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623FIN taxation management

Mcqs
Page 01

Added By
1-What is the tax treatment of the salary of an employee

seeart

of foreign government but citizen of Pakistan?

Exempt from tax

Wholly Taxable

Partly Taxable
Take MCQ
2-Non-Agricultural income includes which one of the

seeart

following?
Select correct option:

Income from sale of wild grass

Income from fisheries

Royalty income of mines

All of the given options


Take MCQ
3-(1) page 22Any Pakistan-source income which Pakistan
is not permitted to tax under a tax treaty shall be

Wholly Taxable

seeart

Wholly Exempt

Partly Exempt

Not mention in Ordinance


Take MCQ
4-However its most of the branches are operated out of

seeart

Pakistan? What will be the residential status of M/s ABC &


Co.?

Resident Company

Non- Resident Company

Resident Individual

Resident AOP
Take MCQ
5-In Income Tax Ordinance 2001 tax concessions meant

seeart

for which of the following? Select correct option:

Reduction in tax liability

Reduction in tax rate

Reduction in taxable Income

All of the given options


Take MCQ
6-Which of the following is the tax where the tax rate
remained fixed to the amount on which the rate is applied

seeart

increases?

Proportional tax

Progressive tax

Corporate tax
Take MCQ
7-Any Pakistan-source income which Pakistan is not

seeart

permitted to tax under a tax treatyshall be

Wholly Taxable

Wholly Exempt

Partly Exempt

Not mention in Ordinance


Take MCQ
8-Which of the following methods of accounting is

seeart

compulsory to adopt for Sole- proprietorship?

Accrual Basis

Cash Basis

Free to choose any kind of base


Take MCQ
9-Which one of the following is the general meaning of
Tax?

seeart

Relax

Lighte

n Reli

eve

Fatigue
Take MCQ
10-In the normal circumstances on which of the following

seeart

tax is charged?

Gross Receipt

Total Income

Taxable Income

Gross Income
Take MCQ
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Page 02

Question

Added By

11-Which of the following is the Special Accounting Year of

seeart

Companies exporting rice?

1st January to 31st December

1st July to 30th June

1st October to 30th September

1st September to 31st August


Take MCQ
12-Which one of the following canons of taxation suggests

seeart

easiness in time of payment and mode of collection of tax?

Simplicity

Convenience

Certainty

Capacity to

Pay
Take MCQ
13-Which part of Income Tax Ordinance 2001 deals with the

seeart

Exemptions and Tax


Concessions?

Part IV

Part V

Part VI

Part VII
Take MCQ
14-Agricultural income includes which one of the following?

Dividend paid by a company out of its agriculture

seeart

income

Income from fisheries

Royalty income of mines

Share of profit of a partner from a firm engaged


in agricultural
Take MCQ
15-designed in such a way to boost business atmosphere

seeart

and the investment environment in the country?

Convenience

Judicious

Capacity to Pay

Business friendly
Take MCQ
16-The Chairman of CBR has the responsibility for which of

seeart

the following measures?

Formulation and administration of fiscal policies

Levy and collection of federal taxes

Quasi-judicial function of hearing of appeals

All of the given options


Take MCQ
17-Tribunal established under section 130 In which criteria
the above definition falls?

seeart

Exclusive definition

Inclusive definition

Both Exclusive and Inclusive definitions

Statutory definition
Take MCQ
18-Agricultural income does NOT include which one of the

seeart

following?

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


Take MCQ
19-A firm ABC maintaining its account in cash basis, at June

seeart

27, 2008 it is entitled to receive Rs. 10,000 but actual


payments made at 01 August 2008. In which year it is
charged to tax?

2006

2007

2008

2009
Take MCQ
20-Which of the following income is chargeable to tax?

seeart

Gross income from business


Income computed in line with provisions of
Ordinance

Only basic salary of salaried person

Basic salary excluding allowances of a salaried person


Take MCQ
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Page 03

Question

Added By

21-Which of the following is the main tool of Fiscal Policy?

seeart

Taxes

Deficit Financing

Subsidies

Transfer Payments
Take MCQ
22-The Fiscal year is a period of
chosen for tax purposes.

12

18

months arbitrarily

seeart

Take MCQ
23-expenses incurred in providing common benefits upon

seeart

the residents?

Fee

Taxes

Charges

Penalties
Take MCQ
24-Which part of Income Tax Ordinance 2001 deals with the

seeart

Exemptions and Tax Concessions?

