623FIN Taxation Management Mcqs

623FIN taxation management
Mcqs
Page 01
Added By
1-What is the tax treatment of the salary of an employee
seeart
of foreign government but citizen of Pakistan?
Exempt from tax
Wholly Taxable
Partly Taxable
Take MCQ
2-Non-Agricultural income includes which one of the
seeart
following?
Select correct option:
Income from sale of wild grass
Income from fisheries
Royalty income of mines
All of the given options

Take MCQ
3-(1) page 22Any Pakistan-source income which Pakistan
is not permitted to tax under a tax treaty shall be
Wholly Taxable
seeart
Wholly Exempt
Partly Exempt
Not mention in Ordinance

Take MCQ
4-However its most of the branches are operated out of
seeart
Pakistan? What will be the residential status of M/s ABC &

Co.?
Resident Company
Non- Resident Company
Resident Individual
Resident AOP
Take MCQ
5-In Income Tax Ordinance 2001 tax concessions meant
seeart
for which of the following? Select correct option:
Reduction in tax liability
Reduction in tax rate
Reduction in taxable Income

Take MCQ
6-Which of the following is the tax where the tax rate
remained fixed to the amount on which the rate is applied
seeart
increases?
Proportional tax
Progressive tax
Corporate tax
Take MCQ
7-Any Pakistan-source income which Pakistan is not
seeart
permitted to tax under a tax treatyshall be
Wholly Taxable
Wholly Exempt
Partly Exempt

Take MCQ
8-Which of the following methods of accounting is
seeart
compulsory to adopt for Sole- proprietorship?
Accrual Basis
Cash Basis
Free to choose any kind of base

Take MCQ
9-Which one of the following is the general meaning of
Tax?
seeart
Relax
Lighte
n Reli
eve
Fatigue
Take MCQ
10-In the normal circumstances on which of the following
seeart
tax is charged?
Gross Receipt
Total Income
Taxable Income
Gross Income
Take MCQ
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Page 02
Question
Added By
11-Which of the following is the Special Accounting Year of
seeart
Companies exporting rice?
1st January to 31st December
1st July to 30th June
1st October to 30th September
1st September to 31st August

Take MCQ
12-Which one of the following canons of taxation suggests
seeart
easiness in time of payment and mode of collection of tax?
Simplicity
Convenience
Certainty
Capacity to
Pay
Take MCQ
13-Which part of Income Tax Ordinance 2001 deals with the
seeart
Exemptions and Tax

Concessions?
Part IV
Part V
Part VI
Part VII
Take MCQ
14-Agricultural income includes which one of the following?
Dividend paid by a company out of its agriculture
seeart
income
Share of profit of a partner from a firm engaged

in agricultural
Take MCQ
15-designed in such a way to boost business atmosphere
seeart
and the investment environment in the country?
Convenience
Judicious
Capacity to Pay
Business friendly
Take MCQ
16-The Chairman of CBR has the responsibility for which of
seeart
the following measures?
Formulation and administration of fiscal policies
Levy and collection of federal taxes
Quasi-judicial function of hearing of appeals

Take MCQ
17-Tribunal established under section 130 In which criteria
the above definition falls?
seeart
Exclusive definition
Inclusive definition
Both Exclusive and Inclusive definitions
Statutory definition
Take MCQ
18-Agricultural income does NOT include which one of the
seeart
following?
Rent or Revenue derived by a person from land
Income derived from land situated in Pakistan
The land is used for agricultural purposes
Income from spontaneous forest

Take MCQ
19-A firm ABC maintaining its account in cash basis, at June
seeart
27, 2008 it is entitled to receive Rs. 10,000 but actual

payments made at 01 August 2008. In which year it is
charged to tax?
2006
2007
2008
2009
Take MCQ
20-Which of the following income is chargeable to tax?
seeart
Gross income from business

Income computed in line with provisions of
Ordinance
Only basic salary of salaried person
Basic salary excluding allowances of a salaried person

