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3 Marks

What does the term turnover stands for a company?

Who are required to file the return of Income Tax?
What is the tax treatment of Pension under clause 16 and 17 of Part 1 of second schedule related to
Shaheeds?
Under what conditions a commissioner of Income Tax may ask for the filing of returns by notice?
Zero Rated Supply
Sec 61 Donation
How this Tax credit is calculated?
What is VAT (Value added tax)? 3
Define with sections
Salary
Employee sec 2(20):
Employer sec 2(21):
In what ways a return of Income is filed?
What is the tax treatment of Speculation business as per section 19 of Income Tax Ordinance 2001? 3
What does the word Market Value means as per rule 11 sub rules 3 of Income Tax Rule 2002? (
Define Depreciable asset?
Write basic contents of Income Tax Ordinance 2001.
Who is liable to pay Capital Value Tax on capital value of certain assets?
What are the Penalties in case of failure to maintain record and non compliance with the notice under
section 185 and 186 of Income Tax Ordinance 2001 respectively?
Complete the table by filling the 2nd column with the respective rates as per Income Tax Ordinance
2001 for the tax year 2010.
What do you understand by the term mal-administration in context with Income tax department?
Explain.
What is the main purpose of Gratuity?
What are the basic features of Sales tax?
Salary as defined in Section 12(2)
Define Royalty Sec. 2 (54)
When Commissioner can tax salary on due basis:Mr. Farooq's salary is Rs.22, 000 per month. He received commission during the year amounting to
Rs.33, 000. He is provided a jeep by his employer for personal as well a official use. The employer
took this jeep from a leasing company at an annual lease of Rs.80, 000. The fair market value of the
000.Calculate the taxable income of Mr.
Define section 47 and Section 48? Mark 3
Section 47 Scholarships Resident individual Resident Individual (Section 82)
Define employment & also mention section?
Employment Sec. 2(22)
Define section 49 (23page)
Define these sections section 47, section 48 under the IT ordinance 2001 (3 marks)
What is meant by reduction in tax liability? Give an example from Income Tax Ordinance 2001? 3
What does Bench Mark rate means? Also mention which section describe bench mark rate? 3 marks
Under which circumstances business income of a non resident person shall be considered as Pakistansource income? (3)
What exemption granted under section 46 of IT Ordinance 2001?
What is the difference between remittance and receipt of income? Which one is chargeable to
taxable? (3)
Section 102 deals with Salary received from Foreign-Source by resident individual? What is the tax
treatment of such salary? (3)

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Difference between remittance and receipt of income

If Mr. Kamal resident of Pakistan suffered a foreign loss against the income received from foreign
country in tax year. What is the treatment of such foreign loss? Which section deals this kind of loss?
Such losses can be carried forward up to how many years?(3)
Define Income that is charged to tax under section 2(9).
Mr. Ali is a resident of Pakistan, 1000 salary received in UK paid by the UK Company; he paid the
income tax on his salary in UK. The tax treatment of Mr.ali s income in Pakistan with IT ordinance
2001, also mention the section that is applicable (3)
Mr. sohail going come in Pakistan 1st march 2008 to attend marriage ceremony and he is going back
to Singapore 22nd march 2008 however he extend his visit and going back 30th may 2009. What is
residential status of Mr. Sohail in tax year 2009? Marks 3
Resident
Explain any three canon of taxation of Pakistan.
List down the names of assets against which no loss is recognized on disposal?
Was a Simple numerical salary was given house rent and conveyance allowance were given had to
compute taxable income. 3
In what ways a return of Income is filed? (3 Marks)
What is the tax treatment of Speculation business as per section 19 of Income Tax Ordinance 2001?
(3 Marks)
What does the word Market Value means as per rule 11 sub rules 3 of
Income Tax Rule 2002? (3 Marks)
Write basic contents of Income Tax Ordinance 2001.
What Zero Rated Supplies explain with one Example? (3 Marks)
Mr. A gave his property to Mr. B on rent on 01 July 2011 at Rs. 150, 000 per month. In addition, Mr.
A receives a premium of Rs. 1, 000,000 on the same date from Mr. B. It is mutually agreed that the
amount of premium will not be adjustable against rent.
Compute Mr. A's gross income from property for tax year 2012. (3 Marks)
Under what conditions a commissioner of Income Tax may ask for the filing of returns by notice? (3
Marks)
Briefly explain the unexplained income or assets under section 111 of Income Tax
Differentiate between the Agriculture and Non Agricultural Income.
How the appeal is filed to commissioner of income tax?R.
To enlist five examples of agriculture income
To enlist five disposable examples
List down the names of assets against which no loss is recognized on disposal?
Tax Credits on Charitable Donations (Sec 61)
What is BOP? When it is positive and when negative? How it can be improved?
Tax Treatment by Gratuity approved by following Authorities ? (Marks 3)
Comminsioner of Income Tax
Central Board Of Revenue
What does the term turnover stands for a company?