Part IV

Part V

Part VI

Part VII
Take MCQ
25-Taxes are important instrument of which of the following
policy?

Monetary policy

Fiscal policy

Trade Policy

seeart

Economic Policy
Take MCQ
26-Which of the following tax is paid from money you

seeart

received from someone who has died?

Income tax

Inheritance tax

Property tax

Sales tax
Take MCQ
27-The process of clubbing of income results in which of the

seeart

following?

Lower Bracket rate of tax is charged

Higher Bracket rate of tax is charged

Moderate Bracket rate of tax is charged

No change occur due to clubbing


Take MCQ
28-________ are allowable deductions in case if the tax
payer is running a business.

Salaries paid

seeart

Purchases

Office expenditures

All of the given options


Take MCQ
29-What is the tax treatment of the salary of an employee

seeart

of foreign government but citizen of Pakistan?

Exempt from tax

Wholly Taxable

Partly Taxable

No Tax treatment given in IT Ordinance 2001


Take MCQ
30-Which one of the following is the main objective of Fiscal

seeart

Polic y?

Economic Development

Price stability

Removal of deficit in Balance of Payment

All of the given options


Take MCQ
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Page 04

Question

Added By

31-Expenses entitled to be paid by a Company, then entry

seeart

of such expenses will be made in the books of accounts if:

Company maintaining its books of account on Cash


basis

Company maintaining its books of account on Accrual


basis

Company maintaining its books of account on


Both Accrual and Cash basis
None of the given options
Take MCQ
32-It is mandatory for each Company to maintain its books

seeart

of accounts on which of the following methods?

Cash basis

Accrual basis

Both cash and accrual basis

Free to choose any kind of base


Take MCQ
33-Non-Agricultural income includes which one of the
following?

Income from sale of wild grass

seeart

Income from fisheries

Royalty income of mines

All of the given options


Take MCQ
34-Which of the following is the important content for

seeart

calculating tax on income?

Taxable Income

Residential Status

Tax Year

All of the given options


Take MCQ
35-(1) page 22Any Pakistan-source income which Pakistan
is not permitted to tax under a tax treaty shall be

Wholly Taxable

Partly Exempt

Not mention in Ordinance

seeart

Take MCQ
36-In the normal circumstances on which of the following
tax is charged?

Gross Receipt

Total Income

seeart

Taxable Income

Gross Income
Take MCQ
37-Which of the following income is chargeable to tax?

seeart

Gross income from business


Income computed in line with provisions of
Ordinance (not sure)

Only basic salary of salaried person

Basic salary excluding allowances of a salaried person


Take MCQ
months arbitrarily chosen

seeart

39-What is the tax treatment of any profit on the US Dollar

seeart

38-The Fiscal year is a period of


for tax purposes

12

18
Take MCQ

Bonds purchased by the non resident person before


December 1999 under clause 82 of the Second Schedule?

Wholly taxable

Wholly exempt

Partly taxable

Not mention in second schedule (not sure)


Take MCQ
40-What is the residential status of Provincial Government

seeart

of Pakistan?

Resident Individual

Resident Company

Resident AOP

Resident HUF
Take MCQ
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Page 05

Question

Added By

41-M/s ABC & Co. has been incorporated under Pakistan

seeart

Companies Ordinance 1984.


However its most of the branches are operated out of
Pakistan? What will be the residential status of M/s ABC &
Co.?

Resident Company

Non- Resident Company

Resident Individual

Resident AOP
Take MCQ
42-In Income Tax Ordinance 2001 tax concessions meant

seeart

for which of the following?

Reduction in tax liability

Reduction in tax rate

Reduction in taxable Income

All of the given options


Take MCQ
43-of the following section deals with the residential status

seeart

of Individual?

Section 80

Section 81

Section 82

Section 83
Take MCQ
44-Any amount received under Part 3 of Second Schedule,
as flying allowance by pilots etc and junior commissioned
officers or other ranks shall be taxed at the rate of as
separate block.

2.5%

seeart

5.5%

7.5%

9.5%
Take MCQ
45-Mr. Kishan Kumar during his yearly tour in Pakistan

seeart

spends 156 working days, 26 off- working days and 1 Public


Holiday in a tax year 2009-2010? Which of the following is
his residential status?

Resident Individual

Non Resident Individual

Resident Person

Resident HUF
Take MCQ
46-What is the residential status of Federal Government of

seeart

Pakistan?

