FIN623 Taxation Management - Question # 1 of 15 ( S t a r t - T i m e : 06:57:44 )
In a tax _____ you give information about what you earn every year.
Select correct option:
Return
Statement
Sheet
Report
FIN623 Taxation Management - Question # 2 of 15 ( S t a r t - T i m e : 06:58:24 )
Which of the following is tax, where the tax rate decreases as the amount to which the rate is applied increases?
Select correct option:
Proportional tax
Progressive tax
Regressive tax
Corporate tax
FIN623 Taxation Management - Question # 3 of 15 ( S t a r t - T i m e : 06:58:51 )
A woman taxpayer shall be charged to tax if taxable income is:
Select correct option:
Less than Rs. 100,000
Less than Rs. 200,000
More than Rs. 200,000
More than Rs. 260,000
FIN623 Taxation Management - Question # 4 of 15 ( S t a r t - T i m e : 06:59:22 )
Approval of Gratuity fund can be withdrawn on which of the following grounds?
Select correct option:
On the expiry of time period
On the death of the employee
On the malfunctioning of the trust (C)
On the death of trustee
FIN623 Taxation Management - Question # 5 of 15 ( S t a r t - T i m e : 06:59:54 )
Bonuses are fully taxable under Income Tax Ordinance 2001.
Select correct option:
True
False
www.vuzs.net
FIN623 Taxation Management - Question # 6 of 15 ( S t a r t - T i m e : 07:00:20 )
Interpretation of Tax Laws is the prime responsibility of which of the following?
Select correct option:
Parliament
Supreme Court
High Court
Superior Judiciaries
FIN623 Taxation Management - Question # 7 of 15 ( S t a r t - T i m e : 07:00:46 )
Taxes are important instrument of which of the following policy?
Select correct option:
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
FIN623 Taxation Management - Question # 8 of 15 ( S t a r t - T i m e : 07:01:14 )
Which of the following section deals with the residential status of Individual?
Select correct option:
Section 80
Section 81
Section 82
Section 83
FIN623 Taxation Management - Question # 9 of 15 ( S t a r t - T i m e : 07:01:42 )
Any income from a business carried on outside Pakistan through permanent establishment by a resident person belongs to which of the following?
Select correct option:
Pakistani source of Income
Foreign source of income
Both Pakistan and foreign source of income
None of the given option
FIN623 Taxation Management - Question # 10 of 15 ( S t a r t - T i m e : 07:02:06 )
Which one of the following justifies ‘e- Filing of return’?
Select correct option:
Electronically filed return
Return on notice by commissioner
Specimens of return
None of the given options
FIN623 Taxation Management - Question # 11 of 15 ( S t a r t - T i m e : 07:03:28 )
A definition that includes the dictionary meanings of the word is termed as:
Select correct option:
Exclusive definition
Inclusive definition
Both Inclusive & Exclusive definitions
Statutory definition
FIN623 Taxation Management - Question # 12 of 15 ( S t a r t - T i m e : 07:03:59 )
Pension received by a citizen of Pakistan is _____________from tax.
Select correct option:
Partially taxable
Fully taxable
Taxable 25% of the pension received
Totally exempt
www.vuzs.net
FIN623 Taxation Management - Question # 13 of 15 ( S t a r t - T i m e : 07:04:23 ) vuz s
Which of the following is the tax where the tax rate remained fixed to the amount on which the rate is applied increases?
Select correct option:
Proportional tax
Progressive tax
Regressive tax
Corporate tax
FIN623 Taxation Management - Question # 14 of 15 ( S t a r t - T i m e : 07:04:53 )
Concept of separate legal entity of accounting applies on which of the following concepts in taxation under section 105 of the ordinance?
Select correct option:
Resident and permanent establishment
Non-resident and permanent establishment
Citizenship and permanent establishment
All of the given options
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FIN623 Taxation Management - Question # 15 of 15 ( S t a r t - T i m e : 07:05:25 )
In an association of person, 25% tax rate is applied where the taxable income exceeds:
Select correct option:
Rs 1,300,000
Rs 1,000,000
Rs 1,500,000
Rs 1,700,000
FIN623 Taxation Management - Question # 1 of 15 ( S t a r t t i m e: 10:14:32 PM )
Tax rate for taxable income for the tax year 2010 exceeding Rs 550,000 up to Rs 650,000 is 6.0% as given in the first schedule of Income Tax Ordinance 2001.
Select correct option:
True
False
FIN623 Taxation Management - Question # 2 of 15 ( S t a r t t i m e: 10:15:12 PM )
Officer of Income Tax may grant approval to any gratuity fund.
Select correct option:
True
False
FIN623 Taxation Management - Question # 3 of 15 ( S t a r t t i m e: 10:16:04 PM )
If a resident company sustains loss, what will be the minimum tax rate?
Select correct option:
0.5% of invoice
0.5% of bills
0.5% of turnover
0.5% of company’s share
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FIN623 Taxation Management - Question # 4 of 15 ( S t a r t t i m e: 10:17:28 PM ) v u z s
Conveyance provided by employer for personal use of the employee is only taxed @ 5% of the cost to the employer for acquiring the vehicle or the fair market value of vehicle.
Select correct option:
True
False
FIN623 Taxation Management - Question # 5 of 15 ( S t a r t t i m e: 10:18:13 PM )
Income from building leased out together with Plant & Machinery falls under
Select correct option:
Income from property
Income from salary
Income from capital gain
Income from other sources
FIN623 Taxation Management - Question # 6 of 15 ( S t a r t t i m e: 10:18:58 PM )
Unrecognized provident fund is
Select correct option:
Totally taxable
Partially taxable
Totally exempt
Partially exempt
FIN623 Taxation Management - Question # 7 of 15 ( S t a r t t i m e: 10:20:05 PM )
Non-Agricultural income does Not includes which one of the following?
Select correct option:
Dividend paid by a company out of its agriculture income
Royalty income of mines
Profit on sale of standing crops
Income from fisheries
FIN623 Taxation Management - Question # 8 of 15 ( S t a r t t i m e: 10:21:19 PM )
Gratuity pertaining to government employees received on retirement/ death of the employee. Which of the following is the tax treatment of gratuity under the Income Tax Ordinance 2001?
Select correct option:
Wholly exempt
Partially exempt
Wholly taxable
None of the given options
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FIN623 Taxation Management - Question # 9 of 15 ( S t a r t t i m e: 10:21:48 PM )
In an association of person, 25% tax rate is applied where the taxable income exceeds:
Select correct option:
Rs 1,300,000
Rs 1,000,000
Rs 1,500,000
Rs 1,700,000
FIN623 Taxation Management - Question # 10 of 15 ( S t a r t t i m e: 10:22:26 PM )
Which one of the following is the general meaning of Tax?
