FINALTERM EXAMINATION FIN623- Taxation Management (Session - 1) Spring 2009 Question No: 1 ( Marks: 1 ) - Please choose one

__________ is a type of tax where the tax rate increases as the income to which the rate is applied increases. Proportional tax Progressive tax Regressive tax Corporate tax Ref: ™ Progressive Taxes This is based on the “capacity to pay” principle of taxation. In this type, the rate of tax increase asthe income increase.

Question No: 2

( Marks: 1 ) - Please choose one

If the accounting year of Mr. Aslam, a rice exporter is started from 01 January 2005 and ending on 31st December 2005. What will be its tax year? Tax year 2003 Tax year 2004 Tax year 2005 Tax year 2006 Question No: 3 ( Marks: 1 ) - Please choose one

In case of lump sum receipt of income like Golden hand shake the tax payer pays tax in which of the following way? Average of last 3 years tax rate Option to choose current or average of last 3 years tax rate Current tax rate Previous year tax rate Question No: 4 ( Marks: 1 ) - Please choose one

Which of the following methods of accounting is compulsory to adopt for Firm? Accrual Basis Cash Basis Both Accrual and Cash Basis

Free to choose any kind of base Ref: For Companies –Accrual basis mandatory. For Others --- optional, cash or Accrual Basis Question No: 5 ( Marks: 1 ) - Please choose one

Suppose a Profit acquired by a cultivator from the sale of standing crops or the produce after harvesting. The profit of the cultivator will be treated in which of the following way? Income from Business Agriculture Income Income from Property Capital Gain Ref: Following Income are held to be “Agricultural Income” •Profit on sale of standing crops or the produce after harvest by a cultivating owner or tenant of land.

Question No: 6

( Marks: 1 ) - Please choose one

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. What will be the tax treatment of such income? Exempt as Agriculture Income Allowed Reduction in tax rate Allowed reduction in tax liability Taxable as Non-Agriculture Income Ref provided by azeemkhan2000: Following Incomes are held to be “Non-Agricultural Income”  Income from sale of agricultural produce received by way of price for water supplied to land. Question No: 7 ( Marks: 1 ) - Please choose one

Mr. Imran is an employee of Provincial Government of Punjab posted in UK for two years? What will be the residential status of Mr. Imran? Resident Individual Non-Resident Individual Resident HUF Resident AOP

Ref: Resident Individual (Section 82) • Is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year? Question No: 8 ( Marks: 1 ) - Please choose one

For a non-resident AOP which of the following condition must be satisfied? Control and management of affairs of AOP is situated partly in Pakistan Control and management of affairs of AOP is situated wholly in Pakistan Control and management of affairs of AOP is situated wholly or partly in Pakistan None of the given options Ref: Residential Status of “Association of Person” Under the law a Firm, HUF, etc. are placed under the head AOP Control and management of affairs of AOP is situated wholly or partly in Pakistan Question No: 9 ( Marks: 1 ) - Please choose one

What is the tax treatment of the reimbursement of expenditure made by the employer? Wholly Taxable Wholly exempt Partly Taxable Not mentioned in Income Tax Ordinance 2001 Ref: Reimbursement of expenditure by the employer is Taxable

Question No: 10

( Marks: 1 ) - Please choose one

What is the tax treatment of the leave encashment of the armed forces of Pakistan on retirement made by the employer? Wholly Taxable Wholly exempt Partly Taxable Not mention in Income Tax Ordinance 2001 Ref: Leave Salary: This is taxable whenever received or right to receive is exercised by the employee. Leave encashment on retirement falls in this category. The only exemption available is for the members of the Armed Forces of Pakistan, employees of the Federal Government and Provincial Governments.

Question No: 11

( Marks: 1 ) - Please choose one

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 official purposes only, what are the tax consequences of this policy? Treated as taxable No tax consequences Partially taxable Not discussed in Income Tax Ordinance 2001 Ref: Reimbursement of expenditure by the employer is Taxable Question No: 12 ( Marks: 1 ) - Please choose one

MTS stands for which of the following? Minimum time scale Minimum transfer Salary Maximum time scale Maximum transfer Salary Ref: Concept of MTS (Minimum of Time Scale): This is the starting point or minimum amount which is available to an employee under a time scale Question No: 13 ( Marks: 1 ) - Please choose one

Condition for the approval of gratuity fund is based on which of the following? Trust is irrevocable Trust is revocable Trust is established by Government Trust is approved by Officer of Income Tax Ref: Condition for Approval • • Fund established under an irrevocable trust and purposes of gratuity fulfilled. Question No: 14 ( Marks: 1 ) - Please choose one

Clause (10) and (11) of Part 1 of second schedule related to Pension are omitted by which of the following? Finance Ordinance 2004 Finance Ordinance 2005 Finance Bill 2006

Finance Bill 2007 Ref; twenty per cent of the eligible person’s taxable income for the relevant tax year; Provided that an eligible person (words "a person" substituted by Finance Bill 2006)

Question No: 15

( Marks: 1 ) - Please choose one

Which of the following is the tax treatment for Income from property received as a rent for the year 2007? 1 /4 of the rent is deduct able as repairs allowance 1 /2 of the rent is deduct able as repairs allowance 1 /5 of the rent is deduct able as repairs allowance No deduction is allowed Question No: 16 ( Marks: 1 ) - Please choose one

A non adjustable advance is received from a building as income from property. Such rent will be spread in how many of the following years? 5 years 6years 8 years 10 years Ref: Non adjustable advance is spread over ten years. Question No: 17 ( Marks: 1 ) - Please choose one

Under clause (93 A) of the Part 1 of second schedule of Income Tax Ordinance 2001, which of the following business income is exempted from tax? Income of a Text-Book Board University or Educational Institution established not for profit purpose Recognized Vocational Institute Income of Recognized Sports Board Ref: (93A) Recognized Vocational Institute. Question No: 18 ( Marks: 1 ) - Please choose one

Head Income from property section 15 defines land as: Constructed building Block of brick

Please choose one Which one of the following section defines Income under the head Income from Business section 18? Section 2(9) Section 2(29) Section 75 Section 2(15) Question No: 21 ( Marks: 1 ) .Vacant plot None of the given options Question No: 19 ( Marks: 1 ) . vocation but doesn’t include employment” Question No: 20 ( Marks: 1 ) .Please choose one One of the following options doesn t come under the definition of Business income section 2 (9): Trade Commerce Profession Employment Ref: Business Defined Section 2(9) “Business includes any trade. manufacture. 21 Question No: 22 ( Marks: 1 ) . commerce.Please choose one Which of the following section deals with the deductions Not allowed to income from business? Section 2 (9) Section 20 Section 21 Section 22 Ref: Deductions not Allowed – Sec. is charged to tax under which of the following head of Income? Income from Business Income from Property Income from Capital Gain Income from Other sources .Please choose one Gain on sale of depreciable asset. profession. under section 31 of the Income Tax Ordinance 2001.

75% . ƒAmount received after discontinuance of business. ƒGain on sale of depreciable asset. Question No: 24 ( Marks: 1 ) . ƒTrading liabilities not paid within expiration of three years.Please choose one Which of the following is the tax rate that a Resident Company is subjected to pay on its turnover for a tax year. under section 31 of the Income Tax Ordinance 2001.25% 0.50% 0. ƒAmount received after discontinuance of business. ƒRecovery against any deduction/expenses previously allowed (Add back to income). ƒRecovery of bad debt/or written off loan.Please choose one Amount received after discontinuance of business. ƒGain on sale of depreciable asset. is charged to tax under which of the following head of Income? Income from Business Income from Property Income from Capital Gain Income from Other sources Ref: Transfer to Participatory Reserve (Sec 31) Following Incomes are taxable under the head Income from Business even in cases where no business is carried on by taxpayer.Ref: Transfer to Participatory Reserve (Sec 31) Following Incomes are taxable under the head Income from Business even in cases where no business is carried on by taxpayer. ƒRecovery against any deduction/expenses previously allowed (Add back to income). ƒTrading liabilities not paid within expiration of three years. even in cases where the company sustains loss? 0. ƒRecovery of bad debt/or written off loan. Question No: 23 ( Marks: 1 ) .

Please choose one Which of the following is NOT required to file the return of Income Tax under section 115? Every Company Every Firm Every person with land 250 sq yards Salaried individual having salary certificate in lieu Ref: Person Not Required to File Tax Return Section 115 grants immunity to salaried person in lieu of filing a return as outlined below: ƒSalary certificate from employer sufficient in lieu of return Question No: 28 ( Marks: 1 ) .00% Ref: Resident Company is subjected to minimum tax @ 0.Please choose one The amount of minimum tax liability is arrived at as follows: (A x 0.Please choose one .5%) B Question No: 26 ( Marks: 1 ) .79 Non Recognition Rules No gain or loss shall be taken to arise on the disposal of an asset: ƒBetween spouses under an agreement to live apart. what would be the tax treatment of such disposal of asset? Charged to tax under the head Income from Business Charged to tax under the head Income from Capital Gain Exempt from tax under section 79 of the Income Tax Ordinance 2001 Charged to tax under the head Income from Property Ref: Disposals Not Chargeable To Tax Under Sec. Question No: 27 ( Marks: 1 ) . even in cases where the company sustains loss.5% (A + B) 0.1.5% (A / 0.Please choose one In case of disposal of asset between spouses under an agreement to live apart. Question No: 25 ( Marks: 1 ) .5%) B (A x B) 0.50% of its turnover for a tax year.

000 Rs.300.Please choose one Which of the following is NOT a liquidator under section 141 of the income tax ordinance 2001? Receiver appointed by a Court Trustee for a bankrupt Mortgagee in possession Tax payer Ref: Liquidators (Sec. 141): Following are referred to as liquidator: ƒA liquidator of a company .250. presently this amount is: Rs. the income tax payable shall be the tax payable on the maximum of that slab plus anamount equal to – (i)20% of the amount by which the total income exceeds the said limit where the total income doesnot exceed Rs.A person may furnish Revised Return from the date when the original return was furnished up to which of the following time period? 5 Days 5 Months 5 Years 15 Months Ref: Provision of Revised Tax Return: A person may furnish Revised Return within five years of the date when the original return was furnished. 500.100. Question No: 29 ( Marks: 1 ) .000. 000 Ref: Provided further that where the total income of a taxpayer marginally exceeds the maximum limit of aslab in the table.500. 000 Rs.Please choose one A person where taxable income for a tax year exceeds the maximum amount not chargeable to tax is required to file a return of income for the tax year. 000 Rs. Question No: 30 ( Marks: 1 ) .

Question No: 32 ( Marks: 1 ) . by notification in the official Gazette.ƒA receiver appointed by a Court or appointed out of court ƒA trustee for a bankrupt ƒA mortgagee in possession Question No: 31 ( Marks: 1 ) .Please choose one Capital Value Tax was levied on the capital value of assets with effect from.Please choose one . by notification in the official Gazette. Question No: 34 ( Marks: 1 ) .Please choose one Federal Tax Ombudsman has the same powers as _____________ to punish any person for its contempt. 1989 on the capital value of assets. Income tax office Registered office Local Sales Tax Office None of the given options Ref: (15) "Local Sales Tax Office" means the office of Superintendent of Sales Tax. or such other office as he Board may. 1989 1st June 1990 1st July 2000 1st July 1999 Ref: Capital Value Tax was levied with effect from 1st July. specify.Please choose one The office of Superintendent of Sales Tax. or such other office as the Board may. Supreme High court City court Provincial Government Ref: The Federal Tax Ombudsman has the same powers as the Supreme Court has to punish any person forits contempt. 1st July. specify is called. Question No: 33 ( Marks: 1 ) .

