Sec. 64 tax credit for profit on debt of the ITO 2001 for the tax year 2026 has been omitted by:

• A) Finance Act 2014
• B) Finance Act 2017
• C) Finance Act 2016
• D) Finance Act 2015

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

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

Pension granted to a public servant or personnel of the Armed Forces on injuries or body disability for the tax year 2026 is:

• A) Fully exempt
• B) Partially taxable
• C) Partially exempt
• D) Fully taxable

Mr. A earned a basic salary of Rs. 300,000, a commission of Rs. 200,000 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?

• A) Rs. 22,000
• B) Rs. 0
• C) Rs. 12,500
• D) Rs. 20,000

What is the tax treatment of the fees and commissions earned by the employee?

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

Utilities are not provided by employer to employee, then what is the tax treatment of water and gas bills paid by employee himself?

• A) 10% is taxable
• B) 10% is exempt
• C) Wholly taxable
• D) No specific treatment

Mr. A is an employee of the Government of Punjab. During the tax year 2026, he received a monthly salary of Rs. 60,000 and a gratuity of Rs. 1,000,000. What would be his taxable income?

• A) Rs. 1,060,000
• B) Rs. 1,720,000
• C) Rs. 774,000
• D) Rs. 720,000

Which of the following transaction does NOT involve a banking channel?

• A) Online transfer of payment
• B) Payment through cash
• C) None of the given options
• D) Payments through credit card

Mr. Bee earned a basic salary of Rs. 950,000 and a medical allowance of Rs. 50,000 during the year. Which of the following is the tax liability of Mr. Bee for the tax year 2026? (Tax Slab: 1% of the amount exceeding Rs. 600,000)

• A) Rs. 20,000
• B) Rs. 17,500
• C) Rs. 60,000
• D) Rs. 4,000

Which of the following is the tax rate for a company other than a banking and a small company during the tax year 2026?

• A) 30%
• B) 10%
• C) 29%
• D) 20%

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

• A) 20%
• B) 15%
• C) 30%
• D) 25%

Which one of the following is NOT a depreciable asset?

• A) Structural improvement to immovable property
• B) Tangible movable property
• C) Unimproved land
• D) Tangible immovable property

Mr. Aziz earned a basic salary of Rs. 450,000 and fees of Rs. 200,000 during the year. Which of the following is the tax liability of Mr. Aziz for the tax year 2026? (Tax Slab: 1% of the amount exceeding Rs. 600,000)

• A) Rs. 2,500
• B) Rs. 7,500
• C) Rs. 500
• D) Rs. 3,000

Which of the following is the rate of tax for salaried individuals for the tax year 2026, where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000?

• A) Rs. 470,000 plus 20% of the amount exceeding Rs. 1,200,000
• 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. 1,005,000 plus 32.5% of the amount exceeding Rs. 1,100,000

Income from lease of tangible movable property is chargeable to tax under

• A) Income from property
• B) Income from capital gains
• C) Income from other sources
• D) Income from business

Amortization deduction for intangibles under the head "income from business" is computed using which one of the following formula?

• A) A+B
• B) A - B
• C) A/B
• D) A*B

Which of the following is the rate of tax for salaried individuals for the tax year 2026, where the taxable income does not exceed Rs. 400,000?

• A) 0%
• B) 0.50%
• C) 0.25%
• D) 0.75%

Any amount received as flying allowance by pilots, flight engineers and navigators of the Pakistan Armed forces under clause 1 of Part II of the Second Schedule of the Income Tax Ordinance 2001 for the tax year 2026, the tax liability will ____________.

• A) be reduced by 5% and taxed as a separate block of income
• B) be added by 7.5% and taxed under the normal tax regime
• C) NOT be reduced
• D) be reduced by 2.5% and taxed under the final tax regime

Which one of the following sections discusses the cash-basis accounting?

• A) Section 34
• B) Section 36
• C) Section 32
• D) Section 33

Which of the following is the rate of tax for a salaried individual for the tax year 2026, who earned taxable income of Rs. 1,400,000?

• A) Rs. 30,000 plus 40% of the amount exceeding Rs. 1,200,000
• B) Rs. 25,000 plus 20% of the amount exceeding Rs. 1,200,000
• 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