Mr A has a bond of ABC Corporation Will his return from this-00187

Online Quiz This subjective question is related to the book/course vu cs001 Computer Proficiency License . It can also be found in vu cs001 Mid Term Solved Past Paper No. 3.

Question 1:

Mr. A has a bond of ABC Corporation. Will his return from this bond be affected by tax. Support your answer with reason.

Mr. B has a bond of that is issued by Government. Will his return from this bond be affected by tax. Support your answer with reason.

Answer:

Mr. A has a bond of ABC Corporation its rate of return will be affected by the tax because the reason is that it's include in its income that government will charge the tax from the income of the person and deducted tax as income tax.

Mr. B will in other case the income of the person will not be affected because the government will deduct the tax from the dividend that has to pay to its bond holder where that person do not have to pay further tax as a part .

A part of income tax where this situation is not faced by the first case.


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