000 will be claimed as admissible deduction Mr. X resident of Pakistan earned income from Property situated in London Rs.000 will be exempted Question No: 36 ( Marks: 1 ) .50% 0. 70. Which one of the following option is right for this particlar scenario? Mr. Which one of the following option is right for this particular scenario? Mr.000 will be exempted Question No: 37 ( Marks: 1 ) .Please choose one Which of the following is the rate of tax for salaried Individuals for tax year 2009. X being non-resident of Pakistan Rs. 2001 is termed as: Employment Employer Employee Business premises Ref: 2(22) “employment includes: • a directorship or any other office involved in the management of a company.A directorship or any other office involved in the management of a company under section 2(22) of Income Tax Ordinance. or • the holding or acting in any public office Question No: 35 ( Marks: 1 ) . 50. X being non-resident of Pakistan Rs. 70.000 will be added in Gross total income Mr. 250. X being non-resident of Pakistan Rs. 50. X non-resident of Pakistan earned income from property situated in Dubai Rs.Please choose one Mr. X being non-resident of Pakistan Rs.000 but received in Pakistan. where the taxable income exceeds Rs.000 but received in India.Please choose one Mr.000 will be subtracted in Gross total income Mr.75% . 70.250% 0. 50.000 will be subtracted in Gross total income Mr. X being resident of Pakistan Rs. 50. 70.000 but does not exceed Rs. 50. X being resident of Pakistan Rs. 350. X being resident of Pakistan Rs.000? Nil 0. X being resident of Pakistan Rs.000 will be added in Gross total income Mr. • a position entitling the holder to a fixed or ascertainable remuneration. 70.000 will be claimed as admissible deduction Mr.

Which of the following is the tax liability of Miss Sonia? Nil Rs.000 Rs. 1.Ref: Page no 45 of handouts Question No: 38 ( Marks: 1 ) . 240.50% = 1200 There is not any correct option Question No: 40 ( Marks: 1 ) . 21. 27. 400.Please choose one Which of the following is the rate of tax for salaried Individuals for tax year 2009.000 Ref: . 36. 500 Rs. where the taxable income exceeds Rs.50% So the tax amount will be 240000 @ 0.000. 600. the tax rate is 0. Which of the following is the tax liability of Mr.000? 0.Please choose one Mr. 1. A? Rs.000 Rs. As total taxable income for the year 2009 is Rs.500 Ref: Where the taxable income exceeds Rs.000 Rs.25% 1.50% Ref: Page no 45 of handouts Question No: 39 ( Marks: 1 ) .000.50% 2. 450.000. 15.50% 3.000 Rs.000 but does not exceed Rs 250. 180.Please choose one Miss Sonia s total taxable income for the year 2009 is Rs.000 but does not exceed Rs.

000 but does not exceed Rs.Farooq. 000.000.50% = 27000 Question No: 41 ( Marks: 1 ) . This clause has been omitted by Finance Act. Farooq s salary is Rs.Please choose one A firm ABC maintaining its account in cash basis. 000.000 but actual payments made at 01 August 2008. The employer took this jeep from a leasing company at an annual lease of Rs.800. The fair market value of the jeep at commencement of lease was Rs.80. the tax rate is 4. 10.22. Question No: 42 ( Marks: 1 ) . 2006. Ghaus is employed in a company after his retirement from army. 650. Question No: 46 ( Marks: 5 ) Under what conditions a commissioner of Income Tax may ask for the filing of returns by notice? Question No: 47 ( Marks: 5 ) Mr. 2008 it incurred expenses for Rs.Where the taxable income exceeds Rs.000 @ 4. Question No: 45 ( Marks: 3 ) Briefly explain the unexplained income or assets under section 111 of Income Tax Ordinance 2001. 2006. 000 per month. vide clause 38 of part 1 of Second Schedule. It would be charge to tax into the tax year: 2006 2007 2008 2009 Question No: 43 ( Marks: 3 ) What is the main purpose of Gratuity? Question No: 44 ( Marks: 3 ) Mr.Please choose one Which of the following is the Tax Treatment of utilities for the year 2009? Wholly taxable Wholly exempted Exempt up to 10% of MTS Exempt up to 1% of MTS Ref: Utilities were exempt up to 10% of MTS or Basic salary till 30th June. Hence no exemption is available fortax year 2009. 550. at June 27. He received commission during the year amounting to Rs. He is provided a jeep by his employer for personal as well as official use.33. Details of his income for the year ended 30th June 2009 are as under.Calculate the taxable income of Mr.50% So 600. 000. .

Traveling allowance 112. 1.a.000 p. Bonus 50. He has been provided a rent .Basic salary from company Entertainment allowance Rs. Irfan has been provided a car for personal purposes.m.200 Contribution to approved charitable institute Rs.000) 50.000p. Irfan is 62 years of age.000 Zakat paid under zakat ordinance 20. Salary (in scale 14.a. Compute the taxable income and tax payable on it. Books of religious nature purchased 2.20. 19.000-200-16. Question No: 49 ( Marks: 10 ) From the following particulars. 2.m.000 per annum Pension received from army Calculate the total taxable income of Mr.15.200 p. calculate the tax payable by Mr.000 Medical expenses 27. 000 per month Rs. 8. Mr Gauhar is 62 years of age.1) . 4.000 per month. Special additional allowance 6. Tax rate prevail 9%. Mr. Question No: 48 ( Marks: 10 ) Mr. Cost of living allowance 20. 48.free accommodation.000) Rs. The cost of the car is Rs.000-55.Gauhar employed in a private limited company for the year ended 30th June 2009 @ 0.000-1. At present he is working as General Manager of a private organization.Ghaus.000 Further information provided: 1.m.Taxation Management (Session .000 Pension from Government 12.000 per month Rs.000. His particulars for the year ended 30th June 2009 are as follows.000 Zakat paid under zakat ordinance 3.000 p. Rs Basic salary (40.200 FINALTERM EXAMINATION Spring 2009 FIN623. 780. The medical expenditures incurred during the year are verifiable. 000 p. He was entitled to a house allowance of Rs.000 Conveyance allowance 48.a.5 %. 3. Medical allowance 21.000 p.

land is not direct. cash or Accrual Basis Question No: 5 ( Marks: 1 ) . Aslam. Question No: 7 ( Marks: 1 ) .Please choose one __________ is a type of tax where the tax rate increases as the income to which the rate is applied increases.Please choose one In case of lump sum receipt of income like Golden hand shake the tax payer pays tax in which of the following way? Average of last 3 years tax rate Option to choose current or average of last 3 years tax rate Current tax rate Previous year tax rate Reference: Golden handshake amount can be taxed @average rate of tax of last 3 years Question No: 4 ( Marks: 1 ) . Imran? Resident Individual Non-Resident Individual Resident HUF Resident AOP Ref: According to section82 of income tax ordinance.Please choose one Suppose a Profit acquired by a cultivator from the sale of standing crops or the produce after harvesting.Question No: 1 ( Marks: 1 ) . Question No: 6 ( Marks: 1 ) .Please choose one Which of the following methods of accounting is compulsory to adopt for Firm? Accrual Basis Cash Basis Both Accrual and Cash Basis Free to choose any kind of base Reference: Adoption rule of accounting methods are as under: For Companies –Accrual basis mandatory. For Others --. immediate or effective source of income will be treated as non agriculture income.optional. resident individual is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year? . Imran is an employee of Provincial Government of Punjab posted in UK for two years? What will be the residential status of Mr.Please choose one Mr. What will be the tax treatment of such income? Exempt as Agriculture Income Allowed Reduction in tax rate Allowed reduction in tax liability Taxable as Non-Agriculture Income Ref: Income from sale of agricultural produce received by way of price for water supplied to land will be treated as non agricultural income. Proportional tax Progressive tax Regressive tax Corporate tax Question No: 2 ( Marks: 1 ) . What will be its tax year? Tax year 2003 Tax year 2004 Tax year 2005 Tax year 2006 Question No: 3 ( Marks: 1 ) . a rice exporter is started from 01 January 2005 and ending on 31st December 2005. The profit of the cultivator will be treated in which of the following way? Income from Business Agriculture Income Income from Property Capital Gain Ref: Profit on sale of standing crops or the produce after harvest by a cultivating owner or tenant of land will be treated as agricultural income. Whereas: Profit accruing from the purchase of standing crops and resale of it after harvest by a merchant having no interest in land except a mere license to enter upon the land and gather upon the produce.Please choose one If the accounting year of Mr.Please choose one 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.

a company provides for reimbursement of telephone costs on actual basis to its employees in case the facility is used for official purposes only.Please choose one Which of the following is the tax treatment for Income from property received as a rent for the year 2007? 1 /4 of the rent is deduct able as repairs allowance 1 /2 of the rent is deduct able as repairs allowance 1 /5 of the rent is deduct able as repairs allowance No deduction is allowed Question No: 16 ( Marks: 1 ) . employees of the Federal Government and Provincial Governments Question No: 11 ( Marks: 1 ) . what are the tax consequences of this policy? Treated as taxable No tax consequences Partially taxable Not discussed in Income Tax Ordinance 2001 Question No: 12 ( Marks: 1 ) .Please choose one .Please choose one Condition for the approval of gratuity fund is based on which of the following? Trust is irrevocable Trust is revocable Trust is established by Government Trust is approved by Officer of Income Tax Ref: Condition for Approval • Fund established under an irrevocable trust and purposes of gratuity fulfilled.Please choose one MTS stands for which of the following? Minimum time scale Minimum transfer Salary Maximum time scale Maximum transfer Salary Question No: 13 ( Marks: 1 ) .Please choose one What is the tax treatment of the reimbursement of expenditure made by the employer? Wholly Taxable Wholly exempt Partly Taxable Not mentioned in Income Tax Ordinance 2001 Question No: 10 ( Marks: 1 ) . Question No: 15 ( Marks: 1 ) . Ref: Control and management of affairs of resident AOP is situated wholly or partly in Pakistan.Question No: 8 ( Marks: 1 ) .Please choose one As part of remuneration package. Provided that an eligible person (words "a person" substituted by Finance Bill 2006).twenty per cent of the eligible person’s taxable income for the relevant tax year. The only exemption available is for the members of the Armed Forces of Pakistan. Question No: 14 ( Marks: 1 ) . Leave encashment on retirement falls in this category.Please choose one What is the tax treatment of the leave encashment of the armed forces of Pakistan on retirement made by the employer? Wholly Taxable Wholly exempt Partly Taxable Not mention in Income Tax Ordinance 2001 Ref: Leave Salary: This is taxable whenever received or right to receive is exercised by the employee.Please choose one Clause (10) and (11) of Part 1 of second schedule related to Pension are omitted by which of the following? Finance Ordinance 2004 Finance Ordinance 2005 Finance Bill 2006 Finance Bill 2007 Ref.Please choose one For a non-resident AOP which of the following condition must be satisfied? Control and management of affairs of AOP is situated partly in Pakistan Control and management of affairs of AOP is situated wholly in Pakistan Control and management of affairs of AOP is situated wholly or partly in Pakistan None of the given options. Question No: 9 ( Marks: 1 ) .

