Sie sind auf Seite 1von 22

www.vustudents.ning.

com
Paper 1 • Is an employee or official of the Federal Government or a Provincial
FINALTERM EXAMINATION Government posted abroad in the tax year?
Spring 2009
FIN623- Taxation Management (Session - 1) Question No: 8 ( Marks: 1 ) - Please choose one
For a non-resident AOP which of the following condition must be satisfied?
Question No: 1 ( Marks: 1 ) - Please choose one Control and management of affairs of AOP is situated partly in Pakistan
__________ is a type of tax where the tax rate increases as the income to Control and management of affairs of AOP is situated wholly in Pakistan
which Control and management of affairs of AOP is situated wholly or partly in
the rate is applied increases. Pakistan
Proportional tax None of the given options
Progressive tax Ref:Pg#27
Regressive tax Residential Status of “Association of Person”
Corporate tax Under the law a Firm, HUF, etc. are placed under the head AOP
Ref:Pg#3 Control and management of affairs of AOP is situated wholly or partly in
™ Progressive Taxes Pakistan.
This is based on the “capacity to pay” principle of taxation. In this type, the
rate of tax increase Question No: 11 ( Marks: 1 ) - Please choose one
asthe income increase. As part of remuneration package, a company provides for reimbursement of
telephone costs on actual basis to its employees in case the facility is used for
Question No: 2 ( Marks: 1 ) - Please choose one official purposes only, what are the tax consequences of this policy?
If the accounting year of Mr. Aslam, a rice exporter is started from 01 January Treated as taxable
2005 and ending on 31st December 2005. What will be its tax year? No tax consequences
Tax year 2003 Partially taxable
Tax year 2004 Not discussed in Income Tax Ordinance 2001
Tax year 2005 Ref:
Tax year 2006 Reimbursement of expenditure by the employer is Taxable

Question No: 3 ( Marks: 1 ) - Please choose one Question No: 14 ( Marks: 1 ) - Please choose one
In case of lump sum receipt of income like Golden hand shake the tax payer Clause (10) and (11) of Part 1 of second schedule related to Pension are
pays tax in which of the following way? omitted by which of the following?
Average of last 3 years tax rate Finance Ordinance 2004
Option to choose current or average of last 3 years tax rate Finance Ordinance 2005
Current tax rate Finance Bill 2006
Previous year tax rate Finance Bill 2007
Ref:Pg#59 Ref;Pg#87
Tax payer can opt to seek approval from CIT to charge lump sum twenty per cent of the eligible person’s taxable income for the relevant tax
payments received in a tax year at average tax rate of last three years. In year;Provided that an eligible person (words "a person" substituted by
this case average tax rate for last three years comes to 15%. So it is Finance Bill 2006)
advisable to opt for charging this amount as per procedure
prescribed above. Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following is the tax treatment for Income from property received
Question No: 5 ( Marks: 1 ) - Please choose one as a rent for the year 2007?
Suppose a Profit acquired by a cultivator from the sale of standing crops or 1 /4 of the rent is deduct able as repairs allowance
the produce after harvesting. The profit of the cultivator will be treated in which 1 /2 of the rent is deduct able as repairs allowance
of the following way? 1 /5 of the rent is deduct able as repairs allowance
Income from Business No deduction is allowed
Agriculture Income
Income from Property Question No: 16 ( Marks: 1 ) - Please choose one
Capital Gain A non adjustable advance is received from a building as income from property.
Ref:Pg#20 Such rent will be spread in how many of the following years?
Following Income are held to be “Agricultural Income” 5 years
•Profit on sale of standing crops or the produce after harvest by a 6years
cultivating owner or tenant of land. 8 years
10 years
Question No: 6 ( Marks: 1 ) - Please choose one Non adjustable advance is spread over ten years.
If person supplying water to the land for the purpose of growing rice in the
field and he charged money from the cultivator against the water supplied. Question No: 17 ( Marks: 1 ) - Please choose one
What will be the tax treatment of such income? Under clause (93 A) of the Part 1 of second schedule of Income Tax
Exempt as Agriculture Income Ordinance 2001, which of the following business income is exempted from
Allowed Reduction in tax rate tax?
Allowed reduction in tax liability Income of a Text-Book Board
Taxable as Non-Agriculture Income University or Educational Institution established not for profit purpose
Ref:Pg#19 Recognized Vocational Institute
Following Incomes are held to be “Non-Agricultural Income” Income of Recognized Sports Board
Income from sale of agricultural produce received by way of price for Ref:Pg#66
water supplied to land. (93A) Recognized Vocational Institute.

Question No: 7 ( Marks: 1 ) - Please choose one Question No: 18 ( Marks: 1 ) - Please choose one
Mr. Imran is an employee of Provincial Government of Punjab posted in UK Head Income from property section 15 defines land as:
for two years? What will be the residential status of Mr. Imran? Constructed building
Resident Individual Block of brick
Non-Resident Individual Vacant plot
Resident HUF None of the given options
Resident AOP Ref:Pg#17
Ref:Pg#126 • Income from Property (Section 15)
Resident Individual (Section 82) 􀀀 Use of land or building
􀀀 Occupation of land or building
www.vustudents.ning.com
􀀀 Right to use the land or building
Question No: 27 ( Marks: 1 ) - Please choose one
Question No: 19 ( Marks: 1 ) - Please choose one Which of the following is NOT required to file the return of Income Tax under
One of the following options doesn t come under the definition of Business section 115?
income section 2 (9): Every Company
Trade Every Firm
Commerce Every person with land 250 sq yards
Profession Salaried individual having salary certificate in lieu
Employment
Question No: 20 (Marks: 1) - Please choose one
Question No: 20 ( Marks: 1 ) - Please choose one Which of the following is NOT required to file the return of Income Tax under
Which one of the following section defines Income under the head Income section 115?
from Business section 18? ► Every Company
Section 2(9) ► Every Firm
Section 2(29) ► Every person with land 250 sq yards
Section 75 ► Orphan with age below 25
Section 2(15)
Question No: 17 ( Marks: 1 ) - Please choose one
Question No: 21 ( Marks: 1 ) - Please choose one Which of the following is NOT required to file the return of Income Tax under
Which of the following section deals with the deductions Not allowed to section 115?
income from business? ► Every Company
Section 2 (9) ► Every Firm
Section 20 ► Every person with land 250 sq yards
Section 21 ► Widow
Section 22
Ref:Pg#67 Question No: 28 ( Marks: 1 ) - Please choose one
Deductions not Allowed – Sec. 21 A person may furnish Revised Return from the date when the original return
was furnished up to which of the following time period?
Question No: 22 ( Marks: 1 ) - Please choose one 5 Days
Gain on sale of depreciable asset, under section 31 of the Income Tax 5 Months
Ordinance 2001, is charged to tax under which of the following head of 5 Years
Income? 15 Months
Income from Business Ref:Pg#99
Income from Property Provision of Revised Tax Return:
Income from Capital Gain A person may furnish Revised Return within five years of the date when
Income from Other sources the original return was furnished.

Question No: 23 ( Marks: 1 ) - Please choose one Question No: 29 ( Marks: 1 ) - Please choose one
Amount received after discontinuance of business, under section 31 of the A person where taxable income for a tax year exceeds the maximum amount
Income Tax Ordinance 2001, is charged to tax under which of the following not chargeable to tax is required to file a return of income for the tax year,
head of Income? presently this amount is:
Income from Business Rs.100, 000
Income from Property Rs.300, 000
Income from Capital Gain Rs.250, 000
Income from Other sources Rs.500, 000

Question No: 24 ( Marks: 1 ) - Please choose one Question No: 30 ( Marks: 1 ) - Please choose one
Which of the following is the tax rate that a Resident Company is subjected to Which of the following is NOT a liquidator under section 141 of the income tax
pay on its turnover for a tax year, even in cases where the company sustains ordinance 2001?
loss? Receiver appointed by a Court
0.25% Trustee for a bankrupt
0.50% Mortgagee in possession
0.75% Tax payer
1.00%
Ref:Pg#73 Question No: 31 ( Marks: 1 ) - Please choose one
Minimum Tax on Resident Companies Sec 113 Federal Tax Ombudsman has the same powers as _____________ to punish
Resident Company is subjected to minimum tax @ 0.50% of its turnover any person for its contempt.
for a tax year, even in cases where the company sustains loss. Supreme
High court
Question No: 25 ( Marks: 1 ) - Please choose one City court
The amount of minimum tax liability is arrived at as follows: Provincial Government
(A x 0.5%) B Ref:Pg#111
(A x B) 0.5% The Federal Tax Ombudsman has the same powers as the Supreme
(A + B) 0.5% Court has to punish any person for its contempt.
(A / 0.5%) B
Question No: 32 ( Marks: 1 ) - Please choose one
Question No: 26 ( Marks: 1 ) - Please choose one The office of Superintendent of Sales Tax, or such other office as the Board
In case of disposal of asset between spouses under an agreement to live may, by notification in the official Gazette, specify is called;
apart, what would be the tax treatment of such disposal of asset? Income tax office
Charged to tax under the head Income from Business Registered office
Charged to tax under the head Income from Capital Gain Local Sales Tax Office
Exempt from tax under section 79 of the Income Tax Ordinance 2001 None of the given options
Charged to tax under the head Income from Property
Ref:Pg#81 Question No: 33 ( Marks: 1 ) - Please choose one
Disposals Not Chargeable To Tax Under Sec.79 Non Recognition Rules Capital Value Tax was levied on the capital value of assets with effect from;
No gain or loss shall be taken to arise on the disposal of an asset: 1st July, 1989
ƒBetween spouses under an agreement to live apart; 1st June 1990
www.vustudents.ning.com
1st July 2000 Rate of tax=15.00%
1st July 1999
Ref: Question No: 36 ( Marks: 1 ) - Please choose one
Capital Value Tax was levied with effect from 1st July, 1989 on the capital Which of the following is the rate of tax for salaried Individuals for tax year
value of assets. 2009, where the taxable income exceeds Rs. 1,200,000 but does not exceed
Rs. 1,450,000?
Question No: 34 ( Marks: 1 ) - Please choose one ► 9.00%
A directorship or any other office involved in the management of a company ► 10.00%
under section 2(22) of Income Tax Ordinance, 2001 is termed as: ► 11.00%
Employment ► 12.50%
Employer
Employee Question No: 38 ( Marks: 1 ) - Please choose one
Business premises Which of the following is the rate of tax for salaried Individuals for tax year
2009, where the taxable income exceeds Rs. 400,000 but does not exceed
Question No: 127 (Marks: 1) - Please choose one Rs. 450,000?
Which of the following is the example of inclusive definition? 0.25%
* Appellate Tribunal 2(2) 1.50%
* Debt 2(15) 2.50%
- Employment 2(22) 3.50%
* Association of person 2(6) Ref:Pg# 125
Where the taxable income exceeds Rs. 400,000 but does not exceed Rs.
Question No: 3 ( Marks: 1 ) - Please choose one 450,000, Rate of tax=2.50%
2(22) of Income Tax Ordinance 2001 defined:
“Employment” includes: Question No: 231 (Marks: 1) - Please choose one
· a directorship or any other office involved in the management of a company; Which of the following is the rate of tax for salaried Individuals for tax year
· a position entitling the holder to a fixed or ascertainable remuneration; or 2010, where the taxable income exceeds Rs. 4,550,000 but does not exceed
· the holding or acting in any public office; Rs. 8,650,000?
In which criteria the above definition falls? 17.50%
► Exclusive definition 18.50%
► Inclusive definition 19.00%
► Both Exclusive and Inclusive definitions 20.00%
► Statutory definition Where the taxable income exceeds Rs. 4,550,000 but does not exceed Rs.
8,650,000,RATE IS 19.00%
Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following is the example of inclusive definition? Question No: 39 ( Marks: 1 ) - Please choose one
► Appellate Tribunal 2(2) Miss Sonia s total taxable income for the year 2009 is Rs. 240,000. Which of
► Debt 2(15) the following is the tax liability of Miss Sonia?
► Employment 2(22) Nil
► Association of person 2(6) Rs. 500
Rs. 1,000
Question No: 36 ( Marks: 1 ) - Please choose one Rs. 1,500
Mr. X non-resident of Pakistan earned income from property situated in Dubai Ref: Pg# 125
Rs. 70,000 but received in Pakistan. Which one of the following option is right Where the taxable income exceeds Rs. 180,000 but does not exceed Rs
for this particlar scenario? 250,000, the tax rate is 0.50%
Mr. X being non-resident of Pakistan Rs. 70,000 will be added in Gross So the tax amount will be 240000 @ 0.50% = 1200
total income
Mr. X being non-resident of Pakistan Rs. 70,000 will be subtracted in Gross Question No: 40 ( Marks: 1 ) - Please choose one
total income Mr. As total taxable income for the year 2009 is Rs. 600,000. Which of the
Mr. X being non-resident of Pakistan Rs. 70,000 will be claimed as admissible following is the tax liability of Mr. A?
deduction Rs. 15,000
Mr. X being non-resident of Pakistan Rs. 70,000 will be exempted Rs. 21,000
Rs. 27,000
Question No: 35 ( Marks: 1 ) - Please choose one Rs. 36,000
Which of the following is the rate of tax for salaried Individuals for tax year Ref:Pg# 125
2009, wh the taxable income exceeds Rs. 250,000 but does not exceed Rs. Where the taxable income exceeds Rs. 550,000 but does not exceed Rs.