Select correct option:
Relax
Lighten
Relieve
Fatigue
FIN623 Taxation Management - Question # 11 of 15 ( S t a r t t i m e: 10:23:00 PM )
General Provident (GP) Fund available in the Government Organization is also called as:
Select correct option:
Statutory Provident Fund
Recognized Provident
Unrecognized Provident Fund
None of the given options
FIN623 Taxation Management - Question # 12 of 15 ( S t a r t t i m e: 10:23:35 PM )
If any other office involved in the management of a company it is termed as:
Select correct option:
Employment
Employer
Employee
Business premises
FIN623 Taxation Management - Question # 13 of 15 ( S t a r t t i m e: 10:24:04 PM )
Which one of the following is NOT a depreciable asset?
Select correct option:
Tangible movable property
Unimproved land
Tangible immovable property
Structural improvement to immovable property
FIN623 Taxation Management - Question # 14 of 15 ( S t a r t t i m e: 10:25:28 PM )
Which one of the following canons of taxation suggests easiness in time of payment and mode of collection of tax?
Select correct option:
Simplicity
Convenience
Certainty
Capacity to Pay
FIN623 Taxation Management - Question # 15 of 15 ( S t a r t t i m e: 10:26:09 PM )
Deduction is allowed on expenditure on acquiring a depreciable asset whose useful life is:
Select correct option:
One year
More than one year
Three years
Five years
Legal Status of Punjab University
► Individual
► Company
► Authority
► Organization
1. What is the tax treatment of the reimbursement of expenditure made by the employer?
· Wholly Taxable
· Wholly exempt
· Partly Taxable
· Not mentioned in Income Tax Ordinance 2001
2. Any obligation of employee waived off by employer will not be added back to his taxable income.
· True
· False
3. Agricultural income includes which one of the following?
· Income from fisheries
· Royalty income of mines
· Share of profit of a partner from a firm engaged in agricultural
· Dividend paid by a company out of its agriculture income
4. 2(59) of Income Tax Ordinance 2001 defined: “shareholder” in relation to a company, includes a modaraba certificate holder, a unit holder of a unit trust and a beneficiary of a trust. In which criteria the above definition falls?
· Exclusive definition
· Inclusive definition
· Both Exclusive and Inclusive definitions
· Statutory definition
5. The process of clubbing of income results in which of the following?
· Lower Bracket rate of tax is charged
· Higher Bracket rate of tax is charged
· Moderate Bracket rate of tax is charged
· No change occur due to clubbing
As a result of clubbing, higher tax bracket will be charged to "the person, to whom this income is clubbed" . In this mcq, it is not clear whose tax bracket will be affected.
There is counter effect on tax bracket. Let say,
If wife clubbed her income with her husband 's income then her husband's income will be increased and he will definitely fall into higher tax bracket and wife will do it for saving herself from higher tax bracket.
Thus , her tax bracket will be decreased or will not be increased due to that transferred income
6. What is the residential status of Provincial Government of Pakistan?
· Resident Individual
· Resident Company
· Resident AOP
· Resident HUF
7. Which of the following is the tax where the tax rate remained fixed to the amount on which the rate is applied increases?
· Proportional tax
· Progressive tax
· Regressive tax
· Corporate tax
8. A firm ABC maintaining its account in accrual basis, at June 27, 2008 it is entitled to receive Rs. 10,000 but actual payments made at 01 August 2008. In which year it is charged to tax?
· 2006
· 2007
· 2008
· 2009
9. If any other office involved in the management of a company it is termed as:
· Employment
· Employer
· Employee
· Business premises
10. Mr. A non-resident person employed in UK received Rs. 500,000 as salary. Which of the following statement true for Mr. A?
· Rs. 500,000 will be added in Gross total income being non resident person
· Rs. 500,000 will be subtracted from Gross total income being non resident person
· Rs. 500,000 will be exempt from tax being non resident person
· None of the given options
11. Which one of the following principle of tax emphasized, that the taxation policy should be designed in such a way to boost business atmosphere and the investment environment in the country?
· Convenience
· Judicious
· Capacity to Pay
· Business friendly
12. Tax rate for taxable income for the tax year 2009 exceeding Rs 550,000 up to Rs 650,000 is 6.0% as given in the first schedule of Income Tax Ordinance 2001.
· True
· False
13. Which of the following is tax, where the tax rate decreases as the amount to which the rate is applied increases?
· Proportional tax
· Progressive tax
· Regressive tax
· Corporate tax
14. Which of the following is the example of deem income?
· Cash Gift
· Salary
· Loan through cross cheque
· Golden hand shake
15. Which of the following section deal with tax treatment of person who is a cultivator or receiver of agricultural produce as rent-in-kind in the business of cultivator?
Select correct option:
Rule 11 of the IT Rule 2002
Section 40 of the Income Tax Ordinance 2001
Section 41 of the Income Tax Ordinance 2001
Section 42 of the Income Tax Ordinance 2001
16. (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?
Select correct option:
Amount of Gross tax
Person’s taxable income for the tax year
Amount of exemption as per Ordinance
Net Income Of the year
17. Which part of the Income Tax Ordinance 2001 deals with Tax credits?
Select correct option:
Chapter III Part VII
Chapter III Part VIII
Chapter III Part IX
Chapter III Part X
18. Which of the following is the Tax year available for salaried individual?
Select correct option:
1st January to 31st December
1st July to 30th June
1st October to 30th September
1st September to 31st August
19. Which of the following is the rate of tax for male salaried Individuals for tax year 2009, where the taxable income exceeds Rs. 180,000 but does not exceed Rs. 250,000?
Select correct option:
0%
0.25%
0.50%
0.75%
20. Which of the following is NOT the type of tax?
Select correct option:
Direct taxes
Indirect Taxes
Value Added Taxes
Fees and Penalties
21. Profit on debt shall be Pakistan-source income if it is:
Select correct option:
Paid by a resident person
Paid by the resident person from business carried on outside Pakistan through a permanent establishment
Paid by non-resident person
All of the given options
Profit on debt shall be Pakistan-source income if it is-
(1) Paid by a resident person, except where the profit is payable in respect of any debt used for the purposes of a business carried on by the resident outside Pakistan through permanent establishment; or
(2) Borne by a permanent establishment in Pakistan of a non-resident person.
22. Income tax ordinance, 2001 became effective from which of the following date?
Select correct option:
1st July 2001
13th September 2001
1st July 2002
13th September 2002
23. Which of the following tax is payable on merchandise imported or exported from one country to another?
Select correct option:
Custom duty
Income tax
Sales tax
Wealth tax
24. Miss Sonia’s total taxable income for the year 2009 is Rs. 240,000. Which of the following is the tax liability of Miss Sonia?