profession. manufacture.Please choose one Which of the following section deals with the deductions Not allowed to income from business? Section 2 (9) Section 20 Section 21 Section 22 Ref: Deductions not Allowed – Sec. vocation but doesn’t include employment” Question No: 20 ( Marks: 1 ) . It is adjustable as Rent.Please choose one Gain on sale of depreciable asset. (100) Income of Modaraba Companies. commerce. (98) Income of Recognized Sports Board. is charged to tax under which of the following head of Income? Income from Business Income from Property Income from Capital Gain Income from Other sources .Please choose one Under clause (93 A) of the Part 1 of second schedule of Income Tax Ordinance 2001. (93) Recognized Computer Training Institution.A non adjustable advance is received from a building as income from property. (92) University or Educational Institution established not for profit purpose. (93A) Recognized Vocational Institute. These amounts are spread over a period of 10 years. Question No: 18 ( Marks: 1 ) . 21 Question No: 22 ( Marks: 1 ) .Please choose one Which one of the following section defines Income under the head Income from Business section 18? Section 2(9) Section 2(29) Section 75 Section 2(15) Ref: Business Defined Section 2(9) “Business includes any trade.Please choose one Head Income from property section 15 defines land as: Constructed building Block of brick Vacant plot None of the given options Question No: 19 ( Marks: 1 ) . Question No: 17 ( Marks: 1 ) . profession. under section 31 of the Income Tax Ordinance 2001. which of the following business income is exempted from tax? Income of a Text-Book Board University or Educational Institution established not for profit purpose Recognized Vocational Institute Income of Recognized Sports Board Ref: Exemptions on Business income Under Part 1 of second schedule Clause Exempt Income (91) Income of a Text-Book Board. commerce. vocation but doesn’t include employment” Question No: 21 ( Marks: 1 ) .Please choose one One of the following options doesn’t come under the definition of Business income section 2 (9): Trade Commerce Profession Employment Ref: Business Defined Section 2(9) “Business includes any trade. manufacture. Such rent will be spread in how many of the following years? 5 years 6years 8 years 10 years Reference: Treatment of Non-Adjustable Amounts Received in Relation to Buildings These amounts shall be treated as rent and chargeable to tax under the head “income from property”.

Recovery of bad debt/or written off loan. Amount received after discontinuance of business. under section 31 of the Income Tax Ordinance 2001.5% (A + B) 0.5% (A / 0.25% 0.Please choose one The amount of minimum tax liability is arrived at as follows: (A x 0. even in cases where the company sustains loss? 0. Question No: 24 ( Marks: 1 ) .75% 1.50% of its turnover for a tax year.Ref: Transfer to Participatory Reserve (Sec 31) Following Incomes are taxable under the head Income from Business even in cases where no business is carried on by taxpayer. Question No: 27 ( Marks: 1 ) .Please choose one Amount received after discontinuance of business.00% Ref: According to section 113: Resident Company is subjected to minimum tax @ 0. what would be the tax treatment of such disposal of asset? Charged to tax under the head Income from Business Charged to tax under the head Income from Capital Gain Exempt from tax under section 79 of the Income Tax Ordinance 2001 Charged to tax under the head Income from Property Ref: No gain or loss shall be taken to arise on the disposal of an asset Between spouses under an agreement to live apart.Please choose one Which of the following is the tax rate that a Resident Company is subjected to pay on its turnover for a tax year. is charged to tax under which of the following head of Income? Income from Business Income from Property Income from Capital Gain Income from Other sources Reference is same as for previous question. • • • • • Recovery against any deduction/expenses previously allowed (Add back to income). Gain on sale of depreciable asset. Trading liabilities not paid within expiration of three years. even in cases where the company sustains loss. Question No: 25 ( Marks: 1 ) .50% 0.5%) B Question No: 26 ( Marks: 1 ) .5%) B (A x B) 0.Please choose one A person may furnish Revised Return from the date when the original return was furnished up to which of the following time period? 5 Days 5 Months 5 Years .Please choose one Which of the following is NOT required to file the return of Income Tax under section 115? Every Company Every Firm Every person with land 250 sq yards Salaried individual having salary certificate in lieu Ref: Section 115 grants immunity to salaried person in lieu of filing a return as outlined below: • Salary certificate from employer sufficient in lieu of return Question No: 28 ( Marks: 1 ) .Please choose one In case of disposal of asset between spouses under an agreement to live apart. Question No: 23 ( Marks: 1 ) .

or • the holding or acting in any public office.Please choose one A directorship or any other office involved in the management of a company under section 2(22) of Income Tax Ordinance. exchange. firm or a company which acquires by purchase gift. 141): Following are referred to as liquidator: A liquidator of a company A receiver appointed by a Court or appointed out of court A trustee for a bankrupt A mortgagee in possession Question No: 31 ( Marks: 1 ) . by notification in the official Gazette. An asset or a right to the use thereof for more than twenty years. 1989 on the capital value of assets.Please choose one Capital Value Tax was levied on the capital value of assets with effect from. 000 Rs. presently this amount is: Rs. Supreme court High court City court Provincial Government Ref: The Federal Tax Ombudsman has the same powers as the Supreme Court has to punish any person for its contempt. 000 Rs. or such other office as the Board may. a revised return can be filed within 5 years of the date that the original return was furnished. relinquishment. 1989 1st June 1990 1st July 2000 1st July 1999 Ref: Capital Value Tax was levied with effect from 1st July.Please choose one A person where taxable income for a tax year exceeds the maximum amount not chargeable to tax is required to file a return of income for the tax year. surrender if rights by the owners (whether effected orally or by deed or obtained through court decree) except by inheritance an asset or a right to the use thereof for more than twenty years.. by notification in the official Gazette.Please choose one The office of Superintendent of Sales Tax. or such other office as the Board may.Please choose one Federal Tax Ombudsman has the same powers as _____________ to punish any person or is contempt. .Please choose one Which of the following is NOT a liquidator under section 141 of the income tax ordinance 2001? Receiver appointed by a Court Trustee for a bankrupt Mortgagee in possession Tax payer Ref: Liquidators (Sec. Question No: 33 ( Marks: 1 ) . Question No: 34 ( Marks: 1 ) .500. 000 Rs. 2001 is termed as: Employment Employer Employee Business premises Ref: 2(22) “employment includes: • a directorship or any other office involved in the management of a company. 1st July. Income tax office Registered office Local Sales Tax Office None of the given options Ref: “Local Sales Tax Office" means the office of Superintendent of Sales Tax. • a position entitling the holder to a fixed or ascertainable remuneration.15 Months Ref: In case of any omission by a tax payer. specify is called. association of persons. This is payable by every individual.250.111) Question No: 32 ( Marks: 1 ) . specify.300.100.(Page no. Question No: 29 ( Marks: 1 ) . 000 Question No: 30 ( Marks: 1 ) .

15. 21.000 but does not exceed Rs.250% 0. 1. Which one of the following option is right for this particular scenario? Mr.00% rate will be applied. 36. 2006.750. Question No: 41 ( Marks: 1 ) . X being non-resident of Pakistan Rs. 6. 27.75% Question No: 38 ( Marks: 1 ) .000. Which one of the following option is right for this particlar scenario? Mr.000 but actual payments made at 01 August 2008.Please choose one Which of the following is the Tax Treatment of utilities for the year 2009? Wholly taxable Wholly exempted Exempt up to 10% of MTS Exempt up to 1% of MTS Ref: Utilities were exempt up to 10% of MTS or Basic salary till 30th June. X being non-resident of Pakistan Rs. 240.Please choose one Which of the following is the rate of tax for salaried Individuals for tax year 2009. no tax shall be charged if the taxable income does not exceed Rs.000? 0.500 Ref: Provided that where income of a woman taxpayer is covered by this clause. vide clause 38 of part 1 of Second Schedule.000 will be subtracted in Gross total income Mr.Please choose one Mr.000 Rs.Please choose one A firm ABC maintaining its account in cash basis. 2006. 70. 10. 70. (600000*6/100=36000). 650.50% Question No: 39 ( Marks: 1 ) . X being resident of Pakistan Rs. X being non-resident of Pakistan Rs.000 Rs. This clause has been omitted by Finance Act.000 but does not exceed Rs.000 will be claimed as admissible deduction Mr. Question No: 42 ( Marks: 1 ) . 350.000 Ref: Where the taxable income exceeds Rs.50% 0.000.000 will be added in Gross total income Mr.000 but does not exceed Rs.000 will be added in Gross total income Mr. X resident of Pakistan earned income from Property situated in London Rs. 50. A? Rs. 50. A’s total taxable income for the year 2009 is Rs.Question No: 35 ( Marks: 1 ) . X being resident of Pakistan Rs.000 will be exempted Question No: 37 ( Marks: 1 ) .000 will be claimed as admissible deduction Mr.Please choose one Which of the following is the rate of tax for salaried Individuals for tax year 2009. 50. 450.000 Rs. 500 Rs. X non-resident of Pakistan earned income from property situated in Dubai Rs. Which of the following is the tax liability of Miss Sonia? Nil Rs. X being non-resident of Pakistan Rs. 70.000 will be subtracted in Gross total income Mr.000 will be exempted Question No: 36 ( Marks: 1 ) . 70.000 but received in India. It would be charge to tax into the tax year: 2006 2007 2008 2009 Question No: 43 ( Marks: 3 ) .25% 1. Which of the following is the tax liability of Mr. 240.000? Nil 0. at June 27.Please choose one Mr. 600. where the taxable income exceeds Rs.Please choose one Mr.Please choose one Miss Sonia’s total taxable income for the year 2009 is Rs. 70.000 Rs. X being resident of Pakistan Rs.000.000: Question No: 40 ( Marks: 1 ) . 250.000 but received in Pakistan. 400. 1.50% 2. Hence no exemption is available for tax year 2009. 50.50% 3.50. X being resident of Pakistan Rs. where the taxable income exceeds Rs. 2008 it incurred expenses for Rs.