350,000? 650,000, the tax rate is 4.50%
► Nil So 600,000 @ 4.50% = 27000
► 0.250%
► 0.50%
► 0.75% Paper 2
Ref:Pg# 125 FINALTERM EXAMINATION
Where the taxable income exceeds Rs. 250,000 but does not exceed Rs. Spring 2010
350,000, FIN623- Taxation Management (Session - 4)
Rate of tax=0.75%
Question No: 1 ( Marks: 1 ) - Please choose one
Question No: 37 ( Marks: 1 ) - Please choose one Mrs. Sara received a basic salary of Rs. 280,000 during the year ended
Which of the following is the rate of tax for salaried Individuals for tax year 30.06.2009. She received gratuity from the government of Sindh of Rs.
2009, where the taxable income exceeds Rs. 1,950,000 but does not exceed 21,600. What would be her tax payable?
Rs. 2,250,000? ► Rs. 1,938
► 9.00% ► Rs. 2,262
► 10.00% ► Rs. 140
► 12.50% ► Rs. 1,980
► 15.00%
Ref: Pg#45. Question No: 2 ( Marks: 1 ) - Please choose one
Where the taxable income exceeds Rs. 1,950,000 but does not exceed Which of the following canon of taxation suggests that there should not be any
Rs. arbitrariness or ambiguity in respect of amount of tax paid?
2,250,000, ► Capacity to Pay
www.vustudents.ning.com
► Certainty “Business includes any trade, commerce, manufacture, profession,
► Simplicity vocation but doesn’t include employment”
► Convenience
Question No: 14 ( Marks: 1 ) - Please choose one
Question No: 5 ( Marks: 1 ) - Please choose one 'Income is recorded when received and expenditure when paid', which one of
Any Income entitled to be received by a Company then entry of such amount the following accounting systems describe this statement?
will only be made in the books of accounts if: ► Cash basis accounting system
► Company maintaining its books of account on Cash basis ► Accrual basis accounting system
► Company maintaining its books of account on Accrual basis ► Both cash and accrual basis
► Company maintaining its books of account on Both Accrual and Cash basis ► None of the given options
► None of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
Question No: 6 ( Marks: 1 ) - Please choose one On Building (all types) the depreciation rate specified for the purposes of
Income Tax is charged on which of the following? section 22 shall be:
► Income of the current tax year ► 10%
► Income of the previous year ► 12%
► Income of the coming year ► 5%
► Any Receipt of money ► 20%
Question No: 8 ( Marks: 1 ) - Please choose one Ref:Pg#72
Pension is defined in which of the following schedule of the Income Tax Depreciation (Sec.22) Third Schedule Part 1
Ordinance 2001? Depreciation rates specified for the purposes of section 22 shall be:
► 2nd Schedule Part 1 Cl. (8) 1. Building (all types) 10%
► 2nd Schedule Part 1 Cl. (24)
► 2nd Schedule Part 2 Cl. (22) Question No: 16 ( Marks: 1 ) - Please choose one
► 1st Schedule of Part 2 Cl. (20) Section 22(15) defines depreciable asset means:
Ref: ► Any tangible movable property
Page#52 Any payment in the nature of commutation of pension [Clause ► Any tangible immovable property (other than unimproved land)
(12), Part I, 2nd ► Structural improvement to immovable property
Schedule] is Exempt from tax: ► All of the given options

Question No: 9 ( Marks: 1 ) - Please choose one Question No: 18 ( Marks: 1 ) - Please choose one
Resident Person (Section 81) includes which of the following? The salary received from the UK Government by Mr. Amir resident of
► Resident Individual & Association of Persons Pakistan. Which section of the income tax ordinance explains his tax
► Resident Company treatment of such salary?
► Federal Government ► Section 110
► All of the given options ► Section 101
► Section 102
Question No: 10 ( Marks: 1 ) - Please choose one ► Section 50
Which part of income is charged to tax of resident person under the income Ref:Pg#31
tax ordinance 2001? Foreign Source Salary of Resident Individuals Sec. 102
► Pakistani source of income (1) Any foreign-source salary received by a resident individual shall be exempt
► Foreign source of income from tax if the individual has paid foreign income tax in respect of the salary.
► Both Pakistan and foreign source of income PAGE#31
► None of the given option
Question No: 19 ( Marks: 1 ) - Please choose one
Question No: 11 ( Marks: 1 ) - Please choose one Revision of return can be made on an application made by the tax payer
____________ means a fixed place of business through which the business relating to issuance of an exemption, by which of the following authorities?
of an enterprise is wholly or partly carried on. ► Income Tax Officer
► Franchise ► Assistant Controller of Income tax
► Permanent establishment ► Deputy Controller of Income tax
► Small Business Units SBU ► Regional Commissioner of Income tax
► Venture Ref: page101
(page 29) Permanent establishment in relation to a person, means a Revision by the Regional Commissioner Sec 122 B
fixed place of business through which the business of the person is Revision can be made by RCIT at his own or on an application made by
wholly or partly carried on, the tax payer relating to issuance of an exemption or lower rate
certificate with regard to collection or deduction of tax at source.
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following is the general definition of tax? Question No: 20 ( Marks: 1 ) - Please choose one
► Compulsory contribution of wealth by persons Appeal to CIT (appeals) shall be filed in which of the following manner?
► Optional contribution of wealth by persons ► On prescribed form
► Compulsory contribution of wealth by state ► On plane paper
► Optional contribution of wealth by state ► On stamped paper
Ref:Pg#1 ► Legal documents
General Definition of Tax: Ref: Pg#108
General compulsory contributions of wealth levied upon persons by the Appeal shall be filed:
state, to meet the expensesincurred in providing common benefits upon i In prescribed form
the residents ii Verification
iii Grounds of appeal
Question No: 13 ( Marks: 1 ) - Please choose one iv Prescribed fee
Which one of the following section defines ‘Income’ under the head Income v Within 30 days of the date of service of the order against which appeal is
from Business section 18? filed.(108)
► Section 2(9)
► Section 2(29) Question No: 23 ( Marks: 1 ) - Please choose one
► Section 75 Which of the following is included in the assessment order by commissioner?
► Section 2(15) ► Taxable Income
Ref:Pg#66 ► Tax Due
Business Defined Section 2(9) ► Amount of Tax Paid
www.vustudents.ning.com
► All of the given options Mr. Ali received a basic salary of Rs. 20,000 per month during the year ended
30.06.2009. During the year domestic bills of water, telephone and electricity
Question No: 24 ( Marks: 1 ) - Please choose one amounting to Rs. 6,000, 12,000, and 9,600 were paid by his employer
In Sales Tax Act "Zero - rated supply" means a taxable supply which is respectively. What would be his taxable income?
charged to tax at the rate of zero per cent define under ► Rs. 240,000
► Section 4 ► Rs. 267,600
► Section 5 ► Rs. 270,000
► Section 6 ► Rs. 289,800
► Section 22
Ref page #117 Question No: 32 ( Marks: 1 ) - Please choose one
(48) "Zero - rated supply" means a taxable supply which is charged to Mr. Saleem received a basic salary of Rs. 10,000 per month during the year
tax at the rate of zero percent under section 4 ended 30.06.2009. During the year his employer provided the services of a
driver and a housekeeper. The company paid Rs. 4,000 per month to each of
Question No: 25 ( Marks: 1 ) - Please choose one these employees. What would be his taxable income?
Mr. Kishan Kumar during his yearly tour in Pakistan spends 155 working days, ► Rs. 120,000
26 off-working days 1 strike day and 1 Public Holiday in a tax year 2008-09? ► Rs. 186,000
What will be the status of the individual? ► Rs. 216,000
► Resident Individual ► Rs. 244,500
► Non Resident Individual
► Resident Person Question No: 33 ( Marks: 1 ) - Please choose one
► Resident HUF The basic salary of Mr. Ghauri (a salaried person) during the year 30.06.2009
Ref: His total stay in Pakistan is of 183 days , so he is resident is Rs. 445,000. He paid Zakat under Zakat Ordinance of Rs. 8,000 and
individual. received commission of Rs. 24,000. What will be his taxable income?
► Rs. 429,000
Question # 14 of 15 ( Start time: 03:18:36 AM ) Total Marks: 1 ► Rs. 437,000
Mr. Kishan Kumar during his yearly tour in Pakistan spends 156 working days, ► Rs. 461,000
26 offworking days and 1 Public Holiday in a tax year 2009-2010? Which of ► Rs. 469,000
the following is his residential status?
Select correct option: Question No: 38 ( Marks: 1 ) - Please choose one
Resident Individual Mr. Sadiq received a salary of Rs. 200,000 during the year ended 30.06.2009.
Non Resident Individual His MTS is (Rs. 200,000-5,000-300,000). He has received medical allowance
Resident Person and facility of interest free loan from his employer of Rs. 10,000 per month
Resident HUF and Rs. 900,000 respectively. What would be his tax payable?
► Rs. 1,987.5
Question No: 26 ( Marks: 1 ) - Please choose one ► Rs. 2,535
Mr. Zeeshan during his yearly tour in Pakistan spends 180 working days and ► Rs. 107,500
in a tax year 2008- ► Rs. 134,200
09? What will be the status of individual?
► Resident Individual Question No: 39 ( Marks: 1 ) - Please choose one
► Non-Resident Individual Mr. Shafqat received a basic salary of Rs. 350,000 during the year ended
► Resident Person 30.06.2009. His company maintained car for personal and official use. The
► Resident HUF cost of the vehicle is Rs. 880,000.What would be his tax payable?
His total stay in Pakistan is less than 183 days , so he is non resident ► Rs. 1,030
individual as per income tax ordinance section 81. ► Rs. 5,910
► Rs. 10,950
Question No: 27 ( Marks: 1 ) - Please choose one ► Rs. 135,300
Which of the following is the rate of tax for AOP for tax year 2009, where the
taxable income exceeds Rs. 100,000 but does not exceed Rs. 110,000? Question No: 34 ( Marks: 1 ) - Please choose one
► 0% Mr. Shafqat received a basic salary of Rs. 200,000 during the year ended
► 0.25% 30.06.2009. He has received lunch facility, cost of living allowance and adhoc
► 0.50% relief of Rs. 6,000, 50,000, and 7,800 respectively. What would be his tax
► 0.75% payable?
► Rs. 1,030
Question No: 28 ( Marks: 1 ) - Please choose one ► Rs. 1,039
Which of the following is the rate of tax for AOP for tax year 2009, where the ► Rs. 1,069
taxable income exceeds Rs. 125,000 but does not exceed Rs. 150,000? ► Rs. 1,978.5
► 0.50%
► 0.75% Question No: 40 ( Marks: 1 ) - Please choose one
► 1.00% A retailer whose value of supplies in any period during the last twelve months
► 2.00% ending any tax period exceeds_______ are required to be registered under
the Sales Tax Act 1990;
Question No: 29 ( Marks: 1 ) - Please choose one ► Forty million rupees
Which of the following is the Rate of Tax for dividend received from power ► Twenty million rupees
Generation Company for Tax Year 2009? ► Ten million rupees
► Nil ► Five million rupees
► 2.5% Ref:Pg#118
► 5% A retailer whose value of supplies in any period during the last twelve
► 7.5% months ending any tax period exceeds twenty million rupees;

Question No: 30 ( Marks: 1 ) - Please choose one Question No: 42 ( Marks: 1 ) - Please choose one
Which one of the following is not the feature of Sales Tax? Statutory Provident Fund is governed by which one of the following?
► Indirect tax ► Finance Act 2006
► Broad based ► Insurance Act 1969
► Elastic/ Flexible ► Provident Funds Act 1925
► None of the given options ► Finance Bill 2007
Ref:Pg#60
Question No: 31 ( Marks: 1 ) - Please choose one
www.vustudents.ning.com
Statutory Provident Fund, governed by the Provident Funds Act, 1925 ► Load
(GP Fund). ► Relieve

Question No: 44 ( Marks: 1 ) - Please choose one Question No: 3 ( Marks: 1 ) - Please choose one
Mrs. Waseem has rented out her house at Rs. 15,000 per month. As per rent Sec. (11A) of Income Tax Ordinance 2001 defined:
deed she has received an amount of Rs. 75,000 as advance, which is non Charitable purpose includes relief of the poor, education, medical relief and
adjustable against rent. What would be the amount of rent chargeable to tax the advancement of any other object of general public utility.
where the fair market rent is Rs. 100,000? In which criteria the above definition falls?
► Rs. 90,000 ► Exclusive definition
► Rs. 1,87500 ► Inclusive definition
► Rs. 92,400 ► Both Exclusive and Inclusive definitions
► Rs. 1,200 ► Statutory definition

Question No: 45 ( Marks: 1 ) - Please choose one Question No: 4 ( Marks: 1 ) - Please choose one
Mr. Waqas is a practicing chartered accountant. He has received audit fees of Which of the following is the mutual example of both inclusive and exclusive
Rs. 300,000 and the examiner’s fees of Rs. 2,000. During tax year 2009 he definitions?
has made membership and certificate expenses of Rs. 500. What will be his ► Appellate Tribunal 2(2)
income from profession? ► Banking Company 2(7)
► Rs. 198,834 ► Association of Person 2(6)
► Rs. 301,500 ► Employment 2(22)
► Rs. 297,500
► Rs. 298,500 Question No: 5 ( Marks: 1 ) - Please choose one
300,000+2000-500=301,500 Which of the following is the Special Accounting Year of Sugar Companies?