Select correct option:
Nil
Rs. 500
Rs. 1,000
Rs. 1,500
25. Any amount received under Part 3 of Second Schedule, as flying allowance by pilots etc. and junior commissioned officers or other ranks shall be taxed at the rate of ________ as separate block.
· 2.5%
· 5.5%
· 7.5%
· 9.5%
26. Which of the following is the rate of tax for salaried Individuals for tax year 2009, where the taxable income exceeds Rs. 900,000 but does not exceed Rs. 1,050,000?
Select correct option:
9.00%
10.00%
11.00%
12.50%
27. Utilities were exempted up to 10% of MTS or Basic salary till 30th June, 2006, vide clause 38 of part 1 of Second Schedule. This clause has been omitted by:
· Finance Ordinance 2004
· Finance Ordinance 2005
· Finance Act 2006
· Finance Act 2007
28. Mr. A’s total taxable income for the year 2009 is Rs. 600,000. Which of the following is the tax liability of Mr. A?
· 15000
· 21000
· 27000 27000 =600000*4.5/100
· 35000
29. Which of the following is the rate of tax for salaried Individuals for tax year 2009, where the taxable income exceeds Rs. 550,000 but does not exceed Rs. 650,000?
· 1.5
· 2.5
· 3.5
· 4.5
30. Deficit Financing is one of the tools of which of the following policy?
· Monetary policy
· Fiscal policy
· Trade Policy
· Economic Policy
31. Which of the following is a general compulsory contribution of wealth by the state, to meet the expenses incurred in providing common benefits upon the residents?
· Fee
· taxes
· Charges
· Penalties
32. Conveyance provided by employer for personal use of the employee is only taxed @ 5% of the cost to the employer for acquiring the vehicle or the fair market value of vehicle.
· True
· False
33. In the normal circumstances on which of the following tax is charged?
· Resident Company
· Gross Receipt
· Total Income
· Taxable Income
34. Normally the salary income is taxed on cash basis but there is one exception available in Income Tax Ordinance 2001 that salary income can be taxed on due basis if there are reasonable grounds. Which of the following section deals with this exception?
· Sec 53
· 101
· 110
· 111
35. Which of the following is the tax treatment of free hospitalization services provided under the terms of employment?
· Wholly exempt
· Exempt up to 10% of MTS
· Exempt up to 10% of MTS
· Taxable up to 10% of MTS
36. Senior citizen-age 60 years & above where taxable income not exceeding ______ tax liability reduced by 50% under Part 3 of second schedule.
· 300000
· 400000
· 50000
· 500000
37. M/s ABC and Co. an association of person is a non-resident AOP which of the following condition must be satisfied?
· Control and management of affairs of AOP is situated partly in Pakistan.
· Control and management of affairs of AOP is situated wholly in Pakistan.
· Control and management of affairs of AOP is situated wholly or partly in Pakistan
· non of above
38. Which of the following is similar to the concept of clubbing of Incomes?
· Unification only two heads of Income
· Association of two or more heads of Income
· Splitting up of only two heads of Income
· Division of two or more than two heads of Income
39. Which of the following days shall be counted as half day for the computation of residential status of an individual?
· A Public Holiday
· A day of sick leave
· Any strike
· None of the given options
40. Which of the following tax is paid from money you received from someone who has died?
· Income tax
· inheritance tax
· Property tax
· Sales tax
Which of the following is not included in business?
Select correct option:
a) Commerce
b) Manufacture
c) Profession
d) Employment
Rationale: In employement a person is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.
2-The rate of income tax for Modarba Company is:
Select correct option:
a) 20%
b) 25%
c) 30%
d) 35%
Reference: A concessional tax rate of 25% was applied to modaraba as compared to 45% applicable to companies in 1993-1994. Modarabas engaged in trading activities are taxed at a reduced rate of 25% .
3-Any income from a business carried on outside Pakistan through permanent establishment by a resident person belongs to which of the following?
Select correct option:
a) Pakistani source of Income
b) Foreign source of income
c) Both Pakistan and foreign source of income
d) None of the given option
Reference:Business income of a resident person shall be Pakistan-source income to the extent to which the income is derived from any business carried on in Pakistan.
4-What is the tax treatment of any profit on the US Dollar Bonds purchased by the non-resident person before December 1999 under clause 82 of the Second Schedule?
Select correct option:
a) Wholly taxable
b) Wholly exempt
c) Partly taxable
d) Not mention in second schedule
5-Officer of Income Tax may grant approval to any gratuity fund.
Select correct option:
a) True
b) False
Reference: Commissioner of Income Tax may accord approval to any gratuity fund.
6-Mr. A non-resident person employed in UK received Rs. 500,000 as salary. Which of the following statement true for Mr. A?
a) Rs. 500,000 will be added in Gross total income being non-resident person
b) Rs. 500,000 will be subtracted from Gross total income being non-resident person
c) Rs. 500,000 will be exempt from tax being non resident person
d) None of the given options
Reference: Where a citizen of Pakistan leaves Pakistan during a tax year and remains abroad during that tax year,any income chargeable under the head :Salary” earned by him outside Pakistan during that year shall be exempt from tax under the Ordinance.
7-Mr. Afzal would like to compute the tax rate apply on the gratuity received the formula to compute the tax rate is.
a) AxB/100
b) Ax100/B
c) A/Bx100
d) 100XB/A
8- 2(59) of Income Tax Ordinance 2001 defined: “shareholder” in relation to a company, includes a modaraba certificate holder, a unit holder of a unit trust and a beneficiary of a trust. In which criteria the above definition falls?
Select correct option:
a) Exclusive definition
b) Inclusive definition
c) Both Exclusive and Inclusive definitions
d) Statutory definition
Explanation: It includes dictionary meanings as well as meanings conveyed by definition.
9-Formula to compute the tax rate applies on gratuity received, “B” stands for;
Select correct option:
a) The total tax paid or payable by the employee for the three preceding tax years
b) The employee’s total taxable income for the three preceding tax years
c) The gratuity received by the employee
d) None of the given options
10-Mr. Akbar a resident individual received Dividends in Tokyo from a Pakistani resident company. Dividend will be added in his gross total income.
a) True
b) False
Reference: See the treatment of this example on page 33 of handouts. Dividends received in
Tokyo on 20th Aug 2008 from a Pakistani resident company: amounting Rs. 10,000.