Resident Person

Resident Company

Resident AOP

Resident HUF
Take MCQ
47-Mr. Joseph is an employee of Foreign Government
posted in Pakistan? What will be the residential status of Mr.

seeart

Joseph?

Resident Individual

Non- Resident Individual

Resident HUF

Resident AOP
Take MCQ
48-The age of senior citizen was 65years and now amended

seeart

to 60years which of the


following finance act substituted 65 to 60years?

Finance Act 2005

Finance Act 2006

Finance Act 2007

Finance Act 2008


Take MCQ
49-Which of the following section deals with the residential
status of Association of Person?

Section 81

Section 82

Section 83

Section 84
Take MCQ

seeart

50-Which of the following days shall be counted as half day

seeart

for the computation of residential status of an individual?


Select correct option:

A Public Holiday

A day of sick leave

Any strike

None of the given options


Take MCQ
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Page 06

Question

Added By

51-Senior citizen-age 60 years & above where taxable

seeart

income not exceeding _ tax liability reduced by 50% under


Part 3 of second schedule.

Rs. 200,000

Rs. 300,000

Rs. 400,000

Rs. 1,000,000
Take MCQ
52-A firm ABC maintaining its account in accrual basis, at
June 27, 2008 it is entitled to receive Rs. 10,000 but actual
payments made at 01 August 2008. It would be charge to

VUStudent

tax into the tax year:

2009

2006

2007

2008
Take MCQ
53-Mr. Kishan Kumar during his yearly tour in Pakistan

VUStudent

spends 155 working days, 26 off-working days 1 strike day


and
1 Public Holiday in a tax year 2008-09? What will be the
status of the individual?

Resident Individual

Non Resident Individual

Resident Person

Resident HUF
Take MCQ
54-Which of the following section of Income Tax Ordinance
2001 deals with perquisites of Income from Salary and its
treatment?

Section 11

Section 13

Section 14

Section 12

VUStudent

Take MCQ
55-Tax year for the salaried individuals is called as:

Special Tax Year

Normal Tax Year

Fiscal Year

Financial Year

VUStudent

Take MCQ
56-The definition of Employment under Sec. 2(22) of the

VUStudent

ordinance is categorized in:

Inclusive Definition

Exclusive Definition

Both Inclusive and Exclusive

None of the given options


Take MCQ
57-Any business carried by Non-resident person in
Pakistan through permanent establishment (PE) the
general and
admin expenditure incurred. What will be the tax treatment
of such expenditure?

Exempt from tax due to non-resident

Wholly taxable due to PE

Allowed as deduction from the income of Nonresident

VUStudent

None of the given options


Take MCQ
58-Any gain arising on the disposal of shares in a non-

VUStudent

resident company belongs to which of the following?

Pakistan- source income

Foreign source of income

Both Pakistan and foreign source of income

None of the given option


Take MCQ
59-For a resident AOP which of the following condition

VUStudent

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


Take MCQ
60-M/s ABC & Co. has been incorporated under Pakistan
Companies Ordinance 1984. However its 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.?

VUStudent

Resident Company CORRECT

Non-Resident Company

Resident Individual

Resident AOP
Take MCQ
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Page 07

Question

Added By

61-Which of the following section deals with the residential

VUStudent

status of Company?

Section 81

Section 82

Section 83

Section 84
Take MCQ
62-Rate charged under presumptive tax regime to non
resident shipping firm 8% on its gross receipt is quite low
as
compare to other business. This is an example of which
type of tax concession?

Reduction in total taxable income

VUStudent

None of the given options

Reduction in tax liability

Reduction in tax rate


Take MCQ
63-What is the tax treatment of Donation to the Presidents

VUStudent

Relief Fund for Earthquake Victims 2005?

Wholly Taxable

Wholly Exempt

Partly Exempt

Not mention in Ordinance


Take MCQ
64-Land revenue rent (Lagan) is received by which of the

VUStudent

following authority?

High Court

Supreme Court

Income Tax Department

Provincial Government
Take MCQ
65-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?

VUStudent

Income from Business

Agriculture Income

Income from Property

Capital Gain
Take MCQ
66-If the land situated in Pakistan and used for agriculture

VUStudent

purposes then which of the following factor make


distinction
between agriculture and non-Agriculture Income?

Nationality of Pakistan

Quantity of the product

Time period

Human effort
Take MCQ
67-Certain incomes those are excluded from tax are called

VUStudent

as:

Perquisites

Exemptions

Allowances

Deductions
Take MCQ
68-If the accounting year of Mr. Aslam, a rice exporter is
started from 01 January 2005 and ending on 31st

VUStudent

December
2005. What will be its tax year?