m.000 Further information provided: 1.000) Rs.000 p. Traveling allowance 112. Question No: 45 ( Marks: 3 ) Briefly explain the unexplained income or assets under section 111 of Income Tax Ordinance 2001. The fair market value of the jeep at commencement of lease was Rs.a.000-200-16. Cost of living allowance 20. Books of religious nature purchased 2.000-55.Ghaus. Details of his income for the year ended 30th June 2009 are as under.m. Tax rate prevail 9%.000. Medical allowance 21. Salary (in scale 14. Special additional allowance 6.000 per month Pension received from army Rs. Bonus 50. The medical expenditures incurred during the year are verifiable. 780.m.Farooq.200 Contribution to approved charitable institute Rs. 4.Gauhar employed in a private limited company for the year ended 30th June 2009 @ 0. 000 per month Entertainment allowance Rs.What is the main purpose of Gratuity? Question No: 44 ( Marks: 3 ) Mr.200 p.000 Zakat paid under zakat ordinance 3. 8.22. Irfan has been provided a car for personal purposes.000 p.000 per month. Ghaus is employed in a company after his retirement from army.a. He has been provided a rent . Basic salary from company Rs.Calculate the taxable income of Mr. 19.33. 000.a. The employer took this jeep from a leasing company at an annual lease of Rs. Question No: 48 ( Marks: 10 ) Mr. 2.2) Question No: 1 ( Marks: 1 ) . His particulars for the year ended 30th June 2009 are as follows.200 ////////////////////////////////////////////////////////////////////////////////////////////////////////////// ///////////// MIDTERM EXAMINATION Spring 2009 FIN623. Compute the taxable income and tax payable on it.000 p. Rs Basic salary (40. The cost of the car is Rs.000 Conveyance allowance 48. 000 p. 000.000p. 3. He received commission during the year amounting to Rs.000-1.000 per annum Calculate the total taxable income of Mr. He is provided a jeep by his employer for personal as well as official use.000 Pension from Government 12. At present he is working as General Manager of a private organization. 48.Taxation Management (Session . calculate the tax payable by Mr.000) 50.20. Question No: 46 ( Marks: 5 ) Under what conditions a commissioner of Income Tax may ask for the filing of returns by notice? Question No: 47 ( Marks: 5 ) Mr.free accommodation. Irfan is 62 years of age.80.5 %. Question No: 49 ( Marks: 10 ) From the following particulars.000 Medical expenses 27. Mr. He was entitled to a house allowance of Rs. Farooq s salary is Rs. 1.000 Zakat paid under zakat ordinance 20.Please choose one Taxes are important instrument of which one of the following policy? Monetary policy Fiscal policy Trade Policy Economic Policy .15. 000. Mr Gauhar is 62 years of age. 000 per month.800.

All persons deriving more or less income should be taxed at the same rates. should be taxed at the higher rates. Since more benefits are derived by lower income groups.Question No: 2 ( Marks: 1 ) . . should be taxed at the lower rates. Rebates & Concession Tax credits All of the given options Ref: Taxation Management—Explained Taxation management is a strategy where by a person manages its business and other transactions/activities in such a way so as to make maximum use of tax holidays. concession.Please choose one Removal of deficit in Balance of Payments is one of the objectives of which of the following policy? Monetary policy Fiscal policy Trade Policy Economic Policy Ref: Objectives of Fiscal Policy Removal of deficit in Balance of Payments Question No: 3 ( Marks: 1 ) .Please choose one Taxation management is a strategy where by a person manages its business in such a way so as to maximize the utilization of which of the following? Tax holidays Exemption. exemption. hence according to this principle. should be taxed at the lower rates. deductible allowances available under law and as a result is able to derive the benefit of minimizing his tax liability. Ref: Benefit principle This principle suggests that taxes should be levied according to the benefits derived by the person from the state. tax credits.Please choose one In the canons of taxation. those who derive more income but enjoy less benefits from the state should be taxed at the lower rates and those persons who derives less income but more benefits from State should be taxed at high rates. which one of the following statements best describe the benefits principle? Persons deriving more income leads to enjoy less benefits from the state. Persons deriving less income leads to enjoy more benefits from the state. rebates. Persons deriving more income leads to enjoy less benefits from the state. Question No: 4 ( Marks: 1 ) .

Please choose one How many Sections are included in the Income Tax Ordinance 2001? 340 sections 440 sections 140 sections 240 sections Ref: Basic Features of Income Tax Ordinance 2001 Scheme of the Ordinance is given below: ¾ There are thirteen chapters ¾Chapters are divided into: ƒParts & ƒDivisions ¾There are 240 Sections Question No: 7 ( Marks: 1 ) .Please choose one The _____ year is a period of twelve months arbitrarily chosen for tax purposes.Please choose one Which of the following was the First law on Income Tax promulgated in Pakistan? 1st July.Question No: 5 ( Marks: 1 ) . 2002 Ref: Income Tax Ordinance. Question No: 6 ( Marks: 1 ) . 1979 First law on Income Tax was promulgated in Pakistan from 1st July.Please choose one Superior judiciary includes which of the following authorities? City Court Supreme Court High Court Both supreme and High court Question No: 8 ( Marks: 1 ) . 1949 1st July. 1979 1st July. 1979. 1969 1st July. Economic Fiscal Economy .

Please choose one Which of the following is the Special Accounting year of the persons carrying cotton ginning.com/group/vuZs Question No: 12 ( Marks: 1 ) .google.Please choose one Which of the following is the legal status of the Virtual University under the provisions of section 80 of the ordinance? Individual Company Banking Company Hindu Undivided Family Ref: Page no 16 Question No: 13 ( Marks: 1 ) .Please choose one Which one of the following is the example of tax payer? Salaried Person LESCO WAPDA All of the given options for more contents visit http://groups. rice husking and oil milling? 1st January to 31st December 1st July to 30th June 1st October to 30th September 1st September to 31st August Ref: All persons carrying on business of cotton ginning. Question No: 10 ( Marks: 1 ) .Please choose one Which of the following is the Special Accounting Year of Insurance Companies? 1st January to 31st December 1st July to 30th June 1st October to 30th September 1st September to 31st August Ref: All persons exporting rice and carrying insurance business 1st January to 31st December. rice husking and oil milling1st September to 31st August.Please choose one For the purpose of Taxation the total Income includes which of the following? . Question No: 11 ( Marks: 1 ) .Monetary Question No: 9 ( Marks: 1 ) .

ascertained in section 11 • Salary (Section 12) • Income from Property (Section 15) • Income from Business (Section 18) • Capital Gains (Section 37) • • Income from other Sources (Section 39) Question No: 14 ( Marks: 1 ) .Please choose one Which of the following section deals with the change of accounting method adopted by an entity? Section 32(1) Section 32(2) Section 32(3) Section 32(4) Ref: Method of accounting (Section 32) ƒ Cash Basis or ƒ Accrual Basis • For Companies ‘Accrual Basis’ method of accounting is compulsory [Section 32(2)] • Change of Method of Accounting can be made under [Section 32(4)] Question No: 15 ( Marks: 1 ) .Please choose one What will be the tax treatment of any income chargeable under the head Salary earned by an individual outside Pakistan during that year? Wholly Taxable Wholly Exempt Partly Exempt Not mention in Ordinance Ref: 2. any income chargeable under the head :Salary” earned by him outside Pakistan during that year shall be exempt from tax under the Ordinance Question No: 16 ( Marks: 1 ) .Where a citizen of Pakistan leaves Pakistan during a tax year and remains abroad during that tax year.Please choose one Date for the exemption limit for Foreign Currency Account (FCA) under Clause 80 of the Part I of Second Schedule is available to which of the following? .Income as per Section 11 Income from Capital gain Only business income Only Salary income Ref: HEADS OF INCOME (Section 11) Following are the heads of income.

However it’s most of the branched and control and management of affairs wholly situated out of Pakistan? What will be the residential status of M/s ABC & Co. or in respect of any accounts opened under the said scheme on or after the said date. [or certificates of investment issued by Investment Banks.Please choose one Senior citizen-age 60 years & above where taxable income not exceeding ________ tax liability reduced by 50% under Part 3 of second schedule.000 Ref: Reduction in Tax Liability under Second Schedule Part 3 • Any amount received as flying allowance by pilots etc.? Resident Company Non-Resident Company Resident Individual Resident AOP Question No: 19 ( Marks: 1 ) .] in accordance with the Foreign Currency Accounts Scheme introduced by the State Bank of Pakistan. has been incorporated under Pakistan Companies Ordinance 1984.000 Rs. 1999.” for more contents visit http://groups.000/.com/group/vuZs Question No: 17 ( Marks: 1 ) . • Senior citizen-age 60 years &above where taxable income not exceeding Rs.google.Please choose one Salary income received by resident person from Federal Government of Pakistan in UK belongs to which of the following? Pakistani source of Income Foreign source of income . 500.000 Rs. 400. 300.000 Rs. Part I of the Second Schedule] “Any income derived from a private foreign currency account held with an authorized bank in Pakistan.Please choose one M/s ABC & Co. Rs.16 December 1999 16 November 1999 16 July 2001 1st July 2002 Ref: Foreign Currency Accounts [Clause (80). and junior commissioned officers or other ranks shall be taxed @2. 400. by a resident individual who is a citizen of Pakistan. Provided that the exemption under this clause shall not be available in respect of any incremental deposits made in the said accounts on the after the 16th day of December.tax liability reduced by 50%. 200.5% as separate block. Question No: 18 ( Marks: 1 ) .

Both Pakistan and foreign source of income None of the given option Question No: 20 ( Marks: 1 ) . or from any other interest in or over immovable property.Please choose one Any gain arising on the disposal of shares in a non-resident company belongs to which of the following? Pakistan.source income. for more contents visit http://groups. 2 (54) Royalty means any amount paid or payable however described or computed. but shall not include consideration for the sale.com/group/vuZs Question No: 22 ( Marks: 1 ) . . or right to use any patent.Please choose one Which of the following come under the ambit of Royalty under section 2 (54)? Right to use any patent Copy right of a literary Right to use any industrial or scientific equipment All of the given options Ref: Royalty Defined Sec. or right to use any copy right of a literary. trade mark r other like property or right. Question No: 21 ( Marks: 1 ) . artistic or scientific work. distribution or exhibition of cinematograph films. secret formula or process.source income Foreign source of income Both Pakistan and foreign source of income None of the given option Ref: 13)Any gain arising on the disposal of shares in a resident company shall be Pakistan. invention.google. or exploit. design or model. whether periodical or lump sum as a consideration for: a)The use of. including a right to explore for. natural resources in Pakistan. b) The use of. including films or video Tapes for use in connection with television or tapes in connection with radio broadcasting.Please choose one Rental income shall be Pakistan-source income if it is derived from: The lease of immovable Property in Pakistan The lease of immovable Property outside Pakistan The lease of immovable Property both in and out of Pakistan None of the given options Ref: 9) Rental income shall be Pakistan-source income if it is derived from the lease of immovable property in Pakistan whether improved or not.

or right to receive. any visual images or sounds or both. radio or internet broadcasting.104: Deductible expenditures incurred by a person in deriving foreign-source income chargeable to tax under a head of income shall be deductible only against that income.Please choose one What is the tax treatment of losses from the foreign source under section 104 of the ordinance? Wholly taxable Partly Taxable Deductible expenditure None of the given options Ref: Foreign losses Sec.Please choose one Which of the following section of Income Tax Ordinance 2001 deals with Income from Salary and its treatment? Section 11 Section 12 Section 13 Section 14 Ref: MODULE 4 HEADS OF INCOME (Section 11) Following are the heads of income. 2(22) of the ordinance is categorized in: Inclusive Definition Exclusive Definition Both Inclusive and Exclusive None of the given options Ref: Inclusive Definition: Examples of inclusive definitions are given below: . ascertained in section 11 • Salary (Section 12) • Income from Property (Section 15) • Income from Business (Section 18) • Capital Gains (Section 37) • • Income from other Sources (Section 39) Question No: 25 ( Marks: 1 ) . optic fiber or similar technology in connection with television.Please choose one The definition of Employment under Sec. cable.c)The receipt of. Question No: 23 ( Marks: 1 ) . Question No: 24 ( Marks: 1 ) . transmitted by satellite.