11-Mr. Suleman is an employee of ABC Co. utilities are provided by Company to him for the tax year 2007. What will be the treatment of Utilities as per Income Tax Ordinance 2001 in the tax year 2007?
a) Utilities paid are added in the salary of Mr. Suleman
b) Fair market value of Utilities is added in the salary of Mr. Suleman
c) 10% of Utilities is exempted from tax and remaining amount will be added in the salary of Mr. Suleman
d) Utilities paid are exempted from Tax
Reference: Up to year 2006, utilities were exempt up to 10% of basic salary. It was omitted by finance bill2006.Now Fair market value of utilities is added back to the salary of employee and is fully taxable.
12-Any amount shall be foreign-source income if it is paid by:
Select correct option:
a) Resident person
b) Non-resident person
c) Citizen of Pakistan
d) All of the given options
13-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?
Select correct option:
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) Salary of Ali includes the Interest on loan at higher than benchmark rate
d) Amount of Interest on loan is exempted from Tax
14-Interpretation of Tax Laws is the prime responsibility of which of the following?
Select correct option:
a. Parliament
b. Supreme Court
c. High Court
d. Superior Judiciaries
15-Suppose due to hailstorm damages caused to crops that was insured against Insurance policy. The compensation received from an insurance company for damages caused by hailstorm.
What will be the tax treatment of such amount received?
a) Income from Business
b) Exempt as Agriculture Income
c) Income from Property
d) Capital Gain
Reference
16-Miss Sonia s total taxable income for the year 2009 is Rs. 240,000. Which of the following is the tax liability of Miss Sonia?
a) Nil
b) Rs. 500
c) Rs. 1,000
d) Rs. 1,500
Reference: where income of a woman taxpayer is covered by the clause, “ rates of tax for salaried Individuals for tax year 2009” no tax shall be charged if the taxable income does not exceed Rs. 240,000.
17-As part of remuneration package, a company provides for reimbursement of telephone costs on actual basis to its employees in case the facility is used for official purposes only, what are the tax consequence
Any dividend is Pakistan source income if it is paid by which of the following?
Select correct option:
By resident Company
By non resident Company
By resident Individual
By resident AOP
6) A dividend shall be Pakistan-source income if it is paid by a resident company. P28
Question # 2 of 15 ( Start time: 08:38:16 PM ) Total M a r k s: 1
Mr. A employed in Pakistan received dividend amounting Rs. 10,000 in UK from Pakistani resident company. What is the tax treatment for calculating his gross total income?
Select correct option:
Added in total income
Subtracted from the total income
Added in income after tax
Exempt from tax
Ref: See page: 33
Question # 3 of 15 ( Start time: 08:39:34 PM ) Total M a r k s: 1
Utilities were exempted up to which of the following tax year?
Select correct option:
2004
2005
2006
2007
Ref: Utilities were exempt up to 10% of MTS or Basic salary till 30th June, 2006, vide clause 38 of part 1 of Second Schedule. This clause has been omitted by Finance Act, 2006. Hence no exemption is available for tax year 2009.
Question # 4 of 15 ( Start time: 08:40:59 PM ) Total M a r k s: 1
The formula used in the computation of capital gain is:
Select correct option:
A+B
A-B+C
A-B
A+B-C
Capital gain shall be computed in accordance with following formula:
A-B
o A is the consideration received by the person on disposal of the capital asset
o B is the cost of the asset.
Question # 5 of 15 ( Start time: 08:41:55 PM ) Total M a r k s: 1
If tax payable of a sole proprietorship is Rs. 595,000, what will be the tax rate applied?
Select correct option:
12.50%
15.00%
7.50%
10.50%
Question # 7 of 15 ( Start time: 08:58:06 PM ) Total M a r k s: 1
Mr. A is an employee of Government of the Punjab, his data for the year 2009 is given below. Salary: Rs. 60,000 per month Gratuity: Rs. 1,000,000 Calculate his taxable income.
Select correct option:
774,000
720,000
1,060,000
1,720,000
Tax treatment of Gratuity is as under:
• Gratuity pertaining to government employees/ their families:
• Any gratuity received on retirement/ death by employee of the government, a local authority or a
statutory body or corporation or family is wholly exempt from tax under clause 13(i), part I of
second schedule.
Question # 8 of 15 ( Start time: 08:59:36 PM ) Total M a r k s: 1
Income of the recognized vocational institution is
Select correct option:
Wholly taxable
Exempt
Exempt up to 50%
Partially taxable
Exemptions on Business income Under Part 1 of second schedule
Clause Exempt Income
(91) Income of a Text-Book Board.
(92) University or Educational Institution established not for profit purpose.
(93) Recognized Computer Training Institution.
(93A) Recognized Vocational Institute.
(98) Income of Recognized Sports Board.
(100) Income of Modaraba Companie
Question # 9 of 15 ( Start time: 09:00:20 PM ) Total M a r k s: 1
Any gain arising on the disposal of shares in a resident company belongs to which of the following?
Select correct option:
Foreign source of income
Pakistan source income
Both Pakistan and foreign source of income
None of the given option
13) Any gain arising on the disposal of shares in a resident company shall be Pakistan- source income. P29
Question # 10 of 15 ( Start time: 09:01:45 PM ) Total M a r k s: 1
Which part of the Income Tax Ordinance 2001 deals with Tax credits?
Select correct option:
Chapter III Part VII
Chapter III Part VIII
Chapter III Part IX
Chapter III Part X
Question # 11 of 15 ( Start time: 09:02:59 PM ) Total M a r k s: 1
What is the rate of tax for a small company?
Select correct option:
10% of taxable income
20% of taxable income
25% of taxable income
30% of taxable income
ii Where the taxpayer is a small company as defined in section 2, tax shall be payable at the rate of
20%. page 71
Question # 12 of 15 ( Start time: 09:03:58 PM ) Total M a r k s: 1
________ are allowable deductions in case if the tax payer is running a business.
Select correct option:
Salaries paid
Purchases
Office expenditures
All of the given options
Question # 13 of 15 ( Start time: 09:05:24 PM ) Total M a r k s: 1
Statutory provident fund is also known as:
Select correct option:
Recognized provident fund
Unrecognized provident fund
Government provident fund
None of the given options
Ref: Statutory Provident Fund, governed by the Provident Funds Act, 1925 (GP Fund)(page no.60)
Question # 14 of 15 ( Start time: 09:06:52 PM ) Total M a r k s: 1
Mr. A non-resident of Pakistan received interest on Australian Bonds Rs. 100,000 (half amount received in Pakistan). What is the treatment of this amount for calculating his gross total income?
