MCQs of Income Tax Pakistan PDF

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Subject Income Tax Objective Questions 1. Income tax is levied on(A) Monthly basis (B) Quarterly basis (C) Half-yearly basis (D) Yearly basis 2. Income tax is payable on(A) Earned income (B) Salary (C) Taxable income (D) Every income 3. Assessee includes(A) Individual (B) HUF (C) Company (D) All of the above 4. Income tax is(A) Direct tax (B) Indirect tax (C) Corporate tax (D) A and C both 5. Agricultural income is(A) Income from sale of crop (B) Income from nursery (C) Income from preparation of crop (D) All of above 6. Non-agricultural income is(A) Dairy income (B) Mining (C) Fishery (D) All of above

7. Partly agricultural income is(A) Tea garden (B) Nursery (C) Self growing trees (D) none of above 8. Income related to land but not agricultural income(A) Income of a purchaser of standing crop (B) Income from spontaneous trees (C) Income from honey (D) All of above 9. Sum of various heads is called(A) Taxable income (B) Total income (C) Gross total income (D) Adjusted income 10. A person can earn income from(A) One head (B) Two heads (C) five heads (D) any of above 11. Exempted income is(A) Not taxable under income tax (B) Not included in total income (C) Agricultural income (D) All of above 12. Types of assessees from residential point of view are(A) 2 (B) 3 (C) 4 (D) Many 13. An individual will be resident for a tax year if his total stay in Pakistan amounting to(A) At least 183 days or more (B) At least 365 days in previous year & 183 days in the current year

(C) At least 730 days in preceding 7 years (D) All of above 14. Medical bills reimbursed regarding private hospital are exempt(A) Up to 10% of basic salary (B) Up to Rs. 15000 (C) Up to Rs. 25000 (D) Whole amount 15. Maximum limit for exemption of gratuity fund is---------- if the approval is granted by CIR is(A) 3 lakhs (B) 5 lakhs (C) 10 lakhs (D) Total amount 16. Gratuity received by a govt. employee is(A) Fully exempted (B) Partly exempted (C) Fully taxable (D) Exempted up to Rs. 100000 17. Deductions from annual rental value are allowed under section(A) Sec 14 (B) Sec 15 (C) Sec 15A (1) (D) Sec 16 18. Standard deduction as repair allowance from annual rental value is allowed as(A) 20% of AV (B) 15% of AV (C) 25% of AV (D) 30% of AV 19. The rate of depreciation allowed on machinery is(A) 10% (B) 5% (C) 15% (D) 20%

20. Clubbing of income means(A) Addition income of two partners (B) Inclusion of income of other person in assessee’s income (C) Total of income of various heads (D) Collection of income 21. Minor’s income is clubbed to(A) Father’s income (B) Mother’s income (C) Father’s or mother’s income, whichever is greater (D) Both mother’s & father’s income 22. Loss from speculated business can be carried forward for(A) 2 years (B) 6 years (C) 8 years (D) Unlimited years 23. From which head of income an assessee never occur any loss? (A) Property (B) Salary (C) Capital gain (D) Business and profession 24. Maximum relief allowed for senior citizen under is(A) 20% of taxable income (B) 30% of taxable income (C) 40% of taxable income (D) 50% of taxable income 25. Tax rate under FTR on lottery is(A) 20% (B) 25% (C) 30% (D) 35% 26. Tax rate on dividend will be …….., if the dividend is declared by a Power Generation company (A) 7.5%

(B) 12.5% (C) 15% (D) 17.5% 27. Tax rate under FTR on prize bond is(A) 10% (B) 12.5% (C) 15% (D) 17.5% 28. An individual will be treated as senior citizen if his age is(A) 60 years or more (B) 70 years (C) 75 years (D) 80 years 29. Items are taxed at special rates(A) Long-term capital gains (B) Short -term capital gains on shares (C) Lottery, dividend and prize bonds (D) All of above

30. What is the place of Karta in HUF(A) Major member (B) Minor member (C) Male member only (D) any one of above 31. Who is liable to pay tax in HUF(A) Karta (B) Coparceners (C) Minor member (D) None of the above 32. Rate of tax applicable on the total income of a company is(A) 10% (B) 20% (C) 30% (D) 40%

33. Object of tax planning is(A) Avoidance of tax (B) Minimize of tax liability (C) Payment of tax at time (D) deferments of tax 34. Causes of tax evasion(A) Higher tax rates (B) Complex of provisions (C) Corruption (D) All of above 35. Better way of reducing tax liability is(A) Tax evasion (B) Tax avoidance (C) Tax planning (D) Both (A) and (B) 36. Due date for filing of return in case of company or firm(A) 30 June (B) 31 July (C) 30 Sept. (D) 31 Dec. 47. Maximum no. of members in FBR is(A) 7 (B) 9 (C) 11 (D) unlimited 38. Most important authority in income tax department is(A) Inspectors (B) Officer of inland revenue (C) Tax recovery officer (D) Commissioner of Inland Revenue 39. Commissioner of Income Tax is appointed by(A) FBR (B) Ministry of finance (C) Central govt. (D) None of them