Tax year 2003

Tax year 2004

Tax year 2005

Tax year 2006


Take MCQ
69-Which of the following is the Special Accounting Year of

VUStudent

Insurance Companies?

1st January to 31st December

1st July to 30th June

1st October to 30th September

1st September to 31st August


Take MCQ
70-Section 2(5A) of Income Tax Ordinance 2001 defined:
assessment year means assessment year as defined in
the repealed Ordinance.
In which criteria the above definition falls?

Exclusive definition

Inclusive definition

Both Exclusive and Inclusive definitions

Statutory definition
Take MCQ

VUStudent

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Page 08

Question

Added By

71-Law making is the prime responsibility of which of the

VUStudent

following authorities?

Parliament

Supreme Court

High Court

City Court
Take MCQ
72-Under which of the following sections of Income Tax

VUStudent

Ordinance 2001 vested the powers to CBR in order to


formulate the IT rule 2002?

Section 206

Section 213

Section 237

Section 238
Take MCQ
73-Which of the following tax is paid in relation to how
much you earn?

Sales Tax

Income Tax

VUStudent

Inheritance Tax

Value added Tax


Take MCQ
74-Taxation management is a strategy where by a person

VUStudent

manages its business in such a way so as to maximize the


utilization of which of the following?

All of the given options

Tax holidays

Exemption, Rebates & Concession

Tax credits
Take MCQ
75-Which of the following canon of taxation suggests that

VUStudent

there should not be any arbitrariness or ambiguity in


respect
of amount of tax paid?

Capacity to Pay

Simplicity

Certainty

Convenience
Take MCQ
76-Taxes are important instrument of which one of the
following policy?

VUStudent

Monetary policy

Fiscal policy

Trade Policy

Economic Policy
Take MCQ
77-What is the relation between the Non-resident and

VUStudent

permanent establishment as per section 105?

Both are separate legal entity

Both are dependent on each other

None of the given options

Both have same legal entity


Take MCQ
78-What is the relation between the Non-resident and

VUStudent

permanent establishment as per section 105?


? Both have same legal entity

Both are separate legal entity

Both are dependent on each other

None of the given options

? Both have same legal entity


Take MCQ
79-The salary received from the UK Government by Mr.
Amir resident of Pakistan. Which section of the income tax

VUStudent

ordinance explains his tax treatment of such salary?

Section 110

Section 101

Section 102

Section 50
Take MCQ
80-Mr. Khan resident of Pakistan received salary from UK?

VUStudent

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


Take MCQ
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Page 09

Question

Added By

81-What will be the tax treatment of foreign source salary

VUStudent

received by a resident person?

Wholly taxable

Partly Taxable

Wholly exempt

Wholly exempt only if resident paid foreign tax on his

salary
Take MCQ
82-Which part of income is charged to tax of resident

VUStudent

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


Take MCQ
83-Which of the following days shall be counted as whole

VUStudent

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


Take MCQ
84-Any Fund for Promotion of Science and Technology in
Pakistan is__________ under Part I of the second schedule
of IT Ordinance 2001.

Wholly Taxable

Wholly Exempt

VUStudent

Partly Exempt

None of the given options


Take MCQ
85-Income of Federal Government exempt from tax under

VUStudent

which of the following section of IT Ordinance 2001?

Section 41

Section 43

Section 47

Section 49
Take MCQ
86-What is the tax treatment of the salary of an employee

VUStudent

of foreign government but citizen of Pakistan?

Exempt form tax

Wholly Taxable

Partly Taxable

No Tax treatment given in IT Ordinance 2001


Take MCQ
87-Which of the following is similar to the concept of club
of Incomes?

Unification only two heads of Income

Association of two or more heads of Income

VUStudent

Splitting up of only two heads of Income

Division of two or more than two heads of income


Take MCQ
88-Which of the following incomes are treated as

VUStudent

agriculture income?

Spontaneous forests

Agro based industry

Interest received by a farmer on lending

Income from land in Pakistan used for


agriculture
Take MCQ
89-Sources of Income are classified into _____ heads of

VUStudent

income.

6
Take MCQ
90-Certain incomes those are excluded from tax are called
as:

Perquisites

Exemptions

VUStudent

Allowances

Deductions
Take MCQ
Page 10

Question

Added By

91-Which one of the following is the example of tax payer?

