Recognized provident fund is recognized by:

• A) Commissioner of income tax
• B) Financial institution
• C) Federal Board of Revenue
• D) High court

Mr. X, a non-resident of Pakistan, earned income from Business Rs. 6,000,000 situated in Spain which is controlled through a PE in Pakistan. Which of the following statements is right for this scenario?

• A) Mr. X being non-resident of Pakistan Rs. 6,000,000 will be added in Gross total income
• B) Mr. X being non-resident of Pakistan Rs. 6,000,000 will be claimed as admissible deduction
• C) Mr. X being non-resident of Pakistan Rs. 6,000,000 will be subtracted from Gross total income
• D) Mr. X being non-resident of Pakistan Rs. 6,000,000 will be exempted

__________ is not allowable deductions in case if the tax payer is running a business.

• A) Purchases
• B) Salaries paid
• C) Son's school fee
• D) Office expenditures

Profit and gains arising out of a speculation business is chargeable to tax under:

• A) Income from Capital gains
• B) Income from Other sources
• C) Income from Business
• D) Income from Salary

If a depreciable asset disposes off within a tax year then:

• A) None of the given options
• B) Total depreciation deduction allowed
• C) No depreciation deduction allowed
• D) 25% of depreciation deduction allowed

Mr. Hassan earned a basic salary of Rs. 1,500,000 and a bonus of Rs. 1,000,000 during the year. Which of the following is his tax liability for the tax year 2026? (Tax Slab: Rs. 116,000 plus 23% of the amount exceeding Rs. 2,200,000)

• A) Rs. 255,000
• B) Rs. 440,000
• C) Rs. 120,000
• D) Rs. 185,000

Gratuity received by a non-resident person is:

• A) Upto 50% of amount receivable
• B) Fully exempt
• C) Fully taxable
• D) Upto 50% of basic salary

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

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

What is the tax treatment of the leave encashment on retirement to the members of the Armed Forces of Pakistan?

• A) It is exempt from tax
• B) It will be taxed at the rate of 20%
• C) It will be taxed at the rate of 10%
• D) It will be taxed at the rate of 5%

Employer's contribution to unrecognized provident fund is:

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

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

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

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. 60,000
• C) Rs. 4,000
• D) Rs. 17,500

What is the tax treatment of the leave encashment on the retirement of the employee?

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

What is the tax treatment of the accommodation or housing provided by an employer to an employee as per sec 13(12) of the ITO 2001?

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

Mr. A is a 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: 1% of the amount exceeding Rs. 600,000)

• A) Rs. 7,500
• B) Rs. 4,000
• C) Rs. 32,500
• D) Rs. 15,000

Mr. Ali is a salaried individual with a total taxable income of Rs. 550,000 for the tax year 2026. Which of the following is the tax liability of Mr. Ali?

• A) Rs. 1,125
• B) Rs. 750
• C) Rs. 0
• D) Rs. 375

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