Mcqs FBRRR

akistan Fiscal year starts from:
a) 1st September
b) 1st January
c) 1st April
d) 1st July
2. Which is provincial tax in Pakistan?

a) Excise tax
b) Sales Tax
c) Import Duty
d) Motors token tax
3. There is how many chapters included in Income Tax Ordinance?

a) 11 Chapters
b) 12 Chapters
c) 13 Chapters
d) 14 Chapters
4. There is how many schedules included in Income Tax Ordinance 2001?

a) 9 Schedules
b) 6 Schedules
c) 7 Schedules
d) 8 Schedules
5. There is how many sections included in Income Tax Ordinance 2001?

a) 235 sections
b) 240 sections
c) 250 sections
d) 260 sections
6. Corporate tax is levied on:

a) Landlords
b) Municipal corporation
c) Joint stock companies
d) Importers
7. Central Excise Act, 1944 was repealed by

a) The Federal Excise Act, 2002
b) The federal Excise Act, 2004
c) The Federal Excise Act, 2005
d) The Federal Excise Act, 2007
8. Name of Central Excise Duty has been changed as a Federal Excise Duty on
a) 1st July, 2003
b) 1st July, 2005
c) 1st July, 2007
d) 1st July, 2008
9. Inland Revenue Wing of the FBR was created, which is combination of ___________
domestic taxes.
a) 3
b) 4
c) 5
d) 6
10. If we deduct direct tax from personal income, we get:

a) Net national income
b) Personal saving
c) Disposable income
d) Per capita income
11. The largest part of national income is

a) Consumption
b) Investment
c) Transfer payments
d) Saving
12. We measure national income by this method:

a) Expenditure Method
b) Income Method
c) Product Method
d) All of above
13. The most important source of a government is:

a) Foreign loans
b) Taxes
c) Printing of new money
d) Sale of government property
14. In Pakistan, taxes are levied by:

a) Prime minister of Pakistan
b) President of Pakistan
c) Federal Cabinet of ministers
d) National Assembly
15. Government finance is called

a) National Finance
b) Public finance
c) Private finance
d) Both a and b
16. A direct tax is that which:

a) Is heavy burden on the tax payer
b) Can be directly deposited in the banks
c) Cannot be evaded
d) Is paid by the person on whom it is levied
17. In Pakistan government budget is prepared by:

a) National Assembly
b) President of Pakistan
c) Ministry of Finance
d) State Bank of Pakistan
18. If government increases taxes, private savings:

a) Increase
b) Decrease
c) Do not change
d) Will become zero
19. Taxes on commodities are :

a) Direct taxes
b) Indirect taxes
c) Progressive taxes
d) Proportional tax
20. Govt. Prepared its budget:

a) Weekly
b) Monthly
c) Annually
d) Quarterly
21. It is direct tax:

a) Excise tax
b) Sale tax
c) Income tax
d) Custom duty
22. Which tax is not shared between central and provincial governments?
a) Excise tax
b) Sales tax
c) Custom duty
d) Property tax

a) Excise tax
b) Sales tax
c) Import duty
d) Motor token tax
24. The budget estimate prepared by ministry of finance is finally approved by:
a) State Bank
b) President
c) Senate
d) National Assembly
25. Devaluation means

a) Change in the currency of a country
b) Decrease in the value of gold
c) Decrease in the value of money in terms of foreign currency
d) Decrease in the value of money internally
26. When the central Board of Revenue (CBR) was established?

a) 1st April, 1924
b) 7th April, 1924
c) 6th April, 1924
d) 9th April, 1924
27. What is the main function of money?

a) To buy eatables from the market
b) To serve as a medium of exchange
c) To earn interest from a bank
d) To buy luxurious goods
28. A direct tax is that which:

a) Is heavy burden on the tax payers
b) Can be directly deposited in the banks
c) Cannot be evaded
d) Is paid by the person on whom it is levied
29. Special procedure under the title of Sales Ta special procedure (Withholding
Tax) Rules 2007 was introduced on:
a) 20th June 2007
b) 10th June 2007
c) 30th June 2007
d) 25th June 2007
30. Whom of the following propounded principles of taxation:
a) Keynes
b) Marshall
c) Adam Smith
d) Al Ghaali
31. There is how many schedules included in the Sales Tax Act, 1990?
a) 9 schedules
b) 6 schedules
c) 7 schedules
d) 8 schedules
32. There is how many sections included in the Sales Tax Act. 1990?
a) 75 Sections
b) 80 sections
c) 85 sections
d) 95 sections
33. Which section of sales tax act, 1990 deals with Special Audit by Chartered
Accountants or Cost Accountants?
a) 29
b) 30
c) 31
d) 32-A
34. Which Section of the Sales Tax Act, 1990 deals with offences and penalities?
a) 33
b) 34
c) 35
d) 36
35. No person other than a ________ shall make any deduction or reclaim input tax
in respect of taxable supplies made or to be made by him.
a) Unregistered person
b) Registered person
c) Association
d) None of these
36. In Pakistan, income tax is collected by:

a) Local govt.
b) Provincial govt.
c) Federal govt.
d) All governments
37. Sales tax in Pakistan is:

a) Direct and progressive
b) Direct and proportional
c) Indirect and progressive
d) Indirect and proportional
38. It is easy and convenient to pay:

a) Direct tax
b) Indirect tax
c) Proportional tax
d) Progressive tax
39. It is difficult to evade:

a) Direct tax
b) Indirect
c) Proportional
d) Progressive tax
40. Which tax is not shared between central and provincial governments?
a) Excise tax
b) Sales tax
c) Custom duty
d) Property tax

a) Excise tax
b) Sales tax
c) Import duty
d) Motors token tax
42. What is benefit of tariffs?

a) Increased choice
b) Increased government revenue
c) More competition
d) More trade
43. Pakistan public debt is:

a) Larger than GNP
b) Equal to GNP
c) Smaller than GNP
d) Smaller than our exports
44. Pakistan fiscal year start from:

a) 1st September
b) 1st January
c) 1st April
d) 1st July
45. As per law each registered person must file a return by the _________ of each
month regarding the sales made in last month.
a) 10th
b) 15th
c) 20th
d) 25th
46. There are ___ director generals in FBR?

a) 6
b) 7
c) 9
d) 10
47. There are ___ large taxpayer units for inland revenue collection
a) 2
b) 5
c) 3
d) 6
48. Fiscal laws means a general reference to the laws relating to:
a) Budget matters
b) Finance matters
c) Tax matters
d) None of these
49. The federal budget is presented in the parliament by:
a) Prime Minister
b) President
c) Finance minister
d) Commerce minister
50. System of eTax in Pakistan was introduced in?

a) 2007
b) 2008
c) 2009
d) 2010
Answers1d 2d 3c 4d 5b 6c 7c 8b 9a 10c 11a 12d 13b 14d15b 16d 17c 18b 19b 20c 21c
22d 23d 24d 25c 26a 27b 28d 29c 30c 31a 32a 33d 34a35b 36c 37d 38b 39a 40d 41d 42b
43c 44d 45b 46b 47c 48b 49c 50b....
ENGLISH PROFICIENCY
A- Which of these words is closest in meaning to the word provided?
1- remote
(a) automatic (b) distant
(c) savage (d) mean
2- detest
(a) argue (b) hate
(c) discover (d) reveal
3- gracious
(a) pretty (b) clever
(c) pleasant (d) present
4- predict
(a) foretell (b) decide
(c) prevent (d) discover
5- kin
(a) exult (b) twist
(c) friend (d) relative
B- Which of these words is most nearly the opposite of the word provided?
6- withdraw
(a) reduce (b) need
(c) advance (d) want
7- secret
(a) friendly (b) covert
(c) hidden (d) overt
8- heartfelt
(a) loving (b) insincere
(c) unhealthy (d) humorous
9- impartial
(a) hostile (b) biased
(c) dislike (d) worried
10- luminous
(a) clear (b) dim
(c) brittle (d) clever
C- Which is the correction option:-
11- Ali is afraid ___ spiders.
(a) from (b) in
(c) about (d) of
12- I am worried ______ the exam
(a) in (b) about