VUStudent

Salaried Person

LESCO

All of the given options

WAPDA

Take MCQ
92-Which of the following is the Special Accounting Year of Sugar
Companies?

1st July to 30th June

1st October to 30th September

1st September to 31st August

1st January to 31st December

VUStudent

Take MCQ
93-The _____ year is a period of twelve months arbitrarily chosen
for tax purposes.

VUStudent

Economic

Fiscal

Economy

Monetary

Take MCQ
94-Which of the following is the example of inclusive definitions?

Appellate Tribunal 2(2)

Business 2(9)

Association of Person 2(6)

Debt 2(15)

VUStudent

Take MCQ
95-Which one of the following is the Internal aid and help in the
interpretation of law?

Punctuation marks

CBRs circulars

Definitions in other statutes

Departmental manuals

VUStudent

Take MCQ
96-Superior judiciary includes which of the following authorities?

City Court

VUStudent

Supreme Court

High Court

Both supreme and High court

Take MCQ
97-Law making is the prime responsibility of which of the following
authorities?

Parliament

Supreme Court

High Court

City Court

VUStudent

Take MCQ
98-How many Sections are included in the Income Tax Ordinance
2001?

340 sections

440 sections

140 sections

240 sections

VUStudent

Take MCQ
99-Which of the following is the main objective of Fiscal Policy?

Economic Development

VUStudent

Price stability

Removal of deficit in Balance of Payments

All of the given options

Take MCQ
100-Which one of the following is main difference between the tax
and fee?

Entitlement of Counter benefit

Imposing authority

Mode of payment

Applied Rates

VUStudent

Take MCQ
Page 11

Question

Added By

101-Mr. Zeeshan during his yearly tour in Pakistan spends

VUStudent

180 working days and in a


tax year 2008-09? What will be the status of individual?

Resident Individual

Non-Resident Individual

Resident Person

Resident HUF

Take MCQ
102-Mr. Kishan Kumar during his yearly tour in Pakistan

VUStudent

spends 155 working days, 26


off-working days 1 strike day and 1 Public Holiday in a tax
year 2008-09? What
will be the status of the individual?

Resident Individual

Non Resident Individual

Resident Person

Resident HUF
Take MCQ
103-Mr. X employed in Pakistan remittance from USA

VUStudent

received Rs. 10,000 in


Pakistan from past profits. Which of the following is right
for the above scenario?

Mr. X being resident of Pakistan Rs. 10,000 will be


added in Gross total income

Mr. X being resident of Pakistan Rs. 10,000 will be


Subtracted in Gross total income

Mr. X being non-resident of Pakistan Rs. 10,000 will


be added in Grosstotal income

Remittance is not income hence it is not


included
Take MCQ
104-Mr. A non-resident of Pakistan received interest on
Australian Bonds Rs.
100,000 (half amount received in Pakistan). What is the

VUStudent

treatment of this
amount for calculating his gross total income?

Rs. 100,000 added in his total income

Rs. 100,000 subtracted from his total income

Rs. 50,000 added in his total income

Exempt from tax


Take MCQ
105-A directorship or any other office involved in the

VUStudent

management of a company
under section 2(22) of Income Tax Ordinance, 2001 is
termed as:

Employment

Employer

Employee

Business premises
Take MCQ
106-Mr Ali is an employee of ABC Co. the company has
provided a driver and a
gardener to Mr. Ali. What will be the treatment of their
salaries as per Income
Tax Ordinance 2001?

The salaried paid to them added in the salary of MR.


Ali

The salaried paid to them subtracted in the salary of


MR. Ali

VUStudent

Have no relation with salary of Mr. Ali not sure

The Salaried paid are exempted from Tax


Take MCQ
107-In which of the following heads of Income No

VUStudent

deductions are allowed:

Salary Income

Income from Property

Income from Business

Capital Gains
Take MCQ
108-Salary by members of AOP is not treated as Salary

VUStudent

but treated as appropriation of


profit and charged under the head:

Income from Salary

Income from Property

Income from Business

Income from Other Sources


Take MCQ
109-What is the relation between the Non-resident and
permanent establishment
as per section 105?

Both have same legal entity

VUStudent

Both are separate legal entity

Both are dependent on each other

None of the given options


Take MCQ
110-Which of the following come under the ambit of

VUStudent

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


Take MCQ
Page 12

Question

Added By

111-____________ means a fixed place of business

VUStudent

through which the business of


an enterprise is wholly or partly carried on.

