Approval of the Gratuity Fund can be withdrawn by the Commissioner of Income Tax on which of the following grounds?

• A) where the employee receiving gratuity from the fund has passed away
• B) where the purpose for which the fund was established is not fulfilled
• C) where the trustee of the fund established has become incapacitated
• D) where the time period of the fund established has expired

What is the tax treatment of the leave encashment on the retirement of the employee?

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

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

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

The commutation of a pension is fully exempt from tax if the pension scheme is approved by the:

• A) Employer
• B) Board
• C) Commissioner of income tax
• D) Income tax officer

Which of the following is the rate of tax for salaried individuals for the tax year 2026, where the taxable income exceeds Rs. 4,100,000?

• A) Rs. 1,345,000 plus 25% of the amount exceeding Rs. 12,000,000
• B) Rs. 616,000 plus 35% of the amount exceeding Rs. 4,100,000
• C) Rs. 90,000 plus 15% of the amount exceeding Rs. 12,000,000
• D) Rs. 1,610,000 plus 45% of the amount exceeding Rs. 5,600,000

Mr. A is a salaried individual with a total taxable income of Rs. 1,000,000. 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. 15,000
• B) Rs. 7,500
• C) Rs. 4,000
• D) Rs. 32,500

Which of the following is the rate of tax for Mr. Zia, who has earned a basic salary of Rs. 1,850,000 and a medical allowance of Rs. 150,000 during the tax year 2026?

• A) Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
• B) 1% of the amount exceeding Rs. 600,000
• C) Rs. 6,000 plus 11% of the amount exceeding Rs. 1,200,000
• D) Rs. 90,000 plus 20% of the amount exceeding Rs. 1,200,000

As per clause 13(iii) of part 1 of the second schedule, if FBR approves the gratuity fund for the tax year 2026, the amount of fund exempted up to Rs. 300,000 and any amount exceeding it will be taxed under which of the following heads?

• A) Income from Business
• B) Income from Other Sources
• C) Capital Gain
• D) Income from Salary

Where utilities provided by any person are included in rent, such amount shall be chargeable to tax under which one of the following heads of income?

• A) Income from Other Sources
• B) Income from Salary
• C) Income from Property
• D) Income from Business

Which of the following is the rate of tax for salaried individuals for the tax year 2026, where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000?

• A) 15% of the amount exceeding Rs. 600,000
• B) 1% of the amount exceeding Rs. 600,000
• C) 7% of the amount exceeding Rs. 600,000
• D) 9% of the amount exceeding Rs. 600,000

What is the average relief provided for the investment in shares per sec 62 of the ITO 2001 for the tax year 2026?

• A) Five per cent of the person's (taxable) income for the year
• B) Twenty per cent of the person's (taxable) income for the year
• C) Thirty per cent of the person's (taxable) income for the year
• D) There is no relief available to the taxpayers

Mr. Dawood is earning a salary of Rs. 125,000 per month. What will be the amount of taxable income and tax liability for the tax year 2026? (Tax Slab: Rs. 6,000 plus 11% of the amount exceeding Rs. 1,200,000)

• A) Taxable income is Rs. 500,000 and Tax liability is Rs. 0
• B) Taxable income is Rs. 125,000 and Tax liability is Rs. 0
• C) Taxable income is Rs. 1,500,000 and Tax liability is Rs. 39,000
• D) Taxable income is Rs. 2,500,000 and Tax liability is Rs. 120,000

Mr. Hassan earned a basic salary of Rs. 1,500,000 and a bonus of Rs. 1,000,000 during the year. Which of the following is his tax liability for the tax year 2026? (Tax Slab: Rs. 116,000 plus 23% of the amount exceeding Rs. 2,200,000)

• A) Rs. 440,000
• B) Rs. 185,000
• C) Rs. 255,000
• D) Rs. 120,000

Mr. Zafar earned a monthly salary of Rs. 150,000, a commission of Rs. 200,000 and fees of Rs. 150,000 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. 133,750
• B) Rs. 110,500
• C) Rs. 172,500
• D) Rs. 335,000

As per sec 110 of the ITO 2001 the salary income paid by private companies can be taxed on a ________________ basis if the Commissioner finds and believes that there are reasonable grounds to do so.

• A) Cash
• B) Real-time
• C) Actual
• D) Deferred

What is the tax treatment of the leave encashment on retirement to the members of the Armed Forces of Pakistan?

• A) It will be taxed at the rate of 20%
• B) It is exempt from tax
• C) It will be taxed at the rate of 10%
• D) It will be taxed at the rate of 5%

What is the tax treatment of the reimbursement of expenditure made by the employer?

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

Mr. X a non-resident of Pakistan earned income from Property situated in London Rs. 50,000 but received in India. Which of the following statements is right for this scenario?

• A) Mr. X being non-resident of Pakistan Rs. 50,000 will be added in Gross total income
• B) Mr. X being non-resident of Pakistan Rs. 50,000 will be claimed as admissible deduction
• C) Mr. X being non-resident of Pakistan Rs. 50,000 will be subtracted from Gross total income
• D) Mr. X being non-resident of Pakistan Rs. 50,000 will not be included in Gross total income

Mr. X, a non-resident employed in Pakistan, earned a pension of Rs. 100,000 from the Pakistan Government but received it in London. Which of the following statements is right for this scenario?

• A) Mr. X being non-resident of Pakistan Rs. 100,000 will be exempted
• B) Mr. X being non-resident of Pakistan Rs. 100,000 will be added in Gross total income
• C) Mr. X being non-resident of Pakistan Rs. 100,000 will be subtracted from Gross total income
• D) Mr. X being non-resident of Pakistan Rs. 100,000 will be added in total income after tax

Gratuity received by a non-resident person is:

• A) Upto 50% of amount receivable
• B) Fully taxable
• C) Fully exempt
• D) Upto 50% of basic salary