Take MCQ
Page 03
Question
Added By
21-Which of the following is the main tool of Fiscal Policy?
seeart
Taxes
Deficit Financing
Subsidies
Transfer Payments
Take MCQ
22-The Fiscal year is a period of
chosen for tax purposes.
12
18
months arbitrarily
seeart
Take MCQ
23-expenses incurred in providing common benefits upon
seeart
the residents?
Fee
Taxes
Charges
Penalties
Take MCQ
24-Which part of Income Tax Ordinance 2001 deals with the
seeart
Exemptions and Tax Concessions?
Part IV
Part V
Part VI
Part VII
Take MCQ
25-Taxes are important instrument of which of the following
policy?
Monetary policy
Fiscal policy
Trade Policy
seeart
Economic Policy
Take MCQ
26-Which of the following tax is paid from money you
seeart
received from someone who has died?
Income tax
Inheritance tax
Property tax
Sales tax
Take MCQ
27-The process of clubbing of income results in which of the
seeart
following?
Lower Bracket rate of tax is charged
Higher Bracket rate of tax is charged
Moderate Bracket rate of tax is charged
No change occur due to clubbing

Take MCQ
28-________ are allowable deductions in case if the tax
payer is running a business.
Salaries paid
seeart
Purchases
Office expenditures

Take MCQ
seeart
Exempt from tax
Wholly Taxable
Partly Taxable
No Tax treatment given in IT Ordinance 2001

Take MCQ
30-Which one of the following is the main objective of Fiscal
seeart
Polic y?
Economic Development
Price stability
Removal of deficit in Balance of Payment

Take MCQ
Page 04
Question
Added By
31-Expenses entitled to be paid by a Company, then entry
seeart
of such expenses will be made in the books of accounts if:
Company maintaining its books of account on Cash

basis
Company maintaining its books of account on Accrual

basis
Company maintaining its books of account on

Both Accrual and Cash basis
None of the given options
Take MCQ
32-It is mandatory for each Company to maintain its books
seeart
of accounts on which of the following methods?
Cash basis
Accrual basis
Both cash and accrual basis

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

Take MCQ
34-Which of the following is the important content for
seeart
calculating tax on income?
Taxable Income
Residential Status
Tax Year

Take MCQ
35-(1) page 22Any Pakistan-source income which Pakistan
is not permitted to tax under a tax treaty shall be
Wholly Taxable
Partly Exempt
seeart
Take MCQ
36-In the normal circumstances on which of the following
tax is charged?
Gross Receipt
Total Income
seeart
Taxable Income
Gross Income
Take MCQ
seeart

Ordinance (not sure)

Take MCQ
months arbitrarily chosen
seeart
39-What is the tax treatment of any profit on the US Dollar
seeart
38-The Fiscal year is a period of

for tax purposes
12
18
Take MCQ
Bonds purchased by the non resident person before

December 1999 under clause 82 of the Second Schedule?
Wholly taxable
Wholly exempt
Partly taxable
Not mention in second schedule (not sure)

Take MCQ
40-What is the residential status of Provincial Government
seeart
of Pakistan?
Resident Individual
Resident Company
Resident AOP
Resident HUF
Take MCQ
Page 05
Question
Added By
41-M/s ABC & Co. has been incorporated under Pakistan
seeart
Companies Ordinance 1984.

However its most of the branches are operated out of
Pakistan? What will be the residential status of M/s ABC &
Co.?
Resident Company
Non- Resident Company
Resident Individual
Resident AOP
Take MCQ
42-In Income Tax Ordinance 2001 tax concessions meant
seeart
for which of the following?
Reduction in taxable Income

Take MCQ
43-of the following section deals with the residential status
seeart
of Individual?
Section 80
Section 81
Section 82
Section 83
Take MCQ
44-Any amount received under Part 3 of Second Schedule,
as flying allowance by pilots etc and junior commissioned
officers or other ranks shall be taxed at the rate of as
separate block.
2.5%
seeart
5.5%
7.5%
9.5%
Take MCQ
45-Mr. Kishan Kumar during his yearly tour in Pakistan
seeart
spends 156 working days, 26 off- working days and 1 Public