Permanent establishment

Small Business Units SBU

Venture
Take MCQ
*112-Which part of income is charged to tax of nonresident person under the income
tax ordinance 2001?

VUStudent

Pakistani source of income

Foreign source of income

Both Pakistan and foreign source of income

None of the given option


Take MCQ
*113-Which part of income is charged to tax of non-

VUStudent

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


Take MCQ
114-Which part of income is charged to tax of resident

VUStudent

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


Take MCQ
115-M/s ABC & Co. has been incorporated under Pakistan
Companies Ordinance 1984.

VUStudent

However its 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.?

Resident Company

Non-Resident Company

Resident Individual

Resident AOP
Take MCQ
116-Mr. Ali being citizen of Pakistan of 60 years old, if his

VUStudent

total taxable income is


Rs.400,000. His tax liability will be reduced by ______
under Part 3 of second
schedule.

10%

25%

50%

75%
Take MCQ
117-If the land situated in Pakistan and used for
agriculture purposes then which of
the following factor make distinction between agriculture
and non-Agriculture
Income?

Nationality of Pakistan

VUStudent

Quantity of the product

Time period

Human effort
Take MCQ
118-Which of the following is NOT an example of deemed

VUStudent

income?

Golden hand shake

All of the given options

Loan through cross cheque

Gifts through proper transaction


Take MCQ
119-Question No: 11 ( Marks: 1 ) - Please choose one

VUStudent

Which of the following is the legal status of Mr. Z, a


Director in Private Company
under section 80 of the Income tax ordinance 2001?

Individual

Company

Firm

Hindu Undivided Family Ref:


Take MCQ
120-Mr. A & B Joint Owners of a Building, Which of the
following is the legal status
under the provisions of Section 80 of the Ordinance?

VUStudent

Company

Association of Persons

Hindu Undivided Family


Take MCQ
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Page 13

Question

Added By

121-Under which of the following conditions a tax payer

VUStudent

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
Take MCQ
122-Which one of the following is the Internal aid and help
in the interpretation of

Punctuation marks

CBRs circulars

Definitions in other statutes

Departmental manuals

VUStudent

Take MCQ
123-powers to CBR in order to formulate the IT rule 2002?

Section 206

Section 213

Section 237

Section 238

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Take MCQ
124-How many Schedules are contained in the Income Tax

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Ordinance 2001?

Three Schedule

Fifth Schedule

Seven Schedules

Nine Schedules
Take MCQ
125-Which of the following is not an employment tax?

Social Security Tax

Federal Excise Tax

Federal unemployment compensation tax

State unemployment compensation tax

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Take MCQ
126-_____ is paid to the government on goods and
services and can be reclaimed by

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retailers.

Income Tax

Value Added Tax

Capital Value Tax

Wealth Tax
Take MCQ
127-Which of the following is the main source of revenue

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generation of the state?

Taxes & Tariffs

Internal Borrowing

External Borrowing

Penalties & Fines


Take MCQ
128-Which of the following is opposite to the literal

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meanings of Tax?

Burden

Strain

Load

Relieve
Take MCQ
129-Which part of income is charged to tax of non-resident
person under the income tax ordinance 2001?

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Pakistani source of income

Foreign source of income

Both Pakistan and foreign source of income

None of the given option


Take MCQ
130-Which of the following section deals with the

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residential status of Company?

Section 81

Section 82

Section 83

Section 84
Take MCQ
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131-What is the tax treatment of any profit on the US

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Dollar Bonds purchased by the resident person after


December
1999 under Second Schedule?

Wholly exempt

Wholly taxable

Tax @10% of profit paid

Not mention in second schedule


Take MCQ
132-Rate charged under presumptive tax regime to non

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resident shipping firm 8% on its gross receipt is quite low


as
compare to other business. This is an example of which
type of tax concession?

Reduction in total taxable income

None of the given options

Reduction in tax liability

Reduction in tax rate


Take MCQ
133-Any salary received by an employee of a foreign

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government for services rendered to such government shall


be
exempt from tax under which section of IT Ordinance
2001?

Section 40

Section 43

Section 47

Section 53
Take MCQ
134-The process of clubbing of income results in which of

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the following?

Lower Bracket rate of tax is charged

Higher Bracket rate of tax is charged

Moderate Bracket rate of tax is charged

No change occur due to clubbing


Take MCQ
135-Which of the following methods of accounting is

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compulsory to adopt for Firm?