Question No: 26 ( Marks: 1 ) .Please choose one Mr.com/group/vuZs Question No: 27 ( Marks: 1 ) . 150.Please choose one Salary by members of AOP is not treated as Salary but treated as appropriation of profit and charged under the head: Income from Salary Income from Property Income from Business Income from Other Sources Ref: Salary by members of AOP is not treated as Salary but treated as appropriation of profit and charged under the head “Income from Business” for more contents visit http://groups. 75. 150.000 subtracted from his total income Rs.000 added in his total income Rs.000 added in his total income . 150.Please choose one Which of the following is the Tax year available for salaried individual? 1st January to 31st December 1st July to 30th June 1st October to 30th September 1st September to 31st August Ref: Tax on salary income for Tax year 2009 (1st July 2008 to 30th July 2009) shall be computed according to amendments as made by Finance Act. A non-resident of Pakistan received interest on Canadian Bonds Rs. What is the treatment of this amount for calculating his gross total income? Rs. 2008.Please choose one Tax year for the salaried individuals is called as: Special Tax Year Normal Tax Year Fiscal Year Financial Year Ref: Tax year of a salaried Person shall be Normal Tax year Question No: 28 ( Marks: 1 ) . Question No: 29 ( Marks: 1 ) .google.000 (entire amount received in Pakistan).It includes dictionary meanings as well as meanings conveyed by definition.

100. X being non-resident of Pakistan Rs. e. Income from Business also includes: • Any profit on debt derived by a person.. c)Income from hire or lease of tangible movable property. being banks. Which one of the following option is right for this particular scenario? Mr. 100. X being resident of Pakistan Rs.000 will be added in Gross total income Mr. e)Management Fee derived by a management company.000. a)Profits & Gains from any business in a tax year. a banking company) • Any amount received by schedule bank from mutual fund. vocation but doesn’t include employment” Following incomes (except exempt income) shall be charged to tax under the head ‘Income from Business’. manufacture. • Income from hire or lease of tangible movable property • FMV of Perquisites derived by a person by virtue of business relationships.000 will be exempted Question No: 31 ( Marks: 5 ) Define Income that is charged to tax under section 2(9). b)Income derived from any trade. 100. d)FMV of Perquisites derived by a person by virtue of business relationships. whose is business is to derive such income. (it is only applicable to such person. X employed in Pakistan earned pension from Pakistan Government but received in London Rs.g.Exempt from tax Question No: 30 ( Marks: 1 ) . commerce. • Income on leasing by lessor. . as share of profit. profession. sale of goods or provision of any services. 100. • Management Fee derived by a management company Question No: 32 ( Marks: 10 ) Determine the legal status of the following persons under section 80 of the ordinance. leasing companies etc. Income derived from any trade. 100. X being non-resident of Pakistan Rs.Please choose one Mr. • Profit earned on debts in course business shall be chargeable to ‘income from business’. profession. X being resident of Pakistan Rs. sale of goods or provision of any services.000 will be added in Gross total income Mr. Answer: Business Defined Section 2(9) “Business includes any trade. profession.000 will be subtracted in Gross total income Mr.

Please choose one Which of the following is the main objective of Fiscal Policy? Economic Development Price stability Removal of deficit in Balance of Payments All of the given options Ref: Objectives of Fiscal Policy Economic Development Raising level of employment (Achieving full employment level Influencing consumption patterns Price stability Redistribution of income Removal of deficit in Balance of Payments Question No: 3 ( Marks: 1 ) . Question No: 2 ( Marks: 1 ) .2) Question No: 1 ( Marks: 1 ) . Alpha Cooperative Housing Society (company) 8. Virtual University of Pakistan (company) 2. to meet the expenses incurred in providing common benefits upon the residents.Please choose one Which of the following is the general definition of tax? Compulsory contribution of wealth by persons Optional contribution of wealth by persons Compulsory contribution of wealth by state Optional contribution of wealth by state Ref: General Definition of Tax: General compulsory contributions of wealth levied upon persons by the state. Mr. Government of Punjab. Suleman & his wife Joint Owners in a House (Association of persons) 7. Kumar & Mr. Mr. Mr. Pakistan (company) 4. Arun (a Hindu).1. Habib Modaraba (company) ////////////////////////////////////////////////////////////////////////////////////////////////////////////// ///////////// MIDTERM EXAMINATION Spring 2009 FIN623. Federal Government (person) 6 . His sons Mr. Edhi Welfare Trust (company) 5. Ali & Babar Joint Owners in Building (Association of persons) 9.Please choose one Government Expenditure is one of the instruments of which of the following policy? Monetary policy Fiscal policy Trade Policy Economic Policy Ref: Instruments of Fiscal Policy Government Expenditures Taxes Deficit Financing . Deepak (Hindu undivided family) 3 . Comprising Mr. A joint family of Mr. Imran Serving as a Manager in a Textiles Company (Individual) 10.Taxation Management (Session . Hamel.

Subsidies Transfer Payments—like Unemployment Allowances etc. Question No: 4 ( Marks: 1 ) .Please choose one Under which of the following conditions a tax payer can adopt a special tax year? Whenever he decides so After seeking approval from Tax Office After seeking approval from Commissioner of income tax After seeking approval from High Court Ref: •A tax payer can adopt a special Tax year after seeking approval from Commissioner of Income Tax (CIT) Question No: 10 ( Marks: 1 ) .Please choose one Which of the following was the First law on Income Tax promulgated in Pakistan? 1st July. Question No: 8 ( Marks: 1 ) . Exclusive definitions start with the expression‘mean’ or ‘means’. Question No: 6 ( Marks: 1 ) .Please choose one Section 2(15) of Income Tax Ordinance 2001 defined: “debt” means any amount owing. 1949 1st July. 1979.Please choose one Section 2(6) of Income Tax Ordinance 2001 defined: “association of persons” means an association of persons as defined in section 80.Please choose one Superior judiciary includes which of the following authorities? City Court Supreme Court High Court Both supreme and High court Question No: 7 ( Marks: 1 ) . In which criteria the above definition falls? Exclusive definition Inclusive definition Both Exclusive and Inclusive definitions Statutory definition Ref: Exclusive or Exhaustive Definition: • It excludes ordinary dictionary meanings of the word. 1969 1st July.Please choose one Which one of the following is the example of tax payer? . securities. Exclusive definitions start with the expression‘mean’ or ‘means’. debentures. In which criteria the above definition falls? Exclusive definition Inclusive definition Both Exclusive and Inclusive definitions Statutory definition Ref: Exclusive or Exhaustive Definition: • It excludes ordinary dictionary meanings of the word.Please choose one Taxation management is a strategy where by a person manages its business in such a way so as to maximize the utilization of which of the following? Tax holidays Exemption. Question No: 9 ( Marks: 1 ) . Rebates & Concession Tax credits All of the given options Question No: 5 ( Marks: 1 ) . 1979 1st July. including accounts payable and the amounts owing under promissory notes. bills of exchange. 2002 Ref: First law on Income Tax was promulgated in Pakistan from 1st July. bonds or other financial instruments.

Foreign government also grants similar exemptions to employees of Federal Government.Please choose one Which of the following incomes are treated as agriculture income? Spontaneous forests Agro based industry Interest received by a farmer on lending Income from land in Pakistan used for agriculture Question No: 15 ( Marks: 1 ) .Please choose one What is the tax treatment of the salary of an employee of foreign government but citizen of Pakistan? Exempt form tax Wholly Taxable Partly Taxable No Tax treatment given in IT Ordinance 2001 Ref: Section 43 Foreign Government Officials Salary of an employee of foreign government exempt provided: a.Please choose one An Individual will be termed as Short Term Resident under section 50 of the IT . b. Question No: 16 ( Marks: 1 ) .Please choose one In case of lump sum receipt of income like Golden hand shake the tax payer pays tax in which of the following way? Average of last 3 years tax rate Option to choose current or average of last 3 years tax rate Current tax rate Previous year tax rate Ref:Tax payer can opt to seek approval from CIT to charge lump sum payments received in a tax year at average tax rate of last three years Question No: 13 ( Marks: 1 ) .Please choose one Income of Federal Government exempt from tax under which of the following section of IT Ordinance 2001? Section 41 Section 43 Section 47 Section 49 Ref: Section 49 Federal & Provincial Govt.Salaried Person LESCO All of the given options WAPDA Question No: 11 ( Marks: 1 ) .Please choose one Certain incomes those are excluded from tax are called as: Perquisites Exemptions Allowances Deductions Question No: 14 ( Marks: 1 ) . and Local Authority Income • Income of Federal Government exempt from tax Question No: 17 ( Marks: 1 ) .Please choose one Which of the following is the legal status of the Virtual University under the provisions of section 80 of the ordinance? Individual Company Banking Company Hindu Undivided Family Ref: Page no 16 Question No: 12 ( Marks: 1 ) .Employee citizen of foreign country and not a citizen of Pakistan.Services performed are similar to services performed by employees of the Federal Government in foreign countries and c.

Please choose one M/s ABC & Co.Who is present in Pakistan for a period or periods not exceeding three years.Please choose one Which of the following days shall be counted as whole day for the computation of residential status of an individual? A public holiday A day of sick leave Any strike day All of the given options Ref: Following days shall be counted as whole day: • A Public Holiday • A day of leave including sick leave • A day that individual’s activity is stopped because of strike etc • A holiday spent in Pakistan Question No: 21 ( Marks: 1 ) . permanent sales exhibitions or sales outlet.Please choose one Which part of income is charged to tax of resident person under the income tax ordinance 2001? Pakistani source of income Foreign source of income Both Pakistan and foreign source of income None of the given option Question No: 22 ( Marks: 1 ) . Imran is an employee of Provincial Government of Punjab posted in UK for two years? What will be the residential status of Mr. branch office. Question No: 18 ( Marks: 1 ) . Ali resident of Pakistan received salary form UK? What will be the tax treatment of his salary in Pakistan? Wholly taxable Partly Taxable . Imran? Resident Individual Non-Resident Individual Resident HUF Resident AOP Question No: 20 ( Marks: 1 ) . other than a liaison office except where the office engages in the negotiation of contracts (other than contracts of purchase).Please choose one Mr. the foreign-source income of an individual shall be exempt: a.Ordinance 2001 on which of the following condition? His period of stay in Pakistan equal to 183 days The employee of Foreign Government The citizen of Pakistan His period of stay in Pakistan not exceeding 3 years Ref: Section 50 Foreign-Source Income of Short-Term Resident Individuals 1. factory or workshop. and b. warehouse.Please choose one Which of the following does Not come under the ambit of permanent establishment (PE)? Branch office Factory or workshop Premises for soliciting orders Liaison or relationship office Ref: a)A place of management.? Resident Company Non-Resident Company Resident Individual Resident AOP Question No: 19 ( Marks: 1 ) .Please choose one Mr.Who is a resident individual solely by reason of the individual’s employment. has been incorporated under Pakistan Companies Ordinance 1984. premises for soliciting orders. However it’s most of the branched and control and management of affairs wholly situated out of Pakistan? What will be the residential status of M/s ABC & Co. Question No: 23 ( Marks: 1 ) .Subject to sub-section-2.