Tax treatment of non-adjustable amount f rent with e.g(3)

Tax treatment of non-adjustable amount f rent with e.g(3)

Define term Turnover in respect of company?

How company record maintained and valuation of stock?

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direct and indirect tax

pre commencement expenditure kia hoty ha

How the appeal is filed to commissioner of income tax?r.

What are the rules regarding double derivation of income and double deduction of expenses? Which
section elaborates this rule?

Mr. Aslam is the owner of the building which is let out to Mr. Basher for Rs. 8,000 per month on 1st
July 2011. During the year he contracted with Mr. Basher for the sales of building for Rs. 100,000
and received Rs. 10,000 as token money and agreed to pay the balance amount the at end of the year.
Before the date of maturity Mr. Basher breaches the contract and as per terms of agreement token
money paid is forfeited by Mr. Aslam.
Calculate the income from property of Mr. Aslam for the year ended 30th June 2012.
what would be the treatment of depreciable asset if the company is operating on three shifts as
compared to the single shift operation (03marks)

Difference b/w Tax and Fee

Initial allowance and pre commencement expenditure

5 Marks:-

Compute taxable income and tax liability from the following information of Mr. Usman an employee
of B Company for tax year 2012.
Basic salary Rs 250,000 p.a
House Allowance Rs 120,000 p.a.
Tax Deducted at Source Rs 1,000
Mr. Ghaus is employed in a company after his retirement from army. Details of his income for the
year ended 30th June 2012 are as under:
Basic salary from company Rs. 20, 000 per month
Entertainment allowance Rs. 1,000 per month
Pension received from army Rs. 48,000 per annum
Calculate the total taxable income of Mr. Ghaus.
Under what conditions a commissioner of Income Tax may ask for the filing of returns by notice?
List down examples of Income from Agriculture under Section 41 of Income Tax Ordinance 2001
(Any Five).
What do you mean Intangible and cost of Intangible as per define in Sec 24? (5)
What is Pension? What is the treatment of Pension as per IT ordinance 2001? 5
Draw a chart for the understanding of taxation structure in Pakistan (5 Marks)?
Define employee share scheme under section 14 and also tell under what condition right to acquire
shares are chargeable to tax under section 14 of IT ordinance 2001.
Mr. Hassan is the employee of PAK AIR FORCE and receives allowance of Rs. 100000. What is the
tax treatment of this allowance under IT ordinance 2001.
Give five examples of disposal.
Un explained investment under section 111
Explain different types of taxes. (Any five)
What are the Penalties in case of failure to maintain record and non compliance with the notice under
section 185 and 186 of Income Tax Ordinance 2001 respectively?
What are the exemptions available in Tax Ordinance 2001 related to Property Income?
When Commissioner can tax salary on due basis:-

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Tax Credits on Charitable Donations (Sec 61)

Compute taxable income & tax thereon from following information/ data pertaining to tax year 2009
in respect of Mr. X, an employee of a private Company.
Salary Rs 40,000 per month
Bonuses Rs 80,000 for tax yr.
Utilities paid by employer Rs 40,000 for tax yr.
Compute taxable income and tax thereon in respect of Mr. Yasir (a salaried individual) for the tax
year 2009 from the following information/ data:
Basic salary Rs 20,000 pm
House rent allowance Rs 5,000 pm
Medical Allowance Rs 5,100 pm
Free hospitalization services availed under terms of employment Rs 40,000 pm
Drivers salary paid by employer Rs 8,000 pm
Dearness Allowance Rs 6,000 pm
Compute taxable income and tax thereon for tax year 2009 in respect of Mr. A, an employee of
Government of the Punjab. Relevant information/data is given below.
Salary Rs. 800,000
Gratuity Rs. 1,000,000
Tax deducted at source Rs. 54,000
Mr. A received credit of Rs. 50,000 as employers contribution to recognized provident fund, his
salary during tax year 2009 is given below:
Basic salary Rs.840,000
Computer allowance Rs. 12,000
Medical allowance Rs. 60,000
Compute taxable income and tax thereon for tax year 2009.
What is BOP? When it is positive and when negative? How it can be improved?
Mr. Irfan is 62 years of age. At present he is working as General Manager of a private organization.
His particulars for the year ended 30th June 2009 are as follows. Rs
Basic salary (40,000-1,000-55,000) 50,000p.m.
Traveling allowance 112,000
Conveyance allowance 48,000
Pension from Government 12,000 p.m.
Bonus 50,000
Zakat paid under zakat ordinance 20,000
Medical expenses 27,000
Further information provided:
Mr. Irfan has been provided a car for personal purposes. The cost of the car is Rs. 780,000.
He has been provided a rent - free accommodation. He was entitled to a house allowance of Rs.
8,000 per month.
3) The medical expenditures incurred during the year are verifiable.
Tax rate prevail 9%.
Compute the taxable income and tax payable on it.
From the following particulars, calculate the tax payable by Mr.Gauhar employed in a private limited
company for the year ended 30th June 2009 @ 0.5 %. Mr Gauhar is 62 years of age;
Salary (in scale 14,000-200-16,000) Rs.15, 000 p.m.
Cost of living allowance 20,000 p.a.
Special additional allowance 6,000 p.a.
Medical allowance 21,200 p.a.
Books of religious nature purchased 2,000
Zakat paid under zakat ordinance 3,200
Contribution to approved charitable institute Rs. 19,200