Holiday in a tax year 2009-2010? Which of the following is
his residential status?
Resident Individual
Non Resident Individual
Resident Person
Resident HUF
Take MCQ
46-What is the residential status of Federal Government of
seeart
Pakistan?
Resident Person
Resident Company
Resident AOP
Resident HUF
Take MCQ
47-Mr. Joseph is an employee of Foreign Government
posted in Pakistan? What will be the residential status of Mr.
seeart
Joseph?
Resident Individual
Non- Resident Individual
Resident HUF
Resident AOP
Take MCQ
48-The age of senior citizen was 65years and now amended
seeart
to 60years which of the

following finance act substituted 65 to 60years?
Finance Act 2005
Finance Act 2006
Finance Act 2007
Finance Act 2008

Take MCQ
49-Which of the following section deals with the residential
status of Association of Person?
Section 81
Section 82
Section 83
Section 84
Take MCQ
seeart
50-Which of the following days shall be counted as half day
seeart
for the computation of residential status of an individual?

Select correct option:
A Public Holiday
A day of sick leave
Any strike

Take MCQ
Page 06
Question
Added By
51-Senior citizen-age 60 years & above where taxable
seeart
income not exceeding _ tax liability reduced by 50% under

Part 3 of second schedule.
Rs. 200,000
Rs. 300,000
Rs. 400,000
Rs. 1,000,000
Take MCQ
52-A firm ABC maintaining its account in accrual basis, at
June 27, 2008 it is entitled to receive Rs. 10,000 but actual
payments made at 01 August 2008. It would be charge to
VUStudent
tax into the tax year:
2009
2006
2007
2008
Take MCQ
VUStudent
spends 155 working days, 26 off-working days 1 strike day

and
1 Public Holiday in a tax year 2008-09? What will be the
status of the individual?
Resident Individual
Resident Person
Resident HUF
Take MCQ
54-Which of the following section of Income Tax Ordinance
2001 deals with perquisites of Income from Salary and its
treatment?
Section 11
Section 13
Section 14
Section 12
VUStudent
Take MCQ
55-Tax year for the salaried individuals is called as:
Special Tax Year
Normal Tax Year
Fiscal Year
Financial Year
VUStudent
Take MCQ
56-The definition of Employment under Sec. 2(22) of the
VUStudent
ordinance is categorized in:
Inclusive Definition
Exclusive Definition
Both Inclusive and Exclusive

Take MCQ
57-Any business carried by Non-resident person in
Pakistan through permanent establishment (PE) the
general and
admin expenditure incurred. What will be the tax treatment
of such expenditure?
Exempt from tax due to non-resident
Wholly taxable due to PE
Allowed as deduction from the income of Nonresident
VUStudent

Take MCQ
58-Any gain arising on the disposal of shares in a non-
VUStudent
resident company belongs to which of the following?
Pakistan- source income
Foreign source of income
Both Pakistan and foreign source of income
None of the given option

Take MCQ
59-For a resident AOP which of the following condition
VUStudent
must be satisfied?
Control and management of affairs of AOP is situated

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

wholly in Pakistan
Control and management of affairs of AOP is

situated wholly or partly in Pakistan

Take MCQ
Companies Ordinance 1984. However its most of the
branched and control and management of affairs wholly
situated out of Pakistan? What will be the residential status
of M/s ABC & Co.?
VUStudent
Resident Company CORRECT
Non-Resident Company
Resident Individual
Resident AOP
Take MCQ
Page 07
Question
Added By
61-Which of the following section deals with the residential
VUStudent
status of Company?
Section 81
Section 82
Section 83
Section 84
Take MCQ
62-Rate charged under presumptive tax regime to non
resident shipping firm 8% on its gross receipt is quite low
as
compare to other business. This is an example of which
type of tax concession?
Reduction in total taxable income
VUStudent

Take MCQ
63-What is the tax treatment of Donation to the Presidents
VUStudent
Relief Fund for Earthquake Victims 2005?
Wholly Taxable
Wholly Exempt
Partly Exempt

