Taxation Management Basic Past Papers


Subject: Taxation Management (Basic)

Time Allowed: 15 Minutes

Maximum Marks: 10

NOTE: Attempt this Paper on this Question Sheet only.  Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.


Part-I Encircle the right answer, cutting and overwriting are not allowed. (10)

Part-I Encircle the right answer, cutting and overwriting are not allowed. (10)
1. Income Tax Rules are effective from:
a. 2002
b. 1979
c. 2000
d. 2001
2. As per the income tax ordinance 2001, Person means:
a. Federal &Foreign Government
b. Individual
c. Company or AOP
d. All of the above
3. Which of the following is NOT a public limited company?
a. A company in which 50% or more shares are held by the Federal Government
b. A company in which 50% or more shares are held by a provincial government
¢. A company in which 50% or more shares are held by a forcign government
d. A company in which 50% or more shares are held by a local government
4. Which from the following is NOT among the heads of “Total Income”?
a. Capital gains

b. Salary
c. Income Irom property/business
d. Income from sales
5. Which of the deductible allowance is deducted from gross tax?
a. Educational Expenses
b. Payment to workers Welfare Fund
c. a and b both
d. None of the above
6. Which of the following is not included in Rent Chargeable to tax?
a. Rent received or receivable by the owner of land or building
b. Forteited token money
c. 1/10th of the advance not adjustable against Rent
d. None of the above
7. Highest Forum for reference in the point of law:
a. CIR (Appeals)
b. Appellate Tribunal Inland Revenue
c. High Court
d. Supreme Court
8. A loss carried forward from Income from business may be set off against:
a. Income from any other business
b. Income from the same business
c. Income from any other source of income
d. None of the above
9. Which of the following is responsible for appointment of members and Chairman of FBR?
a. Provincial Government
b. Federal Government
¢. Central Board of Revenue
d. Federal Board of Revenue
10. Withholding tax is deducted at the time of:
a. Rendering the service
b. Recording suppliers invoice
¢. Making a purchase
d. Making a payment


Subject: Taxation Management (Basic)

Time Allowed: 2 Hours 45 Minutes

Maximum Marks: 50



Part-II Give short notes on following, each question carries equal marks. (20)

Q#1: Define KIBOR.

Q#2: What is Capital Asset?

Q#3: Difference between normal tax year and transitional tax year.

Q#4: Give two examples of Partly Agricultural and Partly Non-Agricultural Income.

Q#5: Define Rent Chargeabie to tax (RCT).

Q#6: Why is it important to differentiate between Revenue and Capital expenditure?

Q#7: What is the difference between Exempt and Non-Taxable?

Q#8: What is the tax treatment of “Loan to Employee” under the income tax ordinance 2001?

Q#9: Enlist at least four examples of Income from Other Sources.

Q#10: Define Best Judgment Assessment.


Part-III Give detailed answers, each question carries equal marks. (30)

Q#1: What is Provident Fund? Discuss the treatment of various types of Provident Fund for inclusion in total income and exemption from income tax.      OR

What is meant by Agriculture Income? Is it taxable in Pakistan? Give explanation of different types of agricultural Income.

Q#2: Mohammad Ali. a senior citizen of Pakistan (age above 60 ycars). supplies the following information

for the tax year ended 30-06-2018. Compute his tax payable.

  1. Basic Salary Rs. 5,00,000
  2. Cost of Living Allowance 30,000
  3. Rent free unfurnished accommodation provided to him
  4. Medical allowance 28,000
  5. Medical Facility (under terms of agreement) 40,000
  6. Loan obtained from the employer @ 12% 11,00,000
  7. Property income (Repair charges Rs. 25,000, Property tax paid Rs, 5,000)


  1. Un-Adjustable Advance Rent 1,00,000
  2. Profit from textile business 45,000
  3. Un-adjustable business loss of previous year 35,000
  4. Capital gains on sale of shares of private company (Disposed off within 12 months)


  1. Shaukat Khanum Memorial Trust 90,900

Specified in clause 61 of the second Schedule

  1. Tax deducted at source trom salary 10,000
  2. Donation to Government educational institution 45,000
  3. Contribution to approved fund at the ave of above 40 yr


  1. Won a car in competition held by Indus Motors for promotion of its sales RAW


  1. Education fee of three children 50,000
  2. Gain on sale of shares of public company acquired after {July 2017 ; (Disposal within the period of 12 months) 75,000
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