(c) on (d) of
13- He looks upset, I think he took the criticism ____ heart.
(a) to (b) in
(c) about (d) of
14- I am envious _____ them.
(a) of (b) in
(c) about (d) on
15- He confided ____ me.
(a) about (b) in
(c) on (d) of
16- They decided ____ the pink sofa.
(a) about (b) on
(c) of (d) in
17- She suffers ____ a heart disease.
(a) about (b) in
(c) from (d) on
18- The teacher set some homework _____ the end of the lesson.
(a) about (b) in
(c) of (d) at
19- I am good ____ tennis.
(a) about (b) in
(c) at (d) of
20- We arrived _____ the station an hour late.
(a) about (b) in
(c) at (d) of
(PART-II)
PROFESSIONAL TEST
(Comprising Sales Tax Act, 1990 amended upto July, 2014)
21- Tax fraction means the amount worked out in accordance with the following
formula:
(a) (b)
(c) (d) None of these.
22- Taxable goods means all goods other than those which have been exempted under
section:-
(a) 12 (b) 15
(c) 13 (d) 11
23- The goods specified in the Fifth Schedule shall be charged to tax at the rate
of:
(a) 17% (b) 16%
(c) 19% (d) 0%
24- If the amount shown in the tax invoice or the return needs to be modified the
registered person shall issue a:
(a) Debit Note (b) Credit Note
(c) (a) or (b) above (d) None of these
25- If the input tax paid by a registered person exceeds the output tax on account
of zero rated local supplies or exports made during the tax period; the excess
amount of input tax shall be refunded not later than _____ days.
(a) 40 (b) 45
(c) 50 (d) 60
26- No penalty under section 33 of this Act shall be imposed on a registered person
unless a ____________ is given to such person.
(a) Summon (b) Arrest warrant
(c) Show Cause Notice(d) Warning
27- De-registration, blacklisting and suspension of registration are dealt under

section ____ of Sales Tax Act, 1990.
(a) 31 (b) 32
(c) 21 (d) 22
28- A registered person making a taxable supply shall issue a serially numbered tax
invoice in compliance to Section ___________?
(a) 21 (b) 23
(c) 25 (d) 26
29- A person who is required to maintain any record or documents under this act
shall retain the record and documents for a period of _____ years.
(a) Five (b) Six
(c) Eight (d) Three
30- Section ____ empowers an authorized Officer of Inland Revenue to take a sample
of any good or raw material for determining their liability to sales tax.
(a) 25 (b) 25-A
(c) 25-AA (d) 26
31- A person who applies for de-registration shall require to furnish a final
return under Section ___ of Sales Tax Act, 1990.
(a) 27 (b) 28
(c) 29 (d) 30
32- Section 30 of Sales Tax Act, 1990 deals with:
(a) De-Registration (b) Delegation of Powers

(c) Appointment of Officers & Their Powers
(d) None of the above.
33- A Directorate General of Training and Research is established under Section:
(a) 30A (b) 30B
(c) 30C (d) 30D
34- Special Audit of a registered person may be conducted under section____
(a) 31 (b) 32
(c) 32A (d) 28
35- In case a person files a return within fifteen days of the due date. He shall
pay a penalty of ___________ Rupees for each day of default.
(a) One Hundred (b) Five Hundred
(c) Five Thousand (d) Three Hundred
36- Any person who fails to issue an invoice when required under this act, he shall
pay a penalty of
(a) Rs.5,000/-
(b) 3% of the amount of tax involved
(c) (a) or (b) whichever is higher.
37- Where a registered person fails to produce the record on receipt of 3rd Notice
in non-compliance with Section 25; such person shall pay a penalty of:-
(a) Rs.5,000/- (b) Rs.10,000/-
(c) Rs.50,000/- (d) Rs.30,000/-
38- A person who obstructs the authorized officer in the performance of his
official duties, he shall pay a penalty of:-
(a) Rs.25,000/-
(b) 100% of the amount of tax involved.

(c) (a) or (b) whichever is higher
39- Where any person repeats an offence for which a penalty is provided under this
act.
(a) He shall pay twice the amount of penalty provided under the act for the said
offence.
(b) He shall pay thrice the amount of penalty provided under the act for the said
offence.
(c) Rs.50,000/-
40- Any Office of Inland Revenue shall have power to summon any person under
section:
(a) 38 (b) 39
(c) 37 (d) None of the above
41- All arrests made under this act shall be carried out in accordance with the
relevant provisions of:
(a) Sales Tax Act, 1990.
(b) Federal Excise Act, 2005
(c) Code of Criminal Produced, 1898.
(d) Income Tax Ordinance, 2001
42- Procedure to be followed on arrest of a person is laid down under section ___
of Sales Tax Act, 1990.
(a) 37 (b) 37A
(b) 37B (d) 37C
43- It is necessary to produce an arrested person before the Special Judge or the
nearest Judicial Magistrate, within __ hours of such arrest.
(a) 36 (b) 48
(c) 72 (d) 24
44- The Sales Tax Officer authorized to hold inquiry shall maintain a register to
be called:-
(a) Register of arrests (b) Register of detention
(c) Register of Arrests and Detention
45- A Special Judge is appointed by the Federal Government under Section:
(a) 37A (b) 37B
(c) 37C (d) 37D
46- A Special Judge may hold sitting at any other place according to section:
(a) 37D (b) 37G
(c) 37H (d) 38
47- According to Section _____, the Commissioner may, by notice in writing, require
any person, including a banking company to furnish such information or such
statement in connection with any investigation or inquiry in cases of tax fraud.
(a) 37A (b) 37B
(c) 38A (d) 38B
48- The Officer of Inland Revenue may enter a place to search any documents or
things useful for any proceedings, after obtaining a warrant from the magistrate,
under section ____:
(a) 40 (b) 40A
(c) 40B (d) None of the above.
49- Clause ___ of Section 45A empowers the Commissioner to take suo moto and
examine the record of any proceeding.
(a) 1 (b) 2
(c) 3 (d) 4
50- An appeal shall be accompanied by a fee of Rs.

(a) Rs.5,000/- (b) Rs.1,000/-
(c) Rs.2,000/- (d) Rs.10,000/-
51- Appeal to the Appellate Tribunal can be made under section:-
(a) 45A (b) 45B
(c) 46 (d) 47
52- Reference to the High Court can be send within ____ days of communication of
the order of the Appellate Tribunal:
(a) 120 (b) 90
(c) 70 (d) 60
53- A reference to the High Court under this Section shall be head by a Bench of
not less than ____ Judges of the High Court.
(a) 02 (b) 03
(c) 04 (d) 05
54- An application to the High Court by a person other than the Additional
Commissioner authorized by the Commissioner shall be accompanied by a fee of :-
(a) One Hundred Rupees
(b) Five Hundred Rupees
(c) One Thousand Rupees
(d) Five Thousand Rupees
55- Section ____ of the Limitation Act, 1908 shall apply to an application made to
the High Court under sub-section:-
(a) 7 (b) 1
(c) 9 (d) 10
56- According to Section 48, Sub-Section 1, Clause (c); the Officer of Inland
Revenue may take following action for recovery of arrears of tax:
(a) Seal the business premises.
(b) Stop removal of any goods from business premises
(c) Attach and Sell or Sell without attachment any moveable or
immoveable property of the registered person.

(d) A & B Above.
57- A liquidator is required to give written notice to the Commissioner within ____
days of being appointed.
(a) 14 (b) 15
(c) 30 (d) 60
58- Board has a power to make rules under Section ______:
(a) 50 (b) 49
(c) 49A (d) 50A
59- Board may prescribe the use of computerized system under section ____
(a) 50 (b) 50A
(c) 49 (d) 49A
60- Board establishes bar of suits, prosecution and other legal proceedings under
section:-
(a) 50 (b) 51
(c) 52 (d) 52A
61- An authorized representative of a registered person may appear before the

Appellate Tribunal as spells section:
(a) 50 (b) 51
(c) 52 (c) 53
62- Board may appoint a person to electronically file return on behalf of a

registered person under section:
(a) 50 (b) 52
(c) 52A (d) 53
63- According to Section ____ the tax liability of a deceased registered person
under the Act shall be the first charge on his estate in the hands of his
successor.
(a) 51 (b) 52
(c) 53 (d) 54
64- Section ___ deals with removal of difficulties:
(a) 53 (b) 54
(c) 55 (d) 56
65- Service of orders, decisions etc are done in accordance with the procedure laid
down under section:
(a) 54 (b) 55
(c) 56 (d) 57
66- Any order, Notice or requisition require to be served on a resident individual

is sent by a register post or courier service to the individual�s
(a) e-mail address (b) last known address in Pakistan
(c) official address (d) None of the above
67- Rectification of mistake in any order passed by an Officer of Inland Revenue,

Commissioner, The Commission (Appeals) or the Appellate Tribunal can be made as
envisaged under section:
(a) 53 (b) 55
(c) 57 (d) 59
68- No person shall be declared as the representative of non-resident person unless

the person has been given an opportunity by the _____of being heard.
(a) Inspector Inland Revenue
(b) Commissioner
(c) Collector
(d) None of these.
69- Tax paid on goods purchased by a person who get registered within 30 days of
purchase of goods, shall be treated as:-
(a) Input Tax (b) Output Tax
(c) Ad Velorum Tax (d) Both (a) and (b)

