Pakistan Fiscal year starts from

A. 1st September
B. 1st January
C. 1st April
D. 1st July
ANSWER: D

Which is provincial tax in Pakistan?

A. Excise tax
B. Sales Tax
C. Import Duty
D. Motors token tax

ANSWER: D

There is how many chapters included in Income Tax Ordinance?

A. 11 Chapters
B. 12 Chapters
C. 13 Chapters
D. 14 Chapters

ANSWER: C

There is how many schedules included in Income Tax Ordinance 2001?

A. 9 Schedules
B. 6 Schedules
C. 7 Schedules
D. 8 Schedules

ANSWER: D

There is how many sections included in Income Tax Ordinance 2001?

A. 235 sections
B. 240 sections
C. 250 sections
D. 260 sections

ANSWER: B

Corporate tax is levied on:

A. Landlords
B. Municipal corporation
C. Joint stock companies
D. Importers
ANSWER: C

Central Excise Act, 1944 was repealed by

A. The Federal Excise Act, 2002

B. The federal Excise Act, 2004
C. The Federal Excise Act, 2005
D. The Federal Excise Act, 2007

ANSWER: C

Name of Central Excise Duty has been changed as a Federal Excise Duty on

A. 1st July, 2003

B. 1st July, 2005
C. 1st July, 2007
D. 1st July, 2008

ANSWER: B

Inland Revenue Wing of the FBR was created, which is combination of ___________ domestic
taxes.

A. 3
B. 4
C. 5
D. 6

ANSWER: A

If we deduct direct tax from personal income, we get:

A. Net national income

B. Personal saving
C. Disposable income
D. Per capita income

ANSWER: C

The largest part of national income is

A. Consumption
B. Investment
C. Transfer payments
D. Saving
ANSWER: A

We measure national income by this method:

A. Expenditure Method
 B. Income Method
C. Product Method
D. All of above
ANSWER: D

The most important source of a government is:

A. Foreign loans
B. Taxes
C. Printing of new money
D. Sale of government property
ANSWER: B

In Pakistan, taxes are levied by:

A. Prime minister of Pakistan

B. President of Pakistan
C. Federal Cabinet of ministers
D. National Assembly

ANSWER: D

Government finance is called

A. National Finance
B. Public finance
C. Private finance
D. Both a and b
ANSWER: B

A direct tax is that which:

A. Is heavy burden on the tax payer

B. Can be directly deposited in the banks
C. Cannot be evaded
D. Is paid by the person on whom it is levied
ANSWER: D

In Pakistan government budget is prepared by:

A. National Assembly
B. President of Pakistan
C. Ministry of Finance
D. State Bank of Pakistan
ANSWER: C

If government increases taxes, private savings:

A. Increase
B. Decrease
 C. Do not change
D. Will become zero
ANSWER: B

Taxes on commodities are

A. Direct taxes
B. Indirect taxes
C. Progressive taxes
D. Proportional tax

ANSWER: B

Government prepared its budget:

A. Weekly
B. Monthly
C. Annually
D. Quarterly
ANSWER: C

It is direct tax:
A. Excise tax
B. Sale tax
C. Income tax
D. Custom duty
ANSWER: C

Which tax is not shared between central and provincial governments?

A. Excise tax
B. Sales tax
C. Custom duty
D. Property tax
ANSWER: D

Which is provincial tax in Pakistan?

A. Excise tax
B. Sales tax
C. Import duty
D. Motor token tax
ANSWER: D

The budget estimate prepared by ministry of finance is finally approved by:

A. State Bank
B. President
C. Senate
D. National Assembly
ANSWER: D
Devaluation means
A. Change in the currency of a country
B. Decrease in the value of gold
C. Decrease in the value of money in terms of foreign currency
D. Decrease in the value of money internally
ANSWER: C

When the central Board of Revenue (CBR) was established?

A. 1st April, 1924
B. 7th April, 1924
C. 6th April, 1924
D. 9th April, 1924
ANSWER: A

What is the main function of money?

