8443 1

Chapter 01
1. Income tax is collected on all types of income except .
A. agricultural income B. industrial income
C. capital gain D. household property
Answer: A
2. The Income Tax Act came into force from .
A. 1st march 1971 B. 1st april 1971
C. 1st march 1961 D. 1st april 1961
Answer: D
3. As per Income Tax Act, 1961, income tax is charged on the income of at a rates which are
prescribed by the Finance Act of relevant assessment year.
A. current year B. one year before previous year
C. previous year D. none of the above
Answer: C
4. The tax payer liability is determined with reference to his or her .
A. financial status B. residential status
C. all of the above D. none of the above
Answer: B
5. As per the definition of Income, the income includes the following .
A. profits and gains B. dividend declared
C. voluntary contribution received by a trust created D. all of the above
Answer: D
6. The period of 12 months commencing on the first day of April every year and ending on 31st
March is called as .
A. previous year B. assessment year
C. accounting year D. financial year
Answer: B
7. Previous year means the financial year immediately preceding the .
A. accounting year B. assessment year
Answer: B
8. Agricultural income is completely exempted for assessment year
A. 1974-75 B. 1985-86
C. 1975-76 D. 1978-79
Answer: A
9. The income from foreign companies by providing the services in project connected with security
of India is from tax liability.
A. 50% exempted B. 20% exempted
C. 100% exempted D. 55% exempted C.100% exempte
Answer: C
10. The awards and rewards are exempted from Income Tax if .
A. payment is in cash B. payment is in kind
C. payment is in cash or in kind D. none of the above
Answer: C
11. The income received and accrued outside Pakistan from a business controlled or profession set
up in Pakistan, the tax incidence in case of resident is .
A. taxable B. non-taxable
C. partly taxable D. none of the above
Answer: A
12. The income received and accrued outside Pakistan from a business controlled or profession set
up in Pakistan, the tax incidence in case of non-resident is .
Answer: B
13. The tax incidence for company or firm in which income received in Pakistan and company is
resident is .
Answer: A
14. The tax incidence for company or firm in which income received outside Pakistan from a source
controlled from India for non-resident is .
A. non-taxable B. taxable
Answer: A
15. Which of the following is not taxable under the head Salary?
A. remuneration paid to the lecturer of a college for setting a question paper
B. salary received by a member of parliament
C. commission received by an employee director of a company
D. both (a) and (b)
Answer: D
Chapter 02
1. …………. is exempted from income tax.
A. interest from Pakistan company B. dividend from foreign company
C. cooperative dividend D. dividend from Pakistan Company
Answer: D
2. Which section of the Income Tax Act exempted incomes have been mentioned?
A. section 80c B. section 80dd
C. section 10 D. section 2
Answer: C
3. ……………….of Income Tax Act is related to residential status.

A. section 2 B. section 6
Answer: B
4. The Company may have the residential status as .
A. resident or non-resident B. not ordinarily resident
C. non-resident D. resident
Answer: A
5. The number of income source for a person are .
A. One head B. two heads
C. various heads D. any of the above
Answer: D
6. The sum of various heads is called as .
A. taxable income B. total income
C. Gross total income D. adjusted income
Answer: C
7. The agricultural income includes.
A. income from sale of crop B. income from preparation of crop
C. income from nursery D. all of the above
Answer: D
8. …………..comes under agricultural income.
A. tea garden B. commodity farming
Answer: C
9. The capital gain is chargeable under of Income Tax Act.
Answer: A
10. The definition of the person includes .
A. an individual B. a company
C. a Muslim undivided family D. all of the above
Answer: A
11. Any rent or revenue derived from land which is situated in India and is used for agricultural
purpose is .
A. partially taxable B. fully taxable
C. exempted from tax D. none of the above
Answer: C
12. The income of previous year is chargeable to tax in the .
A. immediately succeeding assessment year B. same previous year
C. immediately preceding academic year D. none of the above
Answer: A
13. The income is chargeable under the head of salary under ……………of Income Tax Act, 1961.
Answer: A
14. Pension is ……………under the salary head.
A. fully taxable B. partially taxable
C. not taxable D. none of the above
Answer: A
15. The salary of Member of Parliament is taxable under the head .
A. salary B. income from other sources
C. income from business D. all of the above
Answer: B
Chapter 03
1. The death-cum-retirement gratuity received by the Government Employee or employee of local

