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Wednesday 29 December 2010

Solved Spring 2009 FIN623- Taxation Management Finalterm Paper

FINALTERM EXAMINATION
Spring 2009 FIN623- Taxation Management (Session - 2)
Marks: 81
Question No: 1      ( Marks: 1 ) - Please choose one
Taxes are important instrument of which one of the following policy?
        Monetary policy
        Fiscal policy
        Trade Policy
        Economic Policy

Question No: 2      ( Marks: 1 ) - Please choose one          
Which of the following is opposite to the literal meanings of Tax?
        Burden
        Strain
        Load
        Relieve

Question No: 3      ( Marks: 1 ) - Please choose one          
Sec. (11A) of Income Tax Ordinance 2001 defined:
Charitable purpose  includes relief of the poor, education, m edical relief and the advancement of any other object of general public utility.
In which criteria the above definition falls?
        Exclusive definition
        Inclusive definition
        Both Exclusive and Inclusive definitions
        Statutory definition

Question No: 4      ( Marks: 1 ) - Please choose one          
Which of the following is the mutual example of both inclusive and exclusive definitions?
        Appellate Tribunal 2(2)
        Banking Company 2(7)
        Association of Person 2(6)
        Employment 2(22)

Question No: 5      ( Marks: 1 ) - Please choose one          
Which of the following is the Special Accounting Year of Sugar Companies?
        1st January to 31st December
        1st July to 30th June
        1st October to 30th September
        1st September to 31st August

Question No: 6      ( Marks: 1 ) - Please choose one          
Suppose a Profit acquired by a cultivator for produce after harvesting.
The profit of the cultivator will be treated in
        Income from Business
        Agriculture Income
        Income from Property
        Capital Gain

Question No: 7      ( Marks: 1 ) - Please choose one
Suppose due to hailstorm damages caused to crops that was insured against Insurance policy. The compensation received from an insurance company for damages caused by hailstorm. By: Adeel Abbas, www.allvupastpapers.blogspot.com
What will be the tax treatment of such amount received?
        Income from Business
        Exempt as Agriculture Income
        Income from Property
        Capital Gain

Question No: 8      ( Marks: 1 ) - Please choose one          
What is the tax treatment of any profit on the US Dollar Bonds purchased by t resident person after December 1999 under Second Schedule?
        Wholly exempt
        Wholly taxable
        Tax @10% of profit paid
        Not mention in second schedule

Question No: 9      ( Marks: 1 ) - Please choose one          
Salary income received by resident person from Federal Government of Pakis in UK belongs to which of the following?
        Pakistani source of Income
        Foreign source of income
        Both Pakistan and foreign source of income
        None of the given option

Question No: 10      ( Marks: 1 ) - Please choose one        
 Mr. Khan resident of Pakistan received salary from UK? His salary will be included in which of the following?
        Pakistan source income
        Foreign source income
        Both Pakistan and foreign source income
        None of the given options

Question No: 11      ( Marks: 1 ) - Please choose one        
In which of the following heads of Income No deductions are allowed:
        Salary Income
        Income from Property
        Income from Business
        Capital Gains

Question No: 12      ( Marks: 1 ) - Please choose one        
Utilities were exempted up to 10% of MTS or Basic salary till 30th June, 2006, vide clause 38 of part 1 of Second Schedule. This clause has been omitted by:
        Finance Ordinance 2004
        Finance Ordinance 2005
        Finance Act 2006
        Finance Act 2007

Question No: 13      ( Marks: 1 ) - Please choose one        
MTS stands for which of the following?
        Minimum time scale
        Minimum transfer Salary
        Maximum time scale
        Maximum transfer Salary

Question No: 14      ( Marks: 1 ) - Please choose one        
Which of the following is the tax treatment of free hospitalization services provided under the terms of employment?
        Wholly exempt
        Wholly taxable
        Taxable up to 10% of MTS
        Exempt up to 10% of MTS

Question No: 15      ( Marks: 1 ) - Please choose one        
Which of the following may grant approval to any gratuity fund?
        Federal Tax Ombudsman
        Federal Government
        Superior judiciary
        Commissioner of Income Tax

Question No: 16      ( Marks: 1 ) - Please choose one        
Rental income earned is taxable on a net income basis that is, after deduction of tax admissible expenditure and allowances from gross rent, for up to Tax year:
        2007
        2008
        2006
        2005

Question No: 17      ( Marks: 1 ) - Please choose one        
Debt means "any amount owing", than which one of the following doesn't cover by the definition of Debt under section 2(15)? By: Adeel Abbas, www.allvupastpapers.blogspot.com
        Accounts payable
        Promissory notes
        Bills of exchange
        None of the given options