40. Time limit for an appeal to Appellate tribunal is (A) 30 days (B) 60 days (C) 90 days (D) 15 days

41. Time limit for an appeal to CIR (Appeals is)(A) 30 days (B) 60 days (C) 90 days (D) 15 days 42. First Appeal may be made to(A) Commissioner (appeals) (B) Appellate tribunal (C) High court (D) All of above 43. Highest Appellate authority in FBR is also known as(A) High court (B) Appellate tribunal (C) Supreme court (D) Revenue court 44. Medical bills reimbursed are exempt(A) Up to Rs. 10000 (B) Up to Rs. 15000 (C) Up to Rs. 20000 (D) Whole amount 45. Maximum relief allowed for Full time teachers and researchers is(A) 25% (B) 40 % (C) 50% (D) 10% 46. Tax-free limit for women assessee for assessment year 15-16 is(A) 180000

(B) 190000 (C) 200000 (D) 250000 47. Company may be(A) Resident (C) Not ordinarily resident

(B) Non-resident (D) Resident or non-resident

48. Non-Monetary salary includes(A) Allowances (C) Commission

(B) Bonus (D) Perquisites

49. In HRA, Salary includes(A) Basic salary (C) A and B both

(B) Commission (D) Allowances

50. Entertainment allowance will be deducted from gross salary in case of(A) Govt. employee (B) Non-govt. employee (C) A and C both (D) None of the above 51. Medical bills reimbursed regarding private hospital are exempt(A) Up to Rs. 10000 (B) Up to Rs. 15000 (C) Up to Rs. 20000 (D) Whole amount 52. Exemption is available for govt. employee at retirement(A) Gratuity (B) Statutory P. F. (C) Leave entrenchment (D) All of above 53. Gratuity received by a govt. employee is(A) Fully exempted (B) Partly exempted (C) Fully taxable (D) Exempted up to Rs. 100000 54. House property includes(A) Farm house income (C) House for self-business

(B) Sub-tenant income (D) none of the above

55. In case of rental house property only such municipal tax is deducted which is(A) Paid by tenant (B) Actual payable amount (C) Paid by owner (D) All of the above 56. Standard deduction from annual value is allowed as(A) 20%of AV (B) 15% of AV (C) 25% of AV (D) 30% of AV

57. Deduction allowed from annual value(A) Statutory deduction (C) Interest on loan for repair

(B) Interest on loan for constitution (D) All of above

58. The rate of depreciation allowed on machinery is(A) 10% (B) 5% (C) 15% (D) 20% 59. Capital assets includes(A) Stock in trade (C) Gold deposit bonds 60. Clubbing of income means(A) Addition income of two partners (C) Total of income of various heads

(B) Personal effects (D) Shares

(B) Inclusion of income of other person in assessee’s income (D) Collection of income

61. Loss from speculated business can be carried forward for(A) 2 years (B) 6 years (C) 8 years (D) Unlimited years 62. From which head of income an assessee never occur any loss? (A) HP (B) Salary (C) Capital gain (D) Business and profession 63. Total income of an individual does not includes(A) Foreign income (B) Salary income (C) Commission (D) Agricultural income

65. Assessment year can be a period of: a) only more than 12 months c) only 12 months

b) 12 months and less than 12 months d) 12 months and more than 12 months

66. A person includes: a) Only Individual b) Only Individual and HUF c) Individuals, HUF, Firm, Company only d) Individuals, HUF, Company, Firm, AOP or, Local Authority, Every Artificial Juridical Person 67. Every assessee is a person, and a) every person is also an assessee b) every person need not be an assessee c) an individual is always an assessee d) A HUF is always an assessee

68. Year in which income is taxable is known as...................... and year in which income is earned is known as.......................... a) Previous year, Assessment year b) Assessment year, Previous year c) Assessment year, Assessment year d) Previous year, Previous year 69. All assessees are required to follow: a) Uniform previous year which must be calendar year only b) Uniform previous year which must be financial year only c) Any period of 12 months d) Period starting from 1st July to 30th June only 70 . A Pakistani company would: a) be resident if its control and management is wholly situated in Pak at any time in the tax year. b) be resident if its control and management is wholly or partly situated in Pak. c) be resident if its control and management is wholly situated outside Pak. d) be always resident irrespective of control and management

71. Income of Pakistani cricketers for playing test match is taxable under the head(A) Professional income (B) Income from salary (C) Income from other sources (D) None 72. One self- occupied house is(A) Taxable (B) Partly taxable (C) Taxable in some cases (D) Tax-free 73. Appeal may be made to(A) Commissioner APPEALS (B) Appellate tribunal (C) High court (D) All of above...