► 1st January to 31st December
Question No: 46 ( Marks: 1 ) - Please choose one ► 1st July to 30th June
M/s. RST filed tax return for tax year 2009, declaring taxable income as Rs. ► 1st October to 30th September
1,135,000 made payments in execution of a contract for purchase of office ► 1st September to 31st August
appliances Rs. 250,000. What will be the tax payable of the company? Ref:Pg#11
► Rs. 100,000 Companies manufacturing Sugar , 1st October to 30th September
► Rs. 150,000
► Rs. 300,000 Question No: 6 ( Marks: 1 ) - Please choose one
► Rs. 484,750 Suppose a Profit acquired by a cultivator for produce after harvesting.
Calculation: Tax Liability The profit of the cultivator will be treated in
1135000+250,000=1,385000*35%=484,750 ► Income from Business
► Agriculture Income
Question No: 47 ( Marks: 1 ) - Please choose one ► Income from Property
Mr. Qasim received income from business of Rs. 107,000. He has received ► Capital Gain
gain on sale of residential house of Rs. 140,000. What will be his taxable
income? Question No: 7 ( Marks: 1 ) - Please choose one
► Rs. 50,000 Suppose due to hailstorm damages caused to crops that was insured against
► Rs. 300,000 Insurance policy.The compensation received from an insurance company for
► Rs. 107,000 damages caused by hailstorm. What will be the tax treatment of such amount
► Rs. 100,000 received?
Question No: 371 (Marks: 1) - Please choose one ► Income from Business
Mr. Qasim received income from business of Rs. 6,107,000. He has received ► Exempt as Agriculture Income
gain on sale of residential house of Rs. 140,000. What will be his taxable ► Income from Property
income? ► Capital Gain
* Rs. 50,000 Ref:Pg#20
* Rs. 300,000 Following Income are held to be “Agricultural Income”
- Rs. 6,107,000 •Compensation received from an insurance company for danger caused
* Rs. 100,000 by hailstorm or another natural calamity to crops or agricultural
produce.
Question No: 48 ( Marks: 1 ) - Please choose one
Mr. Jamil has received income from poultry farm of Rs. 645,000 and gain on Question No: 9 ( Marks: 1 ) - Please choose one
sale of shares of private company Rs. 136,000 where the shares were Salary income received by resident person from Federal Government of Pak
disposed off after 12 months. The capital loss amounted to Rs. 15,000 was is in UK belongs to which of the following?
reported. What will be his taxable income? ► Pakistani source of Income
► Rs. 566,000 ► Foreign source of income
► Rs. 694,000 ► Both Pakistan and foreign source of income
► Rs. 732,000 ► None of the given option
► Rs. 776,000
Question No: 10 ( Marks: 1 ) - Please choose one
Paper 3 Mr. Khan resident of Pakistan received salary from UK? His salary will be
FINALTERM EXAMINATION included in which of the following?
Spring 2009 FIN623- Taxation Management (Session - 2) ► Pakistan source income
► Foreign source income
Question No: 1 ( Marks: 1 ) - Please choose one ► Both Pakistan and foreign source income
Taxes are important instrument of which one of the following policy? ► None of the given options
► Monetary policy
► Fiscal policy Question No: 16 ( Marks: 1 ) - Please choose one
► Trade Policy Rental income earned is taxable on a net income basis that is, after deduction
► Economic Policy of tax admissible expenditure and allowances from gross rent, for up to Tax
Taxes are important instrument of Fiscal Policy. PG#1 year:
Question No: 2 ( Marks: 1 ) - Please choose one ► 2007
Which of the following is opposite to the literal meanings of Tax? ► 2008
► Burden ► 2006
► Strain ► 2005
www.vustudents.ning.com
► Section 23 A
Question No: 17 ( Marks: 1 ) - Please choose one ► Section 24
Debt means "any amount owing", than which one of the following doesn't
cover by the definition Question No: 25 ( Marks: 1 ) - Please choose one
of Debt under section 2(15)? A-B
► Accounts payable From the above formula the value 'B' represents which of the following?
► Promissory notes ► Consideration received on disposal of the capital asset
► Bills of exchange ► Cost of the asset
► None of the given options ► Amount of Depreciation
► Market value of the Capital asset
Question No: 18 ( Marks: 1 ) - Please choose one Ref:Pg#69
What is the tax treatment for any fine or penalty paid or payable by the person Computation of Capital Gain
for the violation of any law, rule or regulation? Capital gain shall be computed in accordance with following formula:
► Deducted as per section 20 A-B
► Not allowed to be deducted as per section 21 o A is the consideration received by the person on disposal of the
► Deducted as per section 21 capital asset
► Not allowed to be deducted as per section 22 o B is the cost of the asset
Ref:Pg#67
Deductions not Allowed – Sec. 21 Question No: 26 ( Marks: 1 ) - Please choose one
Any fine or penalty paid or payable by the person for the violation of any Income from Dividends charged to tax under which of the following heads of
law, rule or regulation Income?
► Income form Property
Question No: 19 ( Marks: 1 ) - Please choose one ► Income from Business
Which section defines 'Speculation business' under head Income from ► Income from Capital Gain
business? ► Income from Other Sources
► Section 20 Ref:Pg#83
► Section 19 Some types covered under the head ‘Income from other Sources’
► Section 24  Income from Dividends
► Section 18  Income from Royalty
Ref:Pg#66  Profit on debt
Speculation Business shall be charged under the head income from
business (Separate Treatment)….Treatment of Speculation Business Question No: 27 ( Marks: 1 ) - Please choose one
(Sec 19): Appeal to the collector of sales tax may be filed within which of the period?
► 60 days
Question No: 20 ( Marks: 1 ) - Please choose one ► 90 days
Which of the following is the rate of amortization of pre-commencement ► 180 days
expenditure under section 25 of the income tax ordinance 2001? ► 30 days
► 10% Ref:Pg#120
► 20% Appeal to collector of Sales Tax (Appeals) Sec 45 b
► 30% Appeal may be filed by any person other than officer of sales tax within
► 50% 30 days of the date of receipt of such decision or order against which
Ref:Pg#130 appeals is proffered.
The rate of amortization of pre-commencement expenditure under
section 25 shall be 20%. Question No: 30 ( Marks: 1 ) - Please choose one
In relation to any registered person means the tax charged under the Sales
Question No: 21 ( Marks: 1 ) - Please choose one tax Act in respect of a supply of goods made by that person and shall include
A/B duties of excise chargeable under section 3 of the Central Excises Act, 1944 (I
The above formula is for the calculation of Amortization deduction allowed of 1944) is known as;
under secti 24. ► Output tax
Which of the following is the value of A? ► Input tax
► Normal useful life of intangible ► Income tax
► Book value of intangible ► Wealth tax
► Cost of intangible
► Sale price of intangible Question No: 31 ( Marks: 1 ) - Please choose one
Ref:Pg#68 Capital value tax is levied on which of the following?
Amortization deduction allowed as under ► Capital gain
A/B ► Gross profits
Where ► Capital value of asset
A is the cost of intangible; and ► Intangible assets
B is normal useful life of intangible Ref:Pg#121
Capital Value Tax was levied with effect from 1st July, 1989 on the capital
Question No: 22 ( Marks: 1 ) - Please choose one value of assets.
Turnover from all sources Rs.50, 000,000
Tax liability (due to loss or exemption from tax) = Nil Question No: 32 ( Marks: 1 ) - Please choose one
What will be the minimum tax to be paid at 0.5% of turnover? Mr. X employed in Pakistan remittance from USA received Rs. 10,000 in
► Rs.300, 000 Pakistan from past profits. Which of the following is right for the above
► Rs.200, 000 scenario?
► Rs.250, 000 ► Mr. X being resident of Pakistan Rs. 10,000 will be added in Gross total
► Rs.100, 000 income
Ref: ► Mr. X being resident of Pakistan Rs. 10,000 will be Subtracted in Gross
Tax payable=50,000,000*0.5%=250,000 total income
► Mr. X being non-resident of Pakistan Rs. 10,000 will be added in Gross
Question No: 24 ( Marks: 1 ) - Please choose one total income
Which section define this 'Income tax depreciation is admissible only in ► Remittance is not income hence it is not included
respect of depreciable assets'.
► Section 22(15) Question No: 37 ( Marks: 1 ) - Please choose one
► Section 22 (11) Statutory Provident Fund is governed by:
www.vustudents.ning.com
► Finance Act 2006 Spring 2010
► Insurance Act 1969 FIN623- Taxation Management
► Provident Funds Act 1925
► None of the given options appetence Question No: 1 ( Marks: 1 ) - Please choose one
Ref:Pg#60 Which of the following is not an employment tax?
Types: ► Social Security Tax
• Statutory Provident Fund, governed by the Provident Funds Act, 1925 ► Federal Excise Tax
(GP Fund) ► Federal unemployment compensation tax
► State unemployment compensation tax
Question No: 38 ( Marks: 1 ) - Please choose one
What will be the tax liability of an individual who has received an income Question No: 2 ( Marks: 1 ) - Please choose one
of Rs. 470,000 under the head income from property? How many Sections are included in the Income Tax Ordinance 2001?
► Rs.17,750 ► 340 sections
► Rs. 23,500 ► 440 sections
► Rs. 47,000 ► 140 sections
► Rs. 70,500 ► 240 sections
Ref:
Question No: 39 ( Marks: 1 ) - Please choose one Page#5
Any salary paid or payable exceeding paid other than by a crossed Basic Features of Income Tax Ordinance 2001
cheque or direct transfer of funds to the employee's bank account is not Scheme of the Ordinance is given below:
allowed to deduct under section 21 of the ordinance.  There are thirteen chapters
► Five thousand rupees per month Chapters are divided into:
► Ten thousand rupees per month Parts &
► Fifteen thousand rupees per year Divisions
► Two hundred thousand rupees per year There are 240 Sections
Ref:Pg#67
Deductions not Allowed – Sec. 21 Question No: 3 ( Marks: 1 ) - Please choose one
Any salary paid or payable exceeding [ten] thousand rupees per month How many Schedules are contained in the Income Tax Ordinance 2001?
other than by a crossed cheque or direct transfer of funds to the ► Three Schedule
employee’s bank account; and ► Fifth Schedule
► Seven Schedules
Question No: 40 ( Marks: 1 ) - Please choose one ► Nine Schedules
Which of the following is the rate of tax for AOP for ta income exceeds Rs.
100,000 but does not exceed Rs. 180,000? Question No: 4 ( Marks: 1 ) - Please choose one
►0% Section 2(13) of Income Tax Ordinance 2001 defined:
►0.25% “Commissioner” means a person appointed as a Commissioner of Income
►0.50% Tax under section 208, and includes a taxation officer vested with all or any of
► 0.75% the powers, and functions of the
Ref:Pg#75 Commissioner;
Where the taxable income does not exceed Rs. 180,000, In which criteria the above definition falls?
Rate of Tax=0% ► Exclusive definition
► Inclusive definition
Question No: 41 ( Marks: 1 ) - Please choose one ► Both Exclusive and Inclusive definitions
What is the tax rate of Banking companies for the ► Statutory definition
► 35%
► 44% Question No: 5 ( Marks: 1 ) - Please choose one
► 54% Which of the following is the Special Accounting Year of Insurance
► 42% Companies?
Ref:It ordinance 2010 ► 1st January to 31st December
The rates of tax imposed on the taxable income of a company shall be as set ► 1st July to 30th June
out in the following table, namely:– TABLE ► 1st October to 30th September
Banking company = 50% ► 1st September to 31st August
Public company, other than a banking company. =35% Ref:
Private company, other than a banking company. =45% Page#11 All Insurance Companies 1st January to 31st December

Question No: 42 ( Marks: 1 ) - Please choose one Question No: 6 ( Marks: 1 ) - Please choose one
Amount of Capital value tax for the year 2009 for a motor vehicle, not Certain incomes those are excluded from tax are called as:
exceeding 850 cc,should be which of the following? ► Perquisites
􀀀 Rs. 3,500 ► Exemptions
􀀀 Rs. 7,500 ► Allowances
􀀀 Rs. 8,500 ► Deductions
􀀀 Nil
Question No: 9 ( Marks: 1 ) - Please choose one
Ref:Pg#122 Date for the exemption limit for Foreign Currency Account (FCA) under Clause
Capital Value Tax shall be payable on purchase of motor vehicles, not 80 of the Part I
previously used in Pakistan, at the following rates: of Second Schedule is available to which of the following?
Motor vehicle of an engine capacity Amount of Tax ► 16 December 1999
Up to 850cc =Rs. 7,500 ► 16 November 1999
851cc to 1000cc =Rs. 10,500 ► 16 July 2001
1001cc to 1300cc= Rs. 16,875 ► 1st July 2002
1301cc to 1600cc =Rs. 16,875
1601cc to 1800cc =Rs. 22,500 Question No: 11 ( Marks: 1 ) - Please choose one
1801cc to 2000cc =Rs. 16,875 Which of the following days shall be counted as whole day for the computation
Above 2000cc= Rs. 50,000 of residential status of an individual?
Paper 4 ► A public holiday
► A day of sick leave
FINALTERM EXAMINATION ► Any strike day
www.vustudents.ning.com
► All of the given options ► Gross profits
Ref: ► Capital value of asset
Following days shall be counted as whole day: ► Intangible assets
• A Public Holiday Ref:
• A day of leave including sick leave Capital Value Tax was levied with effect from 1st July, 1989 on the
• A day that individual’s activity is stopped because of strike etc capital value of assets.
• A holiday spent in Pakistan
Question No: 27 ( Marks: 1 ) - Please choose one
Question No: 12 ( Marks: 1 ) - Please choose one What will be the tax liability of an individual who has received an income of
Rental income shall be Pakistan-source income if it is derived from: Rs. 470,000 under the head income from property?