Accrual Basis

Cash Basis

Both Accrual and Cash Basis

Free to choose any kind of base


Take MCQ
136-Which of the following is NOT an example of Lump

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sum receipt?

Pension

Golden shake hand

Provident fund

Salary
Take MCQ
137-Income Tax is charged on which of the following?

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Income of the current tax year

Income of the previous year

Income of the coming year

Any Receipt of money


Take MCQ
138-Which of the following is NOT an example of deemed

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income?

Loan through cross cheque

Gifts through proper transaction

Golden hand shake

All of the given options


Take MCQ
139-Which of the following is the example of deemed

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income?

Cash Gift

Loan through cross cheque

Salary

Golden hand shake


Take MCQ
140-Which of the following is the legal status of the Punjab
University under the provisions of section 80 of the
ordinance?

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Individual

Company

Banking Company

Hindu Undivided Family


Take MCQ
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141-The _____ year is a period of twelve months

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arbitrarily chosen for tax purposes.

Economic

Fiscal

Economy

Monetary
Take MCQ
142-a directorship or any other office involved in the
management of a company;
a position entitling the holder to a fixed or ascertainable
remuneration; or
the holding or acting in any public office;
In which criteria the above definition falls?

Exclusive definition

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Inclusive definition

Both Exclusive and Inclusive definitions

Statutory definition
Take MCQ
143-A definition also includes the dictionary meanings of

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the word is termed as which of the following?

Exclusive definition

Inclusive definition

Statutory definition

Both Exclusive definition and Inclusive definitions


Take MCQ
144-Commissioner means a person appointed as a

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Commissioner of Income Tax under section 208, and


includes a
taxation officer vested with all or any of the powers, and
functions of the Commissioner;
In which criteria the above definition falls?

Exclusive definition

Inclusive definition

Both Exclusive and Inclusive definitions

Statutory definition
Take MCQ
145-assessment year means assessment year as defined

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in the repealed Ordinance.


In which criteria the above definition falls?

Exclusive definition

Inclusive definition

Both Exclusive and Inclusive definitions

Statutory definition
Take MCQ
146-Which one of the following is the Internal aid and help

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in the interpretation of law?

Punctuation marks

CBRs circulars

Definitions in other statutes

Departmental manuals
Take MCQ
147-Law making is the prime responsibility of which of the

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following authorities?

Parliament

Supreme Court

High Court

City Court
Take MCQ
148-In the canons of taxation, which one of the following
statements best describe the benefits principle?

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Persons deriving more income leads to enjoy


less benefits from the state, should be taxed at the
lower rates.

Persons deriving more income leads to enjoy less


benefits from the state, should be taxed at the higher
rates.

Persons deriving less income leads to enjoy more


benefits from the state, should be taxed at the lower rates.

All persons deriving more or less income should be


taxed at the same rates.
Take MCQ
149-GP fund available in the Government Organization is

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also called:

Statutory Provident Fund

Recognized Provident

Unrecognized Provident Fund

All of the given options


Take MCQ
150-Which of the following is the tax treatment for Income
from property received as a rent for the year?

1 /4 of the rent is deduct able as repairs allowance

/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

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Take MCQ

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Question

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151-If income of an individual received under the head

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income from property, is Rs. 470,000, then his tax liability


is:

Rs. 23,500

Rs. 47,000

Rs. 70,500

Rs. 94,000
Take MCQ
152-A tax payer is required to have a national tax number

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commonly referred as:

NTN

NIC

CNIC

None of the given option


Take MCQ
153-_____________ on account of cancellation of sale
agreement of building shall be treated as rental income and
fully taxable.

Fair market rent

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Forfeited amount

Rent collection charges

Penalty
Take MCQ
154-Statutory Provident Fund, governed by the:

Finance Act 2006

Insurance Act 1969

Provident Funds Act 1925

Finance Bill 2007

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Take MCQ
155-Which of the followings are admissible deductions

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available before tax year 2007?

Allowance for Repair

Property tax.

Unpaid rent (irrecoverable rent)

All of the given options


Take MCQ
156-Utilities were exempt up to 10% of MTS or Basic
salary till 30th June, 2006, vide clause 38 of part 1 of
Second Schedule. This clause has been omitted by:

Finance Ordinance, 2004

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Finance Ordinance, 2005

Finance Act, 2006

Finance Act, 2007


Take MCQ
157-A Provident Fund recognized by the commissioner in

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accordance with Part I of Sixth Schedule is called:

Statutory Provident Fund

Recognized Provident Fund

Unrecognized Provident Fund

All of the given options


Take MCQ
158-If taxable income of an individual is Rs. 1,211,200,

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then his tax liability is:

Rs. 254,352

Rs. 211,960

Rs. 181,680

Rs. 151,400
Take MCQ
159-Which of the following income is chargeable to tax?