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Your are required to define in detail the section 21(l) Expenditure paid for in cashunder head
Income from Business'.
Mr. Adeel owns a property which he has rented out for Rs.10, 000 per month. The local authority has
determined the rental value of the property as Rs.144, 000. He has no other income.
equired:
What will be the fair market value of the property?
How much tax will be payable by Mr.khan for the tax year 2009? Page 62
Describe the Legal Status under section (80) of the following :
Federal Government Of Pakistan
Mr.Shakeel Serving as a director
Joint family of Mr. Hari Prasad ,his Son Mr.Johan and Mr. Vijay
Describe the Characteristics of Salaries ??
Tax Treatment of Gratuity not Covered under clause (13) ??
Tax Credits on Charitable Donations (Sec 61)
What are the exemptions available in Tax Ordinance 2001 related to Prope Income?

What are the basic features of Sales?

Compute the taxable income and tax liability of Mr. Jami a salaried individual. The data pertaining to
tax year 2009 is given below:

i.

Basic salary

Rs 20,000p.m.

ii.

House rent allowance

iii.

Bonus

iv.

Medical Allowance

v.

Free hospitalization services availed under terms of employment. Rs 40,000

Rs 5,000 p.m.

Rs. 6,000p.m.
Rs 5,100 p.m.

vi.

Driver's salary paid by employer

vii.

Dearness Allowance

viii.

Utilities

Rs 8,000 p.m.

Rs 6,000 p.m.

Rs. 40,000

How the appeal is filed to commissioner of income tax?

Differentiate between the Agriculture and Non Agricultural Income.

What are the rules regarding double derivation of income and double deduction of expenses? Which
section elaborates this rule?
What is the non-resident status of Pakistan source income? 5
Profit on debt in which conditions will be Pakistan source of income.
Section 49 Federal & Provincial Govt. and Local Authority Income
List down the examples of Income from Agriculture under section 41 of the ordinance (any five) 5
marks
An association of persons named M/S Khan and sons has its most of its branches in Pakistan is it
sufficient to be resident AOP or not?
Explain with reference to Income Tax Ordinance 2001? 5 marks

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. Section 102 deals with Foreign-source of income of resident individuals. Identify the tax treatment.
Foreign Source Salary of Resident Individuals Sec. 102
Under which conditions any royalty is treated as Pakistan source income if it is paid by:
i-Resident person
ii-Non-resident person
Profit on debt earned by a non-resident person is exempt from tax under clause (77)of Part I of the
second schedule. Is this exemption only available to Individuals as reference has been made to
persons being citizens of Pakistan or otherwise? Provide the details of this clause.
Mr. Irfan resident of Pakistan received salary from UK. He has also paid tax on his salary from UK as
per the tax laws prevailing there. What will be the tax treatment of his salary as a Pakistani resident?
Which section of the income tax ordinance deals this scenario?
Why the right to acquire share is not chargeable to tax under Employee Share Scheme section 14.
Under what condition the right to acquire share under section14 is taxable? (5)
Determine total income of Mr. Sharif, a non-resident individual for tax year 2009. Relevant data is
given below:
Share of profit received in Singapore from a business controlled through a permanent establishment
in Pakistan Rs 200,000.
Salary income of Mr. Sharif from an employment in Pakistan Rs600,000
Remittance received from China Rs 400,000
Profit on debt received on deposits kept with a bank in Pakistan Rs 50,000
List down some important characteristics of salary? 5 marks
If the utility bills are paid by the employer to an employee, give the rational with the applicable
section (5 marks)
Why the government imposes the taxes to its citizens, what element should be taken into account
while formation of the tax laws (5 marks)
Explain the two terms with their relevant sections (5 marks)
A is running business as sole proprietor. From the following information/data relevant to tax year
2012, compute taxable income and tax thereon.

Advance tax paid Rs 150,000 Net profit Rs.800, 000

What does the term turnover stands for a company?

