Deductions not allowed under the head "Income from Business" are discussed under which of the following sections?

• A) Section 20
• B) Section 25
• C) Section 27
• D) Section 21

Accrual basis accounting method is mandatory for which one of the following:

• A) Salaried person
• B) Companies
• C) Proprietorship
• D) Association of person

The rate of income tax for a small company for the tax year 2026 is:

• A) 35%
• B) 30%
• C) 20%
• D) 21%

For the tax year 2026, as per section 21 of the ITO 2001, any salary paid other than by the crossed cheque or direct transfer or through digital means to the employee's bank account, if it exceeds ____________________ is NOT allowed as deduction under the head Income from Business.

• A) Rs. 15,000 per month
• B) Rs. 80,000 per annum
• C) Rs. 60,000 per year
• D) Rs. 32,000 per month

Dividend paid by mutual funds in the tax year 2026 shall be charged to tax under sec 5 of the ITO 2001 at which of the following rate?

• A) 25% of gross amount of dividend
• B) 15% of gross amount of dividend
• C) 10% of gross amount of dividend
• D) 20% of gross amount of dividend

A depreciable asset has normal useful life of:

• A) One year or more
• B) None of the given options
• C) Six months
• D) Eleven months

Which one of the following section deals with intangibles?

• A) Section 242
• B) Section 222
• C) Section 24
• D) Section 22

Depreciation is allowed as admissible deduction from business income if depreciable asset has life of ________.

• A) One month
• B) Three months
• C) More than one year
• D) Five months

Loss from speculation business can be set off against

• A) Income from property
• B) Income from speculation business only
• C) Income from any other normal business
• D) Income of any head of income

Which one of the following parts of the ITO 2001 specifies the rates of depreciation?

• A) Part II of 3rd schedule
• B) Part I of 3rd schedule
• C) Part III of 3rd schedule
• D) Part IV of 1st Schedule

Which of the following section deals with "Deductions allowed in computing income chargeable under the head Income from Business"?

• A) Section 21
• B) Section 112
• C) Section 20
• D) Section 120

If A = Opening stock; B = Stock acquired during the year; and C = Closing stock then, Valuation of stock is computed as:

• A) A+B+C
• B) A-B+C
• C) A-B-C
• D) A+B-C

Pension granted under the relevant rules to the families and dependents of public servants who die during service is:

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

Mr. A is a non-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: Rs.15% of the amount exceeding Rs. 600,000)

• A) Rs. 150,000
• B) Rs. 100,000
• C) Rs. 60,000
• D) Rs. 45,000

Income from building leased out together with Plant & Machinery falls under

• A) Income from other sources
• B) Income from capital gain
• C) Income from salary
• D) Income from property

For the tax year 2026, the income earned by a University or educational institution established not for profit purpose is:

• A) Not discussed in the Ordinance
• B) Taxable
• C) Not treated as income
• D) Partially exempt

Profit earned on debt derived by the person whose business is to derive such income, is chargeable under:

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

If a non-salaried individual has a taxable income of Rs. 400,000. What will be the applicable tax rate for the tax year 2026 as per ITO 2001?

• A) 0%
• B) 0.25%
• C) 1%
• D) 0.5%

For the tax year 2026, the income earned by a recognized computer training institution is:

• A) Not treated as income
• B) Taxable
• C) Not discussed in the Ordinance
• D) Exempt

Which of the following is not included in definition of business as per sec 2(10) of ITO 2001?

• A) Employment
• B) Manufacturing
• C) Commerce
• D) Profession