Heads of Income MCQs

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Topic Notes: Heads of Income

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Master Heads of Income MCQs for Competitive Exams with our comprehensive, verified question bank. Designed for students and competitive exam aspirants across Pakistan, this study resource provides topic-wise practice questions for CSS, PMS, FPSC, PPSC, SPSC, KPPSC, BPSC, NTS, and university entry tests.

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171

Which of the following types of income are considered tax-free under the current tax framework?

172

What is the tax status of dividends received from an Indian company following the changes introduced by the Finance Act, 2020?

A None of the above B Both A and B C The Finance Act, 2020 changed the method of dividend taxation D This dividend was exempt until 31stMarch 2020 (Financial Year 2019-20). That was because the company declaring such dividend already paid dividend distribution tax (DDT)before making payment

173

Match the following tax-related items with their correct descriptions.

174

How is the income derived from the sale of machinery used in a business classified?

175

How is the government's contribution to the new pension scheme, as referred to in Section 80CCD, treated for tax purposes?

176

Which of the following categories are included in the definition of agricultural income for tax purposes?

177

Which form is mandatory for an assessee to file when claiming a Tax Residency Certificate (TRC)?

178

When an assessee leases out machinery, plant, or furniture along with a building, and the letting of the building is inseparable from the letting of the assets, how is the resulting income classified for tax purposes?

179

What is the applicable rate of depreciation if an asset is utilized for less than 180 days during the financial year of its acquisition?

180

Which of the following statements regarding the tax assessment of partnership firms is incorrect?

A Remuneration paid to partners of a firm (assessed as such) is allowed as deduction subject to statutory limit B Partner's share in the income of a firm is not chargeable to tax in the hands of partners C Income of a firm is taxable at a flat rate of 30% without any exemption D All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961

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