623FIN Taxation Management mcqs

623FIN taxation management Mcqs Page 01

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

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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

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following? Select correct option:



Income from sale of wild grass



Income from fisheries



Royalty income of mines



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



Wholly Taxable

.

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

Wholly Exempt



Partly Exempt



Not mention in Ordinance Take MCQ 4-However its most of the branches are operated out of

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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

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for which of the following? Select correct option:



Reduction in tax liability



Reduction in tax rate



Reduction in taxable Income



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

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increases?



Proportional tax



Progressive tax



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

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permitted to tax under a tax treatyshall be 

Wholly Taxable



Wholly Exempt



Partly Exempt



Not mention in Ordinance Take MCQ 8-Which of the following methods of accounting is

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compulsory to adopt for Sole- proprietorship?



Accrual Basis



Cash Basis



Free to choose any kind of base Take MCQ 9-Which one of the following is the general meaning of Tax?

seeart



Relax



Lighte



n Reli



eve



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

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tax is charged? 

Gross Receipt



Total Income



Taxable Income



Gross Income Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 02

Question

Added By

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

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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

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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

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Exemptions and Tax Concessions?



Part IV



Part V



Part VI



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



Dividend paid by a company out of its agriculture

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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

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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

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the following measures? 

Formulation and administration of fiscal policies



Levy and collection of federal taxes



Quasi-judicial function of hearing of appeals



All of the given options Take MCQ 17-Tribunal established under section 130” In which criteria the above definition falls?

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

Exclusive definition



Inclusive definition



Both Exclusive and Inclusive definitions



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

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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

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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?

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 

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 Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 03

Question

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

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

Taxes



Deficit Financing



Subsidies



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



3



6



12



18

months arbitrarily

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Take MCQ 23-expenses incurred in providing common benefits upon

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the residents?



Fee



Taxes



Charges



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

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Exemptions and Tax Concessions?



Part IV



Part V



Part VI



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



Monetary policy



Fiscal policy



Trade Policy

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

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

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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

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following?



Lower Bracket rate of tax is charged



Higher Bracket rate of tax is charged



Moderate Bracket rate of tax is charged



No change occur due to clubbing Take MCQ 28-________ are allowable deductions in case if the tax payer is running a business.



Salaries paid

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

Purchases



Office expenditures



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

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of foreign government but citizen of Pakistan?



Exempt from tax



Wholly Taxable



Partly Taxable



No Tax treatment given in IT Ordinance 2001 Take MCQ 30-Which one of the following is the main objective of Fiscal

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Polic y? 

Economic Development



Price stability



Removal of deficit in Balance of Payment



All of the given options Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 04

Question

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

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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

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of accounts on which of the following methods?



Cash basis



Accrual basis



Both cash and accrual basis



Free to choose any kind of base Take MCQ 33-Non-Agricultural income includes which one of the following?



Income from sale of wild grass

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







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

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calculating tax on income? 

Taxable Income



Residential Status



Tax Year



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



Wholly Taxable



Partly Exempt



Not mention in Ordinance

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.

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

Gross Receipt



Total Income

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

Taxable Income



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

 

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Gross income from business Income computed in line with provisions of Ordinance (not sure)






Basic salary excluding allowances of a salaried person Take MCQ months arbitrarily chosen

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

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38-The Fiscal year is a period of for tax purposes 

3



6



12



18 Take MCQ

Bonds purchased by the non resident person before December 1999 under clause 82 of the Second Schedule? 

Wholly taxable



Wholly exempt



Partly taxable



Not mention in second schedule (not sure) Take MCQ 40-What is the residential status of Provincial Government

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of Pakistan?



Resident Individual



Resident Company



Resident AOP



Resident HUF Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 05

Question

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

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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

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for which of the following? 




Reduction in tax rate



Reduction in taxable Income



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

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of Individual? 

Section 80



Section 81



Section 82



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



2.5%

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

5.5%



7.5%



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

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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

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Pakistan? 

Resident Person



Resident Company



Resident AOP



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

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Joseph?



Resident Individual



Non- Resident Individual



Resident HUF



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

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to 60years which of the following finance act substituted 65 to 60years? 