000 will be subtracted in Gross total income Mr.000 will be added in Gross total income Mr. X being non-resident of Pakistan Rs. 100.000 will be added in Gross total income Mr. 70. 60. 70. X being non-resident of Pakistan Rs. X being resident of Pakistan Rs.000 will be subtracted in Gross total income Question No: 29 ( Marks: 1 ) . X being resident of Pakistan Rs. X non-resident of Pakistan earned income from property situated in Dubai Rs. Which of the following is right for the above scenario? Mr.000 but received in Pakistan.Wholly exempt Wholly exempt only if resident paid foreign tax on his salary Question No: 24 ( Marks: 1 ) . 102 (1) Any foreign-source salary received by a resident individual shall be exempt from tax if the individual has paid foreign income tax in respect of the salary.Please choose one Mr. X employed in Pakistan received share of profit Rs. Amir resident of Pakistan.000 will be exempted Question No: 28 ( Marks: 1 ) . X being resident of Pakistan Rs. Which of the following is right for the above scenario? Mr. X being resident of Pakistan Rs. 60. X being non-resident of Pakistan Rs. X being non-resident of Pakistan Rs. 60.000 will be added in Gross total income \ Mr.000 in Pakistan from past profits. 10. 60.000 in India from a business situated in Dubai but controlled through PE in Pakistan. 70.000 will be added in Gross total income Mr.Please choose one Mr.000 will be subtracted in Gross total income Mr.000 will be Subtracted in Gross . A resident of Pakistan received interest on Australian Bonds Rs. 70.Please choose one Which of the following section of Income Tax Ordinance 2001 deals with Income from Salary and its treatment? Section 11 Section 12 Section 13 Section 14 Question No: 26 ( Marks: 1 ) . X being non-resident of Pakistan Rs.000 added in his total income Exempt from tax Question No: 27 ( Marks: 1 ) . X being non-resident of Pakistan Rs. 10. Question No: 25 ( Marks: 1 ) .000 added in his total income Rs. Which section of the income tax ordinance explains his tax treatment of such salary? Section 110 Section 101 Section 102 Section 50 Ref: Foreign Source Salary of Resident Individuals Sec. 70.000 (half amount received in Pakistan). 100. 60. What is the treatment of this amount for calculating his gross total income? Rs. X employed in Pakistan remittance from USA received Rs.Please choose one Mr.Please choose one The salary received from the UK Government by Mr.000 will be claimed as admissible deduction Mr. 10.Please choose one Mr. 100.000 subtracted from his total income Rs. Which one of the following option is right for this particlar scenario? Mr. 50.

10. Find out gross total income of Mr. X being non-resident of Pakistan Rs. 20.Please choose one Mr.000.2) Question No: 1 ( Marks: 1 ) .Taxation Management (Session .80. 20.000. X being non-resident of Pakistan Rs. c. 25. Rent for tax year 2008 of a house property situated in New York and received there on 01-01-2008. X being resident of Pakistan Rs. Imran. d. X resident of Pakistan remittance from UK received Rs. 20. 60. Imran in the light of following particulars information pertaining to tax year 2008.500. where as payment of fee is the discretion of any person and when a fee is paid. Dividends received in UK on 20th Aug 2008 from a Pakistani resident company: amounting Rs.000 will be Subtracted in Gross total income Mr. Interest on Swiss Bonds (one-third is received in Pakistan) Rs. Rs. if he is: a. Non– resident ////////////////////////////////////////////////////////////////////////////////////////////////////////////// ///////////// FINALTERM EXAMINATION Spring 2009 FIN623. Which of the following is right for the above scenario? Mr.000 will be added in Gross total income None of the given options Question No: 31 ( Marks: 5 ) Why Government levy tax on Person? What are the important elements that take into consideration while levying tax? Answer: ™ Taxes Vs Fees: Taxes are compulsory levy and it is the legal obligation of the person to pay the amount of tax which is required to pay under the law. e.total income Mr. ™ Taxes are important instrument of Fiscal Policy.000 in Pakistan from past profits.000.000 will be added in Gross total income Mr.000.Please choose one Taxes are important instrument of which one of the following policy? ► ► ► ► Monetary policy Fiscal policy Trade Policy Economic Policy PAGE 1 Question No: 2 ( Marks: 1 ) . X being resident of Pakistan Rs. Question No: 32 ( Marks: 10 ) Determine Gross total income of Mr.000. a. Pension from Pakistan Government but received in New York Rs. 20. b. 50. the person becomes an entitled to claim counter benefits.000 will be added in Gross total income Remittance is not income hence it is not included Question No: 30 ( Marks: 1 ) . Pakistani resident b. Income from agriculture in New York received there but later on remitted to Pakistan Rs.Please choose one Which of the following is opposite to the literal meanings of Tax? .

(11A) of Income Tax Ordinance 2001 defined: Charitable purpose includes relief of the poor. Question No: 5 ( Marks: 1 ) . education. m edictal relief and the advancement of any other object of general public utility.Please choose one Which of the following is the Special Accounting Year of Sugar Companies? ► ► ► ► 1st January to 31st December 1st July to 30th June 1st October to 30th September 1st September to 31st August PAGE 13 Question No: 6 ( Marks: 1 ) .► ► ► ► Burden Strain Load Relieve PAGE 1 Question No: 3 ( Marks: 1 ) .Please choose one Sec. The profit of the cultivator will be treated in .Please choose one Which of the following is the mutual example of both inclusive and exclusive definitions? ► ► ► ► Appellate Tribunal 2(2) Banking Company 2(7) Association of Person 2(6) Employment 2(22) PAGE 9 Exclusive as well as Inclusive Examples of above type are given below: Sec 2(7) banking company means a banking company as defined in the banking companies ordinance. 1962 and includes any body corporate which transacts the business of banking in Pakistan.Please choose one Suppose a Profit acquired by a cultivator for produce after harvesting. In which criteria the above definition falls? ► ► ► ► Exclusive definition Inclusive definition Both Exclusive and Inclusive definitions Statutory definition PAGE 8 Question No: 4 ( Marks: 1 ) .

Question No: 7 ( Marks: 1 ) .Please choose one Salary income received by resident person from Federal Government of Pakistan in UK belongs to which of the following? ► ► ► ► Pakistani source of Income Foreign source of income Both Pakistan and foreign source of income None of the given option Geographical Source of Income-Sec101 Pakistan-Source Income: Is paid by. or on behalf of. wherever the employment is exercised . a Provincial Government. 1999. The compensation received from an insurance company for damages caused by What will be the tax treatment of such amount received? ► ► ► ► Income from Business Exempt as Agriculture Income Income from Property Capital Gain PAGE 20 Question No: 8 ( Marks: 1 ) . the Federal Government.Please choose one Suppose due to hailstorm damages caused to crops that was insured against Insurance policy.At the Rate of 10 percent of amount of profit by Resident Person Question No: 9 ( Marks: 1 ) . or a local authority in Pakistan.► ► ► ► Income from Business Agriculture Income Income from Property Capital Gain PAGE 20 Following Income are held to be “Agricultural Income” •Profit on sale of standing crops or the produce after harvest by a cultivating owner or tenant of land.Please choose one What is the tax treatment of any profit on the US Dollar Bonds purchased by t resident person after December 1999 under Second Schedule? ► ► ► ► Wholly exempt Wholly taxable Tax @10% of profit paid Not mention in second schedule PAGE 25 Reduction in Tax Rates under Second Schedule Part 2 • Profit on Special US Dollar Bonds or out of new account opened after December 16.

Please choose one In which of the following heads of Income No deductions are allowed: ► ► ► ► Salary Income Income from Property Income from Business Capital Gains PAGE 36 Significant Points: Salary from more than one source during a tax year is taxable income. 2006.Please choose one Utilities were exempted up to 10% of MTS or Basic salary till 30th June.Please choose one MTS stands for which of the following? ► Minimum time scale . Question No: 11 ( Marks: 1 ) . This clause has been omitted by: ► ► ► ► Finance Ordinance 2004 Finance Ordinance 2005 Finance Act 2006 Finance Act 2007 PAGE 46 Note 1: Utilities were exempt up to 10% of MTS or Basic salary till 30th June. This clause has been omitted by Finance Act. 2006.Question No: 10 ( Marks: 1 ) . vide clause 38 of part 1 of Second Schedule. Question No: 13 ( Marks: 1 ) . 102 (1) Any foreign-source salary received by a resident individual shall be exempt from tax if the individual has paid foreign income tax in respect of the salary. <!--[if !supportLists]-->· <!--[endif]-->No deductions are allowed under the head “Income from Salary” Question No: 12 ( Marks: 1 ) . Hence no exemption is available for tax year 2009. vide clause 38 of part 1 of Second Schedule. Khan Resident of Pakistan received salary from UK? His salary will be included in which of the following? ► ► ► ► Pakistan source income Foreign source income Both Pakistan and foreign source income None of the given options Foreign Source Salary of Resident Individuals Sec. 2006.Please choose one Mr.

Please choose one Which of the following is the tax treatment of free hospitalization services provided under the terms of employment? ► ► ► ► Wholly exempt Wholly taxable Taxable up to 10% of MTS Exempt up to 10% of MTS PAGE 48 Question No: 15 ( Marks: 1 ) .Please choose one Debt means "any amount owing". after deduction of tax admissible expenditure and allowances from gross rent. than which one of the following doesn't cover by the definition of Debt under section 2(15)? ► ► ► Accounts payable Promissory notes Bills of exchange .► ► ► Minimum transfer Salary Maximum time scale Maximum transfer Salary Concept of MTS (Minimum of Time Scale): This is the starting point or minimum amount which is available to an employee under a timescale Question No: 14 ( Marks: 1 ) .Please choose one Which of the following may grant approval to any gratuity fund? ► ► ► ► Federal Tax Ombudsman Federal Government Superior judiciary Commissioner of Income Tax PAGE 54 Approved Gratuity Fund • Commissioner of Income Tax may accord approval to any gratuity fund. Question No: 16 ( Marks: 1 ) .Please choose one Rental income earned is taxable on a net income basis that is. for up to Tax year: ► ► ► ► 2007 2008 2006 not sure 2005 Question No: 17 ( Marks: 1 ) .

rule or regulation. including accounts payable and the amounts owing under Promissory notes. Any fine or penalty paid or payable by the person for the violation of any law. rule or regulation? ► ► ► ► Deducted as per section 20 Not allowed to be deducted as per section 21 Deducted as per section 21 Not allowed to be deducted as per section 22 PAGE 67 Deductions not Allowed – Sec. Question No: 19 ( Marks: 1 ) . Question No: 21 A/B ( Marks: 1 ) .Please choose one Which section defines 'Speculation business' under head Income from business? ► ► ► ► Section 20 Section 19 Section 24 Section 18 PAGE 66 Speculation Business Sec. bonds or other financial instruments.25) Rate of amortization of pre-commencement expenditure shall be 20%.► None of the given options PAGE 8 2(15) “debt” means any amount owing.Please choose one The above formula is for the calculation of Amortization deduction allowed under section 24. Which of the following is the value of A? . but does not include a business in which: Question No: 20 ( Marks: 1 ) . securities. What is the tax treatment for any fine or penalty paid or payable by the person for the violation of any law.Please choose one Which of the following is the rate of amortization of pre-commencement expenditure under section 25 of the income tax ordinance 2001? ► ► ► ► 10% 20% 30% 50% PAGE 69Pre-commencement expenditure (Sec. 21 g. debentures. 19: • Speculation means any business in which a contract for the purchase and sale of any commodity (including [stocks] and shares) is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity. bills of exchange.