A. To buy eatables from the market
B. To serve as a medium of exchange
C. To earn interest from a bank
D. To buy luxurious goods
ANSWER: B

A direct tax is that which:

A. Is heavy burden on the tax payers

B. Can be directly deposited in the banks
C. Cannot be evaded
D. Is paid by the person on whom it is levied
ANSWER: D

Special procedure under the title of Sales Ta special procedure (Withholding Tax) Rules 2007
was introduced on:
A. 20th June 2007
B. 10th June 2007
C. 30th June 2007
D. 25th June 2007
ANSWER: C

Whom of the following propounded principles of taxation:

A. Keynes
B. Marshall
C. Adam Smith
D. Al Ghaali
ANSWER: C

There is how many schedules included in the Sales Tax Act, 1990?
 A. 9 schedules
B. 6 schedules
C. 7 schedules
D. 8 schedules
ANSWER: A

There is how many sections included in the Sales Tax Act. 1990?
A. 75 Sections
B. 80 sections
C. 85 sections
D. 95 sections
ANSWER: A

Which section of sales tax act, 1990 deals with Special Audit by Chartered Accountants or Cost
Accountants?
A. 29
B. 30
C. 31
D. 32-A
ANSWER: D

Which Section of the Sales Tax Act, 1990 deals with offences and penalties?
A. 33
B. 34
C. 35
D. 36
ANSWER: A

No person other than a ________ shall make any deduction or reclaim input tax in respect of
taxable supplies made or to be made by him.
A. Unregistered person
B. Registered person
C. Association
D. None of these
ANSWER: B

In Pakistan, income tax is collected by:

A. Local govt.
B. Provincial govt.
C. Federal govt.
D. All governments
ANSWER: C

Sales tax in Pakistan is:

A. Direct and progressive
 B. Direct and proportional
C. Indirect and progressive
D. Indirect and proportional
ANSWER: D

It is easy and convenient to pay:

A. Direct tax
B. Indirect tax
C. Proportional tax
D. Progressive tax
ANSWER: B

It is difficult to evade:
A. Direct tax
B. Indirect
C. Proportional
D. Progressive tax
ANSWER: A

Which tax is not shared between central and provincial governments?

A. Excise tax
B. Sales tax
C. Custom duty
D. Property tax
ANSWER: D

Which is provincial tax in Pakistan?

A. Excise tax
B. Sales tax
C. Import duty
D. Motors token tax
ANSWER: D

What is benefit of tariffs?

A. Increased choice
B. Increased government revenue
C. More competition
D. More trade
ANSWER: B

Pakistan public debt is:

 A. Larger than GNP
B. Equal to GNP
C. Smaller than GNP
D. Smaller than our exports
ANSWER: C

Pakistan fiscal year start from:

A. 1st September
B. 1st January
C. 1st April
D. 1st July
ANSWER: D

As per law each registered person must file a return by the _________ of each month regarding
the sales made in last month.

A. 10th
B. 15th
C. 20th
D. 25th
ANSWER: B

There are ___ director generals in FBR?

A. 6
B. 7
C. 9
D. 10
ANSWER: B

There are ___ large taxpayer units for Inland Revenue collection

A. 2
B. 5
C. 3
D. 6
ANSWER: C

Fiscal laws mean a general reference to the laws relating to:

A. Budget matters
B. Finance matters
C. Tax matters
D. None of these
ANSWER: B

The federal budget is presented in the parliament by:

 A. Prime Minister
B. President
C. Finance minister
D. Commerce minister
ANSWER: C

System of e-Tax in Pakistan was introduced in?

A. 2007
B. 2008
C. 2009
D. 2010
ANSWER: B

In Pakistan the rate of taxes is

A. 0.1
B. 0.2
C. 0.16
D. 0.18
ANSWER: C

The form of tax which has to pay by the buyer on manufactured items at the time of purchase is
known as
A. Direct Tax
B. Excise Tax
C. Sales Tax
D. Indirect Tax
ANSWER: B

The tax which is charged on property, income and profit in the form of income tax, property tax
etc is known as
A. Indirect Tax
B. Direct Tax
C. Excise Duty
D. Sales Tax
ANSWER: B

To pay a certain amount of tax as value added tax on the purchase of an item is known as
A. Indirect Tax
B. Direct Tax
C. Excise Duty
D. Sales Tax
ANSWER: D

The tax charged on all incomes during the financial year from 1st July to 30th June is termed as
A. Sales Tax
B. Property Tax
 C. Income Tax
D. Excise Duty
ANSWER: C

The tax which includes motor vehicle taxes, duties, goods and services taxes, GST and value
added taxes etc is termed as
A. Direct tax
B. Excise duty
C. Sales tax
D. Indirect tax
ANSWER: A