70- When a person imports goods, the tax paid by him thereon during a period of
______ days before making an application of registration shall be treated as:
(a) Output Tax (b) Input Tax
(c) Progressive Tax (d) None of these
71- Section ___ provides powers to deliver certain goods, without payment of tax:
(a) 52 (b) 54
(c) 60 (d) 62
72- Board may authorize the repayment in whole or in part of the tax paid on goods
of such class or description as it may determine under section __
(a) 60 (b) 61
(c) 62 (d) 64
73- According to Section _____ repayment of tax to person registered in Azad Jammu
& Kashmir can be made in whole or in part of the input tax, on any goods acquired
in or imported into Pakistan by person registered in Azad Jammu & Kashmir and are
engaged in making zero rated supplies.
(a) 59 (b) 60
(c) 61 (d) 61A
74- Drawback is allowed on re-export but not such drawback is repaid unless the re-
export is made within a period of ___ years from date of importation as per record
of Custom House.
(a) 03 (b) 02
(c) 01 (d) 04
75- Section ___ deals with drawback on goods taken into use between importation &
re-exportation period.
(a) 61 (b) 62
(c) 63 (d) 64
76- Federal Government may prohibit the payment of drawback on the exportation of
goods or any specified goods or class of goods to any specified foreign port or
territory in compliance with Section ___
(a) 64 (b) 65
(c) 66 (d) 67
77- Federal Government may by a notification direct that the tax not levied or
short levied as a result of inadvertent practice shall not be required to be paid
for the period prior to the discovery of such inadvertent practice, as per
section :
(a) 64 (b) 65
(c) 66 (d) 67
78- All refunds have to be claimed within ____ year(s)
(a) 1 (b) 2
(c) 3 (d) 4
79- Application or claim filed under section 66 shall be disposed off within ____
days from date of filing of claim
(a) 60 (b) 90
(c) 120 (d) 160
80- According to section _____ liability of the acts of agent solely lies upon a
registered person.
(a) 66 (b) 67
(c) 68 (d) 69
81- Duplicate copy of sales tax documents may be issued to a registered person on
the payment of Rs.___
(a) One Hundred (b) Two Hundred
(c) Three Hundred (d) Five Hundred
82- All Officers of Inland Revenue and other persons employed in the execution of
this Act shall observe and follow the order, instructions and direction of the
Board under section ---- :
(a) 71 (b) 72
(c) 72A (d) 72B

83- Board may select persons or classes of persons for audit of tax affairs through
____
(a) Random Selection (b) Computer Ballot
(c) Manual Entry (d) None of the above.
84- According to Section 72C, Board may give ________ to Inland Revenue
Officer/Officials in cases involving concealment or evasion of sales tax and other
taxes, on their meritorious conduct in such cases.
(a) Promotion (b) Cash Reward
(c) Certificate of Appreciation
(d) None of these
85- Payment of the amount for a transaction exceeding value of _______, excluding
payment against a utility bill, shall be made by a crossed banking instrument
showing transfer of the amount of the sales tax invoice in favour of supplier.
(a) Rs.1,00,000/- (b) Rs.50,000/-
(c) Rs.2,00,000/- (d) Rs. 25,000/-
86- Retailer means a person supplying goods to general public for the purpose of:
(a) Sale (b) Purchase
(c) Consumption (d) Demand
87- _________ means a person who is registered or is liable to be registered under

this act.
(a) Manufacturer (b) Supplier
(c) Registered Person (d) Retailer
88- Special Audit means an audit conducted under section ____
(a) 31 (b) 32
(c) 32A (d) 33

89- Taxable activity means any _________ activity carried on by a person whether or
not for profit.
(a) Financial (b) Fiscal
(c) Monetary (d) Economic
90- Taxable goods means all goods other than those which have been exempted under
section:-
(a) 11 (b) 12
(c) 13 (d) 15
91- Tax period means a period of ____ month(s) or such other period as specified by
the Federal Govt.
(a) one (b) three
(c) five (d) twelve
92- Tax invoice means a document required to be issued under section _____
(a) 21 (b) 23
(c) 25 (d) 26
93- �Open Market Price� means the consideration in money which that supply or
___________ would generally fetch in an open market.
(a) Demand (b) different supply
(c) similar supply (d) None of these
94- Appellate Tribunal means the Appellate Tribunal Inland Revenue established
under Section ____ of Income Tax Ordinance, 2001.
(a) 120 (b) 130
(c) 131 (d) None of the above.
95- Banking Company means a banking company as defined in the Banking Companies
Ordinance, ____.
(a) 1990 (b) 1962
(c) 1984 (d) 1969
96- �Common taxpayer identification number� means the registration number or any
other number allocated to a _____________.
(a) Wholesaler (b) Retailer
(c) Registered Person (D) Importer
97- CREST is an abbreviation of:-
(a) Computerized Return and E-Filing of Sales Tax
(b) Computerized Risk-Based Evaluation of Sales Tax
(c) Certificated Return E-Filing System
(d) None of these.
98- �KIBOR� stands for:-
(a) Karachi Intra-Bank Offered Rate
(b) Karachi Inter-Bank Offered Rate
(c) Karachi Inter Bank On-Spot Rate
99- Directorate of Post Clearance Audit is established under section;-
(a) 30A (b) 30B
(c) 30D (d) 30DD
100- Delegation of Powers to the Officers of Inland Revenue are conferred under
section:-
(a) 31 (b) 32
(c) 33 (d) 34
ANSWERS:-
1 (b) 2 (b) 3 (c) 4 (a) 5 (d) 6 (c) 7 (d) 8 (b) 9 (b) 10 (b) 11 (d) 12 (b) 13 (a)
14 (a) 15 (b) 16 (b) 17 (c) 18 (d) 19 (c) 20 (c) 21 (a) 22 (c) 23 (d) 24 (c) 25 (b)
26 (c) 27 (c) 28 (b) 29 (b) 30 (b) 31 (b) 32 (c) 33 (c) 34 (c) 35 (a) 36 (c) 37 (c)
38 (c) 39 (a) 40 (c) 41 (c) 42 (c) 43 (d) 44 (c) 45 (c) 46 (c) 47 (c) 48 (a) 49 (d)
50 (b) 51 (c) 52 (b) 53 (a) 54 (a) 55 (b) 56 (b) 57 (a) 58 (a) 59 (b) 60 (b) 61 (c)
62 (c) 63 (c) 64 (c) 65 (c) 66 (b) 67 (c) 68 (b) 69 (a) 70 (b) 71 (c) 72 (b) 73 (d)
74 (b) 75 (c) 76 (a) 77 (b) 78 (a) 79 (b) 80 (c) 81 (a) 82 (b) 83 (b) 84 (b) 85 (b)
86 (c) 87 (c) 88 (c) 89 (d) 90 (c) 91 (a) 92 (b) 93 (b) 94 (b) 95 (b) 96 (c) 97 (b)
98 ( b) 99 (d) 100 (b)
Taxation Management
Question No: 1
Mrs. Sara received a basic salary of Rs. 280,000 during the year ended 30.06.2009.
She received gratuity from the government of Sindh of Rs. 21,600. What would be her
tax payable?
A Rs. 1,938
B Rs. 2,262
C Rs. 140
D Rs. 1,980
Question No: 2
Which of the following canon of taxation suggests that there should not be any
arbitrariness or ambiguity in respect of amount of tax paid?
Capacity to Pay
Certainty
Simplicity
Convenience
Question No: 5
Any Income entitled to be received by a Company then entry of such amount will only
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
Question No: 6
Income Tax is charged on which of the following?
Income of the current tax year
Income of the previous year
Income of the coming year
Any Receipt of money
Question No: 8
Pension is defined in which of the following schedule of the Income Tax Ordinance
2001?
2nd Schedule Part 1 Cl. (8)
1st Schedule of Part 2 Cl. (20)
Question No: 9
Resident Person (Section 81) includes which of the following?
Resident Individual & Association of Persons
Resident Company
Federal Government
All of the given options
Question No: 10
Which part of income is charged to tax of resident person under the income tax
ordinance 2001?
Pakistani source of income
Foreign source of income
Both Pakistan and foreign source of income
None of the given option
Question No: 11
____________ means a fixed place of business through which the business of an
enterprise is wholly or partly carried on.
Franchise
Permanent establishment
Small Business Units SBU
Venture
Question No: 12
Which of the following is the general definition of tax?
Compulsory contribution of wealth by persons
Optional contribution of wealth by persons
Compulsory contribution of wealth by state
Optional contribution of wealth by state
Question No: 13
Which one of the following section defines �Income� under the head Income from
Business section 18?
Section 2(9)
Section 2(29)
Section 75
Section 2(15)
Question No: 14
'Income is recorded when received and expenditure when paid', which one of the
following accounting systems describe this statement?
Cash basis accounting system
Accrual basis accounting system
Both cash and accrual basis
Question No: 15
On Building (all types) the depreciation rate specified for the purposes of section
22 shall be:
10%
12%
5%
20%
Question No: 16
Section 22(15) defines depreciable asset means:
Any tangible movable property
Any tangible immovable property (other than unimproved land)
Structural improvement to immovable property
Question No: 18
The salary received from the UK Government by Mr. 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
Question No: 19 Revision of return can be made on an application made by the tax
payer relating to issuance of an exemption, by which of the following authorities?
Income Tax Officer
Assistant Controller of Income tax
Deputy Controller of Income tax
Regional Commissioner of Income tax
Question No: 20
Appeal to CIT (appeals) shall be filed in which of the following manner?
On prescribed form
On plane paper
On stamped paper
Legal documents
Question No: 23
Which of the following is included in the assessment order by commissioner?
Taxable Income
Tax Due
Amount of Tax Paid
Question No: 24 In Sales Tax Act "Zero - rated supply" means a taxable supply
which is charged to tax at the rate of zero per cent define under
Section 4
Section 5
Section 6
Section 22
Question No: 25
Mr. Kishan Kumar during his yearly tour in Pakistan 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
Question # 14
Mr. Kishan Kumar during his yearly tour in Pakistan spends 156 working days, 26
offworking days and 1 Public Holiday in a tax year 2009-2010? Which of the
following is his residential status?
Select correct option:
Resident Individual
Non Resident Individual
Resident Person
Resident HUF
Question No: 26
Mr. Zeeshan during his yearly tour in Pakistan spends 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
His total stay in Pakistan is less than 183 days , so he is non resident individual
as per income tax ordinance section 81.
Question No: 27
Which of the following is the rate of tax for AOP for tax year 2009, where the
taxable income exceeds Rs. 100,000 but does not exceed Rs. 110,000?
0%
0.25%
0.50%
0.75%
Question No: 28
Which of the following is the rate of tax for AOP for tax year 2009, where the
taxable income exceeds Rs. 125,000 but does not exceed Rs. 150,000?
0.50%
0.75%
1.00%
2.00%
Question No: 29
Which of the following is the Rate of Tax for dividend received from power
Generation Company for Tax Year 2009?
Nil
2.50%
5%
7.50%
Question No: 30
Which one of the following is not the feature of Sales Tax?
Indirect tax
Broad based
Elastic/ Flexible
Question No: 31
Mr. Ali received a basic salary of Rs. 20,000 per month during the year ended
30.06.2009. During the year domestic bills of water, telephone and electricity
amounting to Rs. 6,000, 12,000, and 9,600 were paid by his employer respectively.
What would be his taxable income?
Rs. 240,000
Rs. 267,600
Rs. 270,000
Rs. 289,800
Question No: 32
Mr. Saleem received a basic salary of Rs. 10,000 per month during the year ended
30.06.2009. During the year his employer provided the services of a driver and a
housekeeper. The company paid Rs. 4,000 per month to each of these employees. What
would be his taxable income?
Rs. 120,000
Rs. 186,000
Rs. 216,000
Rs. 244,500
Question No: 33
The basic salary of Mr. Ghauri (a salaried person) during the year 30.06.2009 is
Rs. 445,000. He paid Zakat under Zakat Ordinance of Rs. 8,000 and received
commission of Rs. 24,000. What will be his taxable income?
Rs. 429,000
Rs. 437,000
Rs. 461,000
Rs. 469,000
Question No: 38
Mr. Sadiq received a salary of Rs. 200,000 during the year ended 30.06.2009. His
MTS is (Rs. 200,000-5,000-300,000). He has received medical allowance and facility
of interest free loan from his employer of Rs. 10,000 per month and Rs. 900,000
respectively. What would be his tax payable?
Rs. 1,987.5
Rs. 2,535
Rs. 107,500
Rs. 134,200
Question No: 39
Mr. Shafqat received a basic salary of Rs. 350,000 during the year ended
30.06.2009. His company maintained car for personal and official use. The cost of
the vehicle is Rs. 880,000.What would be his tax payable?
Rs. 1,030
Rs. 5,910
Rs. 10,950
Rs. 135,300
Question No: 34
Mr. Shafqat received a basic salary of Rs. 200,000 during the year ended
30.06.2009. He has received lunch facility, cost of living allowance and adhoc
relief of Rs. 6,000, 50,000, and 7,800 respectively. What would be his tax payable?
Rs. 1,030
Rs. 1,039
Rs. 1,069
Rs. 1,978.5
Question No: 40
A retailer whose value of supplies in any period during the last twelve months
ending any tax period exceeds_______ are required to be registered under the Sales
Tax Act 1990;
Forty million rupees
Twenty million rupees
Ten million rupees
Five million rupees
Question No: 42 Statutory Provident Fund is governed by which one of the following?
Finance Act 2006
Insurance Act 1969
Provident Funds Act 1925
Finance Bill 2007
Question No: 44
Mrs. Waseem has rented out her house at Rs. 15,000 per month. As per rent deed she
has received an amount of Rs. 75,000 as advance, which is non adjustable against
rent. What would be the amount of rent chargeable to tax where the fair market rent
is Rs. 100,000?
Rs. 90,000
Rs. 1,87500
Rs. 92,400
Rs. 1,200
Question No: 45 Mr. Waqas is a practicing chartered accountant. He has received