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64-Land revenue rent (Lagan) is received by which of the
VUStudent
following authority?
High Court
Supreme Court
Income Tax Department
Provincial Government
Take MCQ
65-Suppose a Profit acquired by a cultivator from the sale
of standing crops or the produce after harvesting.
The profit of the cultivator will be treated in which of the
following way?
VUStudent
Income from Business
Agriculture Income
Income from Property
Capital Gain
Take MCQ
66-If the land situated in Pakistan and used for agriculture
VUStudent
purposes then which of the following factor make

distinction
between agriculture and non-Agriculture Income?
Nationality of Pakistan
Quantity of the product
Time period
Human effort
Take MCQ
67-Certain incomes those are excluded from tax are called
VUStudent
as:
Perquisites
Exemptions
Allowances
Deductions
Take MCQ
68-If the accounting year of Mr. Aslam, a rice exporter is
started from 01 January 2005 and ending on 31st
VUStudent
December
2005. What will be its tax year?
Tax year 2003
Tax year 2004
Tax year 2005
Tax year 2006

Take MCQ
69-Which of the following is the Special Accounting Year of
VUStudent
Insurance Companies?

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?
Take MCQ
VUStudent

Page 08
Question
Added By
71-Law making is the prime responsibility of which of the
VUStudent
following authorities?
Parliament
Supreme Court
High Court
City Court
Take MCQ
72-Under which of the following sections of Income Tax
VUStudent
Ordinance 2001 vested the powers to CBR in order to

formulate the IT rule 2002?
Section 206
Section 213
Section 237
Section 238
Take MCQ
73-Which of the following tax is paid in relation to how
much you earn?
Sales Tax
Income Tax
VUStudent
Inheritance Tax
Value added Tax

Take MCQ
74-Taxation management is a strategy where by a person
VUStudent
manages its business in such a way so as to maximize the

utilization of which of the following?
Tax holidays
Exemption, Rebates & Concession
Tax credits
Take MCQ
75-Which of the following canon of taxation suggests that
VUStudent
there should not be any arbitrariness or ambiguity in

respect
of amount of tax paid?
Capacity to Pay
Simplicity
Certainty
Convenience
Take MCQ
76-Taxes are important instrument of which one of the
following policy?
VUStudent
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
Take MCQ
77-What is the relation between the Non-resident and
VUStudent
permanent establishment as per section 105?
Both are separate legal entity
Both are dependent on each other
Both have same legal entity

Take MCQ
VUStudent
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
VUStudent
ordinance explains his tax treatment of such salary?
Section 110
Section 101
Section 102
Section 50
Take MCQ
80-Mr. Khan resident of Pakistan received salary from UK?
VUStudent
His salary will be included in which of the following?
Pakistan source income
Foreign source income
Both Pakistan and foreign source income

Take MCQ
Page 09
Question
Added By
81-What will be the tax treatment of foreign source salary
VUStudent
received by a resident person?
Wholly taxable
Partly Taxable
Wholly exempt
Wholly exempt only if resident paid foreign tax on his
salary
Take MCQ
82-Which part of income is charged to tax of resident
VUStudent
person under the income tax ordinance 2001?
Pakistani source of income

Take MCQ
83-Which of the following days shall be counted as whole
VUStudent
day for the computation of residential status of an

individual?
A public holiday
A day of sick leave
Any strike day

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

Take MCQ
85-Income of Federal Government exempt from tax under
VUStudent
which of the following section of IT Ordinance 2001?
Section 41
Section 43
Section 47
Section 49
Take MCQ
VUStudent
Exempt form tax
Wholly Taxable
Partly Taxable
No Tax treatment given in IT Ordinance 2001

Take MCQ
87-Which of the following is similar to the concept of club
of Incomes?
Unification only two heads of Income
Association of two or more heads of Income
VUStudent
Splitting up of only two heads of Income
Division of two or more than two heads of income

