Taxation Management Mcqs

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 seeart
is not permitted to tax under a tax treaty shall be .
Wholly Taxable
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
Take MCQ
6-Which of the following is the tax where the tax rate seeart
remained fixed to the amount on which the rate is applied

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
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 seeart
Tax?
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? seeart
Dividend paid by a company out of its agriculture income

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



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 months arbitrarily seeart
chosen for tax purposes.
3
6
12
18
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 seeart
the Exemptions and Tax Concessions?
Part IV
Part V
Part VI
Part VII
Take MCQ
25-Taxes are important instrument of which of the following seeart
policy?
Monetary policy
Fiscal policy
Trade Policy
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 seeart
payer is running a business.
Salaries paid
Purchases
Office expenditures
Take MCQ
29-What is the tax treatment of the salary of an employee seeart

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
Take MCQ



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
Take MCQ
33-Non-Agricultural income includes which one of the seeart
following?
Income from sale of wild grass

Take MCQ
34-Which of the following is the important content for seeart
calculating tax on income?
Taxable Income
Residential Status
Tax Year
Take MCQ
35-(1) page 22Any Pakistan-source income which Pakistan seeart
is not permitted to tax under a tax treaty shall be .
Wholly Taxable
Partly Exempt
Take MCQ
36-In the normal circumstances on which of the following seeart
tax is charged?
Gross Receipt
Total Income
Taxable Income
Gross Income
Take MCQ
37-Which of the following income is chargeable to tax? seeart

Income computed in line with provisions of Ordinance
(not sure)
Take MCQ
38-The Fiscal year is a period of months arbitrarily chosen seeart
for tax purposes
3
6
12
18
Take MCQ
39-What is the tax treatment of any profit on the US Dollar seeart
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



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 taxable Income
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, seeart
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%
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 seeart
posted in Pakistan? What will be the residential status of Mr.

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 seeart
status of Association of Person?
Section 81
Section 82
Section 83
Section 84
Take MCQ
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
Take MCQ



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

payments made at 01 August 2008. It would be charge to
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
Resident Person
Resident HUF
Take MCQ
54-Which of the following section of Income Tax Ordinance VUStudent
2001 deals with perquisites of Income from Salary and its

treatment?
Section 11
Section 13
Section 14
Section 12
Take MCQ
55-Tax year for the salaried individuals is called as: VUStudent
Special Tax Year

Normal Tax Year
Fiscal Year
Financial Year
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
Take MCQ
57-Any business carried by Non-resident person in VUStudent
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 Non-resident
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
Take MCQ
60-M/s ABC & Co. has been incorporated under Pakistan VUStudent
Companies Ordinance 1984. 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.?
Resident Company CORRECT

Non-Resident Company
Resident Individual
Resident AOP
Take MCQ



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 VUStudent
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

Take MCQ
63-What is the tax treatment of Donation to the VUStudent
President’s Relief Fund for Earthquake Victims 2005?
Wholly Taxable
Wholly Exempt
Partly Exempt
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 VUStudent
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
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 VUStudent
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
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: VUStudent
“assessment year” means assessment year as defined in

the repealed Ordinance.
In which criteria the above definition falls?
Take MCQ


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 VUStudent
much you earn?
Sales Tax
Income Tax
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?

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 VUStudent
following policy?
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
Both have same legal entity
Take MCQ
permanent establishment as per section 105?