authority is .
A. partially exempted B. fully exempted
C. half taxable D. none of the above
Answer: B
2. Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received
is .
A. taxable B. not taxable
C. partially taxable D. none of the above
Answer: A
3. The assesses can claim relief under…………….for arrears or advance salary.
A. section 89(1) B. section 89(2)
C. section 89(3) D. section 89(4)
Answer: A
4. The Payment of Gratuity Act came into force in…………...
A. 1973 B. 1980
C. 1991 D. 1972
Answer: D
5. Which of the following is not taxable under the head Salary?
A. remuneration paid to the lecturer of a college for setting a question paper
B. salary received by a member of parliament
C. commission received by an employee director of a company
D. both (a) and (b)
Answer: D
6. If the employee receives retirement gratuity from more than one employer, he can claim
exemption in respect of .
A. current employer B. previous employer
C. both employer D. not from single employer
Answer: C
7. The family pension received by the family members of armed forces after death of employee is .
A. exempt fully B. exempted after fulfilling of certain conditions
C. not exempted D. none of the above
Answer: B
8. The entertainment allowance is applicable to .
A. private sector employees B. public sector employees
C. government employees D. all of the above
Answer: C
9. The assessment period for income tax on salary is .
A. only more than 12 months B. 12 months and less than 12 months
C. only 12 months D. 12 months and more than 12 months
Answer: C
10. Total income is to be rounded off to nearest multiple of …………….and taxis to be rounded off to
nearest multiple of .
A. ten rupee B. hundred, ten
C. ten, ten D. rupee, rupee
Answer: C
11. Under the Head Income from House Property, the basis of charge is theof property.
A. annual value B. quarterly value
C. half-quarterly value D. none of the above
Answer: A
12 . An individual who transfers house property without an adequate consideration to his owner
spouse or to minor child is called as .
A. co-owner B. deemed owner
C. owner himself D. none of the above
Answer: C
13. If the individual using the property for the business or professional purpose the income taxable
under the……………..head.
A. income from house property B. income from house
C. income from other D. income from business or proprietorship
Answer: D
14 . If the assesses let out the building or staff quarters to the employee of business, the rent
collected from such employees is assessable as income from.
A. business B. house property
C. other sources D. none of the above
Answer: C
15. which of the following is not a case of deemed ownership of house property?
A. transfer to a spouse for inadequate consideration
B. transfer to a minor child for inadequate consideration
C. holder of an importable estate
D. co-owner of a property
Answer: D
Chapter 04
1. The charging section of the income under the head capital gains is :
C. section 10 D. section 45 (2)
Answer: D
2. The following shall not be regarded as capital asset:
A. jewellery B. rural agricultural land
C. archaeological collections D. personal residential house
Answer: B
3. The following shall be regarded as capital asset:
A. jewellery B. sculptures
C. archaeological collections D. all of the above

Answer: D
4. Capital asset excludes all except
A. stock-in-trade B. personal effects
C. jewellery D. agricultural land in india.
Answer: C
5. Which of the following are included in the jewellery -
A. ornaments made of gold, silver and platinum.
B. precious metals whether or not worked or sewn into any wearing apparel.
C. semi-precious stones.
D. all of the above.
Answer: D
6. In terms of section 2(42A), listed securities are treated as long-term capitalasset, if they are held
for a period of more than –
A. 12 months B. 36 months
C. 24 months D. 48 months
Answer: A
7. A person entered into partnership is known as …………
A. partner B. people
C. company D. none of the above
Answer: A
8. Collective group of persons is known as……..
A. firm B. society
C. person’ D. none of the above
Answer: A
9. …………..cannot become a partner.
A. minor B. partner
C. firm D. society
Answer: A
10. The payment is authorized by, and is in accordance with the term of partnership deed according
to sec………….
A. sec. 40(b)(ii) B. sec. 40(b)(iii)
C. sec. 50(b)(ii) D. none of the above
Answer: A
11. …………..is an obligation annexed to the ownership of property.
A. trust B. firm
C. company D. people
Answer: A
12. The person who accepts the confidence is called ………….
A. trustee B. Company
C. firm D. Individual
Answer: A
13. The subject matter of the trust is called …………….
A. trust property B. own property
C. own furniture D. none of the above
Answer: A
14. Joint Commissioners are appointed by…………
A. central government B. state government
C. district government D. gram pan
Answer: A
15. The trust should be one established in accordance with law and its objects should fall within the
definition of the term ………….
A. charitable purposes B. work purpose
C. assessment purposes D. to earn profit purpose