Please choose one Section 22(15) defines depreciable asset means: ► ► ► ► Any tangible movable property Any tangible immovable property (other than unimproved land) Structural improvement to immovable property All of the given options PAGE 68 Question No: 24 ( Marks: 1 ) .► ► ► ► Normal useful life of intangible Book value of intangible Cost of intangible Sale price of intangible PAGE 68 Amortization deduction allowed as under A/B Where A is the cost of intangible.Please choose one From the above formula the value 'B' represents which of the following? .Please choose one Which section define this 'Income tax depreciation is admissible only in respect of depreciable assets'.100. 000 Question No: 23 ( Marks: 1 ) .000 Tax liability (due to loss or exemption from tax) = Nil What will be the minimum tax to be paid at 0.250. and B is normal useful life of intangible Question No: 22 ( Marks: 1 ) .50.Please choose one Turnover from all sources Rs.300. 000 Rs. 000. ► ► ► ► Section 22(15) Section 22 (11) Section 23 A Section 24 Question No: 25 A-B ( Marks: 1 ) . 000 Rs. 000 Rs.200.5% of turnover? ► ► ► ► Rs.

or such other office as the Board may. ► ► ► ► Income tax office Registered office Local Sales Tax Office None of the given options PAGE 113 Question No: 30 ( Marks: 1 ) . specify is called.► ► ► ► Consideration received on disposal of the capital asset Cost of the asset Amount of Depreciation Market value of the Capital asset PAGE 79 Question No: 26 ( Marks: 1 ) .Please choose one Question No: 27 Appeal to the collector of sales tax may be filed within which of the period? ► ► ► ► 60 days 90 days 180 days 30 days PAGE 120 Question No: 28 ( Marks: 1 ) .ning.Please choose one Members of income tax appellate tribunal are appointed by which of the following authorities? http://vuattach. by notification in the official Gazette.Please choose one .com/ ► ► ► ► Income Tax Department Provincial Government Federal Government Judicial Commission PAGE 108 The office of Superintendent of Sales Tax.Please choose one Income from Dividends charged to tax under which of the following heads of Income? ► ► ► ► Income form Property Income from Business Income from Capital Gain Income from Other Sources ( Marks: 1 ) .

000 will be added in Gross total income Mr. X employed in Pakistan remittance from USA received Rs.000 More than Rs.Please choose one Capital value tax is levied on which of the following? ► ► ► ► Capital gain Gross profits Capital value of asset Intangible assets PAGE 121 Question No: 32 ( Marks: 1 ) .Please choose one A woman taxpayer shall be charged to tax if taxable income is: ► ► ► ► Less than Rs.000 will be Subtracted in Gross total income Mr. X being resident of Pakistan Rs.000 More than Rs. 10. 200. X being non-resident of Pakistan Rs.000 PAGE 125 .000 Less than Rs. 100.000 in Pakistan from past profits. ► ► ► ► Output tax Input tax Income tax Wealth tax PAGE 115 Question No: 31 ( Marks: 1 ) . 1944 (I of 1944) is known as. 10. 10. X being resident of Pakistan Rs.In relation to any registered person means the tax charged under the Sales tax Act in respect of a supply of goods made by that person and shall include duties of excise chargeable under section 3 of the Central Excises Act. Which of the following is right for the above scenario? ► ► ► ► Mr. 240. 150. 10.Please choose one Which of the following is the general formula for calculating tax credits? ► ► ► ► (A+B) x C (A-B) x C (A/B) x C (A/B) + C PAGE 41 Question No: 34 ( Marks: 1 ) .Please choose one Mr.000 will be added in Gross total income Remittance is not income hence it is not included Question No: 33 ( Marks: 1 ) .

A's taxable income for tax year 2009? ► ► ► ► 774. 1.Please choose one Which of the following is the rate of tax for salaried Individuals for tax year 2009. 350.000 Rs.Please choose one Mr.000 1.500 Question No: 39 ( Marks: 1 ) .000 Rs. 70.000.50% ► 0.Please choose one Any salary paid or payable exceeding paid other than by a crossed cheque or direct transfer of funds to the employee's bank account is not allowed to deduct under section 21 of the ordinance.060. 250. 60. 47.000 Question No: 37 ( Marks: 1 ) .17. 54. his data for the year 2009 is given below.75% PAGE 125 Question No: 36 ( Marks: 1 ) .500 Rs. A is an employee of Government of the Punjab.Please choose one What will be the tax liability of an individual under the head income from property ► ► ► ► Rs. wh the taxable income exceeds Rs.250% ►0.750 Rs.Please choose one Statutory Provident Fund is governed by: ► Finance Act 2006 ► Insurance Act 1969 ► Provident Funds Act 1925 ► None of the given options appetence PAGE 60 Question No: 38 ( Marks: 1 ) .000 720.Question No: 35 ( Marks: 1 ) .720. 23.000 Tax deducted at source What will be the Mr.000 per month Gratuity Rs. Salary Rs.000 but does not exceed Rs.000? ►Nil ►0.000 1. .

.► ► ► ► Five thousand rupees per month Ten thousand rupees per month Fifteen thousand rupees per year Two hundred thousand rupees per year PAGE 67 Question No: 40 ( Marks: 1 ) .33.22. Farooq's salary is Rs. 100. 8. He received commission during the year amounting to Rs.80.75% PAGE 125 Question No: 41 ( Marks: 1 ) .500 Rs. The fair market value of the 000.50% ► 0. 000. 180000 ►0% ►0. He is provided a jeep by his employer for personal as well a official use. The employer took this jeep from a leasing company at an annual lease of Rs.Please choose one Amount of Capital value tax for the year 2009 for a mo should be which of the following? ► ► ► ► Rs. 000 per month.Please choose one Which of the following is the rate of tax for AOP for ta income exceeds Rs.500 Rs.500 Nil PAGE 122 Question No: 43 ( Marks: 3 ) What is the main purpose of Gratuity? Question No: 44 ( Marks: 3 ) Mr. 7.25% ►0.000 but does not exceed Rs. 000. 3.Please choose one What is the tax rate of Banking companies for the ► ► ► ► 35% 44% 54% 42% Question No: 42 ( Marks: 1 ) .Calculate the taxable income of Mr.

40.m.000 Rs.000 . Driver's salary paid by employer 7.m. Utilities Rs. 72.m.Question No: 45 ( Marks: 3 ) What are the Penalties in case of failure to maintain record and non compliance with the notice under section 185 and 186 of Income Tax Ordinance 2001 respectively? Question No: 46 ( Marks: 5 ) What are the exemptions available in Tax Ordinance 2001 related to Prope Income? Question No: 47 ( Marks: 5 ) What are the basic features of Sales? Question No: 48 ( Marks: 10 ) Compute the taxable income and tax liability of M r.000 Rs. 50.100 p. terms of employment.m. Medical Allowance 5.000p.m. Basic salary 2. House rent allowance 3. Rs 5. 4.m. Rs 5. Bonus Rs. Dearness Allowance 8. 6. 500. The data pertaining to tax year 2009 is given below: 1.000p. Relevant information/data is given below Salary Utilities Bonus Dearness Allowance Gratuity Conveyance allowance (Partly for Person Cost of vehicle to the employer was Tax deducted at source Concessional Loan of Rs 1 million provid (bench mark rate for tax year 2009 is 11% Rs. Rs 6.000 p.000 Rs 8. Free hospitalization services availed under 6. Question No: 49 ( Marks: 10 ) For tax year 2009 in respect of compute taxable income and tax thereon employee of Government of the Punjab.000 p. Rs 40.000 p.000 Rs 20. Jami a salaried individual.

000 oyer @ of markup of 6% per anum ////////////////////////////////////////////////////////////////////////////////////////////////////////////// /////////// Which one of the following is the main objective of Fiscal Policy? Select correct option: Economic Development Price stability Removal of deficit in Balance of Payment All of the given options Question # 2 of 15 ( Start time: 03:18:46 PM ) Total Marks: 1 Utilities were exempted up to which of the following tax year? Select correct option: 2004 2005 2006 2007 Question # 3 of 15 ( Start time: 03:20:09 PM ) Total Marks: 1 Which of the following is the main tool of Fiscal Policy? Select correct option: Taxes Deficit Financing Subsidies Transfer Payments Question # 4 of 15 ( Start time: 03:20:33 PM ) Total Marks: 1 Which of the following is the general formula for calculating tax credits? Select correct option: (A + B) x C (A .Rs.000 Rs.B) x C (A / B) x C (A / B) + C Question # 5 of 15 ( Start time: 03:21:11 PM ) Total Marks: 1 Which of the following is tax.000.000 Rs. 60. 54. where the tax rate decreases as the amount to which the rate is applied increases? Select correct option: Proportional tax Progressive tax Regressive tax .000. 1.000 y for office use) Rs 1.

60.Corporate tax Question # 6 of 15 ( Start time: 03:21:27 PM ) Total Marks: 1 Which one of the following is the general definition of tax? Select correct option: Compulsory contribution of wealth by persons Optional contribution of wealth by persons Compulsory contribution of wealth by state Optional contribution of wealth by state Question # 7 of 15 ( Start time: 03:21:46 PM ) Total Marks: 1 Payment of Zakat is entitled to a deductible allowance according to provisions of sec. Select correct option: True 000 False Question # 8 of 15 ( Start time: 03:22:34 PM ) Total Marks: 1 Which of the following section deal with tax treatment of person who is a cultivator or receiver of agricultural produce as rent-in-kind in the business of cultivator? Select correct option: Rule 11 of the IT Rule 2002 Section 40 of the Income Tax Ordinance 2001 Section 41 of the Income Tax Ordinance 2001 Section 42 of the Income Tax Ordinance 2001 Question # 9 of 15 ( Start time: 03:23:33 PM ) Total Marks: 1 Agricultural income does NOT include which one of the following? Select correct option: Rent or Revenue derived by a person from land Income derived from land situated in Pakistan The land is used for agricultural purposes Income from spontaneous forest Question # 10 of 15 ( Start time: 03:24:04 PM ) Total Marks: 1 Which part of income is charged to tax of non-resident person under the income tax ordinance 2001? Select correct option: Pakistani source of income Foreign source of income Both Pakistan and foreign source of income None of the given option Question # 11 of 15 ( Start time: 03:24:25 PM ) Total Marks: 1 Mr.John a non-resident received profit in Pakistan on a security issued by a resident person. how the profit will be treated under sec (46) of IT Ordinance 2001? Select correct option: Wholly Taxable .