audit fees of Rs. 300,000 and the examiner�s fees of Rs. 2,000. During tax year
2009 he has made membership and certificate expenses of Rs. 500. What will be his
income from profession?
Rs. 198,834
Rs. 301,500
Rs. 297,500
Rs. 298,500
300,000+2000-500=301,500
Question No: 46 M/s. RST filed tax return for tax year 2009, declaring taxable
income as Rs. 1,135,000 made payments in execution of a contract for purchase of
office appliances Rs. 250,000. What will be the tax payable of the company?
Rs. 100,000
Rs. 150,000
Rs. 300,000
Rs. 484,750
Calculation: Tax Liability
1135000+250,000=1,385000*35%=484,750
Question No: 47
Mr. Qasim received income from business of Rs. 107,000. He has received gain on
sale of residential house of Rs. 140,000. What will be his taxable income?
Rs. 50,000
Rs. 300,000
Rs. 107,000
Rs. 100,000
Question No: 37
Mr. Qasim received income from business of Rs. 6,107,000. He has received gain on
sale of residential house of Rs. 140,000. What will be his taxable income?
Rs. 50,000
Rs. 300,000
Rs. 6,107,000
Rs. 100,000
Question No: 48
Mr. Jamil has received income from poultry farm of Rs. 645,000 and gain on sale of
shares of private company Rs. 136,000 where the shares were disposed off after 12
months. The capital loss amounted to Rs. 15,000 was reported. What will be his
taxable income?
Rs. 566,000
Rs. 694,000
Rs. 732,000
Rs. 776,000
FIN623 Online Quiz# (4 & 5)
Question # 1
If an employee�s taxable income is Rs.715, 000 and he paid donations amounting
Rs.10,000 to a charitable institution, what will be the value of �C� in calculating
tax credit?
Rs.715, 000
Rs.214, 500
Rs.10, 000
Rs.224, 500
Question # 2
Which one of the following section deals with intangibles?
Section 22
Section 24
Section 222
Section 242
Question # 3
Mr. A is an employee of Government of the Punjab, his data for the year 2010 is
given below. Salary: Rs. 60,000 per month Gratuity: Rs. 1,000,000 Calculate his
taxable income.
774,000
720,000
1,060,000
1,720,000
Question # 4
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. In which
year it is charged to tax?
2006
2007
2008
2009
Question # 5
Deficit Financing is one of the tools of which of the following policy?
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
Question # 6
Following person is required to file tax return:
Widow
Disabled person
The person has become bankrupt
Orphan below age of 25
Question # 7
The process of clubbing of income results in which of 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
Question # 9
Which of the following incomes are treated as agriculture income?
Agro based industry
Spontaneous forests
Interest received by a farmer on lending
Income from land situated in Pakistan used for agriculture
Question # 10
Which of the following is the important content for calculating tax on income?
Taxable Income
Residential Status
Tax Year
Question # 11
(A / B) x C In the above formula for calculating tax credit under section 61 of the
Income tax Ordinance 2001, C represents which of the following?
Amount of Gross tax
Person�s taxable income for the tax year
Amount of exemption as per Ordinance
Net Income Of the year
Question # 13
Which of the following section deal with tax treatment of person who is a
cultivator or receiver of agricultural produce as rent-in-kind in the business of
cultivator?
Rule 11 of the IT Rule 2002
Section 40 of the Income Tax Ordinance 2001
Question # 14
In an association of person, 25% tax rate is applied where the taxable income
exceeds:
Rs 1,300,000
Rs 1,000,000
Rs 1,500,000
Rs 1,700,000
Question # 15
Deductions not allowed under the head income from business is defined by
Section 20
Section 21
Section 25
Section 27
Question # 1
A depreciable asset has normal useful life of:
Six months
One year or more
Eleven months
Question # 2
Expenses entitled to be paid by a Company, then entry of such expenses will be made
in the books of accounts if:
Company maintaining its books of account on Cash basi
Company maintaining its books of account on Accrual basis
Company maintaining its books of account on Both Accrual and Cash basis
Question # 3
Every person owns immovable property, with a land area of _________ or more in
municipal limits, cantonment and CDA is required to file return of income tax.
150 Sq. yards
200 Sq. yards
250 Sq. yards
350 Sq. yards
Question # 6
Formula to compute the tax rate applies on gratuity received, �B� stands for;
The total tax paid or payable by the employee for the three preceding tax years
The employee�s total taxable income for the three preceding tax years
The gratuity received by the employee
Question # 7
Which of the following tax is paid in relation to how much you earn?
Income Tax
Inheritance Tax
Value added Tax
Sales Tax
Question # 9
In case of discontinuance of business, what is the time period to file a return?
Within 05days of discontinuance
Question # 10
The formula used in the computation of capital gain is:
A+B
A-B+C
A-B
A+B-C
Question # 12
What rate is applied in normal depreciation of plant and machinery?
5%
10%
15%
25%
Question # 13
Mr. Z resident of Pakistan received dividend amounting Rs. 10,000 in UK from UK
resident company. What is the tax treatment for calculating his gross total income?
Added in total income
Subtracted from the total income
No treatment due to non-resident company
Exempt from tax
Question # 14
Which of the following days shall be counted as half day for the computation of
residential status of an individual?
A Public Holiday
A day of sick leave
Any strike
Question # 15 Pension is exempt under
Clause (12) Part I of Second Schedule
Question # 6
Special tax year is adopted after seeking approval from the ____________ under
section 74(3).
Commissioner
Tax Officer
Appellate Tribunal
Supreme Court
Question # 7
Any income from a business carried on outside Pakistan through permanent
Establishment by a resident person belongs to which of the following?
Pakistani source of Income
Question # 9
Accrual basis accounting method is mandatory for which one of the following:
Salaried person
Association of person
Companies
Proprietorship
Question # 10
Which of the following is the main tool of Fiscal Policy?
Taxes
Deficit Financing
Subsidies
Transfer Payments
Question # 11
Which one of the following is excluded from the definition of capital asset?
A postage stamp
Jewelry
Stock-in-trade
A painting
Question # 12 Non-adjustable amounts shall be treated as rent and chargeable to
tax, these amounts are spread over a period of
05 years
10 years
15 years
20 years
Question # 13
Which of the following section deals with the residential status of Association of
Person?
Section 81
Section 82
Section 83
Section 84
Question # 14
If a cultivator used its agricultural produce as raw material in its business what
will be the tax treatment of such agriculture produce?
Market price of such produce will be deducted as business expenditure
The expenses of cultivation will be deducted as expense from business
The land revenue rent paid will be deducted as expense from business
Question # 15
__________ are allowable deductions in case if the tax payer is running a business.
Salaries paid
Purchases
Office expenditures
Question # 1 Which part of the Income Tax Ordinance 2001 deals with Tax credits?
Chapter III Part VII
Chapter III Part VIII
Chapter III Part IX
Chapter III Part X
Question # 2
Which of the following is a general compulsory contribution of wealth by the state,
to meet the expenses incurred in providing common benefits upon the residents?
Fee
Taxes
Charges
Penalties
Question # 3
Which one of the following is the main objective of Fiscal Policy?
Economic Development
Price stability
Removal of deficit in Balance of Payment
Question # 4
Bench Mark rate for the tax year 2010 is:
8%
10%
12%
13%
Question # 5
Deduction is allowed on expenditure on acquiring a depreciable asset whose useful
life is:
One year
More than one year
Three years
Five years
Question # 6
Which one of the following canons of taxation suggests easiness in time of payment
and mode of collection of tax?
Simplicity
Convenience
Certainty
Capacity to Pay
Question # 8
Who is liable to pay tax in a partnership form of business?
Partners
Partnership firm
Partner with large share
Question # 9
Mr. Afzal would like to compute the tax rate apply on the gratuity received the
formula to compute the tax rate is.
AxB/100
Ax100/B
A/Bx100
100XB/A
Question # 10
Which of the following may grant approval to any gratuity fund?
Federal Tax Ombudsman
Federal Government
Superior judiciary
Commissioner of Income Tax
Question # 13
An Individual will be termed as Short Term Resident under section 50 of the IT
Ordinance 2001 provided:
His period of stay equal to 183 days
The employee of Federal Government
The citizen of Pakistan
Resident solely by reason of the individual�s employment
Question # 2
Any gain arising on the disposal of shares in a resident company belongs to which
of the following?
Pakistan source income
Question # 3
If the accounting year of firm manufacturing shawls is started from 1st April 2002
and ending on 31st March 2003. What will be its tax year?
Tax year 2002
Tax year 2003
Tax year 2004
Tax year 2005
Question # 4
Concept of separate legal entity of accounting applies on which of the following
concepts in taxation under section 105 of the ordinance?
Resident and permanent establishment
Non-resident and permanent establishment
Citizenship and permanent establishment
Question # 5
A definition that includes the dictionary meanings of the word is termed as:
Exclusive definition
Inclusive definition
Both Inclusive & Exclusive definitions
Statutory definition
Question # 7
Any amount shall be foreign-source income if it is paid by:
Resident person
Non-resident person
Citizen of Pakistan
Question # 9
Utilities were exempted 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
Finance Ordinance 2005
Finance Act 2006
Finance Act 2007
Question # 10
Depreciation rate applied on all types of buildings under section 22 is:
5%
10%
0.50%
3.50%
Question # 3 Which of the following section of Income Tax Ordinance 2001 deals with
perquisites of Income from Salary and its treatment?
Section 11
Section 12
Section 13
Section 14
Question # 4
Which of the following tax is paid from money you received from someone who has
died?
Income tax
Inheritance tax
Property tax
Sales tax
Question # 5
Which of the following is NOT treated as transactions through the banking channel?
Online transfer of payment
Payments through credit card
Payment through cash
Question # 7
If M/s ABC and Co. an association of person is a non-resident AOP which of the
following condition must be satisfied?
Control and management of affairs of AOP is situated partly in Pakistan.
Control and management of affairs of AOP is situated wholly in Pakistan.
Control and management of affairs of AOP is situated wholly or partly in Pakistan
Question # 11
Non-Agricultural income does Not includes which one of the following?
Dividend paid by a company out of its agriculture income
Royalty income of mines
Profit on sale of standing crops
Income from fisheries
Question # 12
Mr. Joseph is an employee of Foreign Government posted in Pakistan? What will be
the residential status of Mr. Joseph?
Resident Individual
Non- Resident Individual
Resident HUF
Resident AOP
Question # 15
Which of the following is NOT a �Person� as defined in Sec 2 (42) of the Income Tax
Ordinance?
An Individual
The Federal Government
Public International Organization
Question # 2
A definition that excludes the dictionary meanings of the word is termed as:
Both Inclusive & Exclusive definitions
Question # 3
Senior citizen-age 60 years & above where taxable 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
Question # 4
Which of the following is the rate of tax for male salaried Individuals for tax
year 2010, where the taxable income exceeds Rs. 200,000 but does not exceed Rs.
250,000?
0%
0.25%
0.50%
0.75%
Question # 5
Which part of income is charged to tax of non-resident person under the income tax
ordinance 2001?
Pakistani source of income
Question # 6
Gratuity fund which is fully exempt from tax is approved by:
Income tax officer
Commissioner of income tax
Employer
CBR
Question # 7
Liquidator is referred as:
A liquidator of a company
A trustee for a bankrupt
A mortgagee in possession
Question # 8
Flying allowance shall be taxed @:
1.5% of amount received as a separate block of income