Select correct option:
Rs. 100,000 added in his total income
Rs. 100,000 subtracted from his total income
Rs. 50,000 added in his total income
Exempt from tax
Question # 15 of 15 ( Start time: 09:08:21 PM ) Total M a r k s: 1
Which of the following is the Special Accounting Year of Companies exporting rice?
Select correct option:
1st January to 31st December p11
1st July to 30th June
1st October to 30th September
1st September to 31st August
Question # 1 of 15 ( Start time: 09:27:38 PM ) Total M a r k s: 1
Tax year for the salaried individuals is called as:
Select correct option:
Special Tax Year
Normal Tax Year
Fiscal Year
Financial Year
Tax year of a salaried Person shall be Normal Tax year P36
Question # 2 of 15 ( Start time: 09:28:17 PM ) Total M a r k s: 1
2(59) of Income Tax Ordinance 2001 defined: “shareholder” in relation to a company, includes a modaraba certificate holder, a unit holder of a unit trust and a beneficiary of a trust. In which criteria the above definition falls?
Select correct option:
Exclusive definition
Inclusive definition
Both Exclusive and Inclusive definitions P9
Statutory definition
Question # 3 of 15 ( Start time: 09:30:11 PM ) Total M a r k s: 1
What is the tax treatment of the reimbursement of expenditure made by the employer?
Select correct option:
Wholly Taxable P39
Wholly exempt
Partly Taxable
Not mentioned in Income Tax Ordinance 2001
Question # 4 of 15 ( Start time: 09:31:43 PM ) Total M a r k s: 1
Which of the following is the deductible allowance from the income of an individual?
Select correct option:
Zakat
Worker’s Welfare Fund
Work’s Participation Fund
All of the given options
Deductible Allowance:
The person shall be entitled to a deductible allowance for any Zakat paid by the person in a tax year
according to provisions of sec.60, for the amount of any Workers’ Welfare Fund paid by the person in a tax year under Sec 60-A, for the amount of any Workers’ Participation Fund paid by the person in a tax year under section 60-B.
Question # 5 of 15 ( Start time: 09:32:48 PM ) Total M a r k s: 1
Which of the following section of Income Tax Ordinance 2001 deals with perquisites of Income from Salary and its treatment?
Select correct option:
Section 11
Section 12
Section 13
Section 14
Ref: Sub Sec. (13) where, in a tax year an employer has provided an employee with a perquisites which is not covered by sub section (3) through (12), the amount chargeable to tax to the employee under the head “salary” for that year shall include the fair market value of the perquisites except where the rules, if any, provide otherwise, determined at the time it is provided, as reduced by any payment made by the employee for the perquisites.
Question # 6 of 15 ( Start time: 09:34:03 PM ) Total M a r k s: 1
Which one of the following principle of tax emphasized, that the taxation policy should be designed in such a way that boosts business atmosphere and the investment environment in the country?
Select correct option:
Convenience
Judicious
Capacity to Pay
Business friendly
Ref: Business Friendly
According to this principle, the taxation policy should be such as to boost business atmosphere and not discouraging the investment environment.
Question # 7 of 15 ( Start time: 09:35:01 PM ) Total M a r k s: 1
Which of the following is the rate of tax for salaried Individuals for tax year 2009, where the taxable income exceeds Rs. 650,000 but does not exceed Rs. 750,000?
Select correct option:
3.50%
4.50%
6.00%
7.50%
Question # 8 of 15 ( Start time: 09:36:16 PM ) Total M a r k s: 1
Mr. A’s total taxable income for the year 2009 is Rs. 600,000. Which of the following is the tax liability of Mr. A?
Select correct option:
Rs. 15,000
Rs. 21,000
Rs. 27,000
Rs. 36,000
Where the taxable income exceeds Rs. 550,000 but does not exceed Rs.
650,000,
Then rate will be 4.50% (600,000 *4.50%) 27000 P45
Question # 9 of 15 ( Start time: 09:36:48 PM ) Total M a r k s: 1
It is mandatory for each Company to maintain its books of accounts on which of the following methods?
Select correct option:
Cash basis
Accrual basis
Both cash and accrual basis
Free to choose any kind of base
For Companies –Accrual basis mandatory. P70
Question # 10 of 15 ( Start time: 09:37:45 PM ) Total M a r k s: 1
Which one of the following section deals with intangibles?
Select correct option:
Section 22
Section 24
Section 222
Section 242
Intangibles (Sec. 24): p68
Which part of income is charged to tax of non-resident person under the income tax ordinance 2001?
Select correct option:
Pakistani source of income
Foreign source of income
Both Pakistan and foreign source of income
None of the given option
Question # 12 of 15 ( Start time: 09:39:53 PM ) Total M a r k s: 1
Which of the following is the rate of tax for salaried Individuals for tax year 2009, where the taxable income exceeds Rs. 900,000 but does not exceed Rs. 1,050,000?
Select correct option:
9.00% P45
10.00%
11.00%
12.50%
Question # 13 of 15 ( Start time: 09:40:43 PM ) Total M a r k s: 1
Total income of a person for a tax year shall be the sum of the person’s income under which of the following head?
Select correct option:
Only Income from salary
Only Income from Business
Only Income from Property
All of the given options
Ref: Total Income (Section 10)
Total income of a person for a tax year shall be the sum of the person’s income under each of the heads of income.
Question # 14 of 15 ( Start time: 09:41:22 PM ) Total M a r k s: 1
Which of the following is the Tax year available for salaried individual?
Select correct option:
1st January to 31st December
1st July to 30th June
1st October to 30th September
September to 31st August
Normal tax year will be applicable for salaried individual
•Normal Tax Year starts from 1st July and ends on 30th June (a period of twelve months). Question # 15 of 15 ( Start time: 09:41:47 PM ) Total M a r k s: 1
In which of the following heads of Income No deductions are allowed:
Select correct option:
Salary
Income from Property
Income from Business
Capital Gains
Which of the following is a literal meaning of tax?
Select correct option:
Burden
Endurance
Patience
Fortitude
Question # 2 of 15 ( Start time: 07:37:41 PM ) Total M a r k s: 1
Which of the following is a general compulsory contribution of wealth by the state, to meet the expenses incurred in providing common benefits upon the residents?
Select correct option:
Fee
Taxes
Charges
Penalties
Question # 3 of 15 ( Start time: 07:38:12 PM ) Total M a r k s: 1
In the normal circumstances on which of the following tax is charged?
Select correct option:
Gross Receipt
Total Income
Taxable Income
All of the given options
Question # 4 of 15 ( Start time: 07:38:52 PM ) Total M a r k s: 1
Expenses entitled to be paid by a Company, then entry of such expenses will be made in the books of accounts if:
Select correct option:
Company maintaining its books of account on Cash basis
Company maintaining its books of account on Accrual basis
Company maintaining its books of account on Both Accrual and Cash basis
None of the given options
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Question # 6 of 15 ( Start time: 07:39:59 PM ) Total M a r k s: 1
Achieving full employment level is one of the objectives of which of the following policy?