650.000 but does not exceed Rs.50% 4.50% 6.50% Question # 15 of 15 ( Start time: 03:27:55 PM ) Total Marks: 1 Special tax year is adopted after seeking approval from the ____________ under section 74(3). where the taxable income exceeds Rs.000? Select correct option: 3.Wholly Exempt Partly Exempt None of the given options Question # 12 of 15 ( Start time: 03:25:25 PM ) Total Marks: 1 Any dividend is Pakistan source income if it is paid by which of the following? Select correct option: By resident Company By non resident Company By resident Individual By resident AOP Question # 13 of 15 ( Start time: 03:26:42 PM ) Total Marks: 1 Which of the following tax is payable on merchandise imported or exported from one country to another? Select correct option: Custom duty Income tax Sales tax Wealth tax Question # 14 of 15 ( Start time: 03:27:03 PM ) Total Marks: 1 Which of the following is the rate of tax for salaried Individuals for tax year 2009. Select correct option: Commissioner Tax Officer Appellate Tribunal Supreme Court Question # 1 of 15 ( Start time: 03:32:13 PM ) Total Marks: 1 Which of the following tax is paid in relation to how much you earn? Select correct option: Income Tax Inheritance Tax Value added Tax Sales Tax Question # 2 of 15 ( Start time: 03:32:32 PM ) Total Marks: 1 Which of the following section of Income Tax Ordinance 2001 deals with perquisites of Income from Salary and its treatment? . 750.00% 7.

Select correct option: Section 11 Section 12 Section 13 Section 14 Question # 3 of 15 ( Start time: 03:33:48 PM ) Total Marks: 1 An Individual will be termed as Short Term Resident under section 50 of the IT Ordinance 2001 provided: Select correct option: His period of stay equal to 183 days The employee of Federal Government The citizen of Pakistan Resident solely by reason of the individual’s employment Question # 4 of 15 ( Start time: 03:34:18 PM ) Total Marks: 1 A definition that includes the dictionary meanings of the word is termed as: Select correct option: Exclusive definition Inclusive definition Both Inclusive & Exclusive definitions Statutory definition Question # 5 of 15 ( Start time: 03:34:38 PM ) Total Marks: 1 Which one of the following is the general meaning of Tax? Select correct option: Relax Lighten Relieve Fatigue Question # 6 of 15 ( Start time: 03:35:13 PM ) Total Marks: 1 Which of the following is similar to the concept of clubbing of Incomes? Select correct option: Unification only two heads of Income Association of two or more heads of Income Splitting up of only two heads of Income Division of two or more than two heads of Income Question # 7 of 15 ( Start time: 03:35:35 PM ) Total Marks: 1 Non-Agricultural income includes which one of the following? Select correct option: Income from sale of wild grass Income from fisheries Royalty income of mines All of the given options .

copyrighted material.000? Select correct option: 17.000 but does not exceed Rs.00% Question # 14 of 15 ( Start time: 03:39:57 PM ) Total Marks: 1 Utilities were exempted up to which of the following tax year? . at June 27.00% 20. or natural resources. 2008 it is entitled to receive Rs. 8. 10.50% 19.550. where the taxable income exceeds Rs. In which year it is charged to tax? Select correct option: 2006 2007 2008 2009 Question # 11 of 15 ( Start time: 03:38:53 PM ) Total Marks: 1 Which of the following is the important content for calculating tax on income? Select correct option: Taxable Income Residential Status Tax Year All of the given options Question # 12 of 15 ( Start time: 03:39:10 PM ) Total Marks: 1 _____________ is the payment to the holder for the right to use property such as a patent.Question # 9 of 15 ( Start time: 03:38:04 PM ) Total Marks: 1 Which of the following is the legal status of Al-Habib Bank Limited under section 80 of the ordinance? Select correct option: Individual Firm Banking Company Hindu Undivided Family Question # 10 of 15 ( Start time: 03:38:30 PM ) Total Marks: 1 A firm ABC maintaining its account in accrual basis.650. 4. Select correct option: Permanent Establishment Royalty Dividend Goodwill Question # 13 of 15 ( Start time: 03:39:25 PM ) Total Marks: 1 Which of the following is the rate of tax for salaried Individuals for tax year 2009.000 but actual payments made at 01 August 2008.50% 18.

Franchise b. 1 /4 of the rent is deduct able as repairs allowance b. a.000. 38% 4. Forfeited amount c. Rs. Fair market rent b. _____________ on account of cancellation of sale agreement of building shall be treated as rental income and fully taxable. Such rent will be spread in how much of the following years? . Venture 6. Penalty 3. 35% 5. 47. 94. 41% 3. None of the given options 2. If income of an individual received under the head income from property. where the tax rate decreases as the amount to which the rate is applied increases? Select correct option: Proportional tax Progressive tax Regressive tax Corporate tax 1.500 d. ____________ means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 44% 2. Rent collection charges d. Wholly Taxable 4. is Rs. Wholly exempted 2. 70. 23. Which of the following is the tax treatment for Income from property received as a rent for the year 2007? a. No deduction is allowed 7. Partly exempted 3. Small Business Units SBU d. Rs. then his tax liability is: a. a.Select correct option: 2004 2005 2006 2007 Question # 15 of 15 ( Start time: 03:40:32 PM ) Total Marks: 1 Which of the following is tax. 1 /2 of the rent is deduct able as repairs allowance c.500 b. 470. Rs. Under the head “Income from Property” any rental income received from a trust or welfare institution as provided in sub clause (2) and (3) of clause (58) is: 1. Rates of Tax for Banking Companies for Tax Year 2007 is: 1. Rs.000 4. 1 /5 of the rent is deduct able as repairs allowance d.000 c. In case of non adjustable advance received from a building as income from property. Permanent establishment c.

100. A person shall be entitled to a tax credit in respect of any sum given as a donation in a tax year shall be computed according to which of the following formula: a. 120. 8 years d. What is the treatment of this mark-up in calculating the total taxable income from property as per Income Tax Ordinance 2001? a. Up to 8 years b.000 in the year 2006. Mr. Under clause (93 A) of the Part 1 of second schedule of Income Tax Ordinance 2001 which of the following’s Business income is exempted from tax? a. Collector of Income Tax b.500 c.000 c. Mr. Rs. A loss sustained under the head Capital Gain can be carried forward for the following period: a. Up to 6 years 13. Suppose non-adjustable advance received from a building as income from property is Rs. On disposal by way of gift of an asset d.000 d. 500. (A/B) x C b. 80.B) x C 15.000 b. d. Ali let out a building to M/S XYZ and received gross total rent amounting Rs 1. On international transaction b. Members of income tax appellate tribunal are appointed by: a. 60. Judicial Commission . 6years c. What is the treatment of this collection charges in calculating the total taxable income from property as per Income Tax Ordinance 2001? a.000 b. Federal Government d. University or Educational Institution established not for profit purpose. Recognized Vocational Institute. (A + B) x C d.000 11.a. He has also hired staff for the collection of rent the salary paid to employees in this context is Rs 120.600. A had constructed a property after availing loan from a commercial bank and paid mark-up amounting Rs 40. Mark-up is not allowed as admissible deduction in the year 2006 c. Income of a Text-Book Board. Up to 7 years d. 500. 96. b. The amount adjustable for each coming year will be? a. On disposal of a capital asset 14.000 during the tax year 2006. Rs. 12. c. On domestic transaction c. 50. Half amount of mark up is allowed as admissible deduction in the year 2006 10. Capital gain shall be treated a gain: a. Rs. Commissioner of Income Tax c. (A .000 in the tax year 2006. Up to 10 years c. Income of Recognized Sports Board. (A/C) x B c. 5 years b.000 during the tax year 2006.000 9.000 d. Mark-up is allowed as admissible deduction in the year 2006 b. 10 years 8. 62. Rs. Mark-up is allowed as admissible deduction in the year 2007 d.

Partially exempt d. Mr. For the calculation of residential status of an individual. Agriculture income means an income derived by a person from: a.1. Income derived from any business carried on in Pakistan b. Control and management is situated partly in Pakistan d. land situated in Pakistan and used for any purpose c. It is paid to non resident person through permanent establishment out side Pakistan 9.5% 6. Which one of the following condition must be satisfied for a resident AOP? a. Which one of the following sources of income of a Non-resident is taxable in Pakistan? a. Most of it’s branches located in Pakistan b. Both Pakistan and Foreign Source Income d. Pakistan Source Income only b. Kamran is a pilot in air force. 3. All of the given options . Wholly Taxable b. in order to become Pakistan Resident Company under Income Tax Ordinance 2001? a. It is received by Resident Person through permanent establishment outside Pakistan c. Day of leave including sick leave d. Agri-business b. Control and management of AOP is situated wholly or partly in Pakistan d. Control and management of AOP lies outside Pakistan 4.0% 2. Receipt of any Income in Pakistan 5. Owners of AOP must be resident of Pakistan c. 2. AOP must be registered in Pakistan b. 2. Day of departure c. It is paid by Non-resident Person b. All of the given options 8. Which one of the following conditions must be fulfilled by XYZ Co. Wholly Exempt c.0% 4. Borne by Non-resident through permanent establishment in Pakistan d. which of the following day is considered as whole day? a. 3. Day of arrival b.5% 3. None of the given options 3. Under which one of the following conditions a Business Income can be “Pakistan Source Income”? a. Under which one of the following conditions a profit can be Pakistan Source Income? a. land situated in Pakistan and used for agriculture purpose 2. Owners of the company must be resident of Pakistan 7. Control and management is situated wholly in Pakistan c. his salary will be taxed from a separate block. Any remuneration paid by resident of Pakistan d. Foreign Source Income only c. which one of the following rates will be applied to him? 1. Income derived by Non president through permanent establishment in Pakistan c. Which of the following is the best treatment of any “Pakistan Source Income” of a resident of Pakistan? a. land situated outside Pakistan d.

____________ means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 5. Permanent establishment 3. return to be file within 15 days of discontinuance. 1. In case of discontinuance of business. Small Business Units (SBU) 4. 200.10. 4. Section 17 of the income Tax Ordinance 2001 has been omitted by Finance Bill 2006. Pension from Pakistan Government but received outside in Pakistan. 3. 2. Income of a woman tax payer is not taxable income if it does not exceed Rs. is taxable in case of resident individual.000. Income from property the rent collection charges should not to exceed 6% of gross rental income. Top of Form BC080201009 : MUHAMMAD ADNAN AWAIS Quiz Start Time: 11:29 PM Question # 3 of 15 ( Start time: 11:30:36 PM ) Which of the following person fulfilled the criteria of a Taxpayer? Select correct option: Any representative of a person w ho derives an amo Time Left se c( s) Total Marks: 1 3 7 Any person w ho is required to deduct or collect tax Any person required to furnish a return of income . Section 17 of Income Tax Ordinance 2001. Venture Fill in the Blanks 1. Franchise 2.

All of the given options Top of Form BC080201009 : MUHAMMAD ADNAN AWAIS Quiz Start Time: 11:29 PM Time Left se c( s) 1 3 Question # 10 of 15 ( Start time: 11:38:46 PM ) Total Marks: 1 Which of the following is the tax where the tax rate remained fixed to the amount on which the rate is applied increases? Select correct option: Proportional tax Progressive tax Regressive tax Corporate tax Bottom of Form Bottom of Form .

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