2% of amount received as a separate block of income
Question # 9
Which one of the following is NOT a depreciable asset?
Tangible movable property

Unimproved land
Tangible immovable property
Structural improvement to immovable property
Question # 10 Which of the following is a literal meaning of tax?
Burden
Endurance
Patience
Fortitude
Question # 11
Which of the following is NOT the type of tax?
Direct taxes
Indirect Taxes
Value Added Taxes
Fees and Penalties
Question # 12
Which of the following is the example of deem income?
Cash Gift
Salary
Loan through cross cheque
Golden hand shake
Question # 14
Which of the following is NOT an admissible deduction under the head income from
property?
Unpaid rent
Property tax
Payment of premium
Fair market rent
Question # 15
Which one of the following sections deals with prizes and winnings?
Section 110
Section 140
Section 156
Section 115
Question # 1
General Provident (GP) Fund available in the Government Organization is also called
as:
Statutory Provident Fund

Recognized Provident
Unrecognized Provident Fund
Question # 3
Which of the following is the tax where the tax rate remained fixed to the amount
on which the rate is applied increases?
Proportional tax
Progressive tax
Regressive tax
Corporate tax
Question # 8
Which one of the following is the general meaning of Tax?
Relax
Lighten
Relieve
Fatigue
Question # 11
Which of the following is the Tax year available for salaried individual?
1st January to 31st December

1st July to 30th June
1st October to 30th September
1st September to 31st August
Question # 15
If any other office involved in the management of a company it is termed as:
Employment
Employer
Employee
Business premises
Question # 1
Mr. A employed in Pakistan received dividend amounting Rs. 10,000 in UK from
Pakistani resident company. What is the tax treatment for calculating his gross
total income?
Added in total income

Subtracted from the total income
Added in income after tax
Exempt from tax
Question # 4
Which one of the following is NOT a liquidator under section 141 of the income tax
ordinance 2001?
Receiver appointed by a Court

