INCOME TAX ORDINANCE PRACTICE QUESTIONS (SET-3)

A resident individual derives share income of Rs.200,000 from an AOP for tax year 2021 and has paid zakat under the Zakat & Ushr Ordinance, 1980 at Rs.50,000. His taxable income for the said tax year will be:

Mr. B, a resident individual received net dividend of Rs.90,000 from various companies during tax year 2021 after tax deduction at source at Rs.10,000. He also received salary income of Rs.450,000 during the said perioD

None of the above Income from renting out of a tractor is chargeable to tax under the head:

Dividend received by a company from a non-resident company is chargeable to tax under:

Mr. Ali Raza derives net income of Rs.600,000 from a manufacturing business during tax year 2021, and has paid Rs.12,000 as WWF in the same tax year. His taxable income for tax year 2021 will be:

– Income of a leasing company from lease rentals is chargeable under the head:

Profit on debt earned by an individual from lending of money (when it is not his regular business) is:

Late delivery charges paid by a businessman are:

Loss on disposal of depreciable asset is

Mr. Shankar Lal has executed an agreement with Mr. Mohsin Dasti for construction of a multi-story building to be completed in four years. Income of Mr. Shankar from this project is duly registered with FBR:

Mr. Imran Khan, a businessman, purchased 4 kanals of land for Rs. 5(M) and constructed a factory on it in tax year 2021. In his case, purchase of land can be considered

M/s Zohaib Laboratories, a leading pharmaceutical concern, financed Ph. students of pharmacy department of Punjab University, Lahore to complete theif research on side effects of use of steroids in epilepsy patients. This expenditure

Ms Lubna Batool earns profit/gain of Rs.2,00,000/- from sale of her car used for personal purposes. The profit/gain is taxable under the head “income from

Mr. Munawar has shown gross profit of Rs.500,000 for tax year 2021, whereas, total admissible deductions from business are Rs. 400,000. Mr. Munawar also paid Rs. 3,00,000 as Zakat during, the said tax year under Zakat and Ushr Ordinance, 1980, His taxable income- for tax year 2021 will be:

Naqash Garments Private Limited purchased the symbol of Adidas from Adidas International Inc. for Rs. 10 {M} for five years and put to use for the first time on 01.01.2021. The deduction allowed to the company in the tax year 2021 under the Income Tax Ordinance, 2001 shall be:

M/s Universal Traders claimed bad debt of Rs. 1.2 million in tax year 2018 but was allowed deduction of Rs. 0.5 (m) only by the tax authorities. Fortunately, M/s Universal Traders was able to recover Rs. 0.6 (m) in relation to bad debt of the tax year 2018 in tax year 2021. In tax year 2021, while computing the income under the head “income from business”

M/S. lmtiaz Brothers, a business concern, acquired a car valuing Rs. 2.0 (m) on lease from M/s. Orix leasing Co. As per income tax ordinance, 2001, the taxpayer could rightfully claim total depreciation deduction of (Rs)

Mr. Salman imported harvesters from Japan for business purposes on 01.07.2020 for the cost of Rs 10 Million. However, he used these harvesters for business purpose for first six months and remaining period on his personal agricultural land. He would be entitled to initial allowance of (Rs.)

M/s ABC Company files returns of its total income on the basis of normal tax year. It acquired a patent for the cost of Rs.1 (M). Normal useful life of this patent is not ascertainable. This patent was available first time for use for the whole months of April, 2018 to June, 2008 (i.e. last quarter of financial year). The Taxpayer is entitled to claim amortization deduction of this intangible for the tax year 2018:

Mr. Jamil, a Pakistani citizen received salary income of Rs. 500,000 in Tax Year 2020. He also received pension of Rs. 200,000 from previous employment in Dubai and another pension of Rs.180,000 from second previous employer during tax year 2020. His total income for the said tax year will be: ‘

M/s. Genco Power Company Limited incurred certain expenditures. before commissioning its 1,200 MW power station at Hub, Baluchistan. Which one of the following is NOT pre-commencement expenditure?

Miss Elizbeth acquired 70 tolas jewellery on 03.10.2020 for Rs. 7,00,000/-. She sold the same on 05.10.2020 for Rs. 6,50,000/. For tax year 2021, she is entitled to claim