Pakistan Income Tax MCQs (With Answers)

Computation of Taxable Income

1. Which section of the Income Tax Ordinance, 2001 deals with Total Income ? Section 9 Section 10 Section 11 Section 12

Explanation:
Total income represents the aggregate of income from all heads, including exempt income, for the tax year.

Reference: Section 10. Total Income - ITO, 2001

2. Which section of the Income Tax Ordinance, 2001 deals with Taxable Income ? Section 9 Section 10 Section 11 Section 12

Explanation:
The taxable income of a person for a tax year is the total of income under all heads after deducting allowable allowances, but it shall not be reduced below zero.

Reference: Section 9. Taxable Income - ITO, 2001

3. Which section of the Income Tax Ordinance, 2001 deals with Heads of Income ? Section 9 Section 10 Section 11 Section 12

Explanation:
There are five heads of income: Income from Salary, Income from Property, Income from Business, Capital Gains, and Income from Other Sources.

Reference: Section 11. Heads of Income - ITO, 2001

Head of Income

4. Which section of the Income Tax Ordinance, 2001 deals with Income from Salary ? Section 12 Section 15 Section 18 Section 37

Explanation:
Section 12 of the Income Tax Ordinance, 2001 covers income taxable under the head Salary, including pay, allowances, and employment benefits etc.

Reference: Section 12. Salary - ITO, 2001

5. Which section of the Income Tax Ordinance, 2001 deals with Income from Property ? Section 15 Section 18 Section 37 Section 39

Explanation:
Any rent received or receivable by a person, except exempt income, is taxable under the head Income from Property.

Reference: Section 15. Income from Property - ITO, 2001

6. Which section of the Income Tax Ordinance, 2001 deals with Income from Business ? Section 37 Section 39 Section 18 Section 12

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

7. Which section of the Income Tax Ordinance, 2001 deals with Capital Gains ? Section 39 Section 37 Section 9 Section 11

Explanation:
Any profit earned from the sale or disposal of immovable property is taxable under the head Capital Gains.

Reference: Section 37. Capital Gain - ITO, 2001

8. Which section of the Income Tax Ordinance, 2001 deals with Income from Other Sources ? Section 37 Section 40 Section 39 Section 44

Explanation:
Any income earned by a person that does not fall under the other four heads of income is treated as Income from Other Sources and is chargeable to tax.

Reference: Section 39. Income from Other Sources - ITO, 2001

Types of Income

9. How many Heads of Income are prescribed under the Income Tax Ordinance, 2001 ? 2 3 4 5

Explanation:
There are five main heads of income: Salary, Property, Business, Capital Gains, and Other Sources.

Reference: Section 11. Heads of Income - ITO, 2001

Exemptions and Tax Concessions

10. Which section of the Income Tax Ordinance, 2001 deals with Agricultural Income ? Section 39 Section 40 Section 41 Section 42

Explanation:
Any agricultural income received or earned by a person shall be exempt from tax under the Income Tax Ordinance, 2001.

Reference: Section 41. Agricultural Income - ITO, 2001

Get in touch

Pakistan Income Tax MCQs (With Answers)

Computation of Taxable Income

Head of Income

Types of Income

Exemptions and Tax Concessions