Select correct option:
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
Question # 7 of 15 ( Start time: 07:40:57 PM ) Total M a r k s: 1
Which of the following tax is paid in relation to how much you earn?
Select correct option:
Income Tax
Inheritance Tax
Value added Tax
Sales Tax
Question # 8 of 15 ( Start time: 07:41:10 PM ) Total M a r k s: 1
Which of the following is the legal status of Al-Habib Bank Limited under section 80 of the ordinance?
Select correct option:
Individual
Firm
Banking Company
Hindu Undivided Family
Question # 9 of 15 ( Start time: 07:42:10 PM ) Total M a r k s: 1
The Chairman of CBR has the responsibility for which of the following measures?
Select correct option:
Formulation and administration of fiscal policies
Levy and collection of federal taxes
Quasi-judicial function of hearing of appeals
All of the given options
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Question # 10 of 15 ( Start time: 07:42:29 PM ) Total M a r k s: 1
It is mandatory for each Company to maintain its books of accounts on which of the following methods?
Select correct option:
Cash basis
Accrual basis
Both cash and accrual basis
Free to choose any kind of base
Question # 11 of 15 ( Start time: 07:42:48 PM ) Total M a r k s: 1
Which of the following is not the type of tax?
Select correct option:
Direct taxes
Indirect Taxes
Value Added Taxes
Fees and Penalties
Question # 12 of 15 ( Start time: 07:43:01 PM ) Total M a r k s: 1
Sec. 02 of Income Tax Ordinance 2001 defined: “Appellate Tribunal means the Appellate Tribunal established under section 130” In which criteria the above definition falls?
Select correct option:
Exclusive definition
Inclusive definition
Both Exclusive and Inclusive definitions
Statutory definition
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Question # 13 of 15 ( Start time: 07:44:18 PM ) Total M a r k s: 1
Which of the following is included in the Scheme of the Income Tax Ordinance 2001?
Select correct option:
Chapters
Sections
Schedules
All of the given options
Question # 14 of 15 ( Start time: 07:44:32 PM ) Total M a r k s: 1
Which of the following income is chargeable to tax?
Select correct option:
Gross income from business
Income computed in line with provisions of Ordinance
Only basic salary of salaried person
Basic salary excluding allowances of a salaried person
Question # 15 of 15 ( Start time: 07:44:47 PM ) Total M a r k s: 1
Which of the following methods of accounting is compulsory to adopt for Sole-proprietorship?
Select correct option:
Accrual Basis
Cash Basis
Both accrual and cash bases
Free to choose any kind of base
Any gain arising on the disposal of shares in a resident company belongs to which of the following?
Select correct option:
Foreign source of income
Pakistan source income
Both Pakistan and foreign source of income
None of the given option
Ref: 13) Any gain arising on the disposal of shares in a resident company shall be Pakistan-source income. P29
Person Sec. 2(42) does not includes which of the following?
Select correct option:
An Individual
The Federal Government
Public International Organization
None of the given option
Ref: Person—Sec. 2(42) read with section 80. Person includes:
• An individual
• A company or association of persons incorporated or formed in Pakistan or elsewhere; and
• The federal Government,
• a foreign government,
• a political sub division of foreign government, or
• Public international organization
In Income Tax Ordinance 2001 tax concessions meant for which of the following?
Select correct option:
Reduction in tax liability
Reduction in tax rate
Reduction in taxable Income
All of the given options
Which of the following is not the type of tax?
Select correct option:
Direct taxes
Indirect Taxes
Value Added Taxes
Fees and Penalties
Which of the following is included in the Scheme of the Income Tax Ordinance 2001?
Select correct option:
Chapters
Sections
Schedules
All of the given options
If any other office involved in the management of a company it is termed as:
Select correct option:
Employment
Employer
Employee
Business premises
Ref: Employment Sec. 2(22)
Employment includes:
•A directorship or any other office involved in the management of a company;
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Agricultural income includes which one of the following?
Select correct option:
Dividend paid by a company out of its agriculture income
Income from fisheries
Royalty income of mines
Share of profit of a partner from a firm engaged in agricultural
2(59) of Income Tax Ordinance 2001 defined: “shareholder” in relation to a company, includes a modaraba certificate holder, a unit holder of a unit trust and a beneficiary of a trust. In which criteria the above definition falls?
Select correct option:
Exclusive definition
Inclusive definition
Both Exclusive and Inclusive definitions
Statutory definition
Any Pakistan-source income which Pakistan is not permitted to tax under a tax treaty shall be _____.
Select correct option:
Wholly Taxable
Wholly Exempt
Partly Exempt
Not mention in Ordinance
Ref: Exemptions under International Agreements Section 44
44. Exemptions under international agreements
(1) Any Pakistan-source income which Pakistan is not permitted to tax under a tax treaty shall be
exempt from tax under this Ordinance.
Mr. X resident of Pakistan remittance from UK received Rs. 20,000 in Pakistan from past profits. Which of the following is right for the above scenario?
Select correct option:
Mr. X being resident of Pakistan Rs. 20,000 will be added in Gross total income
Mr. X being resident of Pakistan Rs. 20,000 will be Subtracted in Gross total income
Mr. X being non-resident of Pakistan Rs. 20,000 will be added in Gross total income
None of the given options
Ref: Since remittance is not income, hence it is not included.
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Non-Agricultural income includes which one of the following?
Select correct option:
Income from sale of wild grass
Income from fisheries
Royalty income of mines
All of the given options
Ref: Page no.19
Which of the following person fulfilled the criteria of a Taxpayer?
Select correct option:
Any representative of a person who derives an amount chargeable to tax
Any person who is required to deduct or collect tax
Any person required to furnish a return of income
All of the given options
Sec. 2(66) “Taxpayer” means any person who derives an amount chargeable to tax under this ordinance;
o Any representative of a person who derives an amount chargeable to tax under this ordinance
o Any person who is required to deduct or collect tax under part V of chapter X and chapter XII
o Any person required to furnish a return of income or pay tax under this ordinance.
Which of the following section deals with the residential status of Individual?
Select correct option:
Section 80
Section 81
Section 82
Section 83
Agricultural income does NOT include which one of the following?
Select correct option:
Rent or Revenue derived by a person from land
Income derived from land situated in Pakistan
The land is used for agricultural purposes
Income from spontaneous forest
Achieving full employment level is one of the objectives of which of the following policy?