Gross income from business


Income computed in line with provisions of
Ordinance

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Only basic salary of salaried person

Basic salary excluding allowances of a salaried person


Take MCQ
160-Which of the following is the legal status of Al-Habib

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Bank limited under section 80 of the ordinance?

Individual

Banking Company

Hindu Undivided Family

Firm
Take MCQ

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Question

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161-Special tax year is adopted after seeking approval

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from the ____________ under section 74(3).

Commissioner

Tax Officer

Appellate Tribunal

Supreme Court
Take MCQ
162-A definition that includes the dictionary meanings of
the word is termed as:

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Exclusive definition

Inclusive definition

Both Exclusive and Inclusive definitions

Statutory definition
Take MCQ
163-Which of the following is the External aid to

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interpretation of tax laws?

Preamble

Title of a chapter

Non-Obstinate clause

Finance Ministers budget speech


Take MCQ
164-The Chairman of CBR has the responsibility for which

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of the following measures?

Formulation and administration of fiscal policy

Levy and collection of federal taxes

Quasi-judicial function of hearing of appeals

All of the given options


Take MCQ
165-Which of the following is tax, where the tax rate
decreases as the amount to which the rate is applied
increases?

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Proportional tax

Progressive tax

Regressive tax

Corporate tax
Take MCQ
166-Which one of the canon of taxation suggests easiness

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in time of payment and mode of collection of tax?

Simplicity

Convenience

Certainty

Capacity to Pay
Take MCQ
167-Which of the following is the main tool of Fiscal Policy?

Taxes

Deficit Financing

Subsidies

Transfer Payments

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Take MCQ
168-Which one of the following is main difference between
the tax and fee?

Imposing authority

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Applied Rates

Entitlement of Counter benefit

Mode of payment
Take MCQ
169-Among the Canon of taxes, benefit principal suggest

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that:

Derive more income but enjoy less benefits


from the state should be taxed at the lower rates

Derive more income but enjoy less benefits from the


state should be taxed at the higher rates

Those persons who derives less income but more


benefits from State should be taxed at lower rates

None of the given options


Take MCQ
170-Which of the following deductions allowed in
computing the income of a permanent establishment in
Pakistan of a non-resident person chargeable under the
head Income from Business:

Any insurance premium paid by the non-resident


person in respect of any debt.

Any salary paid to an employee employed by the


head office outside Pakistan

Any other expenditure which may be prescribed

No deduction allowed in any case.


Take MCQ

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Page 18

Question

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171-Any foreign-source salary received by a resident

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individual shall:

be exempt from tax if the individual has paid


foreign income tax

be exempt from tax if the individual has not paid


foreign income tax

Not be exempted from tax in any case

Always be Exempt from tax in all cases


Take MCQ
172-_____________ is the payment to the holder for the

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right to use property such as a patent, copyrighted


material, or natural resources.

Permanent Establishment

Royalty

Dividend

Tax
Take MCQ
173-Permanent establishment in relation to a person
means a fixed place of business through which the business
of the person is __________ carried on.

Wholly

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Partly

Both Wholly & Partly

None of the given options


Take MCQ
174-Which of the following is not a geographical source of

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income?

Salary paid by the Federal Government

A dividend paid by a resident company

Business income derived from any business carried


on in Pakistan
None of the given options
Take MCQ
175-According to Theory of Control and Management, a

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resident company must have:

Its incorporation in Pakistan

Its Registered Office in Pakistan

Its most of the branch lies in Pakistan

Its Control and Management of affairs lies in


Pakistan
Take MCQ
176-For the calculation of the period of stayed in Pakistan,
which of the following days are considered as full day?

VUStudent

Day of departure

Day of arrival

A Public Holiday

All of the given options


Take MCQ
177-An individual shall be a resident individual for a tax

VUStudent

year if the individual is present in Pakistan for a period of:

143 Days

153 Days

173 Days

183 Days
Take MCQ
178-_______ are a form of excise levied when a
commodity is sold to its final consumer.

Corporation tax

Property tax

Sales Tax

Excise
Take MCQ
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