxpayer
59A Small Company
66 taxpayer
68 tax year
75 whistleblower
2 CHAPTER II N/A 4 Tax on taxable income
CHARGE OF 5 Tax on dividends
TAX
5AA Tan on return on investments in Sukuks
6 Tax on certain payments to non-residents
7B N/A Tax on profit on debt
7C Tax on builders
7D Tax on developers
General provisions relating to taxes
8 imposed under sections 5, 6 and 7
3 CHAPTER III PART I
TAX ON COMPUTATION OF
9
TAXABLE TAXABLE INCOME
INCOME N/A Taxable income
10 Total income
11 Heads of income
PART II 12 Salary
HEAD OF INCOME 13 N/A Value of perquisites
SALARY
14 Employee share schemes
PART III 15 Income from property
HEAD OF INCOME
INCOME FROM
PROPERTY N/A
 PART III
HEAD OF INCOME
INCOME FROM Deductions in computing income
15A chargeable under the head “Income from
PROPERTY N/A
Property”

16 Non-adjustable amounts received in

relation to buildings
PART IV 18 Income from business
HEAD OF INCOME 19 Speculation business
INCOME FROM
BUSINESS Deductions in computing income
20 chargeable under the head "Income from
Business"
21 Deductions not allowed
22 Depreciation
23A First Year Allowance
23B Accelerated depreciation to alternate energ
24 N/A Intangibles
25 Pre-commencement expenditure
26 Scientific research expenditure
27 Employee training and facilities
28 Profit on debt, financial costs and lease p
29 Bad debts
32 Method of accounting
33 Cash-basis accounting
34 Accrual-basis accounting
35 Stock-in-trade
PART V 37 Capital gains
HEAD OF INCOME 37A Capital gain on disposal of securities
CAPITAL GAINS
N/A
Deduction of losses in computing the
38 amount chargeable under the head
“Capital Gains”
PART VI 39 Income from other sources
HEAD OF INCOME
INCOME FROM N/A
OTHER SOURCES
 PART VI
HEAD OF INCOME
INCOME FROM N/A Deductions in computing income
40 chargeable under the head “Income from
OTHER SOURCES
Other Sources”
PART VII 41 Agricultural income
EXEMPTIONS AND 42 Diplomatic and United Nations exemption
TAX CONCESSIONS
43 Foreign government officials
44 Exemptions under international agreement
45 President’s honours
46 Profit on debt
47 N/A Scholarships
48 Support payments under an agreement to l
50 Foreign-source income of short-term reside
51 Foreign-source income of returning expatri
53 Exemptions and tax concessions in the Sec
54 Exemptions and tax provisions in other la
55 Limitation of exemption
PART VIII 56 Set off of losses
LOSSES 56A Set off of losses of companies operating hot
57 Carry forward of business losses
N/A
58 Carry forward of speculation business loss
59 Carry forward of capital losses
59A Limitations on set off and carry forward of
PART IX 60 Zakat
DEDUCTIBLE 60A Workers’ Welfare Fund
ALLOWANCES
60B N/A Workers’ Participation Fund
60C Deductible allowance for profit on debt
60D Deductible allowance for education expens
PART X 61 Charitable donations
TAX CREDITS 62 Tax credit for investment in shares and in
62A Tax credit for investment in health insuran
N/A
 PART X
TAX CREDITS

63 N/A Contribution to an Approved Pension Fund

64B Tax credit for employment generation by
65 Miscellaneous provisions relating to tax cre
65B Tax credit for investment
4 CHAPTER-IV PART I
COMMON GENERAL 66
RULES Income of joint owners
67 Apportionment of deductions
68 Fair market value
69 N/A
Receipt of income
70 Recouped expenditure
71 Currency conversion
72 Cessation of source of income
73 Rules to prevent double derivation and do
PART II
TAX YEAR
74 N/A

