Institute of Business Excellence

How Stock Exchange works...

Historical impact of global conflicts & crises on markets:

World War II (1939)
📉 Fall: ~25%
⏱ Recovery: 2 Years

Korean War (1950)
📉 Fall: ~12%
⏱ Recovery: 4 Months

Vietnam War Escalation (1965)
📉 Fall: ~10%
⏱ Recovery: 3 Months

Yom Kippur War (1973)
📉 Fall: ~17%
⏱ Recovery: 8 Months

Iran–Iraq War (1980)
📉 Fall: ~14%
⏱ Recovery: 6 Months

Gulf War (1990)
📉 Fall: ~18%
⏱ Recovery: 4 Months

Kargil War (1999)
📉 Fall: ~12%
⏱ Recovery: 2 Months

9/11 Terror Attack (2001)
📉 Fall: ~16%
⏱ Recovery: 3 Months

Iraq War (2003)
📉 Fall: ~9%
⏱ Recovery: 2 Months

Global Financial Crisis (2008)
📉 Fall: ~60%
⏱ Recovery: 18 Months

Covid Pandemic (2020)
📉 Fall: ~38%
⏱ Recovery: 7 Months

Russia-Ukraine War (2022)
📉 Fall: ~15%
⏱ Recovery: 4 Months

Israel-Hamas War (2023)
📉 Fall: ~6%
⏱ Recovery: 1 Month

BIGGEST LESSON

Wealth is created by those who buy during panic.
Don’t panic – it’s just turbulent.

𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐔𝐩𝐝𝐚𝐭𝐞 𝐟𝐨𝐫 𝐒𝐚𝐥𝐞𝐬 𝐓𝐚𝐱𝐩𝐚𝐲𝐞𝐫𝐬

𝐓𝐡𝐞 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐁𝐨𝐚𝐫𝐝 𝐨𝐟 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 (𝐅𝐁𝐑) 𝐡𝐚𝐬 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝 𝐚 𝐮𝐬𝐞𝐟𝐮𝐥 𝐟𝐚𝐜𝐢𝐥𝐢𝐭𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐦𝐨𝐧𝐭𝐡𝐥𝐲 𝐬𝐚𝐥𝐞𝐬 𝐭𝐚𝐱 𝐫𝐞𝐭𝐮𝐫𝐧 𝐚𝐥𝐥𝐨𝐰𝐢𝐧𝐠 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫𝐬 𝐭𝐨 𝐚𝐝𝐣𝐮𝐬𝐭 𝐢𝐧𝐚𝐝𝐦𝐢𝐬𝐬𝐢𝐛𝐥𝐞 𝐢𝐧𝐩𝐮𝐭 𝐭𝐚𝐱 𝐨𝐟 𝐩𝐫𝐞𝐯𝐢𝐨𝐮𝐬 𝐦𝐨𝐧𝐭𝐡𝐬.
This step will help businesses regularize past discrepancies where input tax may have been incorrectly claimed, particularly in situations such as:
🔹 𝐈𝐧𝐩𝐮𝐭 𝐭𝐚𝐱 𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐭𝐨 𝐞𝐱𝐞𝐦𝐩𝐭 𝐬𝐮𝐩𝐩𝐥𝐢𝐞𝐬

Let me explain it in simple terms.
1️⃣ 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐈𝐧𝐚𝐝𝐦𝐢𝐬𝐬𝐢𝐛𝐥𝐞 𝐈𝐧𝐩𝐮𝐭 𝐓𝐚𝐱?
In sales tax, businesses can claim input tax (tax paid on purchases) against output tax (tax charged on sales).
However, some input tax cannot legally be claimed. This is called inadmissible input tax.
𝐂𝐨𝐦𝐦𝐨𝐧 𝐞𝐱𝐚𝐦𝐩𝐥𝐞𝐬:
Input tax related to exempt supplies
Personal or non-business expenses

2️⃣ 𝐖𝐡𝐚𝐭 𝐏𝐫𝐨𝐛𝐥𝐞𝐦 𝐄𝐱𝐢𝐬𝐭𝐞𝐝 𝐁𝐞𝐟𝐨𝐫𝐞
Earlier, if a taxpayer mistakenly claimed extra input tax in previous months, it was difficult to correct it because:
Past returns were locked
Adjustment options were limited
This created compliance issues during audits.
3️⃣ 𝐖𝐡𝐚𝐭 𝐅𝐁𝐑 𝐇𝐚𝐬 𝐀𝐥𝐥𝐨𝐰𝐞𝐝 𝐍𝐨𝐰
Now FBR allows taxpayers to adjust inadmissible input tax of previous months in the current sales tax return.
This means you can:
✔ Reduce wrongly claimed input tax
✔ Adjust input tax related to exempt supplies
✔ Correct excess input tax claims made earlier
4️⃣ 𝐒𝐢𝐦𝐩𝐥𝐞 𝐄𝐱𝐚𝐦𝐩𝐥𝐞
Suppose:
January purchase input tax claimed = Rs. 100,000
Later you realize Rs. 30,000 relates to exempt supplies (not allowed)
Previously: difficult to fix.
𝐍𝐨𝐰:
In March return, you can adjust Rs. 30,000 as inadmissible input tax.
5️⃣ 𝐖𝐡𝐲 𝐅𝐁𝐑 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝 𝐓𝐡𝐢𝐬
Purpose is to:
Improve voluntary compliance
Allow self-correction
Reduce future penalties and audit issues
Make sales tax reporting transparent
゚viralfbreelsfypシ゚viral