On the purchasing of motorcycles, cars, electronics etc. along with the selling price, we have to
pay
A. Direct tax
B. Excise duty
C. Sales tax
D. Indirect tax
ANSWER: B

The tax charged to the owner of land, flats, houses, building etc. on the annual value of the
property is known as
A. Sales tax
B. Property tax
C. Income tax
D. Excise tax
ANSWER: B

The income includes basic pay, house rent, conveyance allowance, dearness allowance, medical
allowance is called
A. Taxable income
B. Personal income
C. Gross income
D. None of the above
ANSWER: C

The income earned by an individual by working daily, weekly, monthly or annually basis is said
to be
A. Taxable income
B. Personal income
C. Gross income
D. None of the above
ANSWER: B
Money charged as a proportion of income and profits or added to the cost of goods and services,
that must be paid to the state, is termed as
A. Income
B. Tax
C. Excise duty
D. Bill
ANSWER: B

The salary received after necessary deductions from the gross salary is termed as
A. Gross income
B. Taxable income
C. Personal income
D. Take home salary
ANSWER: D

is required to be registered under Sales Act

A. Importers
B. Wholesalers
C. Distributors
D. All of the above
ANSWER: D

Under Income Tax Ordinance return of income is flied under section

A. 114 & 115
B. 120 & 122
C. 109
D. None of the above
ANSWER: A

A person is required to be registered under Sale Act should make an application to

A. Commissioner
B. Collector
C. Tax Court
D. None of the above
ANSWER: B

Tax U/s 148 shall be collected at the rate of on the import value of raw material imported by an
Industrial undertaking for its own use.
A. 1%
B. 2%
C. 3%
D. None of the above
ANSWER: A

A person required to be registered under Sale Act should make an application making
taxable supplies.
 A. During
B. After
C. Before
D. None of the above
ANSWER: C

Appellate Tribunal means the Appellate Tribunals established under section

A. 135
B. 130
C. 162
D. 131
ANSWER: B

Collector can issue a of registration

A. Notice
B. Memorandum
C. Letter
D. Certificate
ANSWER: D

A person registered in pursuance to application made under subsection (1) of Section No. 18
Sales Act should not be de-registered before expire of years from the date of registration.
A. Two
B. Three
C. Four
D. Five
ANSWER: A

Appeal by the person or the department should be filed within days from the date on
which the orders are communicated to the tax payer or the commissioner.
A. 15 days
B. 60 days
C. 30 days
D. 45 days
ANSWER: C

Registration is under Sales Act

A. Directory
B. Optional
C. Compulsory
D. Both a & b
ANSWER: C

Registered person should notify change in name, address or other particulars as stated in
registration application to within fourteen days of such change.
A. Commissioner
 B. Collector
C. Local Sales Tax office
D. Both a & b
ANSWER: D

According to section . Approved employment pension or amenity scheme means and

employment related to retired scheme approved under the income tax ordinance 2001.
A. Section 6(1)
B. Section 2(3D)
C. Section 115
D. None of the above
ANSWER: A

Every registered person, who ceases to carry on his business or whose supplies become exempt
from tax, should apply to for cancellation of his registration.
A. Registrar
B. Collector
C. Local Sale Tax Officer
D. Both a & b
ANSWER: B

The tax payable by a full time teacher or researcher, employed in nonprofit education or research
institution duly recognized by Higher Education Commission etc. shall be reduced by an amount
to
A. 25%
B. 50%
C. 60%
D. 75%
ANSWER: D

Any person enrolled under section 3A of Sales Act can apply for
A. Enrollment
B. De-enrollment
C. Registration
D. De-registration
ANSWER: B

Under section 2(5B) Asset management company means a company registered under the rule
1965
A. Security & Exchange Commission of Pakistan
B. Assets Management
C. Registration of Firm
D. None of the above
ANSWER: B
A registered person making taxable supplies can maintain and keep records of goods purchase
and supplies in language
A. English
B. Urdu
C. Both a & b
D. None of the above
ANSWER: C

A registered person making taxable supplies should maintain and keep records of
A. Supplies made
B. Goods purchased
C. Zero-rated and exempt supplies
D. All of the above
ANSWER: D