Take MCQ
88-Which of the following incomes are treated as
VUStudent
agriculture income?
Spontaneous forests
Agro based industry
Interest received by a farmer on lending
Income from land in Pakistan used for

agriculture
Take MCQ
89-Sources of Income are classified into _____ heads of
VUStudent
income.
6
Take MCQ
90-Certain incomes those are excluded from tax are called
as:
Perquisites
Exemptions
VUStudent
Allowances
Deductions
Take MCQ
Page 10
Question
Added By
91-Which one of the following is the example of tax payer?
VUStudent
Salaried Person
LESCO
WAPDA
Take MCQ
92-Which of the following is the Special Accounting Year of Sugar
Companies?
VUStudent
Take MCQ
93-The _____ year is a period of twelve months arbitrarily chosen
for tax purposes.
VUStudent
Economic
Fiscal
Economy
Monetary
Take MCQ
94-Which of the following is the example of inclusive definitions?
Appellate Tribunal 2(2)
Business 2(9)
Association of Person 2(6)
Debt 2(15)
VUStudent
Take MCQ
95-Which one of the following is the Internal aid and help in the
interpretation of law?
Punctuation marks
CBRs circulars
Definitions in other statutes
Departmental manuals
VUStudent
Take MCQ
96-Superior judiciary includes which of the following authorities?
City Court
VUStudent
Supreme Court
High Court
Both supreme and High court
Take MCQ
97-Law making is the prime responsibility of which of the following
authorities?
Parliament
Supreme Court
High Court
City Court
VUStudent
Take MCQ
98-How many Sections are included in the Income Tax Ordinance
2001?
340 sections
440 sections
140 sections
240 sections
VUStudent
Take MCQ
99-Which of the following is the main objective of Fiscal Policy?
Economic Development
VUStudent
Price stability
Removal of deficit in Balance of Payments
Take MCQ
100-Which one of the following is main difference between the tax
and fee?
Entitlement of Counter benefit
Imposing authority
Mode of payment
Applied Rates
VUStudent
Take MCQ
Page 11
Question
Added By
101-Mr. Zeeshan during his yearly tour in Pakistan spends
VUStudent
180 working days and in a

tax year 2008-09? What will be the status of individual?
Resident Individual
Non-Resident Individual
Resident Person
Resident HUF
Take MCQ
VUStudent
spends 155 working days, 26

off-working days 1 strike day and 1 Public Holiday in a tax
year 2008-09? What
will be the status of the individual?
Resident Individual
Resident Person
Resident HUF
Take MCQ
103-Mr. X employed in Pakistan remittance from USA
VUStudent
received Rs. 10,000 in

Pakistan from past profits. Which of the following is right
for the above scenario?
Mr. X being resident of Pakistan Rs. 10,000 will be

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

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

be added in Grosstotal income
Remittance is not income hence it is not

included
Take MCQ
104-Mr. A non-resident of Pakistan received interest on
Australian Bonds Rs.
100,000 (half amount received in Pakistan). What is the
VUStudent
treatment of this
amount for calculating his gross total income?
Rs. 100,000 added in his total income
Rs. 100,000 subtracted from his total income
Rs. 50,000 added in his total income
Exempt from tax

Take MCQ
105-A directorship or any other office involved in the
VUStudent
management of a company
under section 2(22) of Income Tax Ordinance, 2001 is
termed as:
Employment
Employer
Employee
Business premises
Take MCQ
106-Mr Ali is an employee of ABC Co. the company has
provided a driver and a
gardener to Mr. Ali. What will be the treatment of their
salaries as per Income
Tax Ordinance 2001?
The salaried paid to them added in the salary of MR.

Ali
The salaried paid to them subtracted in the salary of

MR. Ali
VUStudent
Have no relation with salary of Mr. Ali not sure
The Salaried paid are exempted from Tax

Take MCQ
107-In which of the following heads of Income No
VUStudent
deductions are allowed:
Salary Income
Capital Gains
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108-Salary by members of AOP is not treated as Salary
VUStudent
but treated as appropriation of

profit and charged under the head:
Income from Salary
Income from Other Sources

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

Take MCQ
110-Which of the following come under the ambit of
VUStudent
Royalty under section 2 (54)?
Right to use any patent
Copy right of a literary
Right to use any industrial or scientific equipment

Take MCQ
Page 12
Question
Added By
111-____________ means a fixed place of business
VUStudent
through which the business of

an enterprise is wholly or partly carried on.
Permanent establishment
Small Business Units SBU
Venture
Take MCQ
*112-Which part of income is charged to tax of nonresident person under the income
tax ordinance 2001?
VUStudent

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

tax ordinance 2001?