Trustee for a bankrupt
Mortgagee in possession
Tax payer
Question # 5
Agricultural income does NOT include which one of the 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
Question # 6
Mr. A�s total taxable income for the year 2010 is Rs. 150,000. Which of the
following is the tax liability of Mr. A?
Nil
Rs. 375
Rs. 750
Rs. 1,125
Question # 7
A return of income as required to be furnished under section 114 shall be in the
form specified in:
Part I of second schedule
Part II of second schedule
Part III of second schedule
Question # 8
Which one of the following sections discusses the cash-basis accounting?
Section 32
Section 33
Section 34
Section 36
Question # 9
Pension received by an employee of the Government or the armed forces is exempt
from tax define in:
2nd Schedule Part 1 Cl.(8)
Question # 11
What is the rate of tax for a small company?
10% of taxable income
Question # 12
Loss from speculation business can be set off against
Business income
Income earned from resident company
Speculation business income
Question # 15
Income from building leased out together with Plant & Machinery falls under
Income from property
Income from salary
Income from capital gain
Income from other sources
Question # 2
The Fiscal year is a period of ______ months arbitrarily chosen for tax purposes.
3
6
12
18
Question # 4
A woman taxpayer shall be charged to tax if taxable income is:
Less than Rs. 100,000
Less than Rs. 200,000
More than Rs. 200,000
More than Rs. 260,000
Question # 5
What is the residential status of Federal Government of Pakistan?
Resident Person
Resident Company
Resident AOP
Resident HUF
Question # 7
In the formula of computing the capital gains, A defines
Cost of the asset
FMV of asset
Consideration received on disposal
Question # 10
Provident fund maintained by a private organization which has not been granted
recognition by the Income Tax Authorities, is discussed in which of the following
type of provident fund
Government provident fund
Recognized provident fund
Unrecognized provident fund
Not mentioned in Income Tax Ordinance 2001
Question # 14
If capital asset has been held for more than one year, it is exempt from tax up to:
10% of total capital gain
Question # 4
If tax payable of a sole proprietorship is Rs. 595,000, what will be the tax rate
applied?
12.50%
15.00%
7.50%
10.50%
Question # 6
Land revenue rent (Lagan) is received by which of the following authority?
High Court
Supreme Court
Income Tax Department
Provincial Government
Question # 13
If tax payable of a partnership firm is Rs. 900,000, what will be the tax rate
applied?
21.50%
15.00%
17.50%
10.50%
Question # 3
Valuation of stock is computes by the formula:
A+B-C
A-B-C
A-B+C
A+B+C
Question # 4
2(59) of Income Tax Ordinance 2001 defined: �shareholder� in relation to a
company,includes a modaraba certificate holder, a unit holder of a unit trust and a
beneficiary of a trust. In which criteria the above definition falls?
Both Exclusive and Inclusive definitions
Question # 5
Gratuity will be ignored in computing taxable income of
Resident person
Non-resident person
Income tax officer
Deceased person
Question # 6
Achieving full employment level is one of the objectives of which of the following
policy?
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
Question # 8
For the year 2009 Mr. Ali has basic salary Rs. 40,000 p.m. what will be the salary
of Mr. Ali for the tax year 2010?
Rs. 480,000
Rs. 240,000
Rs. 40,000
Rs. 640,000
Question # 10
Normally the salary income is taxed on cash basis but there is one exception
available in Income Tax Ordinance 2001 that salary income can be taxed on due basis
if there are reasonable grounds. Which of the following section deals with this
exception?
Section 53
Section 101
Section 110
Section 111
Question # 12
Mr. X resident of Pakistan earned income from Property situated in London Rs.
50,000 but received in India. Which of the following is right for the above
scenario?
Mr. X being resident of Pakistan Rs. 50,000 will be added in Gross total income
Mr. X being resident of Pakistan Rs. 50,000 will be subtracted in Gross total
income
Mr. X being resident of Pakistan Rs. 50,000 will be claimed as admissible deduction
Mr. X being resident of Pakistan Rs. 50,000 will be exempted
Question # 15
Recognized provident fund is recognized by
Income tax officer
Central board of revenue
Commissioner of income tax
High court
Question # 4
Which one of the following is main difference between the tax and fee?
Imposing authority
Applied Rates
Entitlement of Counter benefit
Mode of payment
Question # 5
Which of the following is the External aid for the interpretation of tax laws?
Preamble
Non-Obstinate clause
Title of a chapter
Finance Minister�s budget speech
Question # 12
Mr. Ali is an employee of ABC Co. He has availed an interest free loan from his
Company. What will be the treatment of Interest on loan as per Income Tax Ordinance
2001?
Salary of Ali includes the Interest on loan at benchmark rate
Salary of Ali includes the Interest on loan at lower than benchmark rate
Salary of Ali includes the Interest on loan at higher than benchmark rate
Amount of Interest on loan is exempted from Tax
Question # 1
What will be the tax treatment of motor vehicle provided partly for official and
partly for personal use?
5% of cost (vehicle)
Question # 3
Which one of the following sections defines minimum tax on resident companies?
Section 110
Section 111
Section 113
Section 115
Question # 5
Mr. A resident of Pakistan received interest on 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
Exempt from tax
Question # 8
Concessional loan of Rs 1 million provided by employer @ of markup of 6% per annum
(bench mark rate for tax year 2010 is 12% per annum), what will be the amount added
back?
Rs.60,000
Rs.40,000
Rs.90,000
Rs.130,000
Question # 9
What is the time period given to a taxpayer to file a revised return?
2 years
3 years
5 years
6 years
Question # 11
Members of income tax appellate tribunal are appointed by which of the following
authorities?
Provincial Government
Income Tax Department
Federal Government
Judicial Commission
Question # 12
The rate of income tax for Modarba Company is:
20%
25%
30%
35%
Question # 14
Statutory provident fund is also known as:
Recognized provident fund
Unrecognized provident fund
Government provident fund
Question # 1
Which one of the following specifies the rates of depreciation?
Part I of 3rd schedule
Part II of 3rd schedule
Part III of 3rd schedule
Question # 13
Which of the following section deals with the residential status of Individual?
Section 80
Section 81
Section 82
Section 83
Question # 14
Mr. A non-resident of Pakistan received interest on 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 subtracted from his total income
Exempt from tax
Question # 4
Profit and gains arising out of speculation business is chargeable to tax under
Income from salary
Income from business
Income from capital gains
Question # 9
If an individual has taxable income Rs. 90,000, what will be the tax rate applied?
0.50%
1%
0.25%
Nil
Question # 9
Which of the following is the rate of tax for salaried Individuals (male) for tax
year 2010, where the taxable income does not exceed Rs. 200,000?
0%
0.25%
0.50%
0.75%
Question # 12
On which of the following deduction is allowed from taxable income under the head
income from business?
Any entertainment expenditure
Any personal expenditure
Brokerage
Expenditure incurred by an amalgamated company
Question # 6
Which of the following section defines deductions allowed in computing income from
business?
Section 21
Section 20
Section 120
Section 112
Question # 9
_____________ is the payment to the holder for the right to use property such as a
patent, copyrighted material, or natural resources.
Permanent Establishment
Royalty
Dividend
Goodwill
Question # 14
As per clause 13(iii) of the part 1 of second schedule, if gratuity fund is
approved by CBR, the amount of fund exempted up to Rs. 200,000 and any amount
exceeding it will be taxed in which of the following way?
Salary Income
Income from Business
Capital gain
Other Income
Question # 2
Which of the following come under the ambit of Royalty under section 2 (54)?
Right to use any patent
Copy right of a literary
Right to use any industrial or scientific equipment
Question # 2
Profit earned on debts is chargeable under
Income from salary
Question # 1
Which one of the following principle of tax emphasized, that the taxation policy
should be designed in such a way to boost business atmosphere and the investment
environment
in the country?
Convenience
Judicious
Capacity to Pay
Business friendly
Question # 4
Miss Sonia�s total taxable income for the year 2010 is Rs. 260,000. Which of the
following is the tax liability of Miss Sonia?
Nil
Rs. 500
Rs. 1,000
Rs. 1,500
Question # 5
In Income Tax Ordinance 2001 tax concessions meant for which of the following?
Reduction in tax liability
Reduction in tax rate
Reduction in taxable Income
Question # 6 Which of the following is the deductible allowance from the income of
an individual?
Zakat
Worker�s Welfare Fund
Work�s Participation Fund
Question # 13
In which of the following heads of Income No deductions are allowed:
Salary
Income from Property
Income from Business
Capital Gains
Question # 3
Mr. A is an employee of ABC Co. The company has provided a driver and a gardener to
Mr. A. What will be the tax treatment of their salaries under section 13 of Income
Tax Ordinance 2001?
These salaries, will be added in the salary of Mr. A
These salaries will be subtracted from the salary of Mr. A
These salaries have no relation with the salary of Mr. A
These Salaries will be exempted from Tax
Question # 10
Income tax ordinance, 2001 became effective from which of the following date?
1st July 2001
13th September 2001
1st July 2002
13th September 2002
Question # 15
Mr. A non-resident person employed in UK received Rs. 500,000 as salary. Which of
the following statement is true for Mr. A?
Rs. 500,000 will be added in Gross total income being non resident person
Rs. 500,000 will be subtracted from Gross total income being non resident person
Rs. 500,000 will be exempt from tax being non resident person
Question # 6
Total income of a person for a tax year shall be the sum of the person�s income
under which of the following head?
Only Income from salary
Only Income from Business
Only Income from Property
Question # 12
Suppose a money lender give loan to a farmer of Rs. 100,000. After the due time the
farmer pay back the loan in shape of agriculture produce amounting Rs. 110,000 to
money lender. What will be the tax treatment of Rs. 110,000?
Tax will be charged only on Rs. 100,000
Exempt as Agriculture Income
Question # 13
Which of the following is similar to the concept of clubbing 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
Question # 14
The Chairman of CBR has the responsibility for which of the following measures?
Formulation and administration of fiscal policies
Levy and collection of federal taxes
Quasi-judicial function of hearing of appeals
Question # 5
Pride of performance awarded by President is exempt from tax. Under which section
it is treated in Income Tax ordinance 2001?
Section 40
Section 41
Section 45
Section 46
Question # 7
Which of the following expression is used in computing tax credit?
A/B x C
B/A x C
A/C x B
C/B x A
Question # 8
What is the residential status of Provincial Government of Pakistan?
Resident Individual
Resident Company
Resident AOP
Resident HUF
Question # 9
Which of the following is included in the Scheme of the Income Tax Ordinance 2001?
Chapters
Sections
Schedules
Question # 3
Agricultural income includes which one of the following?
Dividend paid by a company out of its agriculture income
Income from fisheries
Royalty income of mines
Share of profit of a partner from a firm engaged in agricultural
Question # 1
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
Have no relation with salary of Mr. Ali
The Salaried paid are exempted from Tax
Question # 5
Which of the following is the legal status of Al-Habib Bank Limited under section
80 of the ordinance?
Individual
Firm
Banking Company
Hindu Undivided Family
Question # 13
Profit on debt shall be Pakistan-source income if it is:
Paid by a resident person
Paid by the resident person from business carried on outside Pakistan through a
permanent establishment
Paid by non-resident person
Question # 15
What is the tax treatment of losses from the foreign source under section 104 of
the ordinance?
Wholly taxable
Partly Taxable
Deductible expenditure
Question # 1
Loss can be carried forward up to how many years?
3 years
4 years
5 years
6 years
Question # 4
Which of the following person fulfilled the criteria of a Taxpayer?
Any representative of a person who derives an amount chargeable to tax
Any person who is required to deduct or collect tax
Any person required to furnish a return of income
Question # 12
The age of senior citizen was 65years and now amended to 60years which of the
following finance act substituted 65 to 60years?
Finance Act 2005
Finance Act 2006
Finance Act 2007
Finance Act 2008
Question # 14
Mr. X resident of Pakistan remittance from UK received Rs. 20,000 in Pakistan from
past profits. Which of the following is right for the above scenario?
Mr. X being resident of Pakistan Rs. 20,000 will be Subtracted in Gross total
income
Mr. X being non-resident of Pakistan Rs. 20,000 will be added in Gross total income
Question # 5
Which of the following tax is payable on merchandise imported or exported from one
country to another?
Custom duty
Income tax
Sales tax
Wealth tax
Question # 8
Which of the following is an example of Lump sum receipt?
Pension
Golden shake hand
Provident fund
Question # 3
Income from lease of tangible movable property is chargeable to tax under
Income from property
Question # 4 Which of the following is the general formula for calculating tax
credits?
(A + B) x C
(A - B) x C
(A / B) x C
(A / B) + C
Question # 13
In the normal circumstances on which of the following tax is charged?
Gross Receipt
Total Income
Taxable Income
Gross Income
Question # 1
Approval of Gratuity fund can be withdrawn on which of the following grounds?
On the expiry of time period
On the death of the employee
On the malfunctioning of the trust
On the death of trustee
Question # 3
In a tax _____ you give information about what you earn every year.
Return
Statement
Sheet
Report
Question # 10
What is the tax treatment of any profit on the US Dollar 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
Question # 13
Sec. 02 of Income Tax Ordinance 2001 defined: �Appellate Tribunal means the
Appellate Tribunal established under section 130� In which criteria the above
definition falls?
Both Exclusive and Inclusive definitions
Question # 11
Taxes are important instrument of which of the following policy?
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
Question # 3
Which of the following income is chargeable to tax?
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
Question # 8
Which one of the following principles of tax emphasized, that the taxation policy
should be designed in such a way to boost business atmosphere and the investment
environment in the country?
Convenience
Judicious
Capacity to Pay
Business friendly
Question # 12
Which of the following is the Special Accounting Year of Companies exporting rice?
1st January to 31st December
1st July to 30th June
1st October to 30th September
1st September to 31st August
Question # 12
It is mandatory for each Company to maintain its books of accounts on which of the
following methods?
Cash basis
Accrual basis
Both cash and accrual basis
Free to choose any kind of base
Question # 11 Which one of the following is the general definition of tax?
Compulsory contribution of wealth by persons
Optional contribution of wealth by persons
Compulsory contribution of wealth by state
Optional contribution of wealth by state
Question # 6
M/s ABC & Co. has been incorporated under Pakistan 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
_______ are a form of excise levied when a commodity is sold to its final consumer.
Corporation tax
Property tax
Sales Tax
Excise
Federal government has been empowered vide section 53 (2) and (3) to make
Amendments in the second schedule by:
Adding any clause or condition therein
Omitting any clause or condition therein
Making any change in any clause or condition therein
Any dividend is Pakistan source income if it is paid by which of the following?