Where a taxable income in a tax year of a taxpayer aged 60 years or more on the first day of that
year does not exceed one million rupees, his tax liability on such income shall be reduced by.
A. 25%
B. 30%
C. 50%
D. 75%
ANSWER: C

A registered person making taxable supplies should maintain and keep records of
A. Invoices & credit notes
B. Debit notes, bank statements
C. Inventory records, utility bills
D. All of the above
ANSWER: D

Section 11 of the Income Tax Ordinance 2001, provide the is the fourth source.
A. Income from property
B. Capital gain
C. Business Income
D. None of them
ANSWER: B

A registered person making taxable supplies should maintain and keep records of
A. Salary and labor bills
B. Rental agreements & sale-purchase agreements
C. Lease agreements
D. All of the above
ANSWER: D

Any income derived as rent, revenue or from sales of any produce which is grown on a Pakistani
land is
 A. Dividend income
B. Agricultural income
C. Business income
D. None of the above
ANSWER: B

A person, who is required to maintain any record or documents under Sales Act, should retain
record and documents for a period of years after end of tax period to which such record or
documents relate.
A. Six
B. Five
C. Four
D. Three
ANSWER: B

Under section 24 of Patent, Copy Right, Trademark etc. is considered as

A. Business assets
B. Capital assets
C. Business income
D. None of the above
ANSWER: A

As far as monthly return is concerned, every registered person should furnish a true and correct
return to a designated specified by Board.
A. Bank
B. Officer
C. Both a & b
D. None of the above
ANSWER: A

The extension of date for furnishing of return can be allowed by

A. Member Appellate Tribunal
B. Commissioner
C. Additional Commissioner
D. None of the above
ANSWER: B

Deduction of tax on prize bonds is of liability

A. Final discharge
B. A adjustable against
C. Refundable
D. None of the above
ANSWER: A

Central Board of Revenue can appoint

A. Chartered Accountant
 B. A firm of Chartered Accountants or a cost and Management Accountant
C. Both a & b
D. None of the above
ANSWER: C

The period of Limitation for filling appeal before Commissioner (appeal) Inland Revenue is
days
A. 15
B. 20
C. 30
D. 60
ANSWER: C

Any person, who fails to furnish a return within due date, shall pay a penalty of
thousand rupees
A. Two
B. Three
C. Four
D. Five
ANSWER: D

The rate of the amortization of pre-commencement expenditure U/s 25 shall be

A. 20%
B. 60%
C. 80%
D. 50
ANSWER: A

Any person, who makes repeated erroneous calculations in return during a year whereby amount
of tax less than actual tax due is paid, shall pay a penalty of thousand rupees or
five percent of amount of tax involved.
A. Twenty
B. Ten
C. Fifteen
D. Five
ANSWER: B

Collection of tax by a stock exchange registered in Pakistan can be made under section
A. 231
B. 147
C. 145
D. 233A
ANSWER: D

Section 34 of Sales Act deals with tax

A. Sale
 B. Normal
C. Additional
D. Conditional
ANSWER: C

The rate of depreciation on all types of buildings is

A. 10%
B. 15%
C. 20%
D. 25%
ANSWER: A

An Assistant Collector of Sales tax or any other officer of equal rank authorized by may
arrest any person, who has committed a tax fraud in respect of a supply or supplies made by him.
A. Federal Government
B. Provincial Government
C. Central Board of Revenue
D. Both b & c
ANSWER: C

Wealth statement is required to be filed under section

A. 120
B. 114
C. 116
D. 115
ANSWER: C

All searches made under Sales Act should be carried out in accordance with relevant provisions
of
A. Police Order
B. Code of Criminal Procedure
C. Both a & b
D. None of the above
ANSWER: B

The rate of tax imposed on taxable income of a company for Tax Year 2007 and onward shall be
A. 25%
B. 30%
C. 35%
D. 40%
ANSWER: C

Collector of Sales Tax (Appeals) may decision or order appealed against

A. Confirm
B. Vary or alter
C. Set aside or annul
 D. All of the above
ANSWER: D

Appeal can be filed against decision or order of a Collector of Sales Tax or collector of Sales Tax
(Appeals) to
A. High Court
B. Appellate Tribunal
C. Tax Court
D. Both b & c
ANSWER: B

The Commissioner Inland Revenue is appointed by

A. Chief Commissioner
B. Federal Board of Revenue
C. Appellate Tribunal
D. None of the above
ANSWER: B