Select correct option:
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
The Chairman of CBR has the responsibility for which of the following measures?
Select correct option:
Formulation and administration of fiscal policies
Levy and collection of federal taxes
Quasi-judicial function of hearing of appeals
All of the given options
Any amount received under Part 3 of Second Schedule, as flying allowance by pilots etc. and junior commissioned officers or other ranks shall be taxed at the rate of ________ as separate block.
Select correct option:
2.5%
5.5%
7.5%
9.5%
Ref: Reduction in Tax Liability under Second Schedule Part 3
• Any amount received as flying allowance by pilots etc. and junior commissioned officers or other
ranks shall be taxed @2.5% as separate block.(Page No.25)
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An Individual will be termed as Short Term Resident under section 50 of the IT Ordinance 2001 on which of the following condition meet?
Select correct option:
His period of stay equal to 183 days
The employee of Federal Government
The citizen of Pakistan
Resident solely by reason of the individual’s employment
Section 50 Foreign-Source Income of Short-Term Resident Individuals
1. Subject to sub-section-2, the foreign-source income of an individual shall be exempt:
a. Who is a resident individual solely by reason of the individual’s employment; and
b. Who is present in Pakistan for a period or periods not exceeding three years,
Federal government has been empowered vide section 53 (2) and (3) to make amendments in the second schedule by:
Select correct option:
Adding any clause or condition therein
Omitting any clause or condition therein
Making any change in any clause or condition therein
All of the given options
Ref: Page No.18
Which of the following is similar to the concept of clubbing of Incomes?
Select correct option:
Unification only two heads of Income
Association of two or more heads of Income
Splitting up of only two heads of Income
Division of two or more than two heads of Income
Ref: Clubbing of income means Income of other person included in assessee’s total income, for example: Income of husband which is shown to be the income of his wife is clubbed in the income of Husband and is taxable in the hands of the husband.
Land revenue rent (Lagan) is received by which of the following authority?
Select correct option:
High Court
Supreme Court
Income Tax Department
Provincial Government
Loss can be carried forward up to how many years?
Select correct option:
3 years
4 years
5 years
6 years
Ref: If a capital loss sustained by a person for a tax year under the head “Capital Gains” is not wholly set off under sub-section (1), then the amount of the loss not set off shall be carried forward to the following tax year, and so on, but no loss shall be carried forward to more than six tax years immediately succeeding the tax year for which the loss was first computed.(Page No.86)
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Mr Ali is an employee of ABC Co. the company has provided a driver and a gardener to Mr. Ali. What will be the treatment of their salaries as per Income Tax Ordinance 2001?
Select correct option:
The salaried paid to them added in the salary of MR. Ali
The salaried paid to them subtracted in the salary of MR. Ali
Have no relation with salary of Mr. Ali
The Salaried paid are exempted from Tax
Ref: Sub Sec. (5) Where, in a tax year, the services of a housekeeper, driver, gardener or other domestic assistant provided by an employer to an employee, the amount chargeable to tax to the employee under the head “salary” for that year shall include the total salary paid to such housekeeper, driver, gardener or other domestic assistant] in that year for services rendered to the employee, as reduced by any payment made by the employee [to the employer] for such services.
Which of the following come under the ambit of Royalty under section 2 (54)?
Select correct option:
Right to use any patent
Copy right of a literary
Right to use any industrial or scientific equipment
All of the given options
A firm ABC maintaining its account in accrual basis, at June 27, 2008 it is entitled to receive Rs. 10,000 but actual payments made at 01 August 2008. In which year it is charged to tax?
Select correct option:
2006
2007
2008
2009
Answer provided by azeemkhan2000.
Suppose a money lender give loan to a farmer of Rs. 100,000. After the due time the farmer pay back the loan in shape of agriculture produce amounting Rs. 110,000 to money lender. What will be the tax treatment of Rs. 110,000?
Select correct option:
Tax will be charged only on Rs. 100,000
Tax will be charged only on Rs. 10,000
Tax will be charged only on Rs. 110,000
Exempt as Agriculture Income
Note: We are unable to solve this question with reference. If any one can solve it then send us the answer with reference at vuzshelp@gmail.com or use comment option given below.
If the accounting year of firm manufacturing shawls is started from 1st April 2002 and ending on 31st March 2003. What will be its tax year?
Select correct option:
Tax year 2002
Tax year 2003
Tax year 2004
Tax year 2005
Mr. Joseph is an employee of Foreign Government posted in Pakistan? What will be the residential status of Mr. Joseph?
Select correct option:
Resident Individual
Non- Resident Individual
Resident HUF
Resident AOP
Profit on debt shall be Pakistan-source income if it is:
Select correct option:
Paid by a resident person
Which of the following is not the type of tax?
Select correct option:
Direct taxes
Indirect Taxes
Value Added Taxes
Fees and Penalties
Ref:
Type of Taxes:
Different types of taxes are explained below:
™ Direct taxes
™ Indirect Taxes
™ Proportional Taxes
™ Progressive
™ Regressive taxes
™ Value Added Taxes.
Special tax year is adopted after seeking approval from the ____________ under section 74(3).
Select correct option:
Commissioner
Tax Officer
Appellate Tribunal
Supreme Court
Ref:
Special Tax Year:
In case a person has a different accounting period from normal tax year or adopted such a period
after seeking approval from commissioner under section 74(3) it is called special tax year.
Which of the following is tax, where the tax rate decreases as the amount to which the rate is applied increases?
Select correct option:
Proportional tax
Progressive tax
Regressive tax
Corporate tax
Ref:
™ Progressive Taxes
This is based on the “capacity to pay” principle of taxation. In this type, the rate of tax increase as
the income increase.
__________ are allowable deductions in case if the tax payer is running a business.
Select correct option:
Salaries paid
Purchases
Office expenditures
All of the given options
Which of the following is an example of Lump sum receipt?
Select correct option:
Pension
Golden shake hand
Provident fund
All of the given options
Which of the following is the main tool of Fiscal Policy?
Select correct option:
Taxes
Deficit Financing
Subsidies
Transfer Payments
Ref:
Instruments of Fiscal Policy
¾ Government Expenditures
¾ Taxes
¾ Deficit Financing
¾ Subsidies
¾ Transfer Payments—like Unemployment Allowances etc.
Which of the following is the Special Accounting Year of Companies exporting rice?
Select correct option:
1st January to 31st December
1st July to 30th June
1st October to 30th September
1st September to 31st August
Ref:
All persons exporting rice and carrying insurance business 1st
January to 31st December
A firm ABC maintaining its account in accrual basis, at June 27, 2008 it is entitled to receive Rs. 10,000 but actual payments made at 01 August 2008. In which year it is charged to tax?