Finance Act 2005



Finance Act 2006



Finance Act 2007



Finance Act 2008 Take MCQ 49-Which of the following section deals with the residential status of Association of Person?



Section 81



Section 82



Section 83



Section 84 Take MCQ

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

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for the computation of residential status of an individual? Select correct option:



A Public Holiday



A day of sick leave



Any strike



None of the given options Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 06

Question

Added By

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

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income not exceeding _ tax liability reduced by 50% under Part 3 of second schedule. 

Rs. 200,000



Rs. 300,000



Rs. 400,000



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

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tax into the tax year: 

2009



2006



2007



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

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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 2001 deals with perquisites of Income from Salary and its treatment?



Section 11



Section 13



Section 14



Section 12

VUStudent

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

Special Tax Year



Normal Tax Year



Fiscal Year



Financial Year

VUStudent

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

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ordinance is categorized in: 

Inclusive Definition



Exclusive Definition



Both Inclusive and Exclusive



None of the given options Take MCQ 57-Any business carried by Non-resident person in Pakistan through permanent establishment (PE) the general and admin expenditure incurred. What will be the tax treatment of such expenditure?



Exempt from tax due to non-resident



Wholly taxable due to PE



Allowed as deduction from the income of Nonresident

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

None of the given options Take MCQ 58-Any gain arising on the disposal of shares in a non-

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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

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must be satisfied? 

Control and management of affairs of AOP is situated partly in Pakistan



Control and management of affairs of AOP is situated wholly in Pakistan



Control and management of affairs of AOP is situated wholly or partly in Pakistan



None of the given options Take MCQ 60-M/s ABC & Co. has been incorporated under Pakistan Companies Ordinance 1984. However 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.?

VUStudent



Resident Company CORRECT



Non-Resident Company



Resident Individual



Resident AOP Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 07

Question

Added By

61-Which of the following section deals with the residential

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status of Company? 

Section 81



Section 82



Section 83



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



Reduction in total taxable income

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

None of the given options






Reduction in tax rate Take MCQ 63-What is the tax treatment of Donation to the President’s

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Relief Fund for Earthquake Victims 2005? 

Wholly Taxable



Wholly Exempt



Partly Exempt



Not mention in Ordinance Take MCQ 64-Land revenue rent (Lagan) is received by which of the

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following authority? 

High Court



Supreme Court



Income Tax Department



Provincial Government Take MCQ 65-Suppose a Profit acquired by a cultivator from the sale of standing crops or the produce after harvesting. The profit of the cultivator will be treated in which of the following way?

VUStudent



Income from Business



Agriculture Income



Income from Property



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

VUStudent

purposes then which of the following factor make distinction between agriculture and non-Agriculture Income? 

Nationality of Pakistan



Quantity of the product



Time period



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

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as: 

Perquisites



Exemptions



Allowances



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

VUStudent

December 2005. What will be its tax year? 

Tax year 2003



Tax year 2004



Tax year 2005



Tax year 2006 Take MCQ 69-Which of the following is the Special Accounting Year of

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Insurance Companies? 










1st September to 31st August Take MCQ 70-Section 2(5A) of Income Tax Ordinance 2001 defined: “assessment year” means assessment year as defined in the repealed Ordinance. In which criteria the above definition falls?












Statutory definition Take MCQ

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Page 08

Question

Added By

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

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following authorities? 

Parliament



Supreme Court



High Court



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

VUStudent

Ordinance 2001 vested the powers to CBR in order to formulate the IT rule 2002? 

Section 206



Section 213



Section 237



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



Sales Tax



Income Tax

VUStudent



Inheritance Tax



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

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manages its business in such a way so as to maximize the utilization of which of the following? 

All of the given options



Tax holidays



Exemption, Rebates & Concession



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

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there should not be any arbitrariness or ambiguity in respect of amount of tax paid? 

Capacity to Pay



Simplicity



Certainty



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

VUStudent



Monetary policy



Fiscal policy



Trade Policy



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

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permanent establishment as per section 105?



Both are separate legal entity



Both are dependent on each other






Both have same legal entity Take MCQ 78-What is the relation between the Non-resident and

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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. Amir resident of Pakistan. Which section of the income tax

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ordinance explains his tax treatment of such salary? 