Tax year
PART III
75
ASSETS Disposal and acquisition of assets
N/A
76 Cost
77 Consideration received
5 CHAPTER V PART I 80 Person
PROVISIONS CENTRAL CONCEPTS 81 Resident and non-resident persons
GOVERNING
82 Resident individual
PERSONS N/A
83 Resident company
84 Resident association of persons
85 Associates
PART II 86 Principle of taxation of individuals
INDIVIDUALS 87 Deceased individuals
N/A
 PART II
INDIVIDUALS
N/A An individual as a member of an
88
association of persons
89 Authors

PART III
ASSOCIATIONS OF 92 N/A Principles of taxation of associations of
PERSONS persons
PART VA Change in the constitution of an
TAX LIABILITY IN 98A
association of persons
CERTAIN CASES

98B N/A Discontinuance of business or dissolution

of an association of persons

98C Succession to business, otherwise than on

death
6 CHAPTER VII PART I 101 Geographical source of income
INTERNATIONA GEOGRAPHICAL
L SOURCE OF INCOME
102
N/A
Foreign source salary of resident individua
103 Foreign tax credit
104 Foreign losses
7 CHAPTER IX
MINIMUM TAX
113 N/A

Minimum tax on the income of certain pers

8 CHAPTER X PART I
114
PROCEDURE RETURNS Return of income

115 Persons not required to furnish a return

of income

N/A
8 CHAPTER X PART I
PROCEDURE RETURNS

116
N/A
Wealth statement
117 Notice of discontinued business

118 Method of furnishing returns and other

documents

119 Extension of time for furnishing returns

and other documents
PART II
120
ASSESSMENTS Assessments
121 Best judgment assessment
122 Amendment of assessments
122A Revision by the Commissioner
122B Revision by the Chief Commissioner
N/A
122C Provisional assessment
123 Provisional assessment in certain cases
124 Assessment giving effect to an order
124A Powers of tax authorities to modify orders,
125 Assessment in relation to disputed propert
126 Evidence of assessment
PART III
127
APPEALS Appeal to the Commissioner (Appeals)
128 Procedure in appeal
129 Decision in appeal
130 Appointment of the Appellate Tribunal
N/A
131 Appeal to the Appellate Tribunal
132 Disposal of appeals by the Appellate Tribu
133 Reference to High Court
134A Alternative Dispute Resolution
136 Burden of proof
 PART VIII
RECORDS,
INFORMATION 174
COLLECTION AND N/A
AUDIT Records
177 Audit
9
The Income Tax Rules related to the
N/A above chapters of the Income Tax
Ordinance 2001
10 First and Second Schedule attached to the
N/A
Income Tax Ordinance 2001
 ICAP BOOK REF.
Return
CHAPTER
Covered in different chapters
 Chapter # 04
"Basic Concepts Of Taxation"
Page # 45

Chapter # 04
"Basic Concepts Of Taxation"
Page # 45

Chapter # 05
"Salary"
Page # 79

Chapter # 06
"Income From Property"
Page # 107
 Chapter # 06
"Income From Property"
Page # 107

Chapter # 07
"Income From Business-Part
One"
Page # 117

Chapter # 09
"Capital Gains"
Page # 161

Chapter # 10
"Income From Other
Sources"
Page # 177
 Chapter # 10
"Income From Other
Sources"
Page # 177
Chapter # 11
"Losses, Deductible
Allowances, Tax Credits And
Exemptions"
Page # 187

Chapter # 11
"Losses, Deductible
Allowances, Tax Credits And
Exemptions"
Page # 187

Chapter # 04
"Basic Concepts Of Taxation"
Page # 45

Chapter # 11
"Losses, Deductible
Allowances, Tax Credits And
Exemptions"
Page # 187
 Chapter # 11
"Losses, Deductible
Allowances, Tax Credits And
Exemptions"
Page # 187

Chapter # 06
"Income From Property"
Page # 107
Chapter # 04
"Basic Concepts Of Taxation"
Page # 45

Chapter # 04
"Basic Concepts Of Taxation"
Page # 45

Chapter # 08
"Income from business – part
two"
Page # 139

Chapter # 04
"Basic Concepts Of Taxation"
Page # 45

Chapter # 12
"Taxation Of Individual And
Association Of Persons"
Page # 213
 Chapter # 12
"Taxation Of Individual And
Association Of Persons"
Page # 213