By resident Company
By non resident Company
By resident Individual
By resident AOP
Which of the following section deals with the residential status of Person?
Section 81
Section 82
Section 83
Section 84
Which of the following section deals with the residential status of Company?
Section 81
Section 82
Section 83
Section 84
Question # 10
Which of the following methods of accounting is compulsory to adopt for
Soleproprietorship?
Accrual Basis
Cash Basis
Both accrual and cash bases
Free to choose any kind of base
Question # 15
Which of the following is not included in business?
Commerce
Manufacture
Profession
Employment
Question # 10
Tax year for the salaried individuals is called as:
Special Tax Year
Normal Tax Year
Fiscal Year
Financial Year
Question # 15
A firm ABC maintaining its account in cash basis, at June 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
Question # 2
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.
2.50%
5.50%
7.50%
9.50%
Question # 13
Condition for the approval of gratuity fund is based on which of the following?
Trust is irrevocable
Trust is revocable
Trust is established by Government
Trust is approved by Officer of Income Tax
Question # 2
Which of the following is the rate of tax for salaried Individuals for tax year
2010, where the taxable income exceeds Rs. 550,000 but does not exceed Rs. 650,000?
1.50%
2.50%
3.50%
4.50%
Question # 5
2010, where the taxable income exceeds Rs. 650,000 but does not exceed Rs. 750,000?
3.50%
4.50%
6.00%
7.50%
Question # 7
2010, where the taxable income exceeds Rs. 900,000 but does not exceed Rs.
1,050,000?
9.00%
10.00%
11.00%
12.50%
Question # 10
MTS stands for which of the following?
Minimum time scale
Minimum transfer Salary
Maximum time scale
Maximum transfer Salary
Question # 4
Which of the following is tax, where the tax rate decreases as the amount to which
the rate is applied increases?
Proportional tax
Progressive tax
Regressive tax
Corporate tax
Question # 2
Mr. X employed in Pakistan earned pension from Pakistan Government but received in
London Rs. 100,000. Which of the following is right for the above scenario?
Mr. X being resident of Pakistan Rs. 100,000 will be subtracted in Gross total
income
Mr. X being resident of Pakistan Rs. 100,000 will be added in total income after
tax
Mr. X being non-resident of Pakistan Rs. 100,000 will be exempted
Question # 10
Concessional loan provided by the employer is taxable and added back to the income
of employee. But under which of the following condition there is no need to add
back such loan?
Loan used for the purchase of furniture
Loan used for the education of children
Loan used for the construction of house
Loan used for the purchase of shares
Question # 12
If a business carried on by Non-resident person in Pakistan through permanent
establishment what will be the tax treatment of the traveling expenditures born by
the non-resident for spending his holidays in his home land?
Wholly taxable due to PE
Wholly taxable as no concerned with PE in Pakistan
Not permissible as deduction from the income of Non-resident
Question # 10
What is the tax treatment of the leave encashment on the retirement of the
employee?
Wholly Taxable
Wholly exempt
Partly Taxable
Question # 8
Income chargeable under the head �Income from Business� derived by a Provincial
Government or local authority from a business carried on outside its jurisdictional
area, will be:
Wholly taxable
Wholly exempt
Partially exempt
Section is silent about it
Question # 15
Which of the following is the Tax Treatment of utilities for the year 2010?
Wholly taxable
Wholly exempted
Exempt up to 10% of MTS
Question # 7
Gratuity pertaining to government employees received on retirement/ death of the
employee. Which of the following is the tax treatment of gratuity under the Income
Tax Ordinance 2001?
Wholly exempt
Partially exempt
Wholly taxable
Question # 3
Which of the following is the tax treatment of free hospitalization services
provided under the terms of employment?
Wholly exempt
Wholly taxable
Taxable up to 10% of MTS
Question # 7
Gratuity received by a non-resident person is
Wholly exempt
Wholly taxable
50% of amount receivable
50 % of B.S
Question # 13
Gratuity Approved by Central Board of Revenue is
Wholly exempt
Wholly taxable
Exempt up to Rs. 200,000
50% of amount receivable
Question # 11
Income of the recognized vocational institution is
Wholly taxable
Exempt
Exempt up to 50%
Partially taxable
Question # 8
Any Pakistan-source income which Pakistan is not permitted to tax under a tax
treaty
shall be _______.
Wholly Taxable
Wholly Exempt
Partly Exempt
Not mention in Ordinance
Question # 12
What is the tax treatment of income from the sale of Mudarba Certificates?
Wholly taxable
Wholly exempt
Partially taxable
Partially exempt
Question No: 41
What is the tax treatment of recognized Provident fund under section 2 (48) of part
I of sixth schedule?
Wholly exempt
Partially taxable
Wholly taxable
Partially exempt
Question No: 7
What is the tax treatment of support payment received by spouse made under the
agreement to live apart?
Wholly Taxable
Wholly Exempt
Partly Exempt
Not mention in Ordinance
Question No: 41
Which of the following is the Tax Treatment of utilities for the year 2009?
Wholly taxable
Wholly exempted
Question No: 10
What is the tax treatment of the leave encashment of the armed forces of Pakistan
on retirement made by the employer?
Wholly Taxable
Wholly exempt
Partly Taxable
Not mention in Income Tax Ordinance 2001
Question # 13
What is the tax treatment of the reimbursement of expenditure made by the employer?
Wholly Taxable
Wholly exempt
Partly Taxable
Question # 15
Income of a Text-Book Board is
Wholly taxable
Exempt
Exempt up to 50%
Question # 4
What is the tax treatment of the salary of an employee of foreign government but
citizen of Pakistan?
Exempt form tax
Wholly Taxable
Partly Taxable
No Tax treatment given in IT Ordinance 2001
Question # 10
Mr.John a non-resident received profit in Pakistan on a security issued by a
resident person, how the profit will be treated under sec (46) of IT Ordinance
2001?
Wholly Taxable
Wholly Exempt
Partly Exempt
Question # 8
Conveyance provided by employer for personal use of the employee is only taxed @ 5%
of the cost to the employer for acquiring the vehicle or the fair market value of
vehicle.
TRUE
FALSE
Question # 5
A cash amount paid by a person as donation shall be taken into account only if it
was paid by a crossed cheque drawn on a bank.
TRUE
FALSE
Question # 15
Tax year for the salaried individuals is called as Special Tax Year.
TRUE
FALSE
Question # 9
Payment of Zakat is entitled to a deductible allowance according to provisions of
sec.60.
TRUE
FALSE
Question # 7
Bonuses are fully taxable under Income Tax Ordinance 2001.
TRUE
FALSE
Question # 11
Tax rate for taxable income for the tax year 2010 exceeding Rs 550,000 up to Rs
650,000 is 6.0% as given in the first schedule of Income Tax Ordinance 2001.
TRUE
FALSE
Question # 7
Gratuity is only granted in case of retirement.
TRUE
FALSE
Question # 9
Gratuity is received by legal heirs, where employee dies before retirement the
gratuity would be exempted in the hands of legal heirs of the deceased.
TRUE
FALSE
Question # 13
Officer of Income Tax may grant approval to any gratuity fund.
TRUE
FALSE
Question # 14
Gratuity will be ignored while computing taxable income and tax liability of a
deceased person.
TRUE
FALSE
Question # 6
Any obligation of employee waived off by employer will not be added back to his
taxable income.
TRUE
FALSE
Question # 8
Government provident fund is
Totally taxable
Partially taxable
Totally exempt
Partially exempt
Question # 7
Unrecognized provident fund is
Totally taxable
Partially taxable
Totally exempt
Partially exempt
Question # 11
Pension received by a citizen of Pakistan is _____________from tax.
Partially taxable
Fully taxable
Taxable 25% of the pension received
Totally exempt
Question # 2
Pension is treated as
Totally taxable
Partially taxable
Totally exempt
Partially exempt
Question # 6
Pension granted to disabled is treated as
Totally taxable
Partially taxable
Totally exempt
Partially exempt
ATCH#5 11-01-2016 (10AM-12PM)