Was a numerical for computing income of M/s Sons n Company. .!!! 5

List down the names of Institution whose incomes are exempt from tax under the Part 1 of Second
schedule of Income Tax Ordinance 2001 with their respective clauses.

Under which conditions an income received is categorized under the head royalty as defined in the
section 2(54) of the ordinance 2001.

To enlist five disposable examples

Compute taxable income and tax liability from the following information of Mr. Usman an employee
of B Company for tax year 2012.
Basic salary Rs 250,000 p.a
House Allowance Rs 120,000 p.a.
Tax Deducted at Source Rs 1,000

Mr. Ghaus is employed in a company after his retirement from army. Details of his income for the
year ended 30th June 2012 are as under:
Basic salary from company Rs. 20, 000 per month

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Entertainment allowance Rs. 1,000 per month
Pension received from army Rs. 48,000 per annum
Calculate the total taxable income of Mr. Ghaus.

Question of lesson 45 topic capital value of engines of 800 cc to 1600cc. table is given by the teacher.
Just mention their relative tax amounts against each capacity of engine.
Another Numerical question was given from income from property Section
Will Tax depreciation be allowed on a full year basis of a company engaged in a seasonal industry
like sugar production b. Are Expenses incurred prior to incorporation of a company tax deductible?
Levy of tax on Capital Value of certain assets:
Complete the table by filling the 2nd column with the respective rates as per
Income Tax Ordinance 2001 for the tax year 2010.
Depreciation Under Section 22
Building (all types) (.......?%)
Furniture and machinery and plant, Motor Vehicles, Ships, Technical or
Professional Books. (.......?%)
Computer hardware including printer, monitor and allied items, aircrafts and
aero engines. (.......?%)
5 cases where deduction not allowed 5 marks
What are the rules regarding double derivation of income and double deduction
of expenses? Which section elaborates this rule?
List down the names of Institution whose incomes are exempt from tax under the Part 1 of Second
schedule of Income Tax Ordinance 2001 with their respective clauses.
Under which conditions an income received is categorized under the head royalty as defined in the
section 2(54) of the ordinance 2001.
M/s ABC Ltd. a manufacturing company has furnished the following accounting
information for tax year 2012. Compute taxable income and tax thereon:
- Gross Income from normal business Rs.2, 000,000
- Expenditures on normal business Rs. 900,000
- Gross income from speculation business Rs. 700,000
- Expenditures on speculation business Rs.400, 000
- Loss carried forward on normal business Rs. 200,000
- Loss Carried forward on speculation business Rs. 900,000
- Advance Tax Paid Rs. 200,000

For the tax year 2010, agricultural income of Mr. Adnan is declared as Rs. 180,000. His income from
business for the said Tax year is Rs. 150,000. Calculate total income of Mr. Adnan for the tax year
2010.

Farooq and Co. Ltd. filed tax return for tax year 2012, declaring taxable income as Rs.1,050,000;
during the assessment and scrutiny of record by the tax authority, it was observed that deduction of
tax at source was not made by the company, while making the following payments. Compute taxable
income and tax thereon for tax year 2012.
Salaries Rs. 250,000
Payments made in execution of a contract for
purchase of office appliances. Rs. 100,000
Professional fee paid to chartered accountant. Rs. 50,000

What is meant by Eligible depreciable asset? Explain with examples.

List down the names of assets against which no loss is recognized on disposal?

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How the registration is made and what are the requirements under sales tax act 1990(5).

Are expenses incurred prior to incorporation of a company tax deductible. (5)

How the registration is made and what are the requirment under sales tax act 1990(5)

compute the taxable income basic salary Entertainment allowance + ek aur option thi yaad ni?

Calculation of salary 5

Ltd company calculation

registration sec21 of sales act 1990

On 01/01/2007 Mr. Y Purchased 100,000 shares at a price of Rs. 30 per share. He sold these shares on
20/06/2010 at a price of Rs. 40 per share. Calculate the gain taxable on this disposal.

Mrs. Asia working in government institute as as teacher (5)

B.S= 3000 P.M
Medical Allowance = 2500 P.M
Utilities Amount = 51600 P.A
Agri. Income=90,000
What will be amount Taxable=?

How valuation of stock is done and analyses the maintenance of record in modern era?
How mistakes are rectified through the term malfunctioning?

Mr. Muhamad Din earned Rs. 45,000 by selling the woods of spontaneous forest in the local market.
In his tax return he treated this income under the head of Agricultral income. According to the IT
ordinance 2001, analyze whether the tax treatment is correct or not, justify your answer with reason.

Calculate the taxable income of MR.A for the year ended on 30.06.2010. (05marks)
Remuneration received @ Rs.36000 p.m
conveyance provided by the employer for official as well as personal use. Cost of vehicle is
Rs.1200000
Rent free accomodation provided
Rs.35000 paid by the employer for medical facilities .