Chapter # 13
"Foreign Source Income Of A
Resident Persons"
Page # 225

Chapter # 04
"Basic Concepts Of Taxation"
Page # 45

Chapter No. 14
"Returns"
Page # 237
 Chapter No. 14
"Returns"
Page # 237

Chapter # 15
"Assessments, Records, And
Audit"
Page # 253

Chapter No. 16
"Appeals, References And
Petitions"
Page # 273
 Chapter # 15
"Assessments, Records, And
Audit"
Page # 253

Covered in different chapters

Covered in different chapters

SALES TAX SYLLABUS CONTENTS
SALES TAX ACT, 1990
ICAP BOOK REF.
SR. NO. CHAPTERS SECTIONS DESCRIPTION Return
CHAPTER
1 CHAPTER 1 2 Chapter # 17
PRELIMINARY "Scope Of Sales Tax & Rules
2 CHAPTER II 3 Scope of tax ForChapter
Registration
# 17 &
SCOPE AND 3B Collection of excess sales tax etc "ScopeDeregistration"
Of Sales Tax & Rules
PAYMENT OF 4 For Page # 289 &
Registration
Zero rating
TAX Deregistration"
5 Change in the rate of tax Chapter # 18
Page # 289
6 Time and manner of payment "Determination of Of Sales
Tax Liability"
7 Determination of tax liability
Page # 321
7A Levy and collection of tax on specified goods on value
8 Tax credit not allowed
8A Joint and several liability of registered persons in su
8B Adjustable input tax
9 Debit and credit note
10 Refund of input tax Chapter # 18
11 Assessment of Tax & Recovery of Tax not levied or sho "Determination of Of Sales
Tax Liability"
11A Short paid amounts recoverable without notice
Page # 321
13 Exemption Chapter # 17
3 CHAPTER III 14 Registration "Scope Of Sales Tax & Rules
REGISTRATION 21 For Registration &
De-registration, blacklisting and suspension of registr
Deregistration"
21A Active taxpayers list
4 CHAPTER-IV 22 Records Chapter # 19
BOOK KEEPING 23 Tax Invoices "Returns & records"
AND 24 Page # 339
Retention of record and documents for [Six] years
INVOICING
REQUIREMENTS 25 Access to record, documents, etc
25A Drawing of samples
25AA Transactions between Associates
 5 CHAPTER V 26 Return
RETURNS 27 Special Returns.– In addition to the return specified u
28 Final Return
29 Return deemed to have been made

SALES TAX RULES, 2006

ICAP BOOK REF.
SR. NO. CHAPTERS RULE DESCRIPTION
CHAPTER
1 CHAPTER 1 3 Application
REGISTRATION, 5 Application for registration Chapter # 17
COMPULSORY "Scope Of Sales Tax & Rules
REGISTRATION For Registration &
AND DE- Deregistration"
REGISTRATION Page # 289

5A Temporary registration
6 Compulsory registration Chapter # 17
7 Change in the particulars of registration "Scope Of Sales Tax & Rules
For Registration &
8 Transfer of registration
Deregistration"
9 Option to file application with Commissioner Inland Revenue
10 Cancellation of multiple registrations Chapter # 17
11 De-registration "Scope Of Sales Tax & Rules
For Registration &
12 Blacklisting and suspension of registration
Deregistration"
12A Non-active taxpayer Page # 289
12B Restoration as an active taxpayer
2 CHAPTER II 13 Application
FILING OF Chapter # 19
RETURNS 14 "Returns & records"
Page # 339
Filing of returns
2 CHAPTER II
FILING OF
RETURNS