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

ordinance 2001?

Take MCQ
Companies Ordinance 1984.
VUStudent
However its most of the branched and control and

management of affairs wholly
situated out of Pakistan? What will be the residential status
of M/s ABC & Co.?
Resident Company
Non-Resident Company
Resident Individual
Resident AOP
Take MCQ
116-Mr. Ali being citizen of Pakistan of 60 years old, if his
VUStudent
total taxable income is

Rs.400,000. His tax liability will be reduced by ______
under Part 3 of second
schedule.
10%
25%
50%
75%
Take MCQ
117-If the land situated in Pakistan and used for
agriculture purposes then which of
the following factor make distinction between agriculture
and non-Agriculture
Income?
Nationality of Pakistan
VUStudent
Quantity of the product
Time period
Human effort
Take MCQ
118-Which of the following is NOT an example of deemed
VUStudent
income?
Golden hand shake
Loan through cross cheque
Gifts through proper transaction

Take MCQ
119-Question No: 11 ( Marks: 1 ) - Please choose one
VUStudent
Which of the following is the legal status of Mr. Z, a

Director in Private Company
under section 80 of the Income tax ordinance 2001?
Individual
Company
Firm
Hindu Undivided Family Ref:

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

Take MCQ
Page 13
Question
Added By
121-Under which of the following conditions a tax payer
VUStudent
can adopt a special tax year?
Whenever he decides so
After seeking approval from Tax Office
After seeking approval from Commissioner of

income tax
After seeking approval from High Court
Take MCQ
122-Which one of the following is the Internal aid and help
in the interpretation of
Punctuation marks
CBRs circulars
VUStudent
Take MCQ
123-powers to CBR in order to formulate the IT rule 2002?
Section 206
Section 213
Section 237
Section 238
VUStudent
Take MCQ
124-How many Schedules are contained in the Income Tax
VUStudent
Ordinance 2001?
Three Schedule
Fifth Schedule
Seven Schedules
Nine Schedules
Take MCQ
125-Which of the following is not an employment tax?
Social Security Tax
Federal Excise Tax
Federal unemployment compensation tax
State unemployment compensation tax
VUStudent
Take MCQ
126-_____ is paid to the government on goods and
services and can be reclaimed by
VUStudent
retailers.
Income Tax
Value Added Tax
Capital Value Tax
Wealth Tax
Take MCQ
127-Which of the following is the main source of revenue
VUStudent
generation of the state?
Taxes & Tariffs
Internal Borrowing
External Borrowing
Penalties & Fines

Take MCQ
128-Which of the following is opposite to the literal
VUStudent
meanings of Tax?
Burden
Strain
Load
Relieve
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129-Which part of income is charged to tax of non-resident
person under the income tax ordinance 2001?
VUStudent

Take MCQ
130-Which of the following section deals with the
VUStudent
residential status of Company?
Section 81
Section 82
Section 83
Section 84
Take MCQ
Page 14
Question
Added By
131-What is the tax treatment of any profit on the US
VUStudent
Dollar Bonds purchased by the resident person after

December
1999 under Second Schedule?
Wholly exempt
Wholly taxable
Tax @10% of profit paid
Not mention in second schedule

Take MCQ
132-Rate charged under presumptive tax regime to non
VUStudent
resident shipping firm 8% on its gross receipt is quite low

as
compare to other business. This is an example of which
type of tax concession?
Reduction in total taxable income

