The commutation of pension where the pension scheme is approved by the Board, is exempted under:

• A) Clause (112), Part I of Second Schedule
• B) Clause (121), Part I of Second Schedule
• C) Clause (12), Part I of Second Schedule
• D) Clause (122), Part I of Second Schedule

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

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

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

Which of the following is the tax treatment of free hospitalization services provided under the terms of employment?

• A) Exempt up to 10% of MTS
• B) Taxable up to 10% of MTS
• C) Wholly taxable
• D) Wholly exempt

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

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

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. 300,000
• C) Rs. 400,000
• D) Rs. 200,000

Mr. A non-resident of Pakistan received interest on Australian Bonds Rs. 100,000 (half amount received in Pakistan). What is the treatment of this amount for calculating his gross total income?

• A) Rs. 100,000 subtracted from his total income
• B) Rs. 50,000 added in his total income
• C) Rs. 100,000 added in his total income
• D) Exempt from tax

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

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

What is the tax treatment of the voluntary payments made to the employee?

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

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. 1,005,000 plus 32.5% of the amount exceeding Rs. 1,100,000
• C) Rs. 90,000 plus 20% of the amount exceeding Rs. 1,200,000
• D) Rs. 6,000 plus 11% of the amount exceeding Rs. 1,200,000

According to section 13(14) - value of perquisites, benchmark rate for the tax year 2026 is:

• A) 10%
• B) 12%
• C) 8%
• D) 13%

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

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

Salary can be earned from all of the following sources as per sec 12(5) of the ITO 2001, EXCEPT:

• A) Current employer
• B) Prospective employer
• C) Employee
• D) Previous employer

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

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

If an AOP has a turnover of Rs. 300 million or more during the tax year or any of the preceding tax years, the share of a member will be _________________ unless the association files financial statements duly audited by a firm of Chartered Accountants along with the income tax return u/s 92 of the ITO 2001.

• A) Exempt from tax
• B) Chargeable to tax
• C) Partially taxable
• D) Reduced

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 compensation received for any services including management services
• C) Any profit receivable by the non-resident person on debt
• D) Any gain arising from the disposal of the asset

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

Which of the following is NOT the head of income as per sec 11 of the ITO 2001?

• A) Salary
• B) Property
• C) Capital Gain
• D) Expense

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

The taxable income is Rs. 715,000, and the tax assessed is Rs. 15,000 for an employee of a local company. He paid donations amounting to Rs. 10,000 to a charitable institution. What will be the tax credit for the tax year 2026?

• A) Rs. 1,000
• B) Rs. 143
• C) Rs. 209.79
• D) Rs. 224