15 Receipt of return by the Bank

16 Payment of service charges to the Bank
Chapter # 19
17 "Returns & records"
Filing of Annual Sales Tax return Page # 339
18 Electronic filing of Sales Tax return
3 CHAPTER III 19 Application Chapter # 18
CREDIT AND 20 Cancellation or return of supply "Determination of Of Sales
DEBIT NOTE 21 Tax Liability"
Change in value of supply or amount of sales tax
AND Page # 321
DESTRUCTION 22 Adjustment of input and output tax
OF 23 Destruction of goods
4 GOODS IV
CHAPTER 24 Application
APPORTIONME 25 Determination of input tax
NT OF
INPUT TAX
PRINCIPLES OF TAXATION (CAF-06)
PAST PAPERS ANALYSIS
BY: M. RAMEEZ ASIF, ACA
Spring-2019 Autumn-2018 Spring-2018 Autumn-2017
Sr.
ICAP Book Chapter Question Question Question Question
No. Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type
A- Objective, System And Historical Background, Constitutional Provisions And Ethics
1 Chapter # 01 7 Theory/applic 10 5 (a) Theory 3
"System Of Taxation ation
In Pakistan"

2 Chapter # 02 8 Theory 10 5 (b) Theory 5

"Constitutional
Provisions On
Taxes"

3 Chapter # 03 8 Theory
"Ethics"

10 10 8

B-Income Tax
1 Chapter # 04 2 (a) Application/T 5 2 Theory/Scene 10 3 ('c) Application 3 2 (a) Scenerio/appl
"Basic Concepts Of ax treatment rio ication
Taxation"

5 Theory/Scene 9 4 (a) Scenerio 3 2 ('c) Scenerio/appl

rio ication
4 (a) Theory
5 Theory
2 Chapter # 05 1 Numerical 16 2 ('c) Application/T 4 1 Numerical
"Salary" ax treatment

3 Chapter # 06 3 ('c) Scenerio/Tax 7

"Income From treatment
Property"
 Spring-2019 Autumn-2018 Spring-2018 Autumn-2017
Sr.
ICAP Book Chapter Question Question Question Question
No. Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type
4 Chapter # 07 3 (b) Scenerio/Tax 5 3 Numerical 14
"Income From treatment
Business-Part One"

5 Chapter # 08 5 Numerical 12 1 Numerical 18 3 (c,d) Application/T

"Income From ax treatment
Business-Part Two"
2 (b) Application/T 5
ax treatment

6 Chapter # 09 3 (a, b) Application/T

"Capital Gains" ax treatment

7 Chapter # 10
"Income From Other
Sources"
 Spring-2019 Autumn-2018 Spring-2018 Autumn-2017
Sr.
ICAP Book Chapter Question Question Question Question
No. Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type
8 Chapter # 11 2 (a) Application/T 2
"Losses, Deductible ax treatment
Allowances, Tax
Credits And
Exemptions" 4 (a) Application/T 4
ax treatment

4 ('c) Theory 9
9 Chapter # 12 1 Numerical 17
"Taxation Of
Individual And
Association Of
Persons"

10 Chapter # 13 2 (b) Application/T 5 2 (b) Application/T

"Foreign Source ax treatment ax treatment
Income Of A
Resident Persons"

11 Chapter No. 14 3 (a) Theory 4 Theory 6 4 (b) Theory 4

"Returns"

12 Chapter # 15 3 (a) Theory 5 Theory

"Assessments,
Records, And Audit"
3 (b) Application/T 4
heory
3 (d) Theory 4

13 Chapter No. 16 4 Theory 12

"Appeals,
References And
Petitions"

64 61 62
 Spring-2019 Autumn-2018 Spring-2018 Autumn-2017
Sr.
ICAP Book Chapter Question Question Question Question
No. Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type
C-Sales Tax
1 Chapter # 17 6 Theory/Scene 11 6 Theory 15 6 (a, b) Theory 12 7 (a) Theory
"Scope Of Sales Tax rio
Law
And Rules For
Registration And
Deregistration"

2 Chapter # 18 7 Numerical 15 8 Numerical 14 7 Numerical 18 6 Numerical

"Determination Of
Sales Tax Liability"
7 (b) Theory
7 (d, e) Theory

3 Chapter # 19 7 ('c) Theory

"Returns And
Records"