Take MCQ
133-Any salary received by an employee of a foreign
VUStudent
government for services rendered to such government shall

be
exempt from tax under which section of IT Ordinance
2001?
Section 40
Section 43
Section 47
Section 53
Take MCQ
134-The process of clubbing of income results in which of
VUStudent
the following?
Lower Bracket rate of tax is charged
Higher Bracket rate of tax is charged
Moderate Bracket rate of tax is charged
No change occur due to clubbing

Take MCQ
135-Which of the following methods of accounting is
VUStudent
compulsory to adopt for Firm?
Accrual Basis
Cash Basis
Both Accrual and Cash Basis

Take MCQ
136-Which of the following is NOT an example of Lump
VUStudent
sum receipt?
Pension
Golden shake hand
Provident fund
Salary
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137-Income Tax is charged on which of the following?
VUStudent
Income of the current tax year
Income of the previous year
Income of the coming year
Any Receipt of money

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138-Which of the following is NOT an example of deemed
VUStudent
income?
Gifts through proper transaction
Golden hand shake

Take MCQ
139-Which of the following is the example of deemed
VUStudent
income?
Cash Gift
Salary
Golden hand shake

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

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

Take MCQ
144-Commissioner means a person appointed as a
VUStudent
Commissioner of Income Tax under section 208, and

includes a
taxation officer vested with all or any of the powers, and
functions of the Commissioner;
Take MCQ
145-assessment year means assessment year as defined
VUStudent
in the repealed Ordinance.

Take MCQ
146-Which one of the following is the Internal aid and help
VUStudent
in the interpretation of law?
Punctuation marks
CBRs circulars
Take MCQ
147-Law making is the prime responsibility of which of the
VUStudent
following authorities?
Parliament
Supreme Court
High Court
City Court
Take MCQ
148-In the canons of taxation, which one of the following
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
VUStudent
also called:
Statutory Provident Fund
Recognized Provident
Unrecognized Provident Fund

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
VUStudent
Take MCQ
Page 16
Question
Added By
151-If income of an individual received under the head
VUStudent
income from property, is Rs. 470,000, then his tax liability

is:
Rs. 23,500
Rs. 47,000
Rs. 70,500
Rs. 94,000
Take MCQ
152-A tax payer is required to have a national tax number
VUStudent
commonly referred as:
NTN
NIC
CNIC

Take MCQ
153-_____________ on account of cancellation of sale
agreement of building shall be treated as rental income and
fully taxable.
Fair market rent
VUStudent
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
VUStudent
Take MCQ
155-Which of the followings are admissible deductions
VUStudent
available before tax year 2007?
Allowance for Repair
Property tax.
Unpaid rent (irrecoverable rent)

Take MCQ
156-Utilities were exempt up to 10% of MTS or Basic
salary till 30th June, 2006, vide clause 38 of part 1 of
Second Schedule. This clause has been omitted by:
Finance Ordinance, 2004
VUStudent
Finance Ordinance, 2005
Finance Act, 2006
Finance Act, 2007

Take MCQ
157-A Provident Fund recognized by the commissioner in
VUStudent
accordance with Part I of Sixth Schedule is called:
Statutory Provident Fund
Recognized Provident Fund
Unrecognized Provident Fund

Take MCQ
158-If taxable income of an individual is Rs. 1,211,200,
VUStudent
then his tax liability is:
Rs. 254,352
Rs. 211,960
Rs. 181,680
Rs. 151,400
Take MCQ

Ordinance
VUStudent

Take MCQ
160-Which of the following is the legal status of Al-Habib
VUStudent
Bank limited under section 80 of the ordinance?
Individual
Banking Company
Firm
Take MCQ
Page 17
Question
Added By
161-Special tax year is adopted after seeking approval
VUStudent
from the ____________ under section 74(3).
Commissioner
Tax Officer
Appellate Tribunal
Supreme Court
Take MCQ
162-A definition that includes the dictionary meanings of
the word is termed as:
VUStudent
Take MCQ
163-Which of the following is the External aid to
VUStudent
interpretation of tax laws?
Preamble
Title of a chapter
Non-Obstinate clause
Finance Ministers budget speech