► The lease of immovable Property in Pakistan ► Rs.17,750
► The lease of immovable Property outside Pakistan ► Rs. 23,500
► The lease of immovable Property both in and out of Pakistan ► Rs. 47,000
► None of the given options ► Rs. 70,500
Ref:
Question No: 13 ( Marks: 1 ) - Please choose one Hence tax payable = 470,000 x 5% = Rs 23,500
Pension received by Mr. John through permanent establishment in Pakistan is Tax on initial 400,000 Rs. 12,500
belonging to which of the following? Tax on balance of Rs. 70,000 Rs. 5,250
► Pakistani source of Income Tax thereon: Rs. 17,750
► Foreign source of income
► Both Pakistan and foreign source of income Question No: 28 ( Marks: 1 ) - Please choose one
► None of the given option A retailer whose value of supplies in any period during the last twelve months
ending any tax period exceeds_______ are required to be registered under
Question No: 15 ( Marks: 1 ) - Please choose one the Sales Tax Act 1990;
Rental income earned is taxable on a net income basis that is, after deduction ► Forty million rupees
of tax admissible expenditure and allowances from gross rent, for up to Tax ► Twenty million rupees
year: ► Ten million rupees
► 2007 ► Five million rupees
► 2008 Ref:pg#118
► 2006 A retailer whose value of supplies in any period during the last twelve
► 2005 months ending any tax period exceeds twenty million rupees;

Question No: 17 ( Marks: 1 ) - Please choose one Question No: 29 ( Marks: 1 ) - Please choose one
Rates of depreciation is prescribed in which of the following part of third Mr. Amjad (employed by Federal Government) received a basic salary of Rs.
schedule of the Income 100,000 during the year ended 30.06.2009. He received leave encashment
Tax Ordinance: amounting to Rs. 12,000 per month and the special allowance @ 25% which
► Part II is Rs. 8,400 per month. What would be his taxable income?
► Part III ► Rs. 50,000
► Part I ► Rs. 100,000
► None of the given options ► Rs. 200,800
► Rs. 244,000
Question No: 18 ( Marks: 1 ) - Please choose one
Which section define this ‘Income tax depreciation is admissible only in Question No: 30 ( Marks: 1 ) - Please choose one
respect of depreciable assets'. Mr. Shahmeer has a gross tax of Rs. 97,200 and taxable income of Rs.
► Section 22(15) 972,000 during the year ended 30.06.2009. He has invested shares in public
► Section 22 (11) company of Rs. 120,000 and donated to Mayo Hospital Rs. 30,180. What
► Section 23 A would be the amount of average relief?
► Section 24 ► Rs. 12,738
► Rs. 3,018
Question No: 19 ( Marks: 1 ) - Please choose one ► Rs. 9,720
Profit on debt charged to tax under which of the following heads of Income? ► Rs. 12,000
► Income form Property 30,180*10%=3,018
► Income from Business
► Income from Capital Gain Question No: 32 ( Marks: 1 ) - Please choose one
► Income from Other Sources Salary is the first head or source of income mentioned in which of the
following sections of the Income Tax Ordinance 2001?
Question No: 21 ( Marks: 1 ) - Please choose one ► Section 12
Appeal to the collector of sales tax may be filed within which of the following ► Section 34
time period? ► Section 20
► 60 days ► Section 85
► 90 days
► 180 days Question No: 33 ( Marks: 1 ) - Please choose one
► 30 days Mr. Zahoor received a basic salary of Rs. 10,000 per month during the year
ended 30.06.2009. He has received rent free unfurnished accommodation by
Question No: 24 ( Marks: 1 ) - Please choose one his employer. He was entitled to receive rent @ Rs. 4,000, per month, if this
In relation to any registered person means the tax charged under the Sales accommodation was not provided to him. What would be his tax payable?
tax Act in respect of a supply of goods made by that person and shall include ► Nil
duties of excise chargeable under section ► Rs. 133,980
3 of the Central Excises Act, 1944 (I of 1944) is known as; ► Rs. 195,000
► Output tax ► Rs. 210,000
► Input tax Basic salary (10,000 *12) 120,000
► Income tax rent free unfurnished accommodation(4000*12% = 48000)
► Wealth tax Or
45% of basic salary ( 120000*45%= 54000) 54,000________
Question No: 26 ( Marks: 1 ) - Please choose one Tax payable 174,000
Capital value tax is levied on which of the following? Where the taxable income does not exceed Rs. 180,000, 0%
► Capital gain
www.vustudents.ning.com
Question No: 35 ( Marks: 1 ) - Please choose one Mr. Mohsin during the year ended 30th June 2009 received a net profit of Rs.
Mr. Asif received a salary of Rs. 200,000 during the year ended 30.06.2009. 250,000. He has maintained a reserve for meeting contingent liability. The
His MTS is (Rs. 55,000-5,000-70,000). He has received medical allowance maintenance cost him Rs. 25,000 and he has paid for purchase of goodwill
and facility of interest free loan from his employer of Rs. 10,000 per month Rs. 30,000. What will be his income from profession?
and Rs. 900,000 respectively. What would be his tax payable? ► Rs. 170,000
► Rs. 1,987.5 ► Rs. 230,000
► Rs. 2,535 ► Rs. 255,000
► Rs. 107,500 ► Rs. 330,000
► Rs. 134,200 net profit = Rs. 250,000
maintained cost a reserve for meeting = Rs. 25,000
Question No: 36 ( Marks: 1 ) - Please choose one paid for purchase of goodwill= Rs. 30,000
In case, general provident is approved by Govt. or a local authority or a income from profession= Rs. 255,000
statutory body under clause 13 (i) of the Income Tax Ordinance 2001 then
what will be the treatment of such Gratuity fund? Question No: 43 ( Marks: 1 ) - Please choose one
► Wholly exempt Mr. Jamil an engineer has received consultancy fee of Rs. 385,000. He has
► Exempt up to Rs. 100,000 paid design and draft related salaries and site supervisors Rs. 45,000 and Rs.
► Exempt up to Rs. 200,000 and exceeding amount will be charged as salary 36,000 respectively. What will be his income from profession?
► 50% of the amount receivable or Rs. 75,000 whichever is less ► Rs. 304,000
Page#49 In the case of an employee of the Government, a local authority, a ► Rs. 394,000
statutory body or corporation established by any law for the time being in ► Rs. 376,000
force, the amount receivable in accordance with the rules and conditions of ► Rs. 466,000
the employee’s services; Consultancy fee= Rs. 385,000
Paid design and draft related salaries= Rs. 45,000
Question No: 37 ( Marks: 1 ) - Please choose one site supervisors= Rs. 36,000
Mr. Afsar received a basic salary of Rs. 900,000 during the year ended Income from profession=
30.06.2009. He has received dividend income of Rs. 15,000 and verifiable
personal medical expenses of Rs. 20,000. Question No: 44 ( Marks: 1 ) - Please choose one
What would be his tax payable? Mrs. Mazhar during the year ended 30th June 2009 received salary of Rs.
► Rs. 67,500 80,000 per month. She has received income from fish catching business of
► Rs. 84,150 Rs. 30,000. What will be her income from profession?
► Rs. 82,800 ► Rs. 50,000
► Rs. 82,350 ► Rs. 110,000
► Rs. 990,000
Question No: 38 ( Marks: 1 ) - Please choose one ► Rs. 960,000
The taxable income of Mr. Sabahat is Rs. 460,400 during the year ended 80,000*12=960,000
30.06.2009. He has received an interest free loan of Rs. 100,000 at which the
employer charged interest at a rate of Question No: 45 ( Marks: 1 ) - Please choose one
12%. What would be his tax payable? M/s Junior during the year ended 30th June 2009 received a net profit of Rs.
► Rs. 16,534 139,400. The income tax as per P&L account is worth Rs. 2,500 and loss by
► Rs. 460,400 embezzlement of Rs. 5,000. What will be the tax payable of the company?
► Rs. 472,400 ► Rs. 785,000
► Rs. 560,400 ► Rs. 51,415
► Rs. 730,000
Question No: 39 ( Marks: 1 ) - Please choose one ► Rs. 725,000
Mr. Sufyan has rented out his house at Rs. 80,000 per month. As per rent
deed he has received an amount of Rs. 150,000 as advance, which is non Question No: 47 ( Marks: 1 ) - Please choose one
adjustable against rent. What would be the amount of rent chargeable to tax? Mr. Sabir received income from business of Rs. 107,000. He has received
► Rs. 40,000 profit on encashment of Defence Saving Certificates of Rs. 10,000. What will
► Rs. 975,000 be his income from profession?
► Rs. 73,000 ► Rs. 300,000
► Rs. 100,800 ► Rs. 200,000
► Rs. 107,000
Question No: 40 ( Marks: 1 ) - Please choose one ► Rs. 192,000
Mr. Tareen let out a house at the monthly rent of Rs. 150,000 and received a
deposit of Rs. 65,000 not adjustable against the rent. What would be his tax Question No: 48 ( Marks: 1 ) - Please choose one
payable? Mrs. Gilani has received basic salary of Rs. 300,000 during the tax year 2009.
► Rs. 3,250 She has received matured Defence Saving Certificates of Rs. 80,000 of which
► Rs. 325 70,000 were encashed. What will be his taxable income?
► Rs. 92,400 ► Rs. 960,000
► Rs. 215,000 ► Rs. 110,000
► Rs. 50,000
Question No: 41 ( Marks: 1 ) - Please choose one ► Rs. 310,000
Mr. Liaqat during the year ended 30th June 2009 received a net profit of Rs. 80,000-70,000=10,000
60,000. He has received profit on sale of investments of Rs. 10,000 and 300,000+10,000=310,000
interest on government securities of Rs. 3,000. What will be his income from
profession? FIN623 Online Quiz# (4 & 5)
► Rs. 53,000
► Rs. 67,000 Question # 1 of 15 ( Start time: 02:32:45 AM ) Total Marks: 1
► Rs. 73,000 If an employee’s taxable income is Rs.715, 000 and he paid donations
► Rs. 47,000 amounting Rs.10,000 to a charitable institution, what will be the value of ‘C’ in
net profit 60,000 calculating tax credit?
profit on sale of investments 10,000 Select correct option:
interest on government securities 3,000 Rs.715, 000
Income from profession 73,000 Rs.214, 500
Rs.10, 000
Question No: 42 ( Marks: 1 ) - Please choose one Rs.224, 500
Question # 2 of 15 ( Start time: 02:33:07 AM ) Total Marks: 1
www.vustudents.ning.com
Which one of the following section deals with intangibles? In an association of person, 25% tax rate is applied where the taxable income
Select correct option: exceeds:
Section 22 Select correct option:
Section 24 Rs 1,300,000
Section 222 Rs 1,000,000
Section 242 Rs 1,500,000
Question # 3 of 15 ( Start time: 02:33:32 AM ) Total Marks: 1 Rs 1,700,000
Mr. A is an employee of Government of the Punjab, his data for the year 2010 Question # 15 of 15 ( Start time: 02:38:58 AM ) Total Marks: 1
is given below. Salary: Rs. 60,000 per month Gratuity: Rs. 1,000,000 Deductions not allowed under the head income from business is defined by
Calculate his taxable income. Select correct option:
Select correct option: Section 20
774,000 Section 21
720,000 Section 25
1,060,000 Section 27
1,720,000 Question # 1 of 15 ( Start time: 02:44:43 AM ) Total Marks: 1
Question # 4 of 15 ( Start time: 02:34:03 AM ) Total Marks: 1 A depreciable asset has normal useful life of:
A firm ABC maintaining its account in accrual basis, at June 27, 2008 it is Select correct option:
entitled to receive Rs. 10,000 but actual payments made at 01 August 2008. Six months
In which year it is charged to tax? One year or more
Select correct option: Eleven months
2006 None of the given options
2007 Question # 2 of 15 ( Start time: 02:44:49 AM ) Total Marks: 1
2008 Expenses entitled to be paid by a Company, then entry of such expenses will
2009 be made in the books of accounts if:
Question # 5 of 15 ( Start time: 02:34:29 AM ) Total Marks: 1 Select correct option:
Deficit Financing is one of the tools of which of the following policy? Company maintaining its books of account on Cash basi
Select correct option: Company maintaining its books of account on Accrual basis
Monetary policy Company maintaining its books of account on Both Accrual and Cash basis
Fiscal policy None of the given options
Trade Policy Question # 3 of 15 ( Start time: 02:44:56 AM ) Total Marks: 1
Economic Policy Every person owns immovable property, with a land area of _________ or
Question # 6 of 15 ( Start time: 02:34:35 AM ) Total Marks: 1 more in municipal limits, cantonment and CDA is required to file return of
Following person is required to file tax return: income tax.
Select correct option: Select correct option:
Widow 150 Sq. yards
Disabled person 200 Sq. yards
The person has become bankrupt 250 Sq. yards
Orphan below age of 25 350 Sq. yards
Question # 7 of 15 ( Start time: 02:36:04 AM ) Total Marks: 1 Question # 6 of 15 ( Start time: 02:45:42 AM ) Total Marks: 1
The process of clubbing of income results in which of the following? Formula to compute the tax rate applies on gratuity received, “B” stands for;
Select correct option: Select correct option:
Lower Bracket rate of tax is charged The total tax paid or payable by the employee for the three preceding tax
Higher Bracket rate of tax is charged years
Moderate Bracket rate of tax is charged The employee’s total taxable income for the three preceding tax years
No change occur due to clubbing The gratuity received by the employee
Question # 9 of 15 ( Start time: 02:36:40 AM ) Total Marks: 1 None of the given options
Which of the following incomes are treated as agriculture income? Question # 7 of 15 ( Start time: 02:46:01 AM ) Total Marks: 1
Select correct option: Which of the following tax is paid in relation to how much you earn?