? Both have same legal entity

? Both have same legal entity
Take MCQ
79-The salary received from the UK Government by Mr. VUStudent
Amir resident of Pakistan. Which section of the income tax

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
Take MCQ



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

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

of IT Ordinance 2001.
Wholly Taxable
Wholly Exempt
Partly Exempt
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
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 VUStudent
of Incomes?
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
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.
3
4
5
6
Take MCQ
90-Certain incomes those are excluded from tax are called VUStudent
as:
Perquisites
Exemptions
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 VUStudent

Companies?
 1st July to 30th June
 1st October to 30th September
 1st September to 31st August
 1st January to 31st December
Take MCQ
93-The _____ year is a period of twelve months arbitrarily chosen VUStudent

for tax purposes.
 Economic
 Fiscal
 Economy
 Monetary
Take MCQ
94-Which of the following is the example of inclusive definitions? VUStudent
 Appellate Tribunal 2(2)

 Business 2(9)
 Association of Person 2(6)
 Debt 2(15)
Take MCQ
95-Which one of the following is the Internal aid and help in the VUStudent
interpretation of law?
 Punctuation marks
 CBR’s circulars
 Definitions in other statutes
 Departmental manuals
Take MCQ
96-Superior judiciary includes which of the following authorities? VUStudent
 City Court
 Supreme Court
 High Court
 Both supreme and High court
Take MCQ
97-Law making is the prime responsibility of which of the following VUStudent
authorities?
 Parliament
 Supreme Court
 High Court
 City Court
Take MCQ
98-How many Sections are included in the Income Tax Ordinance VUStudent
2001?
 340 sections
 440 sections
 140 sections
 240 sections
Take MCQ
99-Which of the following is the main objective of Fiscal Policy? VUStudent
 Economic Development
 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 VUStudent
and fee?
 Entitlement of Counter benefit

 Imposing authority
 Mode of payment
 Applied Rates
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
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 VUStudent

Australian Bonds Rs.
100,000 (half amount received in Pakistan). What is the
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 VUStudent
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
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
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 Other Sources
Take MCQ
permanent establishment
as per section 105?
Both have same legal entity

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
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 non- VUStudent
resident person under the income

tax ordinance 2001?

Take MCQ
*113-Which part of income is charged to tax of non- VUStudent
resident person under the income

tax ordinance 2001?

Take MCQ
114-Which part of income is charged to tax of resident VUStudent
person under the income tax

ordinance 2001?

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

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.?
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 VUStudent
agriculture 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
118-Which of the following is NOT an example of deemed VUStudent
income?
Golden hand shake

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 VUStudent
following is the legal status

under the provisions of Section 80 of the Ordinance?
Company
Association of Persons
Hindu Undivided Family
Take MCQ


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 VUStudent
in the interpretation of
Punctuation marks
CBR’s circulars
Definitions in other statutes
Departmental manuals
Take MCQ
123-powers to CBR in order to formulate the IT rule 2002? VUStudent
Section 206
Section 213
Section 237
Section 238
Take MCQ
124-How many Schedules are contained in the Income Tax VUStudent
Ordinance 2001?
Three Schedule
Fifth Schedule
Seven Schedules
Nine Schedules
Take MCQ
125-Which of the following is not an employment tax? VUStudent
Social Security Tax

Federal Excise Tax
Federal unemployment compensation tax
State unemployment compensation tax
Take MCQ
126-_____ is paid to the government on goods and VUStudent
services and can be reclaimed by

retailers.
Income Tax
Value Added Tax
Capital Value Tax
Wealth Tax
Take MCQ
127-Which of the following is the main source of revenue VUStudent
generation of the state?
Taxes & Tariffs

Internal Borrowing
External Borrowing
Penalties & Fines
Take MCQ
128-Which of the following is opposite to the literal VUStudent
meanings of Tax?
Burden
Strain
Load
Relieve
Take MCQ
129-Which part of income is charged to tax of non-resident VUStudent

person under the income tax ordinance 2001?

Take MCQ
130-Which of the following section deals with the VUStudent
residential status of Company?
Section 81
Section 82
Section 83
Section 84
Take MCQ



Page 14
Question Added By
131-What is the tax treatment of any profit on the US VUStudent
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 VUStudent
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

Take MCQ
133-Any salary received by an employee of a foreign VUStudent
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 VUStudent
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 VUStudent
compulsory to adopt for Firm?
Accrual Basis
Cash Basis
Both Accrual and Cash Basis
Take MCQ
136-Which of the following is NOT an example of Lump VUStudent
sum receipt?
Pension
Golden shake hand
Provident fund
Salary
Take MCQ
137-Income Tax is charged on which of the following? VUStudent
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 VUStudent
income?