Take MCQ
164-The Chairman of CBR has the responsibility for which
VUStudent
of the following measures?
Formulation and administration of fiscal policy
Levy and collection of federal taxes
Quasi-judicial function of hearing of appeals

Take MCQ
165-Which of the following is tax, where the tax rate
decreases as the amount to which the rate is applied
increases?
VUStudent
Proportional tax
Progressive tax
Regressive tax
Corporate tax
Take MCQ
166-Which one of the canon of taxation suggests easiness
VUStudent
in time of payment and mode of collection of tax?
Simplicity
Convenience
Certainty
Capacity to Pay
Take MCQ
167-Which of the following is the main tool of Fiscal Policy?
Taxes
Deficit Financing
Subsidies
Transfer Payments
VUStudent
Take MCQ
168-Which one of the following is main difference between
the tax and fee?
Imposing authority
VUStudent
Applied Rates
Entitlement of Counter benefit
Mode of payment
Take MCQ
169-Among the Canon of taxes, benefit principal suggest
VUStudent
that:
Derive more income but enjoy less benefits

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

state should be taxed at the higher rates
Those persons who derives less income but more

benefits from State should be taxed at lower rates

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

person in respect of any debt.
Any salary paid to an employee employed by the

head office outside Pakistan
Any other expenditure which may be prescribed
No deduction allowed in any case.

Take MCQ
VUStudent
Page 18
Question
Added By
171-Any foreign-source salary received by a resident
VUStudent
individual shall:
be exempt from tax if the individual has paid

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

foreign income tax
Not be exempted from tax in any case
Always be Exempt from tax in all cases

Take MCQ
172-_____________ is the payment to the holder for the
VUStudent
right to use property such as a patent, copyrighted

material, or natural resources.
Permanent Establishment
Royalty
Dividend
Tax
Take MCQ
173-Permanent establishment in relation to a person
means a fixed place of business through which the business
of the person is __________ carried on.
Wholly
VUStudent
Partly
Both Wholly & Partly

Take MCQ
174-Which of the following is not a geographical source of
VUStudent
income?
Salary paid by the Federal Government
A dividend paid by a resident company
Business income derived from any business carried

on in Pakistan
Take MCQ
175-According to Theory of Control and Management, a
VUStudent
resident company must have:
Its incorporation in Pakistan
Its Registered Office in Pakistan
Its most of the branch lies in Pakistan
Its Control and Management of affairs lies in

Pakistan
Take MCQ
176-For the calculation of the period of stayed in Pakistan,
which of the following days are considered as full day?
VUStudent
Day of departure
Day of arrival
A Public Holiday

Take MCQ
177-An individual shall be a resident individual for a tax
VUStudent
year if the individual is present in Pakistan for a period of:
143 Days
153 Days
173 Days
183 Days
Take MCQ
178-_______ are a form of excise levied when a
commodity is sold to its final consumer.
Corporation tax
Property tax
Sales Tax
Excise
Take MCQ
VUStudent

623FIN Taxation Management Mcqs

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623FIN Taxation Management Mcqs

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623FIN taxation management

of foreign government but citizen of Pakistan?

Exempt from tax

Income from sale of wild grass

Income from fisheries

Royalty income of mines

All of the given options

Not mention in Ordinance

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

Non- Resident Company

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

permitted to tax under a tax treatyshall be

Not mention in Ordinance

compulsory to adopt for Sole- proprietorship?

Free to choose any kind of base

11-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

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

Exemptions and Tax

Dividend paid by a company out of its agriculture

Income from fisheries

Royalty income of mines

Share of profit of a partner from a firm engaged

and the investment environment in the country?

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

Both Exclusive and Inclusive definitions

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

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

Gross income from business

Only basic salary of salaried person

Basic salary excluding allowances of a salaried person

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

Exemptions and Tax Concessions?

received from someone who has died?

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

All of the given options

of foreign government but citizen of Pakistan?

Exempt from tax

No Tax treatment given in IT Ordinance 2001

Removal of deficit in Balance of Payment

All of the given options

31-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

Company maintaining its books of account on Accrual