What is the governing law for income tax in Pakistan?
A) Companies Act 2017
B) Income Tax Act 1961
C) Income Tax Ordinance 2001
D) Federal Excise Act 2005
Which authority is responsible for implementing the Income Tax Ordinance 2001?
A) Securities and Exchange Commission of Pakistan (SECP)
B) State Bank of Pakistan (SBP)
C) Federal Board of Revenue (FBR)
D) Auditor General of Pakistan
Which type of tax is levied under the Income Tax Ordinance 2001?
A) Direct Tax
B) Indirect Tax
C) Sales Tax
D) Excise Duty
What is the tax year in Pakistan as per the Income Tax Ordinance 2001?
A) January 1 to December 31
B) April 1 to March 31
C) July 1 to June 30
D) October 1 to September 30
Which section of the Income Tax Ordinance 2001 defines “Income”?
A) Section 2(9)
B) Section 4
C) Section 11
D) Section 20
Who is considered a resident individual for tax purposes in Pakistan?
A) Anyone residing in Pakistan for 120 days
B) Anyone residing in Pakistan for 183 days or more
C) Anyone holding a Pakistani passport
D) Any Pakistani citizen living abroad
Which income is exempted under the Income Tax Ordinance 2001?
A) Salary income
B) Business income
C) Agricultural income
D) Rental income
What is the minimum taxable income threshold for individuals in Pakistan for the latest tax year?
A) PKR 400,000
B) PKR 600,000
C) PKR 800,000
D) PKR 1,200,000
Which form is used for filing an individual income tax return in Pakistan?
A) Form 1120
B) Form IRIS-100
C) Form IT-1
D) Form 114A
What is the withholding tax?
A) Tax deducted at source before payment
B) Tax paid voluntarily
C) Tax refunded by FBR
D) None of the above
Which section of the Income Tax Ordinance 2001 deals with tax credits?
A) Section 18
B) Section 35
C) Section 61
D) Section 65
Which of the following is considered taxable income under the Income Tax Ordinance 2001?
A) Salary
B) Rental income
C) Business profits
D) All of the above
What is the penalty for late filing of an income tax return in Pakistan?
A) PKR 10,000 minimum
B) PKR 5,000 minimum
C) PKR 2,000 minimum
D) No penalty
Which section of the Income Tax Ordinance 2001 deals with the exemption of pension income?
A) Section 12
B) Section 44
C) Section 54
D) Section 75
Which of the following is NOT an allowable deduction under the Income Tax Ordinance 2001?
A) Depreciation on business assets
B) Charitable donations
C) Personal household expenses
D) Business-related rent expenses
What is the corporate tax rate for companies in Pakistan as per the latest updates?
A) 25%
B) 29%
C) 35%
D) 40%
Under the Income Tax Ordinance 2001, which of the following is classified as “capital gains”?
A) Income from salary
B) Profit from the sale of property
C) Rental income
D) Dividend income
Which schedule of the Income Tax Ordinance 2001 deals with tax rates for salaried individuals?
A) First Schedule
B) Second Schedule
C) Third Schedule
D) Fifth Schedule
How is agricultural income taxed under the Income Tax Ordinance 2001?
A) Exempted from federal income tax
B) Taxed at a flat rate of 10%
C) Taxed under corporate tax
D) Subject to both federal and provincial taxes
What is the advance tax on banking transactions for non-filers in Pakistan?
A) 0.5%
B) 1%
C) 2%
D) 5%
Which authority has the power to audit taxpayers under the Income Tax Ordinance 2001?
A) SECP
B) SBP
C) FBR
D) Supreme Court
What is the maximum tax rebate for disabled persons under the Income Tax Ordinance 2001?
A) 25% of taxable income
B) 50% of taxable income
C) 75% of taxable income
D) 100% exemption
Which section deals with tax evasion penalties under the Income Tax Ordinance 2001?
A) Section 74
B) Section 94
C) Section 111
D) Section 130
Which of the following is considered a tax-exempt entity under the Income Tax Ordinance 2001?
A) Private limited companies
B) Public sector corporations
C) Charitable organizations
D) All of the above
How is dividend income taxed under the Income Tax Ordinance 2001?
A) 5% withholding tax
B) 10% final tax
C) 15% final tax
D) Exempted from tax
Which section of the Income Tax Ordinance 2001 deals with tax on imports?
A) Section 145
B) Section 148
C) Section 153
D) Section 159
Who is required to file a wealth statement under the Income Tax Ordinance 2001?
A) Every salaried person
B) Every businessperson
C) Any taxpayer earning above a specified threshold
D) Only corporate taxpayers
Which document is required to claim tax refunds under the Income Tax Ordinance 2001?
A) Tax Deduction Certificate
B) Wealth Statement
C) Bank Statement
D) Tax Clearance Certificate
Which of the following is NOT a type of tax levied under the Income Tax Ordinance 2001?
A) Minimum Tax
B) Super Tax
C) Turnover Tax
D) Luxury Tax
How often should withholding tax statements be filed under the Income Tax Ordinance 2001?
A) Annually
B) Semi-annually
C) Quarterly
D) Monthly