Answer : A
Chapter 05
1. Tax refund has to be claimed within :
A. five years B. same year
C. one year D. next year
Answer: C
2. In the absence of the individual assesses, return of income can be signed by…………………
A. legal heir B. spouse.
C. any person. D. authorized person
Answer: D
3. Deduction under section 80C to 80U cannot exceed:
A. Gross totals income B. total income
C. income from business or profession D. income from house property
Answer: A
4. COMPUTATION OF TOTAL TAXABLE INCOME OF AN INDIVIDUAL
140. As per Section 2(e a), which of the following is an asset in case of an individual:
A. cash in hand up to rs. 50,000 B. shares
C. debentures or bonds D. motor car used for official purposes
Answer: A
5. Income Tax is levied on the ___________ of a person.
A. total income B. total income-debt
C. gross total income D. net income-debt perquisites
Answer: A
6. A person entered into partnership is known as …………
A. partner B. people
C. Individual D. none of the above
Answer: A
7. Collective group of persons is known as……..
A. firm B. society
C. person D. none of the above
Answer: A
8. …………..cannot become a partner.
A. minor B. partner
C. firm D. society
Answer : A
9. The payment is authorized by, and is in accordance with the term of partnership deed according
to sec………….
A. sec. 40(b)(ii) B. sec. 40(b)(iii)
C. sec. 50(b)(ii) D. none of the above
Answer : A
10. The assesses can claim relief under…………….for arrears or advance salary.
A. section 89(1) B. section 89(2)
C. section 89(3) D. section 89(4)
Answer : A
11. The Payment of Gratuity Act came into force in…………...
A. 1973 B. 1980
C. 1991 D. 1972
Answer : D
12. The family pension received by the family members of armed forces afterdeath of employee is .
A. exempt fully B. exempted after fulfilling of certain conditions
C. not exempted D. none of the above
Answer : B
13.The tax is___________:
(a) National income (b) Domestic income
(c) Per capita income (d) Both A and B

Answer: A
14. Fiscal deficit in the budget means:
(a) Revenue deficit plus the net borrowings of the government
(b) Budgetary deficit plus the net borrowings of the government
(c) Capital deficit plus revenue deficit
(d) Primary deficit minus capital deficit
Answer: B
15. Trading on equity’ means:
(a) Use of equity share capital for trade financing
(b) Use of fixed-interest borrowed funds for getting a higher return on equity
(c) Having no borrowed funds
(d) Trading in equity share capital
Answer: B
Chapter 06
1. It is payable by individuals, firms and companies which acquire an asset by purchase or a right to
use for more than 20 years.
(a) Income Tax (b) Federal Excise Duty
(c) Capital Value Tax (d) Corporate Asset Tax
Answer: C
2. There is how many sections included in Income Tax Ordinance 2001
(a) 235 sections (b) 240 sections
(c) 250 sections (d) 260 sections
Answer: B
3. Ordinance is issued for the term of 4 months. Who promulgates the Ordinance?
(a) President (b) Prime Minister
(c) Chief Minister (d) Governor

