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

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