26 29 30

100 100 100

2017 Spring-2017 Autumn-2016 Spring-2016 Autumn-2015 Spring-2015
Question Question Question Question Question
Marks Q# Marks Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type Type

7 (b) Theory 5 7 Theory 3 9 Theory

10 Theory

4(a,b) Theory 10 7 (b) Theory 5 7 (a) Theory 3 8 Theory 8

10 7 (a) Theory 7 7-c Theory 3

10 10 12 11 11

4 3 Theory 15 3 a(i) Scenerio/ 2

Theory

3
10
16 1 Numerical 15 1 Numerical 16 1 Numerical 20 3 Numerical

3(a) Numerical 8 6 Numerical 12 3 a(v) Scenerio/ 2 4 a(i) Theory

Theory
3(b) Scenerio/Tax 4 4 (b) Numerical
treatment
2017 Spring-2017 Autumn-2016 Spring-2016 Autumn-2015 Spring-2015
Question Question Question Question Question
Marks Q# Marks Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type Type
1 Numerical 16 2 Scenerio/ 7 1 Numerical
Theory

4 Numerical 10
5 2(a) Theory 5 2 Scenerio/ 12
Theory

6 2(b) Scenerio/Tax 8 3 a(iv) Scenerio/ 3

treatment Theory
4 (a) Theory 3
4 (b) Scenerio/ 7
Theory
4 a(ii) Theory
2017 Spring-2017 Autumn-2016 Spring-2016 Autumn-2015 Spring-2015
Question Question Question Question Question
Marks Q# Marks Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type Type
5 (b) Theory

6 Numerical

3 (a) Scenerio/ 5 8 Numerical 12 5 (a) Theory

Theory
3 (b) Theory 6

6 8 Numerical 10 3 a(ii) Scenerio/ 3

Theory

5(a, b) Theory 12 3c Theory 3 3 a(iii) Scenerio/ 5 2 Scenerio/

Theory Theory
6 Numerical 7
7 2 Theory 8

3 (b) Scenerio/ 4
Theory

59 60 59 60 61
2017 Spring-2017 Autumn-2016 Spring-2016 Autumn-2015 Spring-2015
Question Question Question Question Question
Marks Q# Marks Q# Marks Q# Marks Q# Marks Q#
Type Type Type Type Type

3 8 (a ii) Theory 3 6 (b) Theory 4 6 (b, c) Theory 7 6 a(i) Theory 4 8 (b) Theory

17 7 Numerical 17 5 Numerical 18 5 Numerical 18 5 Numerical 18 7 Numerical

3 8 (a i) Theory 6 6 (a) Theory 3 6 (a) Theory 4 6 a(ii) Theory 3 8 (a, c, Theory

6 8 (b) Scenerio/Trea 4 6 (b) Theory 3 d)
tment
2 6-c Theory 4

31 30 29 29 28

100 100 100 100 100

-2015 Autumn-2014
Question
Marks Q# Marks
Type

5 7 Theory 10

9 10

8 Theory 10

10 30

2 (b) Scenerio/ 4
Theory

6 1 Numerical 20

7
-2015 Autumn-2014
Question
Marks Q# Marks
Type
18

4 Theory 5

3 Numerical 10

2
-2015 Autumn-2014
Question
Marks Q# Marks
Type
2

5 2 (a) Scenerio/ 5
Theory

13

64 44
-2015 Autumn-2014
Question
Marks Q# Marks
Type

3 5 a(i) Theory 5

13 6 Numerical 14

10 5 a(ii) Theory 4
5 (b) Theory 3

26 26

100 100
PRINCIPLES OF TAXATION (CAF-06)
RESULT ANALYSIS
BY: M. RAMEEZ ASIF, ACA
Autumn- Spring- Autumn- Spring- Autumn-
Description Autumn-2018 Spring-2018
2017 2017 2016 2016 2015

Student Appeared 3204 3197 2717 3246 3123 3268 3018

Student Passed 1933 1098 869 1560 835 999 727

Passing % 60% 34% 32% 48% 27% 31% 24%