Answer: A
4.The Income Tax Ordinance, 2001 extends to the whole of
(a) Pakistan (b) Punjab
(c) KPK (d) Balochistan
Answer: A
5.The Income Tax Ordinance, 2001 come into force on
(a) 1st July 2001 (b) 1st July 2002
(c) 1st July 2003 (d) 1st July 2004
Answer: B
6.It is payable by individuals, firms and companies which acquire an asset by purchase or a right to
use for more than 20 years.
(a) Income Tax (b) Federal Excise Duty
(c) Capital Value Tax (d) Corporate Asset Tax
Answer: C
7.There is how many sections included in Income Tax Ordinance 2001
(a) 235 sections (b) 240 sections
(c) 250 sections (d) 260 sections
Answer: B
8. Ordinance is issued for the term of 4 months. Who promulgates the Ordinance?
(a) President (b) Prime Minister
(c) Chief Minister (d) Governor
Answer: A
9. Value of rent-free accommodation in case of Government employee shall be taxable up to
A. 15% of employee’s salary B. 8% of employee’s salary
C. license fee fixed by government D. 10% of employee’s salary
Answer: C
10.Deduction from annual value is allowed under .
Answer: A
11.“Accumulated profits” in relation to distribution or payment of a dividend, include:
(a) any reserve made up wholly or partly of any allowance, deduction, or exemption admissible
under income tax Ordinance 2001
(b) for the purposes of [sub-clauses (a), (b) and (e) of clause (19) all profits of the company including
income and gains of a trust up to the date of such distribution or such payment, as the case may be
(c) for the purposes of sub-clause (c) of clause (19), includes all profits of the company including
income and gains of a trust up to the date of its liquidation;
(d) All of these
Answer: D
12.“Appellate Tribunal” means the Appellate Tribunal Inland Revenue established under section
(a) Section 130 (b) Section 132
(c) Section 135 (d) Section 137
Answer: A
13. Suggestions to improve the taxation structure of Pakistan are:
A. The Proportion of Direct Taxes is Low and that of Indirect Taxes is High
B. The Indirect Taxes not only lead to Increase Inflation but they are also Promoting Unequal Income
Distribution
C. The Agri Incomes is Exempted from Taxes. It means that our taxation System has to Face a lot of
Problems
D. All of these
Answer: D
14. The suggestions are given to remove the problems are:

A. The Excise Department has Posted its staff at factory Gates so that after Physical Counting of
products the Excise Duty Could be Imposed
B. The Proportion of Direct Taxes is Increased while that of Indirect Taxes is Decreased
C. The Tax Base is Extended. The allowances and rebates are Removed in Respect of Big Companies
and Firms
D. All of these
Answer: D
15. Structural Reforms in Pakistan are:
A. Pakistan faced Macro-Economic instability during the mid and late 1980s
B. Now we see that measure was adopted in Pakistan. In the late 1990s and 2000 Regarding Tax
Firms
C. They will lead to Economic Stability as well as Economic Development
D. All of these
Answer: D
Chapter 07
1. The purpose/purposes of the Sales Tax Act 1990 is/are?
A. An Act to Consolidate and amend the law relating to the levy of a tax on the sale of commodity
B. Tax on Importation and Exportation
C. Tax on Production and Manufacturing
D. All of these
Answer: D
2. Under Section 2(1) of the Sales Tax Act, 1990 by which law Appellate Tribunal Inland Revenue be
established?
A. S.130 of the Income Tax Ordinance 2001 B. S.140 of the Income Tax Ordinance 2001
C. S.145 of the Income Tax Ordinance 2001 D. S.150 of the Income Tax Ordinance 2001
Answer: A
3. Under S.2 of the Sales Act 1990 officer means?

