Which of the following is the general formula for calculating tax credits?

• A) (A / B) x C
• B) (A / B) + C
• C) (A - B) x C
• D) (A + B) x C

Which of the following authority may grant approval to any type of gratuity fund?

• A) Superior judiciary
• B) Federal Tax Ombudsman
• C) Commissioner of Income Tax
• D) Federal Government

Which of the following is/are the deductible allowance from total income of an individual?

• A) Worker’s Participation Fund
• B) Zakat
• C) All of the given options
• D) Worker’s Welfare Fund

A salaried individual taxpayer shall be charged to tax for the tax year 2026 if taxable income is:

• A) greater than Rs. 200,000 but lesser than Rs. 300,000
• B) greater than Rs. 300,000 but lesser than Rs. 400,000
• C) lesser than Rs. 400,000
• D) greater than Rs. 600,000

Mr Zee, an employee of ABC Co., is earning a basic salary of Rs. 600,000. The company has provided a car worth Rs. 700,000 partly for his personal and official use. What will be his taxable income for the tax year 2026?

• A) Rs. 700,000
• B) Rs. 635,000
• C) Rs. 1,300,000
• D) Rs. 600,000

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

• A) Added in total income
• B) No treatment due to non-resident company
• C) Exempt from tax
• D) Subtracted from the total income

Mr. A earned a basic salary of Rs. 650,000 and a bonus of Rs. 100,000 during the year. Which of the following is the tax liability of Mr. A for the tax year 2026? (Tax Slab: 1% of the amount exceeding Rs. 600,000)

• A) Rs. 22,500
• B) Rs. 1,500
• C) Rs. 9,000
• D) Rs. 7,500

Mr. A is an employee of the company and is entitled to receive gratuity from the fund approved by the Board. The gratuity so received is exempt up to for the tax year 2026:

• A) Rs. 100,000
• B) Rs. 400,000
• C) Rs. 300,000
• D) Rs. 200,000

Tax year for the salaried person shall be _____________________.

• A) None of the given options
• B) Transitional tax year
• C) Special tax year
• D) Normal tax year

Mr. Taha, a salaried person, has a taxable income of Rs. 15,000,000 for the tax year 2026. What will be his tax liability? (Tax Slab: Rs. 616,000 plus 35% of the amount exceeding Rs. 4,100,000)

• A) Rs. 4,431,000
• B) Rs. 5,840,000
• C) Rs. 11,000,000
• D) Rs. 9,000,000

Mr. Zohaib, a non-resident person, during the tax year 2026 received salary of Rs. 600,000 from Pakistani company. He also received profit on debt of Rs. 100,000 from a company situated in Vietnam on 18 June 2025. What will be his total income for the tax year 2026?

• A) Rs. 700,000
• B) Rs. 100,000
• C) Rs. 600,000
• D) Rs. 400,000

MTS stands for which of the following?

• A) Maximum transfer Salary
• B) Minimum transfer Salary
• C) Maximum time scale
• D) Minimum time scale

Mr. Zohaib earned a basic salary of Rs. 600,000, a commission of Rs. 200,000 and a bonus of Rs. 100,000 during the year. Which of the following is his tax liability for the tax year 2026? (Tax Slab: 1% of the amount exceeding Rs. 600,000)

• A) Rs. 45,000
• B) Rs. 15,000
• C) Rs. 7,500
• D) Rs. 3,000

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

• A) Amount of exemption as per Ordinance
• B) Person’s taxable income for the tax year
• C) Amount of gross tax
• D) Net Income of the year

As per sec 14 of the ITO 2001, the amount chargeable to tax under employee share scheme is computed as:

• A) A*B
• B) A/B
• C) A+B
• D) A-B

Mr. A earned a basic salary of Rs. 350,000 and a commission of Rs. 200,000 during the year. Which of the following is the tax liability of Mr. A for the tax year 2026?

• A) Rs. 20,000
• B) Rs 0
• C) Rs. 25,000
• D) Rs. 12,500

The amount of relief allowed as per sec. 61 of the ITO 2001 to the AOP is the lesser of the actual amount of donation or ________% of the taxable income for the tax year 2026.

• A) 30%
• B) 15%
• C) 20%
• D) 25%

Mr. Bee, an employee of ABC Co., earned a basic salary of Rs. 600,000 during the year. He also paid Rs. 150,000 as a worker's participation fund during the year. What will be his taxable income for the tax year 2026?

• A) Rs. 300,000
• B) Rs. 450,000
• C) Rs. 600,000
• D) Rs. 150,000

What is the tax treatment of the interest charged on the concessional loan (provided by the employer) utilized by the employee for the acquisition of the asset?

• A) It will be allowed as addition against income from such asset
• B) It will be allowed as deduction against income from such asset
• C) It will be deducted from the taxable income of the employee
• D) It will be included in the taxable income of the employee

As per sec 105(3) of the ITO 2001 “head office expenditures” include which one of the following?

• A) Any salary paid to an employee employed by the head office outside Pakistan
• B) Any profit receivable by the non-resident person on debt
• C) Any compensation received for any services including management services
• D) Any gain arising from the disposal of the asset