Mr. A employed in Pakistan received dividend amounting Rs. 10,000 in UK from Pakistani resident company. What is the tax treatment for calculating his gross total income?

• A) Exempt from tax
• B) Subtracted from the total income
• C) Added in total income
• D) Added in income after tax

What is the tax treatment of the obligation of an employee waived off by the employer under sec 13(9) of the ITO 2001?

• A) The amount waived will be included in Salary
• B) The amount waived will be totally exempt
• C) The amount waived will be deducted from taxable income
• D) The amount waived will not be included in Salary

Mr. Ali is a salaried individual with a total taxable income of Rs. 550,000 for the tax year 2026. Which of the following is the tax liability of Mr. Ali?

• A) Rs. 375
• B) Rs. 750
• C) Rs. 0
• D) Rs. 1,125

In which of the following heads of Income No deductions are allowed:

• A) Income from Property
• B) Income from Business
• C) Salary
• D) Capital Gains

Mr. Khan earned a basic salary of Rs. 900,000, a conveyance allowance of Rs. 200,000 and a cost of living allowance of Rs. 400,000 during the year. Which of the following is his tax liability for the tax year 2026? (Tax Slab: Rs. 6,000 plus 11% of the amount exceeding Rs. 1,200,000)

• A) Rs. 39,000
• B) Rs. 52,500
• C) Rs. 150,000
• D) Rs. 75,000

Non-adjustable amounts shall be treated as rent and chargeable to tax, these amounts are spread over a period of

• A) 15 years
• B) 20 years
• C) 05 years
• D) 10 years

Miss Zoya, a salaried person, has a taxable income of Rs. 2,000,000 for the tax year 2026. What will be her tax liability? (Tax Slab: Rs. 6,000 plus 11% of the amount exceeding Rs. 1,200,000)

• A) Rs. 290,000
• B) Rs. 150,000
• C) Rs. 115,000
• D) Rs. 94,000

Mr. A non-resident person employed in UK received Rs. 500,000 as salary. Which of the following statement is true for Mr. A?

• A) Rs. 500,000 will be exempt from tax being non resident person
• B) None of the given options
• C) Rs. 500,000 will be subtracted from Gross total income being non resident person
• D) Rs. 500,000 will be added in Gross total income being non resident person

Which of the following is the rate of tax for salaried individuals for the tax year 2026, where the taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000?

• A) Rs. 170,000 plus 30% of the amount exceeding Rs. 1,600,000
• B) 2.5% of the amount exceeding Rs. 3,600,000
• C) Rs. 116,000 plus 23% of the amount exceeding Rs. 2,200,000
• D) Rs. 180,000 plus 25% of the amount exceeding Rs. 2,600,000

Mr. X, a resident of Pakistan, earned income from a Business Rs. 6,000,000 situated in Spain, which is controlled through a PE in Pakistan. Which of the following statements is right for this scenario?

• A) Mr. X being resident of Pakistan Rs. 6,000,000 will be exempted
• B) Mr. X being resident of Pakistan Rs. 6,000,000 will be claimed as admissible deduction
• C) Mr. X being resident of Pakistan Rs. 6,000,000 will be subtracted from Gross total income
• D) Mr. X being resident of Pakistan Rs. 6,000,000 will be added in Gross total income

Miss Kanwal earned a basic salary of Rs. 750,000, fees of Rs. 200,000 and overtime payments of Rs. 100,000 during the year. Which of the following is her tax liability for tax year 2026? (Tax Slab: 1% of the amount exceeding Rs. 600,000)

• A) Rs. 67,500
• B) Rs. 4,500
• C) Rs. 22,500
• D) Rs. 11,250

Which of the following is the rate of tax for Mr. Bee, who has earned a basic salary of Rs. 1,650,000, a commission of Rs. 100,000 and fees of Rs. 150,000 during the tax year 2026?

• A) Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
• B) Rs. 6,000 plus 11% of the amount exceeding Rs. 1,200,000
• C) Rs. 90,000 plus 20% of the amount exceeding Rs. 1,200,000
• D) Rs. 170,000 plus 30% of the amount exceeding Rs. 1,600,000

Miss Anam, a salaried person, has a taxable income of Rs. 5,100,000 for the tax year 2026. What will be her tax liability? (Tax Slab: Rs. 616,000 plus 35% of the amount exceeding Rs. 4,100,000)

• A) Rs. 1,050,000
• B) Rs. 966,000
• C) Rs. 1,410,000
• D) Rs. 900,000

Mr. Bee, an employee of ABC Co., earned a basic salary of Rs. 600,000 during the year. He also paid Rs. 50,000 as zakat during the year. What will be his taxable income for the tax year 2026?

• A) Rs. 70,000
• B) Rs. 650,000
• C) Rs. 600,000
• D) Rs. 550,000

What is the tax treatment of the overtime payments received by the employee?

• A) Wholly Exempt
• B) Not mentioned in Income Tax Ordinance 2001
• C) Partly Taxable
• D) Wholly Taxable

The tax rebate for the tax year 2026, provided to the teacher of the research institute duly recognized by HEC, is:

• A) 75%
• B) 45%
• C) No more available
• D) 25%

(A / B) x C In the above formula for calculating tax credit under section 61 of the Income tax Ordinance 2001, C represents which of the following?

• A) Person’s taxable income for the tax year
• B) Amount of gross tax
• C) Amount of relief allowed
• D) Net Income of the year

Gratuity related to government employees is received on the retirement/death of the employee. Which of the following is the tax treatment of gratuity under the Income Tax Ordinance 2001?

• A) Fully exempt
• B) Taxable @2%
• C) Fully taxable
• D) Partially exempt

Mr. Shahzad, a resident person, during the tax year 2026 received a salary from a Pakistani company of Rs. 400,000 and a dividend of Rs. 100,000 from Canadian company on 28 June 2025. What will be his total income for the tax year 2026?

• A) Rs. 400,000
• B) Rs. 450,000
• C) Rs. 100,000
• D) Rs. 500,000

What will be the tax treatment of motor vehicle provided partly for official and partly for personal use?

• A) 10% of cost (vehicle)
• B) 25% of cost (vehicle)
• C) 5% of cost (vehicle)
• D) 15% of cost (vehicle)