1-Fuscal Policy?
2- GDP is?
3- GDP more than?
4-Fiscal is about?
5-Balance of trade is?
6-Promissory note?
7-Interest rate generally follows?
8-Inflation is?
9-Current federal budget? Surplus, Deficit, Balance, None
10-CPEC is signed b/w?
11-Factorium?
12-Reggression?
13-Devaluation encourages?
14-Agriculture contribution to GDP?
15-Tax GDP ratio is more than?
16-One rupee note is signed by?
17-Mode? most often
18-ECC is?
19-SRO stands for? None
20-IRS?
21-IRIS
22-ShahidHussain task constituted?
23-ShahidHussain task making reforms in?
24-FBR stands?
25-FBR comes under? None
26-FBR replaced?
27-Taxes on goods are collected by?
28-Head of FBR?
29-Federal Revenue taxes are collected by?
30-Indirect taxes are?
31-RTO?
32-Head of RTO?
33-RTO collects?
34-Taxes laws passed by?
35-FBR collects more which tax?
36-TARP launched?
37-TARP stands?
38-TARP meant to?
39-CREST stands?
40-Federal Excise Act passed in which year?
41-Ammendment in Federal Excise by?
42-Federal Excise administered by?
43-Who could be special judge?
44-Who can trial offenses?
45-Sales tax paid on?
46-Sales Tax is paid?
47-Sales Tax return filed by?
48-Sales Tax passed in which year?
49-Invoice is issued by?
50-Input tax is paid on ?
51-Output tax is paid on?
52-GST?
53-VAT
exports > 15 Billion dollars

agri contribution to GDP >15%
service ---------------------> 50%
maximum taxes collected from Karachi
MFN status to India ---- NO
pakistan in to 10 milk producing countries
most electricity ---- hydel
TARP completed
WTO headquratter in Geneva
oil pricing in world decreasing
no current program with IMF
spent on TARD > 150 Million
minimum wage 14000
budget produced in parliament as - Bill
PRAL is subsidiary of FBR
Expedition refund program was reform product
STGO about sales tax
there is no excise duty on import
member of FBR report to Chairman
all goods are no exciseable
sales tax deposited by Seller
Input tax not on Sales
economic survey yearly
2015-16 collection by FBR
informal economy controlled by none of these
IMF advocates direct tax
head of FBR wing Member
tax rates changed through SRO
FED collected by both federal and provincial got
commissioner appeals appointed by FBR
commissioner can extend depositing / filing time for filer ..... yes /no.

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akistan Fiscal year starts from:

2. Which is provincial tax in Pakistan?

3. There is how many chapters included in Income Tax Ordinance?

4. There is how many schedules included in Income Tax Ordinance 2001?

5. There is how many sections included in Income Tax Ordinance 2001?

6. Corporate tax is levied on:

7. Central Excise Act, 1944 was repealed by

10. If we deduct direct tax from personal income, we get:

11. The largest part of national income is

12. We measure national income by this method:

13. The most important source of a government is:

14. In Pakistan, taxes are levied by:

15. Government finance is called

16. A direct tax is that which:

17. In Pakistan government budget is prepared by:

18. If government increases taxes, private savings:

19. Taxes on commodities are :

20. Govt. Prepared its budget:

21. It is direct tax:

23. Which is provincial tax in Pakistan?

25. Devaluation means

26. When the central Board of Revenue (CBR) was established?

27. What is the main function of money?

28. A direct tax is that which:

36. In Pakistan, income tax is collected by:

37. Sales tax in Pakistan is:

38. It is easy and convenient to pay:

39. It is difficult to evade:

41. Which is provincial tax in Pakistan?

42. What is benefit of tariffs?

43. Pakistan public debt is:

44. Pakistan fiscal year start from:

46. There are ___ director generals in FBR?

50. System of eTax in Pakistan was introduced in?

A- Which of these words is closest in meaning to the word provided?

(a) automatic (b) distant

(c) savage (d) mean

(a) argue (b) hate

(c) discover (d) reveal

(a) pretty (b) clever

(c) pleasant (d) present

(a) foretell (b) decide

(c) prevent (d) discover

(c) friend (d) relative

(a) reduce (b) need

(c) advance (d) want

(a) friendly (b) covert

(c) hidden (d) overt

(a) loving (b) insincere

(c) unhealthy (d) humorous

(a) hostile (b) biased

(c) dislike (d) worried

(a) clear (b) dim

(c) brittle (d) clever

C- Which is the correction option:-

11- Ali is afraid ___ spiders.

(a) from (b) in

(c) about (d) of

12- I am worried ______ the exam

(a) in (b) about

13- He looks upset, I think he took the criticism ____ heart.

(c) about (d) of

14- I am envious _____ them.