A. Inspector Customs B. Officer of Inland Revenue
C. Inspector Police D. None of these
Answer: B
4. By which section of the Sales Act 1990 arrears means, the Sales Tax due and payable dues which
have not yet been paid?
A. Section 2A B. Section 3
C. Section 4 D. Section 5
Answer: A
5. Associates or Associated Person means?
A. Where Two Persons Associates and Relationship between the Two is such that one may Act in
Accordance with the Intention of the other or intention of the Third Person
B. An individual and a Relative of the Individual
C. Member of an Association of Persons
D. All of these
Answer: D
6. When Two Companies becomes Associates?
A. Where Fifty Percent or more of the Voting Power in both Companies
B. Where Fifty Percent or more of the Rights to Dividends in both the Companies
C. Where Fifty Percent or more of the Rights to Capital in both Companies
D. All of these
Answer: D
7. According to Section2 (4) of the Sales Tax Act, 1990, Board means?
A. Provincial Board of Revenue B. Local Government Board
C. Both a & b D. Federal Board of Revenue
Answer: D
8. By which law the Chief Commissioner Inland Revenue is appointed by the Federal Board of
Revenue?
A. Section 25 of the Sales Tax Act 1990 B. Section 30 of the Sales Tax Act 1990
C. Section 32 of the Sales Tax Act 1990 D. Section 40 of the Sales Tax Act 1990
Answer: B
9. By which section of the Sales Tax Act 1990 Common Taxpayer Identification Number is allotted?
A. Section 4 B. Section 4(A)
C. Section 5 D. Section 2 (5A)
Answer: D
10. According to the Sales Tax Act 1990 Cottage Industry means:
A. Where Tax Does not Exceed Five Million Rupees
B. Whose Annual Utility Bills do not Exceed Seven Hundred Thousand Rupees
C. Both A & B D. None of these
Answer: C
11. By which section of the Sales Act, the default surcharge level?
A. Section 34 B. Section 35
C. Section 36 D. Sections 40
Answer: A
12. According to Section 2(7) of the Sales Act distributor means?
A. A Person Appointed by a Manufacture B. Appointed by Importer
C. A Person Who is Engaged in Supply of goods as a wholesale or a Retailer
D. All of these
Answer: D
13. According to Section 2(8) of the Sales Act the term Documents includes?
A. Any Electronic Data B. Computer Programme, Tapes, Disks, Micro-Films
C. Any Other Medium for the Storage of Such Data D. All of these
Answer: D
14. According to Section 2(21) Person means?
A. An Individual
B. A Company or Association of Persons Incorporated, Formed, Organized or Established in Pakistan

or Elsewhere
C. The Federal Government D. All of these
Answer: D
15. What does Provincial Sales Tax mean?
A. Tax Levied Under Provincial Laws B. Tax Levied Under Islamabad Capital Territory
Answer: C
Chapter 08
1. In the sub-continent the Central Board of Revenue (CBR) was created on:
A. 1 April 1924 B. 1 May 1924
C. 1 July 1924 D. 1 August 1924
Answer: A
2. By which Act the Central Board of Revenue was established?
A. Central Board of Revenue Act 1922 B. Central Board of Revenue Act 1924
C. Central Board of Revenue Act 1926 D. Central Board of Revenue Act 1928
Answer: B
3. In ____ a full-fledged Revenue Division was created under the Ministry of Finance.
A. 1940 B. 1942
C. 1944 D. 1946
Answer: C
4. The Revenue Division was abolished in ____.
A. January 1995 B. February 1995
C. March 1995 D. April 1995
Answer: A
5. FBR reverted back to the ___ positions.
A. Pre-1990 B. Pre-1991
C. Pre-1992 D. Pre-1993
Answer: B
6. “RTOs” means:
A. Revision Tax Offices B. Regional Tax Offices
C. Regular Tax Offices D. None of these
Answer: B
7. “LTUs” stands for:
A. Large Taxpayer Units B. Limited Taxpayer Units
C. Largest Taxpayer Units D. None of these
Answer: A
8. What are the major wings of FBR?
A. Inland Revenue Wing (Income Tax Department) which bring in about 54% of FBR’s total collection
B. Customs Wing (Now called as Pakistan Custom Service)
Answer: C
9. The major functions of the Legal Wings are:
A. Grant of Approval for Filing of Appeals/Reference before High Court and CPLAs/Review before the
Supreme Court and Pursue Litigation in Court
B. Assigning Court cases issuing Power of Attorney and Monitoring Performance of Legal Advisors
and Advocates on Panel
C. Making Recommendation for Appointment of Legal Advisors and placement of Advocates on

