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

As per part I of the third schedule of the Income Tax Ordinance 2001, plant and machinery have a depreciation rate of _______ during the tax year.

• A) 15%
• B) 25%
• C) 10%
• D) 5%

Which of the following is the Tax year available for salaried individual?

• A) 1st September to 31st August
• B) 1st October to 30th September
• C) 1st January to 31st December
• D) 1st July to 30th June

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

• A) 10%
• B) 12%
• C) 13%
• D) 8%

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

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