Gifts through proper transaction
Golden hand shake
Take MCQ
139-Which of the following is the example of deemed VUStudent
income?
Cash Gift
Salary
Golden hand shake
Take MCQ
140-Which of the following is the legal status of the Punjab VUStudent
University under the provisions of section 80 of the

ordinance?
Individual
Company
Banking Company
Take MCQ


Page 15
Question Added By
141-The _____ year is a period of twelve months VUStudent
arbitrarily chosen for tax purposes.
Economic
Fiscal
Economy
Monetary
Take MCQ
142-a directorship or any other office involved in the VUStudent
management of a company;
· a position entitling the holder to a fixed or ascertainable
remuneration; or
· the holding or acting in any public office;
Take MCQ
143-A definition also includes the dictionary meanings of VUStudent
the word is termed as which of the following?
Both Exclusive definition and Inclusive definitions
Take MCQ
144-Commissioner” means a person appointed as a VUStudent
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;
Take MCQ
145-“assessment year” means assessment year as defined VUStudent
in the repealed Ordinance.

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

Punctuation marks
CBR’s circulars
Definitions in other statutes
Departmental manuals
Take MCQ
147-Law making is the prime responsibility of which of the VUStudent
following authorities?
Parliament
Supreme Court
High Court
City Court
Take MCQ
148-In the canons of taxation, which one of the following VUStudent
statements best describe the benefits principle?
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 VUStudent
also called:
Statutory Provident Fund

Recognized Provident
Unrecognized Provident Fund
Take MCQ
150-Which of the following is the tax treatment for Income VUStudent
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
Take MCQ

Page 16
Question Added By
151-If income of an individual received under the head VUStudent
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 VUStudent
commonly referred as:
NTN
NIC
CNIC
Take MCQ
153-_____________ on account of cancellation of sale VUStudent
agreement of building shall be treated as rental income and

fully taxable.
Fair market rent
Forfeited amount
Rent collection charges
Penalty
Take MCQ
154-Statutory Provident Fund, governed by the: VUStudent
Finance Act 2006

Insurance Act 1969
Provident Funds Act 1925
Finance Bill 2007
Take MCQ
155-Which of the followings are admissible deductions VUStudent
available before tax year 2007?
Allowance for Repair

Property tax.
Unpaid rent (irrecoverable rent)
Take MCQ
156-Utilities were exempt up to 10% of MTS or Basic VUStudent
salary till 30th June, 2006, vide clause 38 of part 1 of

Second Schedule. This clause has been omitted by:
Finance Ordinance, 2004

Finance Ordinance, 2005
Finance Act, 2006
Finance Act, 2007
Take MCQ
157-A Provident Fund recognized by the commissioner in VUStudent
accordance with Part I of Sixth Schedule is called:
Statutory Provident Fund

Recognized Provident Fund
Unrecognized Provident Fund
Take MCQ
158-If taxable income of an individual is Rs. 1,211,200, VUStudent
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? VUStudent

Income computed in line with provisions of
Ordinance
Take MCQ
160-Which of the following is the legal status of Al-Habib VUStudent
Bank limited under section 80 of the ordinance?
Individual
Banking Company
Firm
Take MCQ

Page 17
Question Added By
161-Special tax year is adopted after seeking approval VUStudent
from the ____________ under section 74(3).
Commissioner
Tax Officer
Appellate Tribunal
Supreme Court
Take MCQ
162-A definition that includes the dictionary meanings of VUStudent
the word is termed as:
Take MCQ
163-Which of the following is the External aid to VUStudent
interpretation of tax laws?
Preamble
Title of a chapter
Non-Obstinate clause
Finance Ministerâ€™s budget speech
Take MCQ
164-The Chairman of CBR has the responsibility for which VUStudent
of the following measures?
Formulation and administration of fiscal policy