panel FBR
D. All of the Above
Answer: D
10. TAMS means:
A. Tax Audit Management System B. Tax Auditor Management System
C. Tax All Management System D. None of these
Answer: A
11. Tax System in Pakistan is operating on:
A. Self Assessment Basis Aimed
B. At Promoting Voluntary Compliance Documentation
C. Self Policing D. All of these
Answer: D
12. Job description of the taxpayer’s audit wing is:
A. Planning and Designing audit Procedures B. Evaluating Tax Audits for all Domestic
Taxes
C. Any Other Duties Assigned by Chairman FBR D. All of these
Answer: D
13. Audit process should be effective, fair, and conducted with integrity is:
A. FBR is Taking Great Care to Ensure that Audits are Conducted in Courteous Efficient Professional
B. Effective Manner as well as with Highest Standards of Integrity
Answer: C
14. ‘Taxpayers Feedback’: Periodic feedback from field Formations and tax Bars Associations is
obtained to:
A. Gauge Perception of the Audit Process B. Improve the overall Audit Process
C. Evaluate the Behavior Professionalism and Competence of Audit Staff
D. All of these
Answer: D
15. The Revenue Division continues to exist since ___.
A. 1st October 1998 B. 1st November 1998
C. 1st December 1998 D. 1 January 1999
Answer: C
Chapter 09
1. The Appellate Tribunal Inland Revenue was established under Section __ of the Income Tax
Ordinance 2001 (XLIX of 2001).
C. Section 110 D. Sections 150
Answer: A
2. The Federal Board of Revenue was established under the Central Board of Revenue Act ___(IV of
1924).
A. 1920 B. 1924
C. 1928 D. 1932
Answer: B
3. A person appointed as Chief Commissioner Inland Revenue under Section ___.
Answer: A
3. Conveyance means?
A. Any means of transport used for carrying goods or passengers
B. Such as vessel aircraft vehicle or animal etc
Answer: C
4. Under which Section of the Said Act Surcharge levied defined?
Answer: C
5. Factory means?
A. Any premises including the precincts thereof

B. Wherein or in any part of which goods are manufactured
C. Wherein or in any part of which any manufacturing process connected with the Production of the
goods is being carried on or is ordinarily carried on
D. All of these
Answer: D
6. Officer of Inland Revenue means?
A. Any person appointed by the Board as Officer of Inland Revenue Section 29
B. Any person ( Including an officer of the provincial government) engraved by the Board with any of
the powers of an officer of Inland Revenue under This Act or rules made hereunder
Answer: C
7. Goods means?
A. Goods leviable to excise duty under this Act or as specified in the First Schedule and
B. Goods manufactures or products in the non-tariff area and brought for use or consumption to
tariff area
C. Both a & b D. None of these
Answer: C
8. Manufacture includes?
A. Any process is incidental or ancillary to the completion of a manufactured product
B. Any process of re-manufacture, remaking, reconditioning, or repair and the process of packing or
repacking such product
C. In relation to tobacco includes the preparation of cigarettes, cigars, cheroots, iris cigarettes, and
pipe or hookah tobacco chewing tobacco or snuff or preparation of un-manufactured tobacco by
drying cutting, and thrashing of raw tobacco
D. All of these
Answer: D
9. Sale and Purchase means?
A. With their grammatical variations and cognate expressions
B. Any transfer of the possession of goods or rendering and providing of services by one person to
another in the ordinary course of trade or business for cash or deferred payment or other
considerations
Answer: C
10. Duties specified in the First Schedule to be levied (Section 3) means?
A. Subject to the provisions of this Act and rules made thereunder there shall be levied and collected
in such manner as may be prescribed duties of excise on –
(i) Goods produced or manufactured in Pakistan
(ii) Goods Imported into Pakistan
(iii) Services provided in Pakistan including the services that originated outside but rendered in
Pakistan
B. At the rate of fifteen percent advaloren except the goods and services specified in the first
schedule
C. Which shall be charged to Federal excise duty as and at the rates set forth therein
D. All of these
Answer: D
11. Filling of return and payment of duty etc (Section 4) means?
A. For every month a registered person
B. Shall furnish not later than the due date a true and correct return in such manner
C. Form as may be prescribed by the Board by notification in the Official Gazette
D. All of these
Answer: D
12. “Zero rates of duty and drawback of duty etc” (Section 5) means?
A. Notwithstanding the provision of Section 3
B. The goods exported out of Pakistan or such goods as may be by notification in Official Gazette
C. Adjustment of duty in terms of Section 6 shall be admissible on such goods
D. Specified by the Federal Government shall be deducted from the amount of duty calculated on
such goods
E. All of these
Answer: E
13. Adjustment of duties of excise means?
A. For the purpose of determining the net liability of duty in respect of any goods
B. The duty already paid on goods specified in the First Schedule and used directly as input goods for
the manufacture
C. Production of such goods shall be declared from the amount of duty calculated on such goods
D. All of these
Answer: D
14. The provisions relating to appeals before the Commissioner (Appeals) are
contained in which sections of the Central Excise Act, 1944:-
a. Section 35 & 35A b. Section 35G
c. Section 35H d. Section 35L
Answer: B
15. The provisions relating to appeals before the Commissioner (Appeals) are
contained in which sections of the Customs Act, 1962:-
a. Section 110 & 111 b. Section 123
c. Section 128 & 128A d. Section 129
Answer: C

