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

As per sec 13(14) of the ITO 2001, utilities include all of the following, EXCEPT:

• A) Water
• B) Electricity
• C) Confectionery
• D) Gas

What is the tax treatment of any income derived by the families and dependents of the “Shaheeds” belonging to the Pakistan Armed Forces from the special family pension?

• A) Fully taxable
• B) Taxable upto 25% of the pension received
• C) Partially taxable
• D) Fully exempt

Employer's contribution to the Government provident fund is:

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

Mr. Ali is an employee of ABC Co. He has availed an interest free loan from his Company. What will be the treatment of Interest on loan as per Income Tax Ordinance 2001?

• A) Salary of Ali includes the Interest on loan at benchmark rate
• B) Salary of Ali includes the Interest on loan at lower than benchmark rate
• C) Amount of Interest on loan is exempted from Tax
• D) Salary of Ali includes the Interest on loan at higher than benchmark rate