Agro based industry Select correct option:
Spontaneous forests Income Tax
Interest received by a farmer on lending Inheritance Tax
Income from land situated in Pakistan used for agriculture Value added Tax
Question # 10 of 15 ( Start time: 02:36:52 AM ) Total Marks: 1 Sales Tax
Which of the following is the important content for calculating tax on income? Question # 9 of 15 ( Start time: 02:46:20 AM ) Total Marks: 1
Select correct option: In case of discontinuance of business, what is the time period to file a return?
Taxable Income Select correct option:
Residential Status Within 05days of discontinuance
Tax Year Within 15days of discontinuance
All of the given options Within 25days of discontinuance
Question # 11 of 15 ( Start time: 02:36:58 AM ) Total Marks: 1 Within 30days of discontinuance
(A / B) x C In the above formula for calculating tax credit under section 61 of Question # 10 of 15 ( Start time: 02:46:44 AM ) Total Marks: 1
the Income tax Ordinance 2001, C represents which of the following? The formula used in the computation of capital gain is:
Select correct option: Select correct option:
Amount of Gross tax A+B
Person’s taxable income for the tax year A-B+C
Amount of exemption as per Ordinance A-B
Net Income Of the year A+B-C
Question # 13 of 15 ( Start time: 02:38:27 AM ) Total Marks: 1 Question # 12 of 15 ( Start time: 02:48:18 AM ) Total Marks: 1
Which of the following section deal with tax treatment of person who is a What rate is applied in normal depreciation of plant and machinery?
cultivator or receiver of agricultural produce as rent-in-kind in the business of Select correct option:
cultivator? 5%
Select correct option: 10%
Rule 11 of the IT Rule 2002 15%
Section 40 of the Income Tax Ordinance 2001 25%
Section 41 of the Income Tax Ordinance 2001 Question # 13 of 15 ( Start time: 02:48:37 AM ) Total Marks: 1
Section 42 of the Income Tax Ordinance 2001
Question # 14 of 15 ( Start time: 02:38:40 AM ) Total Marks: 1
www.vustudents.ning.com
Mr. Z resident of Pakistan received dividend amounting Rs. 10,000 in UK from If a cultivator used its agricultural produce as raw material in its business what
UK resident company. What is the tax treatment for calculating his gross total will be the tax treatment of such agriculture produce?
income? Select correct option:
Select correct option: Market price of such produce will be deducted as business expenditure
Added in total income The expenses of cultivation will be deducted as expense from business
Subtracted from the total income The land revenue rent paid will be deducted as expense from business
No treatment due to non-resident company All of the given options
Exempt from tax Question # 15 of 15 ( Start time: 11:51:35 PM ) Total Marks: 1
Question # 14 of 15 ( Start time: 02:48:56 AM ) Total Marks: 1 __________ are allowable deductions in case if the tax payer is running a
Which of the following days shall be counted as half day for the computation business.
of residential status of an individual? Select correct option:
Select correct option: Salaries paid
A Public Holiday Purchases
A day of sick leave Office expenditures
Any strike All of the given options
None of the given options Question # 1 of 15 ( Start time: 12:02:12 AM ) Total Marks: 1
Question # 15 of 15 ( Start time: 02:49:08 AM ) Total Marks: 1 Which part of the Income Tax Ordinance 2001 deals with Tax credits?
Pension is exempt under Select correct option:
Select correct option: Chapter III Part VII
Clause (12) Part I of Second Schedule Chapter III Part VIII
Clause (121) Part I of Second Schedule Chapter III Part IX
Clause (122) Part I of Second Schedule Chapter III Part X
Clause (112) Part I of Second Schedule Question # 2 of 15 ( Start time: 12:02:24 AM ) Total Marks: 1
Question # 6 of 15 ( Start time: 11:48:31 PM ) Total Marks: 1 Which of the following is a general compulsory contribution of wealth by the
Special tax year is adopted after seeking approval from the ____________ state, to meet the expenses incurred in providing common benefits upon the
under section 74(3). residents?
Select correct option: Select correct option:
Commissioner Fee
Tax Officer Taxes
Appellate Tribunal Charges
Supreme Court Penalties
Question # 7 of 15 ( Start time: 11:48:44 PM ) Total Marks: 1 Question # 3 of 15 ( Start time: 12:02:31 AM ) Total Marks: 1
Any income from a business carried on outside Pakistan through permanent Which one of the following is the main objective of Fiscal Policy?
Establishment by a resident person belongs to which of the following? Select correct option:
Select correct option: Economic Development
Pakistani source of Income Price stability
Foreign source of income Removal of deficit in Balance of Payment
Both Pakistan and foreign source of income All of the given options
None of the given option Question # 4 of 15 ( Start time: 12:02:38 AM ) Total Marks: 1
Question # 9 of 15 ( Start time: 11:49:18 PM ) Total Marks: 1 Bench Mark rate for the tax year 2010 is:
Accrual basis accounting method is mandatory for which one of the following: Select correct option:
Select correct option: 8%
Salaried person 10%
Association of person 12%
Companies 13%
Proprietorship Question # 5 of 15 ( Start time: 12:02:55 AM ) Total Marks: 1
Question # 10 of 15 ( Start time: 11:49:31 PM ) Total Marks: 1 Deduction is allowed on expenditure on acquiring a depreciable asset whose
Which of the following is the main tool of Fiscal Policy? useful life is:
Select correct option: Select correct option:
Taxes One year
Deficit Financing More than one year
Subsidies Three years
Transfer Payments Five years
Question # 11 of 15 ( Start time: 11:49:48 PM ) Total Marks: 1 Question # 6 of 15 ( Start time: 12:04:11 AM ) Total Marks: 1
Which one of the following is excluded from the definition of capital asset? Which one of the following canons of taxation suggests easiness in time of
Select correct option: payment and mode of collection of tax?
A postage stamp Select correct option:
Jewelry Simplicity
Stock-in-trade Convenience
A painting Certainty
Question # 12 of 15 ( Start time: 11:50:46 PM ) Total Marks: 1 Capacity to Pay
Non-adjustable amounts shall be treated as rent and chargeable to tax, these Question # 8 of 15 ( Start time: 12:04:31 AM ) Total Marks: 1
amounts are spread over a period of Who is liable to pay tax in a partnership form of business?
Select correct option: Select correct option:
05 years Partners
10 years Partnership firm
15 years Partner with large share
20 years None of the given options
Question # 13 of 15 ( Start time: 11:51:02 PM ) Total Marks: 1 Question # 9 of 15 ( Start time: 12:04:37 AM ) Total Marks: 1
Which of the following section deals with the residential status of Association Mr. Afzal would like to compute the tax rate apply on the gratuity received the
of Person? formula to compute the tax rate is.
Select correct option: Select correct option:
Section 81 AxB/100
Section 82 Ax100/B
Section 83 A/Bx100
Section 84 100XB/A
Question # 14 of 15 ( Start time: 11:51:20 PM ) Total Marks: 1 Question # 10 of 15 ( Start time: 12:04:50 AM ) Total Marks: 1
www.vustudents.ning.com
Which of the following may grant approval to any gratuity fund? Which of the following tax is paid from money you received from someone
Select correct option: who has died?
Federal Tax Ombudsman Select correct option:
Federal Government Income tax
Superior judiciary Inheritance tax
Commissioner of Income Tax Property tax
Question # 13 of 15 ( Start time: 12:05:32 AM ) Total Marks: 1 Sales tax
An Individual will be termed as Short Term Resident under section 50 of the IT Question # 5 of 15 ( Start time: 12:19:09 AM ) Total Marks: 1
Ordinance 2001 provided: Which of the following is NOT treated as transactions through the banking
Select correct option: channel?
His period of stay equal to 183 days Select correct option:
The employee of Federal Government Online transfer of payment
The citizen of Pakistan Payments through credit card
Resident solely by reason of the individual’s employment Payment through cash
Question # 2 of 15 ( Start time: 12:09:04 AM ) Total Marks: 1 None of the given options
Any gain arising on the disposal of shares in a resident company belongs to Question # 7 of 15 ( Start time: 12:20:40 AM ) Total Marks: 1
which of the following? If M/s ABC and Co. an association of person is a non-resident AOP which of
Select correct option: the following condition must be satisfied?
Foreign source of income Select correct option:
Pakistan source income Control and management of affairs of AOP is situated partly in Pakistan.
Both Pakistan and foreign source of income Control and management of affairs of AOP is situated wholly in Pakistan.
None of the given option Control and management of affairs of AOP is situated wholly or partly in
Question # 3 of 15 ( Start time: 12:09:19 AM ) Total Marks: 1 Pakistan
If the accounting year of firm manufacturing shawls is started from 1st April None of the given options
2002 and ending on 31st March 2003. What will be its tax year? Question # 11 of 15 ( Start time: 12:21:37 AM ) Total Marks: 1
Select correct option: Non-Agricultural income does Not includes which one of the following?
Tax year 2002 Select correct option:
Tax year 2003 Dividend paid by a company out of its agriculture income
Tax year 2004 Royalty income of mines
Tax year 2005 Profit on sale of standing crops
Question # 4 of 15 ( Start time: 12:09:32 AM ) Total Marks: 1 Income from fisheries
Concept of separate legal entity of accounting applies on which of the Question # 12 of 15 ( Start time: 12:21:49 AM ) Total Marks: 1
following concepts in taxation under section 105 of the ordinance? Mr. Joseph is an employee of Foreign Government posted in Pakistan? What
Select correct option: will be the residential status of Mr. Joseph?
Resident and permanent establishment Select correct option:
Non-resident and permanent establishment Resident Individual
Citizenship and permanent establishment Non- Resident Individual
All of the given options Resident HUF
Question # 5 of 15 ( Start time: 12:09:45 AM ) Total Marks: 1 Resident AOP
A definition that includes the dictionary meanings of the word is termed as: Question # 15 of 15 ( Start time: 12:22:35 AM ) Total Marks: 1
Select correct option: Which of the following is NOT a “Person” as defined in Sec 2 (42) of the
Exclusive definition Income Tax Ordinance?
Inclusive definition Select correct option:
Both Inclusive & Exclusive definitions An Individual
Statutory definition The Federal Government
Question # 7 of 15 ( Start time: 12:09:58 AM ) Total Marks: 1 Public International Organization
Any amount shall be foreign-source income if it is paid by: None of the given option
Select correct option: Question # 2 of 15 ( Start time: 12:26:48 AM ) Total Marks: 1
Resident person A definition that excludes the dictionary meanings of the word is termed as:
Non-resident person Select correct option:
Citizen of Pakistan Exclusive definition
All of the given options Inclusive definition
Question # 9 of 15 ( Start time: 12:10:26 AM ) Total Marks: 1 Both Inclusive & Exclusive definitions
Utilities were exempted up to 10% of MTS or Basic salary till 30th June, 2006, Statutory definition
vide clause 38 of part 1 of Second Schedule. This clause has been omitted Question # 3 of 15 ( Start time: 12:26:54 AM ) Total Marks: 1
by: Senior citizen-age 60 years & above where taxable income not exceeding
Select correct option: ________ tax liability reduced by 50% under Part 3 of second schedule.
Finance Ordinance 2004 Select correct option:
Finance Ordinance 2005 Rs. 200,000
Finance Act 2006 Rs. 300,000
Finance Act 2007 Rs. 400,000
Question # 10 of 15 ( Start time: 12:10:32 AM ) Total Marks: 1 Rs. 1,000,000
Depreciation rate applied on all types of buildings under section 22 is: Question # 4 of 15 ( Start time: 12:27:15 AM ) Total Marks: 1
Select correct option: Which of the following is the rate of tax for male salaried Individuals for tax
5% year 2010, where the taxable income exceeds Rs. 200,000 but does not
10% exceed Rs. 250,000?
0.5% Select correct option:
3.5% 0%
Question # 3 of 15 ( Start time: 12:18:36 AM ) Total Marks: 1 0.25%
Which of the following section of Income Tax Ordinance 2001 deals with 0.50%
perquisites of Income from Salary and its treatment? 0.75%
Select correct option: Question # 5 of 15 ( Start time: 12:27:48 AM ) Total Marks: 1
Section 11 Which part of income is charged to tax of non-resident person under the
Section 12 income tax ordinance 2001?
Section 13 Select correct option:
Section 14 Pakistani source of income
Question # 4 of 15 ( Start time: 12:18:55 AM ) Total Marks: 1 Foreign source of income
www.vustudents.ning.com
Both Pakistan and foreign source of income Select correct option:
None of the given option Proportional tax
Question # 6 of 15 ( Start time: 12:28:16 AM ) Total Marks: 1 Progressive tax
Gratuity fund which is fully exempt from tax is approved by: Regressive tax
Select correct option: Corporate tax
Income tax officer Question # 8 of 15 ( Start time: 12:39:06 AM ) Total Marks: 1
Commissioner of income tax Which one of the following is the general meaning of Tax?
Employer Select correct option:
CBR Relax
Question # 7 of 15 ( Start time: 12:28:40 AM ) Total Marks: 1 Lighten
Liquidator is referred as: Relieve
Select correct option: Fatigue
A liquidator of a company Question # 11 of 15 ( Start time: 12:39:30 AM ) Total Marks: 1
A trustee for a bankrupt Which of the following is the Tax year available for salaried individual?
