TaxBuddy Umair | Income & Sales Tax Consultant in Pakistan

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Income Tax MCQs

Q1 • Income Tax
Which section of the Income Tax Ordinance, 2001 deals with Income from Business ?
Explanation:

Any income derived from business, other than exempt income, is chargeable to tax under the head Income from Business.

Reference: Section 18. Income from Business - ITO, 2001
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Q2 • Income Tax
Which section of the Income Tax Ordinance, 2001 deals with Workers’ Participation Fund ?
Explanation:

A person shall be entitled to a deductible allowance for any amount paid to the Workers’ Participation Fund during a tax year, in accordance with the Companies Profit (Workers’ Participation) Act, 1968, or under any provincial law relating to the Workers’ Profit Participation Fund enacted after the Eighteenth Constitutional Amendment, 2010.

Reference: Section 60B. Workers’ Participation Fund - ITO, 2001
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Q3 • Income Tax
Which section of the Income Tax Ordinance, 2001 deals with Business Bank Account ?
Explanation:

Every taxpayer shall declare to the Commissioner the bank account used for business transactions.

Reference: Section 114A. Business Bank Account - ITO, 2001
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Frequently Asked Questions

Common questions about income tax filing, ATL status, and compliance in Pakistan.

Any individual earning taxable income above the exemption threshold defined under the Income Tax Ordinance 2001 must file an income tax return with FBR. Filing may also be required if you own property, vehicles, operate a business, or maintain foreign assets.
The Active Taxpayer List (ATL) is published by FBR and includes names of taxpayers who have filed their income tax returns. Individuals listed on ATL enjoy lower withholding tax rates on various transactions.
A filer appears on ATL after submitting an annual return and benefits from reduced tax rates. A non-filer does not submit returns and is subject to higher withholding taxes on property, vehicles, banking, and other transactions.
The standard filing deadline is 30th September following the end of the tax year unless extended by FBR via official notification.
Non-filing may result in penalties, higher withholding tax deductions, restrictions on financial transactions, and possible legal action from FBR.
Income tax is calculated according to the applicable tax slabs for salaried individuals, business income, or AOP. You can use an updated tax calculator to estimate your liability based on current rates.
Umair Mubeen - Tax Consultant

About TaxBuddy Umair

TaxBuddy Umair is a Pakistan-based educational platform focused on simplifying income tax, sales tax, and compliance matters under the Income Tax Ordinance 2001 and relevant FBR regulations.

The goal of this platform is to help salaried individuals, freelancers, business owners, and Associations of Persons (AOP) understand tax laws in a clear and practical manner.

Disclaimer: The information provided on this website is for educational purposes only and does not constitute legal, financial, or professional tax advice. For case-specific matters, consult a qualified tax professional or advisor.

  • ✔ Detailed tax guides and compliance tutorials
  • ✔ Updated tax calculators based on current slabs
  • ✔ Practical explanations of ATL, filer status & withholding tax
  • ✔ Support for individuals and small businesses

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