FIN623 Final Term Solved Paper

Section (11A) of Income Tax Ordinance 2001 defined “charitable purpose” includes relief of the poor, education, medical relief and the advancement of any other object of general public utility;

1. Exclusive definition
2. Inclusive definition page 8
3. Both Exclusive and Inclusive definitions
4. Statutory definition

A definition also includes the dictionary meanings of the word are termed as which of the following?

1. Exclusive definition
2. Inclusive definition p 8
3. Both Exclusive definition and Inclusive definitions
4. Statutory definition

Which of the following is the legal status of the Punjab University under the provisions of section 80 of the ordinance?

1. Individual
2. Company p 16
3. Banking Company
4. Hindu Undivided Family

Correct answer: Company p 16

What is the relation between the Non-resident and permanent establishment as per section 105?

1. Both have same legal entity
2. Both are separate legal entity page 31
3. Both are dependent on each other
4. None of the given options

Correct answer: Both are separate legal entity page 31

Certain incomes those are excluded from tax are called as:

1. Perquisites
2. Exemptions page 17
3. Allowances
4. Deductions

Correct answer: Exemptions page 17

Sources of Income are classified into _____ heads of income.

1. 3
2. 4
3. 5 page 17
4. 6

Correct answer: 5 page 17

Income of Federal Government exempt from tax under which of the following section of IT Ordinance 2001?

1. Section 41
2. Section 43
3. Section 47
4. Section 49 page 23

Correct answer: Section 49 page 23

A firm ABC maintaining its account in cash basis, at June 27, 2008 it incurred expenses for Rs. 10,000 but actual payments made at 01 August 2008. It would be charge to tax into the tax year:

1. 2006
2. 2007
3. 2008
4. 2009 correct

Correct answer: 2009 correct

Which of the following does Not come under the ambit of permanent establishment (PE)?

Branch office Factory or workshop Premises for soliciting orders

Liaison or relationship office

Ref:

a)A place of management, branch office, factory or workshop, premises for soliciting orders, warehouse, permanent sales exhibitions or sales outlet, other than a liaison office except where the office engages in the negotiation of contracts (other than contracts of purchase);

Which of the following section deal with tax treatment of person who is a cultivator or receiver of agricultural produce as rent-in-kind in the business of cultivator?

Any income from a business carried on outside Pakistan through permanent establishment by a resident person belongs to which of the following?

Pakistani source of Income Foreign source of income Both Pakistan and foreign source of income None of the given option