Heads of Income MCQs

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312 MCQs Page 26

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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Preparation Guide & Key Focus Areas for Heads of Income MCQs

When preparing for Heads of Income MCQs (Commerce), focus on core definitions, historical timelines, relevant provisions, and commonly tested factual points. Review each question below, test your knowledge against the given options, and inspect the detailed explanation to solidify your understanding.

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251

How is gratuity received by a government employee treated for tax purposes?

252

What is the correct procedure for deducting municipal taxes when determining the Net Annual Value of a property?

A 50% of the previous year tax and 100% of the current year's tax if paid in current year is deducted B The municipal tax for the current year is only deducted C The municipal tax paid for the previous years along with the current year's due amount (if not paid) is deducted D The municipal tax actually paid for the current year and previous year is deducted

253

Under what tax residency status is dividend income received from Hindalco considered taxable?

254

For the purpose of taxing house property, which of the following individuals is considered the legal owner?

A A member of cooperative society, company or AOP to whom a building or a part there of is allotted or leased under a house building scheme of the society B An individual who transfers house property without an adequate consideration to his owner spouse or to minor child C All of the above D The holder of importable estate

255

Under which head of income is gratuity received by an employee taxable?

256

How is interest paid on borrowed funds or under a hire-purchase/installment system treated when calculating taxable income?

257

How should rent collected from employees for the use of staff quarters or buildings provided by a business be classified for tax assessment?

258

What is the term for the price charged for goods or services transferred between related entities within the same corporate group, such as a parent company and its foreign subsidiary?

259

What is the maximum validity period for an Advance Pricing Authority (APA) agreement?

A For such period not exceeding 5 consecutive previous years B For such period not exceeding 2 consecutive previous years C For such period not exceeding 10 consecutive previous years D For such period not exceeding 3 consecutive previous years

260

Match the following sections of the Income Tax Act with their respective provisions: List I (a. Sec 6(i), b. Sec 10AA, c. Sec 10(i), d. Sec 10(5)) and List II (1. Agriculture Income, 2. Leave Travel Concession, 3. Resident, 4. Leave Salary).

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