Select correct option:
2006
2007
2008
2009
Which of the following tax is payable on merchandise imported or exported from one country to another?
Select correct option:
Custom duty
Income tax
Sales tax
Wealth tax
Which one of the following is the general definition of tax?
Select correct option:
Compulsory contribution of wealth by persons
Optional contribution of wealth by persons
Compulsory contribution of wealth by state
Optional contribution of wealth by state
Ref:
General Definition of Tax:
General compulsory contributions of wealth levied upon persons by the state, to meet the expensesincurred in providing common benefits upon the residents.
In a tax _____ you give information about what you earn every year.
Select correct option:
Return
Statement
Sheet
Report
Answer required
_____ tax is paid from money you have received from someone who has died.
Select correct option:
Income
Inheritance
Property
Sales
Achieving full employment level is one of the objectives of which of the following policy?
Select correct option:
Monetary policy
Fiscal policyWhich of the following section deals with the residential status of Association of Person?
Select correct option:
Section 81
Section 82
Section 83
Section 84
Mr. X employed in Pakistan earned pension from Pakistan Government but received in London Rs. 100,000. Which of the following is right for the above scenario?
Select correct option:
Mr. X being resident of Pakistan Rs. 100,000 will be added in Gross total income
Mr. X being resident of Pakistan Rs. 100,000 will be subtracted in Gross total income
Mr. X being resident of Pakistan Rs. 100,000 will be added in total income after tax
Mr. X being non-resident of Pakistan Rs. 100,000 will be exempted
A firm ABC maintaining its account in cash basis, at June 27, 2008 it is entitled to receiveRs. 10,000 but actual payments made at 01 August 2008. In which year it is charged to tax?
Select correct option:
2006
2007
2008
2009
Which of the following is the External aid to interpretation of tax laws?
Select correct option:
Preamble
Non-Obstinate clause
Title of a chapter
Finance Minister’s budget speech
Non-Agricultural income includes which one of the following?
Select correct option:
Income from sale of wild grass
Income from fisheries
Royalty income of mines
All of the given options
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The Chairman of CBR has the responsibility for which of the following measures?
Select correct option:
Formulation and administration of fiscal policies
Levy and collection of federal taxes
Quasi-judicial function of hearing of appeals
All of the given options
Agricultural income includes which one of the following?
Select correct option:
Dividend paid by a company out of its agriculture income
Income from fisheries
Royalty income of mines
Share of profit of a partner from a firm engaged in agricultural
___________ is the payment to the holder for the right to use property such as a patent, copyrighted material, or natural resources.
Select correct option:
Permanent Establishment
Royalty
Dividend
Goodwill
Which of the following person fulfilled the criteria of a Taxpayer?
Select correct option:
Any representative of a person who derives an amount chargeable to tax
Any person who is required to deduct or collect tax
Any person required to furnish a return of income
All of the given options
Non-Agricultural income does Not includes which one of the following?
Select correct option:
Dividend paid by a company out of its agriculture income
Royalty income of mines
Profit on sale of standing crops
Income from fisheries
Tax year for the salaried individuals is called as Special Tax Year.
Select correct option:
True
False
If M/s ABC and Co. an association of person is a non-resident AOP which of the following condition must be satisfied?
Select correct option:
Control and management of affairs of AOP is situated partly in Pakistan.
Control and management of affairs of AOP is situated wholly in Pakistan.
Control and management of affairs of AOP is situated wholly or partly in Pakistan
None of the given options
Which of the following days shall be counted as half day for the computation of residential status of an individual?
Select correct option:
A Public Holiday
A day of sick leave
Any strike
None of the given options
Which of the following is not the type of tax?
Select correct option:
Direct taxes
Indirect Taxes
Value Added Taxes
Fees and Penalties
Ref:
Type of Taxes:
Different types of taxes are explained below:
™ Direct taxes
™ Indirect Taxes
™ Proportional Taxes
™ Progressive
™ Regressive taxes
™ Value Added Taxes.
Special tax year is adopted after seeking approval from the ____________ under section 74(3).
Select correct option:
Commissioner
Tax Officer
Appellate Tribunal
Supreme Court
Ref:
Special Tax Year:
In case a person has a different accounting period from normal tax year or adopted such a period
after seeking approval from commissioner under section 74(3) it is called special tax year.
Which of the following is tax, where the tax rate decreases as the amount to which the rate is applied increases?
Select correct option:
Proportional tax
Progressive tax
Regressive tax
Corporate tax
Ref:
™ Progressive Taxes
This is based on the “capacity to pay” principle of taxation. In this type, the rate of tax increase as
the income increase.
__________ are allowable deductions in case if the tax payer is running a business.
Select correct option:
Salaries paid
Purchases
Office expenditures
All of the given options
Which of the following is an example of Lump sum receipt?
Select correct option:
Pension
Golden shake hand
Provident fund
All of the given options
Which of the following is the main tool of Fiscal Policy?
Select correct option:
Taxes
Deficit Financing
Subsidies
Transfer Payments
Ref:
Instruments of Fiscal Policy
¾ Government Expenditures
¾ Taxes
¾ Deficit Financing
¾ Subsidies
¾ Transfer Payments—like Unemployment Allowances etc.
Which of the following is the Special Accounting Year of Companies exporting rice?
Select correct option:
1st January to 31st December
1st July to 30th June
1st October to 30th September
1st September to 31st August
Ref:
All persons exporting rice and carrying insurance business 1st
January to 31st December
A firm ABC maintaining its account in accrual basis, at June 27, 2008 it is entitled to receive Rs. 10,000 but actual payments made at 01 August 2008. In which year it is charged to tax?
Select correct option:
2006
2007
2008
2009
Which of the following tax is payable on merchandise imported or exported from one country to another?
Select correct option:
Custom duty
Income tax
Sales tax
Wealth tax
Which one of the following is the general definition of tax?
Select correct option:
Compulsory contribution of wealth by persons
Optional contribution of wealth by persons
Compulsory contribution of wealth by state
Optional contribution of wealth by state
Ref:
General Definition of Tax:
General compulsory contributions of wealth levied upon persons by the state, to meet the expensesincurred in providing common benefits upon the residents.
In a tax _____ you give information about what you earn every year.
Select correct option:
Return
Statement
Sheet
Report
Answer required
_____ tax is paid from money you have received from someone who has died.
Select correct option:
Income
Inheritance
Property
Sales
Achieving full employment level is one of the objectives of which of the following policy?
Select correct option:
Monetary policy
Fiscal policy
Trade Policy
Economic Policy
