Home › Tax MCQs

Income Tax MCQs Pakistan — 200+ Practice Questions

52
Questions
17
Topics
ITO
2001 Based
Free
No Sign-up
🎯 CA 🎯 ICMAP 🎯 ACCA 🎯 CSS 🎯 FBR Exam
Explanations shown after each answer · Learn as you go
0 / 0
Answered
0
✅ Correct
0
❌ Wrong
—
🏆 Score
Session Progress 0% complete
11
Question 11 of 52 Exempted Income
Basic
📖 Section 41. Agricultural Income - ITO, 2001
Which of the following incomes are exempt from tax under the Income Tax Ordinance, 2001 ?
1 Income from Salary ❌
2 Income from Property ❌
3 Income from Business ❌
4 Agricultural Income ✅
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
Any agricultural income received or earned by a person shall be exempt from tax under the Income Tax Ordinance, 2001.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 41. Agricultural Income - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
12
Question 12 of 52 Computation of Total Income
Basic
📖 Section 10. Total Income - ITO, 2001
Total income is calculated after combining how many heads of income ?
1 2 ❌
2 3 ❌
3 5 ✅
4 4 ❌
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
Total income is the combined income from all heads: Salary, Property, Business, Capital Gains, and Other Sources.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 10. Total Income - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
13
Question 13 of 52 Resident and Non-resident Persons
Basic
📖 Section 82. Resident Individual - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals Resident Individual?
1 Section 80 ❌
2 Section 81 ❌
3 Section 82 ✅
4 Section 83 ❌
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
A person shall be treated as a resident for a tax year in Pakistan if he or she stays in Pakistan for a period of 183 days or more.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 82. Resident Individual - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
14
Question 14 of 52 Advance Tax – Transitional Phase
Basic
📖 Section 236C. Advance Tax on sale or transfer of immovable Property - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals with Advance Tax on Sale or Transfer of Immovable Property?
1 Section 235 ❌
2 Section 236K ❌
3 Section 236Y ❌
4 Section 236C ✅
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
At the time of sale or transfer of immovable property, advance tax shall be collected by the withholding agent.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 236C. Advance Tax on sale or transfer of immovable Property - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
15
Question 15 of 52 Advance Tax – Transitional Phase
Basic
📖 Section 236K. Advance Tax on purchase or transfer of immovable Property - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals with Advance Tax on Purchase or Transfer of Immovable Property ?
1 Section 236Y ❌
2 Section 235 ❌
3 Section 236K ✅
4 Section 236C ❌
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
At the time of purchase or transfer of immovable property, advance tax shall be collected by the withholding agent.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 236K. Advance Tax on purchase or transfer of immovable Property - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
16
Question 16 of 52 Filing of Return
Basic
📖 Section 114. Return of Income - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals with Return of Income ?
1 Section 110 ❌
2 Section 111 ❌
3 Section 113 ❌
4 Section 114 ✅
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
A person is required to file an income tax return for the tax year in accordance with section 114 of the Income Tax Ordinance, 2001.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 114. Return of Income - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
17
Question 17 of 52 Minimum Tax
Basic
📖 Section 113. Minimum tax on the income of certain persons - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals with Minimum Tax on Turnover ?
1 Section 110 ❌
2 Section 111 ❌
3 Section 112 ❌
4 Section 113 ✅
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
This section applies to resident companies, permanent establishments of non-resident companies, individuals, and associations of persons having a turnover of Rs. 100 million or more.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 113. Minimum tax on the income of certain persons - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
18
Question 18 of 52 Filing of Return
Basic
📖 Section 115. Persons not required to furnish a return of income - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals with Persons Not Required to Furnish a Return of Income ?
1 Section 114 ❌
2 Section 115 ✅
3 Section 113 ❌
4 Section 111 ❌
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
A widow, orphan, disabled person, or a non-resident owning immovable property is not required to file a return of income under section 114, solely due to sub-clauses (iii) to (vi) of section 114(1)(b).
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 115. Persons not required to furnish a return of income - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
19
Question 19 of 52 Advance Tax – Transitional Phase
Basic
📖 Section 236Y.Advance tax on persons remitting amounts abroad - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals with Advance tax on persons remitting amounts abroad through credit or debit or prepaid cards ?
1 Section 236Y ✅
2 Section 236 ❌
3 Section 235 ❌
4 Section 233 ❌
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
Advance tax is collected by the bank on foreign payments made through debit, credit, or prepaid cards at the time of remittance.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 236Y.Advance tax on persons remitting amounts abroad - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.
20
Question 20 of 52 Advance Tax – Transitional Phase
Basic
📖 Section 235. Electricity Consumption - ITO, 2001
Which section of the Income Tax Ordinance, 2001 deals with Electricity Consumption ?
1 Section 233 ❌
2 Section 234 ❌
3 Section 236 ❌
4 Section 235 ✅
✅ Correct Answer!
✅
Correct Answer
📝 Explanation
Advance tax will be collected on the electricity bills of commercial, industrial, and domestic consumers.
⚖️ Legal Reference
📖 Income Tax Ordinance, 2001 — Section 235. Electricity Consumption - ITO, 2001
💡 Why This Matters
Understanding this provision is essential for tax compliance and frequently tested in CA, ICMAP & ACCA Pakistan exams.

Page 2 of 6 · Score persists across pages