Section 110



Section 101



Section 102



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

VUStudent

His salary will be included in which of the following? 

Pakistan source income



Foreign source income



Both Pakistan and foreign source income



None of the given options Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 09

Question

Added By

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

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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

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person under the income tax ordinance 2001? 

Pakistani source of income









None of the given option Take MCQ 83-Which of the following days shall be counted as whole

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day for the computation of residential status of an individual? 

A public holiday



A day of sick leave



Any strike day



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



Wholly Taxable



Wholly Exempt

VUStudent



Partly Exempt



None of the given options Take MCQ 85-Income of Federal Government exempt from tax under

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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

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of foreign government but citizen of Pakistan? 

Exempt form tax



Wholly Taxable



Partly Taxable



No Tax treatment given in IT Ordinance 2001 Take MCQ 87-Which of the following is similar to the concept of club of Incomes?



Unification only two heads of Income



Association of two or more heads of Income

VUStudent



Splitting up of only two heads of Income



Division of two or more than two heads of income Take MCQ 88-Which of the following incomes are treated as

VUStudent

agriculture income? 

Spontaneous forests



Agro based industry



Interest received by a farmer on lending



Income from land in Pakistan used for agriculture Take MCQ 89-Sources of Income are classified into _____ heads of

VUStudent

income. 

3



4



5



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



Perquisites



Exemptions

VUStudent



Allowances



Deductions Take MCQ Page 10

Question

Added By

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

VUStudent



Salaried Person



LESCO






WAPDA

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







1st September to 31st August




VUStudent

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

VUStudent



Economic



Fiscal



Economy



Monetary

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

Appellate Tribunal 2(2)



Business 2(9)



Association of Person 2(6)



Debt 2(15)

VUStudent

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

Punctuation marks



CBR’s circulars



Definitions in other statutes



Departmental manuals

VUStudent

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

City Court

VUStudent



Supreme Court



High Court



Both supreme and High court

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

Parliament



Supreme Court



High Court



City Court

VUStudent

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

340 sections



440 sections



140 sections



240 sections

VUStudent

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

Economic Development

VUStudent



Price stability



Removal of deficit in Balance of Payments




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

Entitlement of Counter benefit



Imposing authority



Mode of payment



Applied Rates

VUStudent

Take MCQ Page 11

Question

Added By

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

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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

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received Rs. 10,000 in Pakistan from past profits. Which of the following is right for the above scenario? 

Mr. X being resident of Pakistan Rs. 10,000 will be added in Gross total income



Mr. X being resident of Pakistan Rs. 10,000 will be Subtracted in Gross total income



Mr. X being non-resident of Pakistan Rs. 10,000 will be added in Grosstotal income



Remittance is not income hence it is not included Take MCQ 104-Mr. A non-resident of Pakistan received interest on Australian Bonds Rs. 100,000 (half amount received in Pakistan). What is the

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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

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

Employment



Employer



Employee



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



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



The salaried paid to them subtracted in the salary of MR. Ali

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

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

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deductions are allowed: 

Salary Income









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

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but treated as appropriation of profit and charged under the head: 

Income from Salary









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



Both have same legal entity

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







None of the given options Take MCQ 110-Which of the following come under the ambit of

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Royalty under section 2 (54)? 

Right to use any patent



Copy right of a literary



Right to use any industrial or scientific equipment



All of the given options Take MCQ Page 12

Question

Added By

111-____________ means a fixed place of business

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through which the business of an enterprise is wholly or partly carried on. 

Permanent establishment



Small Business Units SBU



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

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










None of the given option Take MCQ *113-Which part of income is charged to tax of non-

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resident person under the income tax ordinance 2001? 










None of the given option Take MCQ 114-Which part of income is charged to tax of resident

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person under the income tax ordinance 2001? 










None of the given option Take MCQ 115-M/s ABC & Co. has been incorporated under Pakistan Companies Ordinance 1984.

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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

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total taxable income is Rs.400,000. His tax liability will be reduced by ______ under Part 3 of second schedule. 

10%



25%



50%



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



Nationality of Pakistan

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

Quantity of the product



Time period



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

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income? 