Levy and collection of federal taxes
Quasi-judicial function of hearing of appeals
Take MCQ
165-Which of the following is tax, where the tax rate VUStudent

decreases as the amount to which the rate is applied
increases?
Proportional tax
Progressive tax
Regressive tax
Corporate tax
Take MCQ
166-Which one of the canon of taxation suggests easiness VUStudent
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? VUStudent
Taxes
Deficit Financing
Subsidies
Transfer Payments
Take MCQ
168-Which one of the following is main difference between VUStudent
the tax and fee?
Imposing authority
Applied Rates
Entitlement of Counter benefit
Mode of payment
Take MCQ
169-Among the Canon of taxes, benefit principal suggest VUStudent
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
Take MCQ
170-Which of the following deductions allowed in VUStudent
computing the income of a permanent establishment in

Pakistan of a non-resident person chargeable under the
head â€œIncome from Businessâ€:
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

Page 18
Question Added By
171-Any foreign-source salary received by a resident VUStudent
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 VUStudent
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 VUStudent
means a fixed place of business through which the business

of the person is __________ carried on.
Wholly
Partly
Both Wholly & Partly
Take MCQ
174-Which of the following is not a geographical source of VUStudent
income?
Salary paid by the Federal Government

A dividend paid by a resident company
Business income derived from any business carried on in
Pakistan
Take MCQ
175-According to Theory of Control and Management, a VUStudent
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, VUStudent
which of the following days are considered as full day?
Day of departure
Day of arrival
A Public Holiday
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 VUStudent
commodity is sold to its final consumer.
Corporation tax
Property tax
Sales Tax
Excise
Take MCQ



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623FIN taxation management

1-What is the tax treatment of the salary of an employee seeart

of foreign government but citizen of Pakistan?

Exempt from tax

2-Non-Agricultural income includes which one of the seeart

Income from sale of wild grass

3-(1) page 22Any Pakistan-source income which Pakistan seeart

is not permitted to tax under a tax treaty shall be .

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

5-In Income Tax Ordinance 2001 tax concessions meant seeart

for which of the following? Select correct option:

Reduction in tax liability

remained fixed to the amount on which the rate is applied

7-Any Pakistan-source income which Pakistan is not seeart

permitted to tax under a tax treatyshall be

8-Which of the following methods of accounting is seeart

compulsory to adopt for Sole- proprietorship?

9-Which one of the following is the general meaning of seeart

10-In the normal circumstances on which of the following seeart

Design & Developed By Defox Technologies

Companies exporting rice?

1st January to 31st December

12-Which one of the following canons of taxation suggests seeart

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

Exemptions and Tax

14-Agricultural income includes which one of the following? seeart

Dividend paid by a company out of its agriculture income

15-designed in such a way to boost business atmosphere seeart

and the investment environment in the country?

16-The Chairman of CBR has the responsibility for which of seeart

the following measures?

Formulation and administration of fiscal policies

17-Tribunal established under section 130” In which criteria seeart

the above definition falls?

18-Agricultural income does NOT include which one of the seeart

Rent or Revenue derived by a person from land

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

20-Which of the following income is chargeable to tax? seeart

Gross income from business

Design & Developed By Defox Technologies

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

chosen for tax purposes.

23-expenses incurred in providing common benefits upon seeart

24-Which part of Income Tax Ordinance 2001 deals with seeart

the Exemptions and Tax Concessions?

25-Taxes are important instrument of which of the following seeart

26-Which of the following tax is paid from money you seeart

received from someone who has died?

27-The process of clubbing of income results in which of the seeart

Lower Bracket rate of tax is charged

28-________ are allowable deductions in case if the tax seeart

payer is running a business.

29-What is the tax treatment of the salary of an employee seeart

of foreign government but citizen of Pakistan?

30-Which one of the following is the main objective of Fiscal seeart

Design & Developed By Defox Technologies

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

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