A mortgagee in possession Select correct option:
All of the given options 1st January to 31st December
Question # 8 of 15 ( Start time: 12:29:00 AM ) Total Marks: 1 1st July to 30th June
Flying allowance shall be taxed @: 1st October to 30th September
Select correct option: 1st September to 31st August
1.5% of amount received as a separate block of income Question # 15 of 15 ( Start time: 12:41:34 AM ) Total Marks: 1
2% of amount received as a separate block of income If any other office involved in the management of a company it is termed as:
2.5% of amount received as a separate block of income Select correct option:
3.5% of amount received as a separate block of income Employment
Question # 9 of 15 ( Start time: 12:29:18 AM ) Total Marks: 1 Employer
Which one of the following is NOT a depreciable asset? Employee
Select correct option: Business premises
Tangible movable property Question # 1 of 15 ( Start time: 12:47:32 AM ) Total Marks: 1
Unimproved land Mr. A employed in Pakistan received dividend amounting Rs. 10,000 in UK
Tangible immovable property from Pakistani resident company. What is the tax treatment for calculating his
Structural improvement to immovable property gross total income?
Question # 10 of 15 ( Start time: 12:30:33 AM ) Total Marks: 1 Select correct option:
Which of the following is a literal meaning of tax? Added in total income
Select correct option: Subtracted from the total income
Burden Added in income after tax
Endurance Exempt from tax
Patience Question # 4 of 15 ( Start time: 12:48:10 AM ) Total Marks: 1
Fortitude Which one of the following is NOT a liquidator under section 141 of the
Question # 11 of 15 ( Start time: 12:30:57 AM ) Total Marks: 1 income tax ordinance 2001?
Which of the following is NOT the type of tax? Select correct option:
Select correct option: Receiver appointed by a Court
Direct taxes Trustee for a bankrupt
Indirect Taxes Mortgagee in possession
Value Added Taxes Tax payer
Fees and Penalties Question # 5 of 15 ( Start time: 12:49:10 AM ) Total Marks: 1
Question # 12 of 15 ( Start time: 12:31:15 AM ) Total Marks: 1 Agricultural income does NOT include which one of the following?
Which of the following is the example of deem income? Select correct option:
Select correct option: Rent or Revenue derived by a person from land
Cash Gift Income derived from land situated in Pakistan
Salary The land is used for agricultural purposes
Loan through cross cheque Income from spontaneous forest
Golden hand shake Question # 6 of 15 ( Start time: 12:49:23 AM ) Total Marks: 1
Question # 14 of 15 ( Start time: 12:31:45 AM ) Total Marks: 1 Mr. A’s total taxable income for the year 2010 is Rs. 150,000. Which of the
Which of the following is NOT an admissible deduction under the head income following is the tax liability of Mr. A?
from property? Select correct option:
Select correct option: Nil
Unpaid rent Rs. 375
Property tax Rs. 750
Payment of premium Rs. 1,125
Fair market rent Question # 7 of 15 ( Start time: 12:49:54 AM ) Total Marks: 1
Question # 15 of 15 ( Start time: 12:32:17 AM ) Total Marks: 1 A return of income as required to be furnished under section 114 shall be in
Which one of the following sections deals with prizes and winnings? the form specified in:
Select correct option: Select correct option:
Section 110 Part I of second schedule
Section 140 Part II of second schedule
Section 156 Part III of second schedule
Section 115 All of the given options
Question # 1 of 15 ( Start time: 12:37:33 AM ) Total Marks: 1 Question # 8 of 15 ( Start time: 12:51:18 AM ) Total Marks: 1
General Provident (GP) Fund available in the Government Organization is Which one of the following sections discusses the cash-basis accounting?
also called as: Select correct option:
Select correct option: Section 32
Statutory Provident Fund Section 33
Recognized Provident Section 34
Unrecognized Provident Fund Section 36
None of the given options Question # 9 of 15 ( Start time: 12:51:45 AM ) Total Marks: 1
Question # 3 of 15 ( Start time: 12:37:57 AM ) Total Marks: 1 Pension received by an employee of the Government or the armed forces is
Which of the following is the tax where the tax rate remained fixed to the exempt from tax define in:
amount on which the rate is applied increases? Select correct option:
www.vustudents.ning.com
2nd Schedule Part 1 Cl.(8) 12.50%
2nd Schedule Part 1 Cl.(25) 15.00%
2nd Schedule Part 1 Cl.(9) 7.50%
None of the given options 10.50%
Question # 6 of 15 ( Start time: 02:20:21 AM ) Total Marks: 1
Question # 11 of 15 ( Start time: 12:53:34 AM ) Total Marks: 1 Land revenue rent (Lagan) is received by which of the following authority?
What is the rate of tax for a small company? Select correct option:
Select correct option: High Court
10% of taxable income Supreme Court
20% of taxable income Income Tax Department
25% of taxable income Provincial Government
30% of taxable income Question # 13 of 15 ( Start time: 02:24:00 AM ) Total Marks: 1
Question # 12 of 15 ( Start time: 12:53:53 AM ) Total Marks: 1 If tax payable of a partnership firm is Rs. 900,000, what will be the tax rate
Loss from speculation business can be set off against applied?
Select correct option: Select correct option:
Business income 21.50%
Income earned from resident company 15.00%
Speculation business income 17.50%
None of the given options 10.50%
Question # 15 of 15 ( Start time: 12:55:08 AM ) Total Marks: 1 Question # 3 of 15 ( Start time: 02:30:47 AM ) Total Marks: 1
Income from building leased out together with Plant & Machinery falls under Valuation of stock is computes by the formula:
Select correct option: Select correct option:
Income from property A+B-C
Income from salary A-B-C
Income from capital gain A-B+C
Income from other sources A+B+C
Question # 2 of 15 ( Start time: 01:03:43 AM ) Total Marks: 1 Question # 4 of 15 ( Start time: 02:31:24 AM ) Total Marks: 1
The Fiscal year is a period of ______ months arbitrarily chosen for tax 2(59) of Income Tax Ordinance 2001 defined: “shareholder” in relation to a
purposes. company,includes a modaraba certificate holder, a unit holder of a unit trust
Select correct option: and a beneficiary of a trust. In which criteria the above definition falls?
3 Select correct option:
6 Exclusive definition
12 Inclusive definition
18 Both Exclusive and Inclusive definitions
Question # 4 of 15 ( Start time: 01:03:54 AM ) Total Marks: 1 Statutory definition
A woman taxpayer shall be charged to tax if taxable income is: Question # 5 of 15 ( Start time: 02:31:48 AM ) Total Marks: 1
Select correct option: Gratuity will be ignored in computing taxable income of
Less than Rs. 100,000 Select correct option:
Less than Rs. 200,000 Resident person
More than Rs. 200,000 Non-resident person
More than Rs. 260,000 Income tax officer
Question # 5 of 15 ( Start time: 01:04:48 AM ) Total Marks: 1 Deceased person
What is the residential status of Federal Government of Pakistan? Question # 6 of 15 ( Start time: 02:32:08 AM ) Total Marks: 1
Select correct option: Achieving full employment level is one of the objectives of which of the
Resident Person following policy?
Resident Company Select correct option:
Resident AOP Monetary policy
Resident HUF Fiscal policy
Question # 7 of 15 ( Start time: 01:05:10 AM ) Total Marks: 1 Trade Policy
In the formula of computing the capital gains, A defines Economic Policy
Select correct option: Question # 8 of 15 ( Start time: 02:32:35 AM ) Total Marks: 1
Cost of the asset For the year 2009 Mr. Ali has basic salary Rs. 40,000 p.m. what will be the
FMV of asset salary of Mr. Ali for the tax year 2010?
Consideration received on disposal Select correct option:
None of the given options Rs. 480,000
Question # 10 of 15 ( Start time: 01:06:32 AM ) Total Marks: 1 Rs. 240,000
Provident fund maintained by a private organization which has not been Rs. 40,000
granted recognition by the Income Tax Authorities, is discussed in which of the Rs. 640,000
following type of provident fund Question # 10 of 15 ( Start time: 02:33:19 AM ) Total Marks: 1
Select correct option: Normally the salary income is taxed on cash basis but there is one exception
Government provident fund available in Income Tax Ordinance 2001 that salary income can be taxed on
Recognized provident fund due basis if there are reasonable grounds. Which of the following section
Unrecognized provident fund deals with this exception?
None of the given options Select correct option:
Not mentioned in Income Tax Ordinance 2001 Section 53
Question # 14 of 15 ( Start time: 01:08:40 AM ) Total Marks: 1 Section 101
If capital asset has been held for more than one year, it is exempt from tax up Section 110
to: Section 111
Select correct option: Question # 12 of 15 ( Start time: 02:34:12 AM ) Total Marks: 1
10% of total capital gain Mr. X resident of Pakistan earned income from Property situated in London
15% of total capital gain Rs. 50,000 but received in India. Which of the following is right for the above
25% of total capital gain scenario?
30% of total capital gain Select correct option:
Question # 4 of 15 ( Start time: 02:19:35 AM ) Total Marks: 1 Mr. X being resident of Pakistan Rs. 50,000 will be added in Gross total
If tax payable of a sole proprietorship is Rs. 595,000, what will be the tax rate income
applied? Mr. X being resident of Pakistan Rs. 50,000 will be subtracted in Gross total
Select correct option: income
www.vustudents.ning.com
Mr. X being resident of Pakistan Rs. 50,000 will be claimed as admissible Select correct option:
deduction Provincial Government
Mr. X being resident of Pakistan Rs. 50,000 will be exempted Income Tax Department
Question # 15 of 15 ( Start time: 02:35:44 AM ) Total Marks: 1 Federal Government
Recognized provident fund is recognized by Judicial Commission
Select correct option: Question # 12 of 15 ( Start time: 04:59:21 AM ) Total Marks: 1
Income tax officer The rate of income tax for Modarba Company is:
Central board of revenue Select correct option:
Commissioner of income tax 20%
High court 25%
Question # 4 of 15 ( Start time: 02:45:51 AM ) Total Marks: 1 30%
Which one of the following is main difference between the tax and fee? 35%
Select correct option: Question # 14 of 15 ( Start time: 04:59:58 AM ) Total Marks: 1
Imposing authority Statutory provident fund is also known as:
Applied Rates Select correct option:
Entitlement of Counter benefit Recognized provident fund
Mode of payment Unrecognized provident fund
Question # 5 of 15 ( Start time: 02:46:08 AM ) Total Marks: 1 Government provident fund
Which of the following is the External aid for the interpretation of tax laws? None of the given options
Select correct option: Question # 1 of 15 ( Start time: 05:04:37 AM ) Total Marks: 1
Preamble Which one of the following specifies the rates of depreciation?
Non-Obstinate clause Select correct option:
Title of a chapter Part I of 3rd schedule
Finance Minister’s budget speech Part II of 3rd schedule
Question # 12 of 15 ( Start time: 02:48:54 AM ) Total Marks: 1 Part III of 3rd schedule
Mr. Ali is an employee of ABC Co. He has availed an interest free loan from None of the given options
his Company. What will be the treatment of Interest on loan as per Income Tax Question # 13 of 15 ( Start time: 05:07:08 AM ) Total Marks: 1
Ordinance 2001? Which of the following section deals with the residential status of Individual?
Select correct option: Select correct option:
Salary of Ali includes the Interest on loan at benchmark rate Section 80
Salary of Ali includes the Interest on loan at lower than benchmark rate Section 81
Salary of Ali includes the Interest on loan at higher than benchmark rate Section 82
Amount of Interest on loan is exempted from Tax Section 83
Question # 1 of 15 ( Start time: 04:54:14 AM ) Total Marks: 1 Question # 14 of 15 ( Start time: 05:07:39 AM ) Total Marks: 1
What will be the tax treatment of motor vehicle provided partly for official and Mr. A non-resident of Pakistan received interest on Australian Bonds Rs.
partly for personal use? 100,000 (half amount received in Pakistan). What is the treatment of this
Select correct option: amount for calculating his gross total income?
5% of cost (vehicle) Select correct option:
10% of cost (vehicle) Rs. 100,000 added in his total income
15% of cost (vehicle) Rs. 100,000 subtracted from his total income
25% of cost (vehicle) Rs. 50,000 added in his total income
Question # 3 of 15 ( Start time: 04:55:11 AM ) Total Marks: 1 Exempt from tax
Which one of the following sections defines minimum tax on resident Question # 4 of 15 ( Start time: 07:25:15 PM ) Total Marks: 1
companies? Profit and gains arising out of speculation business is chargeable to tax under
Select correct option: Select correct option:
Section 110 Income from salary
Section 111 Income from other sources
Section 113 Income from business
Section 115 Income from capital gains
Question # 5 of 15 ( Start time: 04:55:49 AM ) Total Marks: 1 Question # 9 of 15 ( Start time: 07:27:11 PM ) Total Marks: 1
Mr. A resident of Pakistan received interest on Australian Bonds Rs. 100,000 If an individual has taxable income Rs. 90,000, what will be the tax rate
(half amount received in Pakistan). What is the treatment of this amount for applied?
calculating his gross total income? Select correct option:
Select correct option: 0.5%
Rs. 100,000 added in his total income 1%
Rs. 100,000 subtracted from his total income 0.25%
Rs. 50,000 added in his total income Nil
Exempt from tax Question # 9 of 15 ( Start time: 07:49:40 PM ) Total Marks: 1
Question # 8 of 15 ( Start time: 04:56:35 AM ) Total Marks: 1 Which of the following is the rate of tax for salaried Individuals (male) for tax
Concessional loan of Rs 1 million provided by employer @ of markup of 6% year 2010, where the taxable income does not exceed Rs. 200,000?
per annum (bench mark rate for tax year 2010 is 12% per annum), what will Select correct option:
be the amount added back? 0%
Select correct option: 0.25%
Rs.60,000 0.50%
Rs.40,000 0.75%
Rs.90,000 Question # 12 of 15 ( Start time: 08:08:36 PM ) Total Marks: 1
Rs.130,000 On which of the following deduction is allowed from taxable income under the
Question # 9 of 15 ( Start time: 04:56:53 AM ) Total Marks: 1 head income from business?