Golden hand shake






Loan through cross cheque



Gifts through proper transaction Take MCQ 119-Question No: 11 ( Marks: 1 ) - Please choose one

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Which of the following is the legal status of Mr. Z, a Director in Private Company under section 80 of the Income tax ordinance 2001? 

Individual



Company



Firm



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

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

Company



Association of Persons



Hindu Undivided Family Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 13

Question

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121-Under which of the following conditions a tax payer

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can adopt a special tax year? 

Whenever he decides so



After seeking approval from Tax Office

 

After seeking approval from Commissioner of income tax After seeking approval from High Court Take MCQ 122-Which one of the following is the Internal aid and help in the interpretation of



Punctuation marks



CBR’s circulars






Departmental manuals

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

Section 206



Section 213



Section 237



Section 238

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

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Ordinance 2001? 

Three Schedule



Fifth Schedule



Seven Schedules



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



Social Security Tax



Federal Excise Tax



Federal unemployment compensation tax



State unemployment compensation tax

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

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retailers. 

Income Tax



Value Added Tax



Capital Value Tax



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

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generation of the state? 

Taxes & Tariffs



Internal Borrowing



External Borrowing



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

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meanings of Tax? 

Burden



Strain



Load



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

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










None of the given option Take MCQ 130-Which of the following section deals with the

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residential status of Company? 

Section 81



Section 82



Section 83



Section 84 Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 14

Question

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131-What is the tax treatment of any profit on the US

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Dollar Bonds purchased by the resident person after December 1999 under Second Schedule? 

Wholly exempt



Wholly taxable



Tax @10% of profit paid



Not mention in second schedule Take MCQ 132-Rate charged under presumptive tax regime to non

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resident shipping firm 8% on its gross receipt is quite low as compare to other business. This is an example of which type of tax concession? 

Reduction in total taxable income









Reduction in tax rate Take MCQ 133-Any salary received by an employee of a foreign

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government for services rendered to such government shall be exempt from tax under which section of IT Ordinance 2001? 

Section 40



Section 43



Section 47



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

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the following? 

Lower Bracket rate of tax is charged



Higher Bracket rate of tax is charged



Moderate Bracket rate of tax is charged



No change occur due to clubbing Take MCQ 135-Which of the following methods of accounting is

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compulsory to adopt for Firm? 

Accrual Basis



Cash Basis



Both Accrual and Cash Basis



Free to choose any kind of base Take MCQ 136-Which of the following is NOT an example of Lump

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sum receipt? 

Pension



Golden shake hand



Provident fund



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

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

Income of the current tax year



Income of the previous year



Income of the coming year



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

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income? 




Gifts through proper transaction



Golden hand shake



All of the given options Take MCQ 139-Which of the following is the example of deemed

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income? 

Cash Gift






Salary



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

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

Individual



Company



Banking Company



Hindu Undivided Family Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

Page 15

Question

Added By

141-The _____ year is a period of twelve months

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arbitrarily chosen for tax purposes. 

Economic



Fiscal



Economy



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




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







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

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the word is termed as which of the following? 







Statutory definition



Both Exclusive definition and Inclusive definitions Take MCQ 144-Commissioner” means a person appointed as a

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Commissioner of Income Tax under section 208, and includes a taxation officer vested with all or any of the powers, and functions of the Commissioner; In which criteria the above definition falls? 










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

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in the repealed Ordinance. In which criteria the above definition falls? 










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

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in the interpretation of law? 

Punctuation marks



CBR’s circulars






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

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following authorities? 

Parliament



Supreme Court



High Court



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

VUStudent



Persons deriving more income leads to enjoy less benefits from the state, should be taxed at the lower rates.



Persons deriving more income leads to enjoy less benefits from the state, should be taxed at the higher rates.



Persons deriving less income leads to enjoy more benefits from the state, should be taxed at the lower rates.



