Which of the following section of Income Tax Ordinance 2001 deals with perquisites of Income from Salary and its treatment?

• A) Section 13
• B) Section 14
• C) Section 12
• D) Section 11

Mr. Bee earned a basic salary of Rs. 450,000 and fees of Rs. 150,000 during the year. Which of the following is his tax liability for the tax year 2026?

• A) Rs. 1,000
• B) Rs. 0
• C) Rs. 2,000
• D) Rs. 5,000

What is the tax treatment of pension granted under the relevant rules to the families and dependents or members of the Armed Forces of Pakistan who die during service?

• A) 50% of amount receivable is taxable
• B) Exempt up to Rs. 300,000
• C) Fully exempt
• D) Fully taxable

Mr. Ali is an employee of ABC Co. The company has provided a driver and a gardener to Mr. Ali. What will be the tax treatment of their salaries as per Income Tax Ordinance 2001?

• A) The salaries paid to them will be subtracted from the salary of Mr. Ali
• B) The salaries paid to them will be added in the salary of Mr. Ali
• C) The salaries paid are exempt from tax
• D) Have no relation with salary of Mr. Ali

During tax year 2026, the flying allowance received by flight engineers and navigators shall be taxed @2.5% as a separate block of income has been omitted by:

• A) Finance Act 2021
• B) Finance Act 2022
• C) Finance Act 2015
• D) Finance Act 2018

Pension received by Government employees or the employees of Pakistan armed forces is _________ for the tax year 2026.

• A) Exempt up to Rs. 200,000
• B) Fully exempt
• C) Fully taxable
• D) Taxable in excess of Rs. 200,000

Mr. Zee earned a basic salary of Rs. 850,000, utilities of Rs. 200,000 and fees of Rs. 160,000 during the year. Which of the following is his tax liability for the tax year 2026? (Tax Slab: 6,000 plus 11% of the amount exceeding Rs. 1,200,000)

• A) Rs. 30,000
• B) Rs. 92,000
• C) Rs. 7,100
• D) Rs. 25,000

What is the tax treatment of the shares issued to an employee under an employee share scheme subject to a restriction on the transfer of the shares until the earlier of the time the employee has a free right to transfer the shares as per sec 14(3) of the ITO 2001?

• A) It is chargeable to tax
• B) It is deducted from the taxable income
• C) It is added in the taxable income
• D) It is not chargeable to tax

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

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

Which part of the Income Tax Ordinance 2001 deals with Tax credits?

• A) Chapter III Part VII
• B) Chapter III Part IX
• C) Chapter III Part X
• D) Chapter III Part VIII

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

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

Mr. Aamir, a salaried person, has a taxable income of Rs. 20,000,000 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. 20,220,000
• B) Rs. 15,000,000
• C) Rs. 6,181,000
• D) Rs. 8,090,000

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

• A) Rs. 30,000
• B) Rs. 15,000
• C) Rs. 10,000
• D) Rs. 2,000

Employer's contribution to unrecognized provident fund is:

• A) Fully taxable at the time of contribution
• B) Partially exempt at the time of contribution
• C) Partially taxable at the time of contribution
• D) Not taxable at the time of contribution

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

Which of the following is one of the heads of income as per sec 11 of the ITO 2001?

• A) Income from Business
• B) Income from Transportation
• C) Income from Agriculture
• D) Income from Lease

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