What is the time period given to a taxpayer to file a revised return? Select correct option:
Select correct option: Any entertainment expenditure
2 years Any personal expenditure
3 years Brokerage
5 years Expenditure incurred by an amalgamated company
6 years Question # 6 of 15 ( Start time: 08:13:34 PM ) Total Marks: 1
Question # 11 of 15 ( Start time: 04:58:34 AM ) Total Marks: 1 Which of the following section defines deductions allowed in computing
Members of income tax appellate tribunal are appointed by which of the income from business?
following authorities? Select correct option:
www.vustudents.ning.com
Section 21 Mr. A is an employee of ABC Co. The company has provided a driver and a
Section 20 gardener to Mr. A. What will be the tax treatment of their salaries under
Section 120 section 13 of Income Tax Ordinance 2001?
Section 112 Select correct option:
Question # 9 of 15 ( Start time: 08:28:56 PM ) Total Marks: 1 These salaries, will be added in the salary of Mr. A
_____________ is the payment to the holder for the right to use property such These salaries will be subtracted from the salary of Mr. A
as a patent, copyrighted material, or natural resources. These salaries have no relation with the salary of Mr. A
Select correct option: These Salaries will be exempted from Tax
Permanent Establishment Question # 10 of 15 ( Start time: 02:57:03 AM ) Total Marks: 1
Royalty Income tax ordinance, 2001 became effective from which of the following
Dividend date?
Goodwill Select correct option:
Question # 14 of 15 ( Start time: 09:03:07 PM ) Total Marks: 1 1st July 2001
As per clause 13(iii) of the part 1 of second schedule, if gratuity fund is 13th September 2001
approved by CBR, the amount of fund exempted up to Rs. 200,000 and any 1st July 2002
amount exceeding it will be taxed in which of the following way? 13th September 2002
Select correct option: Question # 15 of 15 ( Start time: 03:14:18 AM ) Total Marks: 1
Salary Income Mr. A non-resident person employed in UK received Rs. 500,000 as salary.
Income from Business Which of the following statement is true for Mr. A?
Capital gain Select correct option:
Other Income Rs. 500,000 will be added in Gross total income being non resident person
Question # 2 of 15 ( Start time: 09:06:42 PM ) Total Marks: 1 Rs. 500,000 will be subtracted from Gross total income being non resident
Which of the following come under the ambit of Royalty under section 2 (54)? person
Select correct option: Rs. 500,000 will be exempt from tax being non resident person
Right to use any patent None of the given options
Copy right of a literary Question # 6 of 15 ( Start time: 03:37:48 AM ) Total Marks: 1
Right to use any industrial or scientific equipment Total income of a person for a tax year shall be the sum of the person’s
All of the given options income under which of the following head?
Question # 2 of 15 ( Start time: 09:21:49 PM ) Total Marks: 1 Select correct option:
Profit earned on debts is chargeable under Only Income from salary
Select correct option: Only Income from Business
Income from salary Only Income from Property
Income from other sources All of the given options
Income from business Question # 12 of 15 ( Start time: 03:39:02 AM ) Total Marks: 1
Income from capital gains Suppose a money lender give loan to a farmer of Rs. 100,000. After the due
Question # 1 of 15 ( Start time: 02:19:47 AM ) Total Marks: 1 time the farmer pay back the loan in shape of agriculture produce amounting
Which one of the following principle of tax emphasized, that the taxation policy Rs. 110,000 to money lender. What will be the tax treatment of Rs. 110,000?
should be designed in such a way to boost business atmosphere and the Select correct option:
investment environment Tax will be charged only on Rs. 100,000
in the country? Tax will be charged only on Rs. 10,000
Select correct option: Tax will be charged only on Rs. 110,000
Convenience Exempt as Agriculture Income
Judicious Question # 13 of 15 ( Start time: 03:39:15 AM ) Total Marks: 1
Capacity to Pay Which of the following is similar to the concept of clubbing of Incomes?
Business friendly Select correct option:
Question # 4 of 15 ( Start time: 02:22:39 AM ) Total Marks: 1 Unification only two heads of Income
Miss Sonia’s total taxable income for the year 2010 is Rs. 260,000. Which of Association of two or more heads of Income
the following is the tax liability of Miss Sonia? Splitting up of only two heads of Income
Select correct option: Division of two or more than two heads of Income
Nil Question # 14 of 15 ( Start time: 03:39:26 AM ) Total Marks: 1
Rs. 500 The Chairman of CBR has the responsibility for which of the following
Rs. 1,000 measures?
Rs. 1,500 Select correct option:
Question # 5 of 15 ( Start time: 02:23:49 AM ) Total Marks: 1 Formulation and administration of fiscal policies
In Income Tax Ordinance 2001 tax concessions meant for which of the Levy and collection of federal taxes
following? Quasi-judicial function of hearing of appeals
Select correct option: All of the given options
Reduction in tax liability Question # 5 of 15 ( Start time: 01:04:34 AM ) Total Marks: 1
Reduction in tax rate Pride of performance awarded by President is exempt from tax. Under which
Reduction in taxable Income section it is treated in Income Tax ordinance 2001?
All of the given options Select correct option:
Question # 6 of 15 ( Start time: 02:24:10 AM ) Total Marks: 1 Section 40
Which of the following is the deductible allowance from the income of an Section 41
individual? Section 45
Select correct option: Section 46
Zakat Question # 7 of 15 ( Start time: 01:06:29 AM ) Total Marks: 1
Worker’s Welfare Fund Which of the following expression is used in computing tax credit?
Work’s Participation Fund Select correct option:
All of the given options A/B x C
Question # 13 of 15 ( Start time: 02:29:49 AM ) Total Marks: 1 B/A x C
In which of the following heads of Income No deductions are allowed: A/C x B
Select correct option: C/B x A
Salary Question # 8 of 15 ( Start time: 01:07:39 AM ) Total Marks: 1
Income from Property What is the residential status of Provincial Government of Pakistan?
Income from Business Select correct option:
Capital Gains Resident Individual
Question # 3 of 15 ( Start time: 02:53:02 AM ) Total Marks: 1 Resident Company
www.vustudents.ning.com
Resident AOP Mr. X being resident of Pakistan Rs. 20,000 will be added in Gross total
Resident HUF income
Question # 9 of 15 ( Start time: 01:08:12 AM ) Total Marks: 1 Mr. X being resident of Pakistan Rs. 20,000 will be Subtracted in Gross total
Which of the following is included in the Scheme of the Income Tax Ordinance income
2001? Mr. X being non-resident of Pakistan Rs. 20,000 will be added in Gross total
Select correct option: income
Chapters None of the given options
Sections Question # 5 of 15 ( Start time: 04:48:26 AM ) Total Marks: 1
Schedules Which of the following tax is payable on merchandise imported or exported
All of the given options from one country to another?
Question # 3 of 15 ( Start time: 01:26:00 AM ) Total Marks: 1 Select correct option:
Agricultural income includes which one of the following? Custom duty
Select correct option: Income tax
Dividend paid by a company out of its agriculture income Sales tax
Income from fisheries Wealth tax
Royalty income of mines Question # 8 of 15 ( Start time: 04:50:18 AM ) Total Marks: 1
Share of profit of a partner from a firm engaged in agricultural Which of the following is an example of Lump sum receipt?
Question # 1 of 15 ( Start time: 04:16:29 AM ) Total Marks: 1 Select correct option:
Mr Ali is an employee of ABC Co. the company has provided a driver and a Pension
gardener to Mr. Ali. What will be the treatment of their salaries as per Income Golden shake hand
Tax Ordinance 2001? Provident fund
Select correct option: All of the given options
The salaried paid to them added in the salary of MR. Ali Question # 3 of 15 ( Start time: 05:09:58 AM ) Total Marks: 1
The salaried paid to them subtracted in the salary of MR. Ali Income from lease of tangible movable property is chargeable to tax under
Have no relation with salary of Mr. Ali Select correct option:
The Salaried paid are exempted from Tax Income from property
Question # 5 of 15 ( Start time: 04:19:46 AM ) Total Marks: 1 Income from other sources
Which of the following is the legal status of Al-Habib Bank Limited under Income from business
section 80 of the ordinance? Income from capital gains
Select correct option: Question # 4 of 15 ( Start time: 06:55:45 PM ) Total Marks: 1
Individual Which of the following is the general formula for calculating tax credits?
Firm Select correct option:
Banking Company (A + B) x C
Hindu Undivided Family (A - B) x C
Question # 13 of 15 ( Start time: 04:23:36 AM ) Total Marks: 1 (A / B) x C
Profit on debt shall be Pakistan-source income if it is: (A / B) + C
Select correct option: Question # 13 of 15 ( Start time: 07:00:25 PM ) Total Marks: 1
Paid by a resident person In the normal circumstances on which of the following tax is charged?
Paid by the resident person from business carried on outside Pakistan Select correct option:
through a permanent establishment Gross Receipt
Paid by non-resident person Total Income
All of the given options Taxable Income
Question # 15 of 15 ( Start time: 04:24:47 AM ) Total Marks: 1 Gross Income
What is the tax treatment of losses from the foreign source under section 104 Question # 1 of 15 ( Start time: 07:24:44 PM ) Total Marks: 1
of the ordinance? Approval of Gratuity fund can be withdrawn on which of the following
Select correct option: grounds?
Wholly taxable Select correct option:
Partly Taxable On the expiry of time period
Deductible expenditure On the death of the employee
None of the given options On the malfunctioning of the trust
Question # 1 of 15 ( Start time: 04:28:53 AM ) Total Marks: 1 On the death of trustee
Loss can be carried forward up to how many years? Question # 3 of 15 ( Start time: 07:27:12 PM ) Total Marks: 1
Select correct option: In a tax _____ you give information about what you earn every year.
3 years Select correct option:
4 years Return
5 years Statement
6 years Sheet
Question # 4 of 15 ( Start time: 04:30:50 AM ) Total Marks: 1 Report
Which of the following person fulfilled the criteria of a Taxpayer? Question # 10 of 15 ( Start time: 07:30:55 PM ) Total Marks: 1
Select correct option: What is the tax treatment of any profit on the US Dollar Bonds purchased by
Any representative of a person who derives an amount chargeable to tax the non resident person before December 1999 under clause 82 of the
Any person who is required to deduct or collect tax Second Schedule?
Any person required to furnish a return of income Select correct option:
All of the given options Wholly taxable
Question # 12 of 15 ( Start time: 04:36:17 AM ) Total Marks: 1 Wholly exempt
The age of senior citizen was 65years and now amended to 60years which of Partly taxable
the following finance act substituted 65 to 60years? Not mention in second schedule
Select correct option: Question # 13 of 15 ( Start time: 07:31:59 PM ) Total Marks: 1
Finance Act 2005 Sec. 02 of Income Tax Ordinance 2001 defined: “Appellate Tribunal means
Finance Act 2006 the Appellate Tribunal established under section 130” In which criteria the
Finance Act 2007 above definition falls?
Finance Act 2008 Select correct option:
Question # 14 of 15 ( Start time: 04:37:43 AM ) Total Marks: 1 Exclusive definition
Mr. X resident of Pakistan remittance from UK received Rs. 20,000 in Pakistan Inclusive definition
from past profits. Which of the following is right for the above scenario? Both Exclusive and Inclusive definitions
Select correct option: Statutory definition
Question # 11 of 15 ( Start time: 08:04:19 PM ) Total Marks: 1
www.vustudents.ning.com
Taxes are important instrument of which of the following policy? Select correct option:
Select correct option: Section 81
Monetary policy Section 82
Fiscal policy Section 83
Trade Policy Section 84
Economic Policy
Question # 3 of 15 ( Start time: 09:06:25 PM ) Total Marks: 1 Which of the following section deals with the residential status of Company?
Which of the following income is chargeable to tax? Select correct option:
Select correct option: Section 81
Gross income from business Section 82
Income computed in line with provisions of Ordinance Section 83
Only basic salary of salaried person Section 84
Basic salary excluding allowances of a salaried person
Question # 8 of 15 ( Start time: 09:11:08 PM ) Total Marks: 1 Question # 10 of 15 ( Start time: 01:35:02 PM ) Total Marks: 1
Which one of the following principles of tax emphasized, that the taxation Which of the following methods of accounting is compulsory to adopt for
policy should be designed in such a way to boost business atmosphere and Soleproprietorship?
the investment environment in the country? Select correct option:
Select correct option: Accrual Basis
Convenience Cash Basis
Judicious Both accrual and cash bases
Capacity to Pay Free to choose any kind of base
Business friendly
Question # 12 of 15 ( Start time: 09:16:11 PM ) Total Marks: 1 Question # 15 of 15 ( Start time: 02:25:57 PM ) Total Marks: 1
Which of the following is the Special Accounting Year of Companies exporting Which of the following is not included in business?
rice? Select correct option:
Select correct option: Commerce
1st January to 31st December Manufacture
1st July to 30th June Profession
1st October to 30th September Employment
1st September to 31st August
Question # 12 of 15 ( Start time: 10:02:23 PM ) Total Marks: 1 Question # 10 of 15 ( Start time: 03:15:14 PM ) Total Marks: 1
It is mandatory for each Company to maintain its books of accounts on which Tax year for the salaried individuals is called as:
of the following methods? Select correct option:
Select correct option: Special Tax Year
Cash basis Normal Tax Year
Accrual basis Fiscal Year
Both cash and accrual basis Financial Year
Free to choose any kind of base Question # 15 of 15 ( Start time: 03:18:22 PM ) Total Marks: 1
Question # 11 of 15 ( Start time: 07:13:37 PM ) Total Marks: 1 A firm ABC maintaining its account in cash basis, at June 27, 2008 it is entitled
Which one of the following is the general definition of tax? to receive Rs. 10,000 but actual payments made at 01 August 2008. In which
Select correct option: year it is charged to tax?