All persons deriving more or less income should be taxed at the same rates. Take MCQ 149-GP fund available in the Government Organization is

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also called: 

Statutory Provident Fund



Recognized Provident



Unrecognized Provident Fund



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



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



/2 of the rent is deduct able as repairs allowance

 

1 /5 of the rent is deduct able as repairs allowance No deduction is allowed

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Take MCQ

Page 16

Question

Added By

151-If income of an individual received under the head

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

Rs. 23,500



Rs. 47,000



Rs. 70,500



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

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commonly referred as: 

NTN



NIC



CNIC



None of the given option Take MCQ 153-_____________ on account of cancellation of sale agreement of building shall be treated as rental income and fully taxable.



Fair market rent

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

Forfeited amount



Rent collection charges



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



Finance Act 2006



Insurance Act 1969



Provident Funds Act 1925



Finance Bill 2007

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Take MCQ 155-Which of the followings are admissible deductions

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available before tax year 2007? 

Allowance for Repair



Property tax.



Unpaid rent (irrecoverable rent)



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



Finance Ordinance, 2004

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

Finance Ordinance, 2005



Finance Act, 2006



Finance Act, 2007 Take MCQ 157-A Provident Fund recognized by the commissioner in

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accordance with Part I of Sixth Schedule is called: 

Statutory Provident Fund



Recognized Provident Fund



Unrecognized Provident Fund



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

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then his tax liability is: 

Rs. 254,352



Rs. 211,960



Rs. 181,680



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

 

Gross income from business Income computed in line with provisions of Ordinance

VUStudent






Basic salary excluding allowances of a salaried person Take MCQ 160-Which of the following is the legal status of Al-Habib

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Bank limited under section 80 of the ordinance? 

Individual



Banking Company



Hindu Undivided Family



Firm Take MCQ

Page 17

Question

Added By

161-Special tax year is adopted after seeking approval

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from the ____________ under section 74(3). 

Commissioner



Tax Officer



Appellate Tribunal



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

VUStudent












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

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interpretation of tax laws? 

Preamble



Title of a chapter



Non-Obstinate clause



Finance Ministerâ€™s budget speech Take MCQ 164-The Chairman of CBR has the responsibility for which

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of the following measures? 

Formulation and administration of fiscal policy



Levy and collection of federal taxes



Quasi-judicial function of hearing of appeals



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

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

Proportional tax



Progressive tax



Regressive tax



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

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

Simplicity



Convenience



Certainty



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



Taxes



Deficit Financing



Subsidies



Transfer Payments

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

Imposing authority

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

Applied Rates



Entitlement of Counter benefit



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

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that: 

Derive more income but enjoy less benefits from the state should be taxed at the lower rates



Derive more income but enjoy less benefits from the state should be taxed at the higher rates



Those persons who derives less income but more benefits from State should be taxed at lower rates



None of the given options Take MCQ 170-Which of the following deductions allowed in computing the income of a permanent establishment in Pakistan of a non-resident person chargeable under the head 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

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Page 18

Question

Added By

171-Any foreign-source salary received by a resident

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individual shall: 

be exempt from tax if the individual has paid foreign income tax



be exempt from tax if the individual has not paid foreign income tax



Not be exempted from tax in any case



Always be Exempt from tax in all cases Take MCQ 172-_____________ is the payment to the holder for the

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right to use property such as a patent, copyrighted material, or natural resources. 

Permanent Establishment



Royalty



Dividend



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



Wholly

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

Partly



Both Wholly & Partly



None of the given options Take MCQ 174-Which of the following is not a geographical source of

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income? 

Salary paid by the Federal Government



A dividend paid by a resident company

 

Business income derived from any business carried on in Pakistan None of the given options Take MCQ 175-According to Theory of Control and Management, a

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resident company must have: 

Its incorporation in Pakistan



Its Registered Office in Pakistan



Its most of the branch lies in Pakistan



Its Control and Management of affairs lies in Pakistan Take MCQ 176-For the calculation of the period of stayed in Pakistan, which of the following days are considered as full day?

VUStudent



Day of departure



Day of arrival



A Public Holiday



All of the given options Take MCQ 177-An individual shall be a resident individual for a tax

VUStudent

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

143 Days



153 Days



173 Days



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



Corporation tax



Property tax



Sales Tax



Excise Take MCQ Design & Developed By Defox Technologies Copyright © 2016 VUSR. All Rights Reserved

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623FIN Taxation Management mcqs

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