FIN623 Solved MCQs with References

FIN623 9 PAPERS SOLVED BY · LAIBA BUTT & QAZI UMER · PAPER NUMBER 1 · MIDTERM EXAMINATION · Spring 2009 · FIN623- Taxation Management (Session - 2)

Q1. Which of the following is opposite to the literal meanings of Tax? (1 marks)

Burden Strain Load

Relieve (Page no 1)

REFRENCE:

General Understanding of Tax: .. Literal meanings ----- Burden, Strain .. The long journey would be too much of a tax on my father’s strength. .. I found they were taxing my patience by asking irrelevant questions. .. Such a long rough journey would be very taxing for old man.

Q2. Which of the following is the main source of revenue generation of the state? (1 marks)

Taxes & Tariffs (Confirmed from vedio lecture)

Internal Borrowing

External Borrowing

Penalties & Fines

Q3. _____ is paid to the government on goods and services and can be reclaimed by retailers. (1 marks)

Income Tax

Value Added Tax

Capital Value Tax Wealth Tax

REFERENCE:

Q4. Which of the following is not an employment tax? (1 marks)

Social Security Tax Federal Excise Tax Federal unemployment compensation tax

State unemployment compensation tax

. REFERENCE:

Q5. How many Schedules are contained in the Income Tax Ordinance 2001? Three Schedule (1 marks)

Fifth Schedule

Seven Schedules (Page no 5)

Nine Schedules

REFERENCE:

Basic Features of Income Tax Ordinance 2001 Scheme of the Ordinance is given below: There are thirteen chapters Chapters are divided into: Parts & Divisions There are 240 Sections This ordinance comprises of seven Schedules Schedules are integral part of the Ordinance.

Q6. Under which of the following sections of Income Tax Ordinance 2001 vested the powers to CBR in order to formulate the IT rule 2002? (1 marks)

Section 206 Section 213

Section 237

(Page no 5)

Section 238

REFERENCE:

IT rules 2002

These were promulgated by CBR on 1st July 2002 in exercise of powers granted under section 237 of the Ordinance.

Q7. Which one of the following is the Internal aid and help in the interpretation of (1 marks)

Punctuation marks

(Page no 7)

CBR’s circulars Definitions in other statutes Departmental manuals

REFERENCE:

(Page no 7)

Q8. Section 2(13) of Income Tax Ordinance 2001 defined: (1 marks)

“Commissioner” means a person appointed as a Commissioner of Income Tax powers, and functions of the Commissioner;

In which criteria the above definition falls?

Exclusive definition

Inclusive definition Both Exclusive and Inclusive definitions Statutory definition

REFERENCE:

Examples of exclusive definitions are given below:

Sec. 2(2) Appellate Tribunal means the Appellate Tribunal established under section 130. 2(5A) “assessment year” means assessment year as defined in the repealed Ordinance; 2(6) “association of persons” means an association of persons as defined in section 80 2(13) “Commissioner” means a person appointed as a Commissioner of Income Tax under section 208, and includes a taxation officer vested with all or any of the powers, and functions of the Commissioner;

Q9. Under which of the following conditions a tax payer can adopt a special tax year? (1 marks)

Whenever he decides so After seeking approval from Tax Office

After seeking approval from Commissioner of income tax

(Page no 11)

After seeking approval from High Court

Q10. Mr. A & B Joint Owners of a Building, Which of the following is the legal status under the provisions of Section 80 of the Ordinance? (1 marks)

Company

Association of Persons · REFERENCE: · (Page no 15)