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Chapter 01

1. Income tax is collected on all types of income except .

A. agricultural income B. industrial income

C. capital gain D. household property

2. The Income Tax Act came into force from .

A. 1st march 1971 B. 1st april 1971

C. 1st march 1961 D. 1st april 1961

A. current year B. one year before previous year

C. previous year D. none of the above

4. The tax payer liability is determined with reference to his or her .

A. financial status B. residential status

C. all of the above D. none of the above

5. As per the definition of Income, the income includes the following .

A. profits and gains B. dividend declared

C. voluntary contribution received by a trust created D. all of the above

A. previous year B. assessment year

C. accounting year D. financial year

A. accounting year B. assessment year

C. all of the above D. none of the above

8. Agricultural income is completely exempted for assessment year

A. 50% exempted B. 20% exempted

C. 100% exempted D. 55% exempted C.100% exempte

A. payment is in cash B. payment is in kind

C. payment is in cash or in kind D. none of the above

C. partly taxable D. none of the above

C. partly taxable D. none of the above

C. partly taxable D. none of the above

C. partly taxable D. none of the above

A. remuneration paid to the lecturer of a college for setting a question paper

B. salary received by a member of parliament

C. commission received by an employee director of a company

D. both (a) and (b)

1. …………. is exempted from income tax.

A. interest from Pakistan company B. dividend from foreign company

C. cooperative dividend D. dividend from Pakistan Company

A. section 80c B. section 80dd

3. ……………….of Income Tax Act is related to residential status.

4. The Company may have the residential status as .

A. resident or non-resident B. not ordinarily resident

5. The number of income source for a person are .

A. One head B. two heads

C. various heads D. any of the above

6. The sum of various heads is called as .

A. taxable income B. total income

C. Gross total income D. adjusted income

7. The agricultural income includes.

A. income from sale of crop B. income from preparation of crop

C. income from nursery D. all of the above

8. …………..comes under agricultural income.

A. tea garden B. commodity farming

C. all of the above D. none of the above

9. The capital gain is chargeable under of Income Tax Act.

C. a Muslim undivided family D. all of the above

A. partially taxable B. fully taxable

C. exempted from tax D. none of the above

12. The income of previous year is chargeable to tax in the .

A. immediately succeeding assessment year B. same previous year

C. immediately preceding academic year D. none of the above

14. Pension is ……………under the salary head.

A. fully taxable B. partially taxable

C. not taxable D. none of the above

15. The salary of Member of Parliament is taxable under the head .

A. salary B. income from other sources