Compulsory contribution of wealth by persons Select correct option:
Optional contribution of wealth by persons 2006
Compulsory contribution of wealth by state 2007
Optional contribution of wealth by state 2008
Question # 6 of 15 ( Start time: 03:29:18 AM ) Total Marks: 1 2009
M/s ABC & Co. has been incorporated under Pakistan Companies Ordinance Question # 2 of 15 ( Start time: 03:33:27 PM ) Total Marks: 1
1984.However its most of the branches are operated out of Pakistan? What Any amount received under Part 3 of Second Schedule, as flying allowance
will be the residential status of M/s ABC & Co.? by pilots etc. and junior commissioned officers or other ranks shall be taxed at
Select correct option: the rate of __________ as separate block.
Resident Company Select correct option:
Non- Resident Company 2.5%
Resident Individual 5.5%
Resident AOP 7.5%
9.5%
_______ are a form of excise levied when a commodity is sold to its final Question # 13 of 15 ( Start time: 04:09:13 PM ) Total Marks: 1
consumer. Condition for the approval of gratuity fund is based on which of the following?
Corporation tax Select correct option:
Property tax Trust is irrevocable
Sales Tax Trust is revocable
Excise Trust is established by Government
Federal government has been empowered vide section 53 (2) and (3) to make Trust is approved by Officer of Income Tax
Amendments in the second schedule by: Question # 2 of 15 ( Start time: 07:56:46 PM ) Total Marks: 1
Select correct option: Which of the following is the rate of tax for salaried Individuals for tax year
Adding any clause or condition therein 2010, where the taxable income exceeds Rs. 550,000 but does not exceed
Omitting any clause or condition therein Rs. 650,000?
Making any change in any clause or condition therein Select correct option:
All of the given options 1.50%
2.50%
Any dividend is Pakistan source income if it is paid by which of the following? 3.50%
Select correct option: 4.50%
By resident Company Question # 5 of 15 ( Start time: 02:54:13 AM ) Total Marks: 1
By non resident Company Which of the following is the rate of tax for salaried Individuals for tax year
By resident Individual 2010, where the taxable income exceeds Rs. 650,000 but does not exceed
By resident AOP Rs. 750,000?
Select correct option:
Which of the following section deals with the residential status of Person? 3.50%
www.vustudents.ning.com
4.50% Wholly taxable
6.00% Wholly exempted
7.50% Exempt up to 10% of MTS
Question # 7 of 15 ( Start time: 03:08:48 AM ) Total Marks: 1 Exempt up to 45% of MTS
Which of the following is the rate of tax for salaried Individuals for tax year Question # 7 of 15 ( Start time: 02:46:36 AM ) Total Marks: 1
2010, where the taxable income exceeds Rs. 900,000 but does not exceed Gratuity pertaining to government employees received on retirement/ death of
Rs. 1,050,000? the employee. Which of the following is the tax treatment of gratuity under the
Select correct option: Income Tax Ordinance 2001?
9.00% Select correct option:
10.00% Wholly exempt
11.00% Partially exempt
12.50% Wholly taxable
Question # 10 of 15 ( Start time: 04:22:12 AM ) Total Marks: 1 None of the given options
MTS stands for which of the following? Question # 3 of 15 ( Start time: 02:44:28 AM ) Total Marks: 1
Select correct option: Which of the following is the tax treatment of free hospitalization services
Minimum time scale provided under the terms of employment?
Minimum transfer Salary Select correct option:
Maximum time scale Wholly exempt
Maximum transfer Salary Wholly taxable
Question # 4 of 15 ( Start time: 06:28:29 PM ) Total Marks: 1 Exempt up to 10% of MTS
Which of the following is tax, where the tax rate decreases as the amount to Taxable up to 10% of MTS
which the rate is applied increases? Question # 7 of 15 ( Start time: 02:20:38 AM ) Total Marks: 1
Select correct option: Gratuity received by a non-resident person is
Proportional tax Select correct option:
Progressive tax Wholly exempt
Regressive tax Wholly taxable
Corporate tax 50% of amount receivable
Question # 2 of 15 ( Start time: 06:53:55 PM ) Total Marks: 1 50 % of B.S
Mr. X employed in Pakistan earned pension from Pakistan Government but Question # 13 of 15 ( Start time: 01:08:20 AM ) Total Marks: 1
received in London Rs. 100,000. Which of the following is right for the above Gratuity Approved by Central Board of Revenue is
scenario? Select correct option:
Select correct option: Wholly exempt
Mr. X being resident of Pakistan Rs. 100,000 will be added in Gross total Wholly taxable
income Exempt up to Rs. 200,000
Mr. X being resident of Pakistan Rs. 100,000 will be subtracted in Gross total 50% of amount receivable
income Question # 11 of 15 ( Start time: 12:11:54 AM ) Total Marks: 1
Mr. X being resident of Pakistan Rs. 100,000 will be added in total income Income of the recognized vocational institution is
after tax Select correct option:
Mr. X being non-resident of Pakistan Rs. 100,000 will be exempted Wholly taxable
Question # 10 of 15 ( Start time: 08:03:55 PM ) Total Marks: 1 Exempt
Concessional loan provided by the employer is taxable and added back to the Exempt up to 50%
income of employee. But under which of the following condition there is no Partially taxable
need to add back such loan? Question # 8 of 15 ( Start time: 02:46:08 AM ) Total Marks: 1
Select correct option: Any Pakistan-source income which Pakistan is not permitted to tax under a
Loan used for the purchase of furniture tax treaty
Loan used for the education of children shall be _______.
Loan used for the construction of house Select correct option:
Loan used for the purchase of shares Wholly Taxable
Question # 12 of 15 ( Start time: 01:10:38 AM ) Total Marks: 1 Wholly Exempt
If a business carried on by Non-resident person in Pakistan through Partly Exempt
permanent establishment what will be the tax treatment of the traveling Not mention in Ordinance
expenditures born by the non-resident for spending his holidays in his home Question # 12 of 15 ( Start time: 02:37:10 AM ) Total Marks: 1
land? What is the tax treatment of income from the sale of Mudarba Certificates?
Select correct option: Select correct option:
Wholly taxable due to PE Wholly taxable
Wholly taxable as no concerned with PE in Pakistan Wholly exempt
Not permissible as deduction from the income of Non-resident Partially taxable
None of the given options Partially exempt
Question # 10 of 15 ( Start time: 03:10:40 AM ) Total Marks: 1 Question No: 41 ( Marks: 1 ) - Please choose one
What is the tax treatment of the leave encashment on the retirement of the What is the tax treatment of recognized Provident fund under section 2 (48) of
employee? part I of sixth schedule?
Select correct option: ► Wholly exempt
Wholly Taxable ► Partially taxable
Wholly exempt ► Wholly taxable
Partly Taxable ► Partially exempt
Question # 8 of 15 ( Start time: 02:56:10 AM ) Total Marks: 1 Question No: 7 ( Marks: 1 ) - Please choose one
Income chargeable under the head “Income from Business” derived by a What is the tax treatment of support payment received by spouse made under
Provincial Government or local authority from a business carried on outside its the agreement to live apart?
jurisdictional area, will be: ► Wholly Taxable
Select correct option: ► Wholly Exempt
Wholly taxable ► Partly Exempt
Wholly exempt ► Not mention in Ordinance
Partially exempt
Section is silent about it Question No: 41 ( Marks: 1 ) - Please choose one
Question # 15 of 15 ( Start time: 02:50:39 AM ) Total Marks: 1 Which of the following is the Tax Treatment of utilities for the year 2009?
Which of the following is the Tax Treatment of utilities for the year 2010? Wholly taxable
Select correct option: Wholly exempted
www.vustudents.ning.com
Exempt up to 10% of MTS Question # 7 of 15 ( Start time: 08:36:01 PM ) Total Marks: 1
Exempt up to 1% of MTS Bonuses are fully taxable under Income Tax Ordinance 2001.
Refpage 46) Select correct option:
Utilities were exempt up to 10% of MTS or Basic salary till 30th June, 2006, True
vide clause 38 of part 1 of Second Schedule. This clause has been omitted by False
Finance Act, 2006. Hence no exemption is available for tax year 2009. Question # 11 of 15 ( Start time: 08:00:17 PM ) Total Marks: 1
Tax rate for taxable income for the tax year 2010 exceeding Rs 550,000 up to
Question No: 10 ( Marks: 1 ) - Please choose one Rs 650,000 is 6.0% as given in the first schedule of Income Tax Ordinance
What is the tax treatment of the leave encashment of the armed forces of 2001.
Pakistan on retirement made by the employer? Select correct option:
Wholly Taxable True
Wholly exempt False
Partly Taxable Question # 7 of 15 ( Start time: 04:56:19 AM ) Total Marks: 1
Not mention in Income Tax Ordinance 2001 Gratuity is only granted in case of retirement.
Ref:Pg#39 Select correct option:
Leave Salary: True
This is taxable whenever received or right to receive is exercised by the False
employee. Leave encashment on retirement falls in this category. The Question # 9 of 15 ( Start time: 02:22:56 AM ) Total Marks: 1
only exemption available is for the members of the Armed Forces of Gratuity is received by legal heirs, where employee dies before retirement the
Pakistan, employees of the Federal Government and Provincial gratuity would be exempted in the hands of legal heirs of the deceased.
Governments. Select correct option:
Question # 13 of 15 ( Start time: 02:58:59 AM ) Total Marks: 1 True
What is the tax treatment of the reimbursement of expenditure made by the False
employer? Question # 13 of 15 ( Start time: 12:22:05 AM ) Total Marks: 1
Select correct option: Officer of Income Tax may grant approval to any gratuity fund.
Wholly Taxable Select correct option:
Wholly exempt True
Partly Taxable False
Not mentioned in Income Tax Ordinance 2001 Question # 14 of 15 ( Start time: 12:22:21 AM ) Total Marks: 1
Question # 15 of 15 ( Start time: 03:59:33 PM ) Total Marks: 1 Gratuity will be ignored while computing taxable income and tax liability of a
Income of a Text-Book Board is deceased person.
Select correct option: Select correct option:
Wholly taxable True
Exempt False
Exempt up to 50% Question # 6 of 15 ( Start time: 12:20:15 AM ) Total Marks: 1
None of the given options Any obligation of employee waived off by employer will not be added back to
Question # 4 of 15 ( Start time: 10:45:11 PM ) Total Marks: 1 his taxable income.
What is the tax treatment of the salary of an employee of foreign government Select correct option:
but citizen of Pakistan? True
Select correct option: False
Exempt form tax Question # 8 of 15 ( Start time: 02:36:18 AM ) Total Marks: 1
Wholly Taxable Government provident fund is
Partly Taxable Select correct option:
No Tax treatment given in IT Ordinance 2001 Totally taxable
Question # 10 of 15 ( Start time: 06:03:30 PM ) Total Marks: 1 Partially taxable
Mr.John a non-resident received profit in Pakistan on a security issued by a Totally exempt
resident person, how the profit will be treated under sec (46) of IT Ordinance Partially exempt
2001? Question # 7 of 15 ( Start time: 08:01:41 PM ) Total Marks: 1
Select correct option: Unrecognized provident fund is
Wholly Taxable Select correct option:
Wholly Exempt Totally taxable
Partly Exempt Partially taxable
None of the given options Totally exempt
Question # 8 of 15 ( Start time: 11:49:03 PM ) Total Marks: 1 Partially exempt
Conveyance provided by employer for personal use of the employee is only Question # 11 of 15 ( Start time: 02:57:21 AM ) Total Marks: 1
taxed @ 5% of the cost to the employer for acquiring the vehicle or the fair Pension received by a citizen of Pakistan is _____________from tax.
market value of vehicle. Select correct option:
Select correct option: Partially taxable
True Fully taxable
False Taxable 25% of the pension received
Question # 5 of 15 ( Start time: 11:48:07 PM ) Total Marks: 1 Totally exempt
A cash amount paid by a person as donation shall be taken into account only Question # 2 of 15 ( Start time: 02:17:52 AM ) Total Marks: 1
if it was paid by a crossed cheque drawn on a bank. Pension is treated as
Select correct option: Select correct option:
True Totally taxable
False Partially taxable
Question # 15 of 15 ( Start time: 06:33:03 PM ) Total Marks: 1 Totally exempt
Tax year for the salaried individuals is called as Special Tax Year. Partially exempt
Select correct option: Question # 6 of 15 ( Start time: 03:07:43 AM ) Total Marks: 1
True Pension granted to disabled is treated as
False Select correct option:
Question # 9 of 15 ( Start time: 03:09:36 AM ) Total Marks: 1 Totally taxable
Payment of Zakat is entitled to a deductible allowance according to provisions Partially taxable
of sec.60. Totally exempt
Select correct option: Partially exempt
True Not mentioned in Income Tax Ordinance 2001
False
www.vustudents.ning.com