GROUP MEMBERS

ZARA HAFEEZ
SAQIB SIRAJ
AHMED MUNEEB
WALEED SETHI
JAHANZAIB

ASSETS AND
DEPRECIATION

ASSETS
Black Law Dictionary :
Property of all kinds, real and
personal, tangible and
intangible, including, inter alia,
for certain purpose, patents and
causes of action which belong to
any person including a
corporation and the estate of
decedent. The entire property of
a person that is applicable or

INCOME TAX ORDINANCE 2001

Capital assets
Depreciation assets
Eligible depreciable asset
Intangible
Pre-commencement
expenditure
Stock-in-trade

CAPITAL ASSETS

DEPRECIABLE ASSETS
Any
tangible
moveable
or
immovable property
having
normal useful life more than one year
and is being used by the owner for
his business purpose is a depreciable
asset.

ELIGIBLE DEPRECIATION
ASSET
It means a depreciable asset other
than the following assets:
Any road transport vehicle unless the
vehicle is plying for hire.
Any furniture or fittings
Any plant or machinery that has been
used previously in Pakistan
Any asset whose total cost has
already been allowed as deduction in
the tax year in which it is acquired

INTANGIBLE
Intangible means assets or expenditure of
following types if it provides an advantage
of benefit for a period of more than one
Secret
year:
Invention
Design or
formula
Patents

model

Copy
right

Trade
mark

Scientific
or technical
knowledge

Computer
software

Motion
picture film

Export
quotas

Franchise

Licensee

Contractual
rights

Any other
expenditur
e,
benefited
more than
1 year.

Intellectual
property

Other like
property or
right

or
process

PRE-COMMENCEMENT
EXPENDITURE
Its not an asset its an expense.
It provides benefit more than one year.
It is treated as
expenditure and
fictitious assets.

deferred revenue
it is also termed as

Under income tax ordinance, 2001, it means any

expenditure incurred before the commencement
of such business the income of which is
chargeable to tax. It includes:

Incorpora
tion
expenses

Cost of
feasibility
studies

Cost of
construct
ion of
prototype
s

Cost of
trial
productio
n
activities

STOCK-IN-TRADE

Stock-in-trade means anything

produced,
manufactured, purchased or otherwise
acquired for manufacture, sale or exchange .

It also includes any material or supplies that are

to be consumed in the production or manufacturing
process.
However, stocks and shares do not form part of the
stock-in-trade'. It means that shares will never be
treated as stock-in-trade even if these are held for
business and sale purpose.

ACQUISITION OF AN ASSET

A person shall be treated

as having acquired an asset at any
of the following times:

When he
begins to
own an
asset.

When he is
granted
any right
to own an
asset.

When a
personal
asset is
applied for
business
use.

DISPOSAL OF AN ASSET
It means to pass over an asset to
some other person.
It denotes the change of
ownership of an asset.
Under Income Tax Ordinance, 2001 a
disposal may take place when an
asset is:

Sold
Exchanged
Transferred
Distributed
Cancelled
Redeemed
Relinquished

Destroyed
Lost
Expired
Surrendered
Transmitted by succession or under a
will
In case of business
assets, applied to
personal use
In case of a business asset, discarded or
ceased to be used in business.

ANY
QUESTION

THANK YOU