3444 New Companies in just 01 month...

Compliance Alert!

Ensure your company’s audited financial statements are filed on time under Section 233 of the Companies Act, 2017.

📩 Income Tax Notices in Pakistan – Sections, Meaning & How to Respond
Receiving an income tax notice from the Federal Board of Revenue (FBR) does not always mean penalty or fraud. It often means clarification, reconciliation, or compliance verification is required.
Let’s understand the most common sections under the Income Tax Ordinance, 2001:
🔎 Section 114 – Return of Income
Meaning: Filing of annual income tax return is mandatory.
Applied When:
You are a registered taxpayer but haven’t filed your return.
You were required to file but failed to do so.
Requirement: Submit pending return with wealth statement.
Procedure:
Log in to IRIS portal
Complete return + wealth reconciliation
Pay tax (if any)
Submit before due date or in response to notice
📊 Section 122 – Amendment of Assessment
Meaning: FBR can amend your return if discrepancies are found.
Applied When:
Mismatch in withholding tax
Under-declared income
Incorrect claims
Requirement: Provide supporting documents (bank statements, invoices, contracts).
Procedure:
Review notice carefully
Prepare reconciliation
Submit reply with documentary evidence
Attend hearing if required
🧾 Section 176 – Notice to Obtain Information
Meaning: FBR requests books of accounts or financial records.
Applied When:
Audit selection
Suspicious transactions
Risk-based review
Requirement:
Books of accounts
Bank statements
Sales & purchase records
Procedure:
Organize complete records
Respond within given timeline
Submit through IRIS or appear before officer
🏦 Section 161 – Failure to Deduct/Deposit Withholding Tax
Meaning: Applied to withholding agents who failed to deduct or deposit tax.
Applied When:
Non-deduction of tax
Late deposit of withholding tax
Requirement:
Tax payment challans
Withholding statements
Procedure:
Calculate short deduction
Deposit tax + default surcharge
Submit compliance reply
⚠️ Important Points
✔️ Always respond within the deadline
✔️ Never ignore a notice
✔️ Keep proper documentation
✔️ Take professional consultation if required
Timely response = Avoid penalties + Maintain Active Filer Status.
If you need assistance regarding FBR notices, feel free to connect.
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On February 27, 2026, the Federal Constitutional Court (FCC) ruled that tax authorities may conduct raids under Section 175 of the Income Tax Ordinance, 2001 without prior notice or ongoing proceedings.

A three-member bench led by Justice Aamer Farooq dismissed a petition by M/s Sceptre Pvt Ltd challenging a Sindh High Court decision over a December 2025 ra_id.

The court held that “enforcement” implies a breach, granting broad powers to officials to inspect premises, records, and digital data anytime. It stressed that clear legislative language cannot be reinterpreted by courts.

Accounting Principles at one place ..

Victory for Women Entrepreneurs – 25% Tax Concession Now Operational

Women entrepreneurs can now avail a 25% tax concession in their income tax returns from Tax Year 2025 onwards.

Following the decision of the Federal Tax Ombudsman in Complaint No. 18986/PWR/IT/2025, the Federal Board of Revenue has formally implemented the order. The Director General IT & Digital Transformation, Inland Revenue, has notified the deployment of a dedicated tab in the income tax return for Clause 19, Part III, Second Schedule of the Income Tax Ordinance, 2001.

This practical step enables eligible women entrepreneurs to directly claim the concession in their returns and marks meaningful progress toward inclusive economic growth.

As per Companies Act 2017, Subsequent (Second) AGM must be held within how many days after the end of Financial year?
A) 30 DAYS
B) 45 DAYS
C) 120 DAYS
D) 180 DAYS

فضائے بدر پیدا کر
فرشتے تیری نصرت کو
اتر سکتے ہیں گردوں سے
قطار اندر قطار اب بھی

Which one is the missing Head of Taxable Income in Pakistan?

1. Salary
2. Income From Business
3. Income From other Sources
4. Income From Capital Gain
5. ?