Question No: 18      ( Marks: 1 ) - Please choose one        
What is the tax treatment for any fine or penalty paid or payable by the person for the violation of any law, rule or regulation?
        Deducted as per section 20
        Not allowed to be deducted as per section 21
        Deducted as per section 21
        Not allowed to be deducted as per section 22

Question No: 19      ( Marks: 1 ) - Please choose one        
Which section defines 'Speculation business' under head Income from business?
        Section 20
        Section 19
        Section 24
        Section 18

Question No: 20      ( Marks: 1 ) - Please choose one        
Which of the following is the rate of amortization of pre-commencement expenditure under section 25 of the income tax ordinance 2001?
        10%
        20%
        30%
        50%

Question No: 21      ( Marks: 1 ) - Please choose one        
A/B
The above formula is for the calculation of Amortization deduction allowed under secti 24. Which of the following is the value of A?
        Normal useful life of intangible
        Book value of intangible
        Cost of intangible
        Sale price of intangible

Question No: 22      ( Marks: 1 ) - Please choose one        
Turnover from all sources Rs.50, 000,000 By: Adeel Abbas, www.allvupastpapers.blogspot.com
Tax liability (due to loss or exemption from tax) = Nil
What will be the minimum tax to be paid at 0.5% of turnover?
        Rs.300, 000
        Rs.200, 000
        Rs.250, 000
        Rs.100, 000

Question No: 23      ( Marks: 1 ) - Please choose one        
Section 22(15) defines depreciable asset means:
        Any tangible movable property
        Any tangible immovable property (other than unimproved land)
        Structural improvement to immovable property
        All of the given options
Question No: 24      ( Marks: 1 ) - Please choose one        
Which section define this 'Income tax depreciation is admissible only in respect of depreciable assets'.
        Section 22(15)
        Section 22 (11)
        Section 23 A
        Section 24

Question No: 25      ( Marks: 1 ) - Please choose one        
A-B
From the above formula the value 'B' represents which of the following?
        Consideration received on disposal of the capital asset
        Cost of the asset
        Amount of Depreciation
        Market value of the Capital asset

Question No: 26      ( Marks: 1 ) - Please choose one
Income from Dividends charged to tax under which of the following heads of Income?
        Income form Property
        Income from Business
        Income from Capital Gain
        Income from Other Sources


Question No: 27      ( Marks: 1 ) - Please choose one        
Appeal to the collector of sales tax may be filed within which of the period?
        60 days
        90 days
        180 days
        30 days

Question No: 28      ( Marks: 1 ) - Please choose one        
Members of income tax appellate tribunal are appointed by which of the following authorities? By: Adeel Abbas, www.allvupastpapers.blogspot.com
        Income Tax Department
        Provincial Government
        Federal Government
        Judicial Commission

Question No: 29      ( Marks: 1 ) - Please choose one        
The office of Superintendent of Sales Tax, or such other office as the Board may, by notification in the official Gazette, specify is called;
        Income tax office
        Registered office
        Local Sales Tax Office
        None of the given options

Question No: 30      ( Marks: 1 ) - Please choose one        
 In relation to any registered person means the tax charged under the Sales tax Act in respect of a supply of goods made by that person and shall include duties of excise chargeable under section 3 of the Central Excises Act, 1944 (I of 1944) is known as;
        Output tax
        Input tax
        Income tax
        Wealth tax

Question No: 31      ( Marks: 1 ) - Please choose one        
Capital value tax is levied on which of the following?
        Capital gain
        Gross profits
        Capital value of asset
        Intangible assets

Question No: 32      ( Marks: 1 ) - Please choose one        
Mr. X employed in Pakistan remittance from USA received Rs. 10,000 in Pakistan from past profits. Which of the following is right for the above scenario?
        Mr. X being resident of Pakistan Rs. 10,000 will be added in Gross total income
        Mr. X being resident of Pakistan Rs. 10,000 will be Subtracted in Gross total income
        Mr. X being non-resident of Pakistan Rs. 10,000 will be added in Gross total income
        Remittance is not income hence it is not included

Question No: 33      ( Marks: 1 ) - Please choose one        
Which of the following is the general formula for calculating tax credits?
        (A+B) x C
        (A-B) x C
        (A/B) x C
        (A/B) + C

Question No: 34      ( Marks: 1 ) - Please choose one        
A woman taxpayer shall be charged to tax if taxable income is:
        Less than Rs. 100,000
        Less than Rs. 150,000
        More than Rs. 200,000
        More than Rs. 240,000

Question No: 35      ( Marks: 1 ) - Please choose one        
Which of the following is the rate of tax for salaried Individuals for tax year 2009, wh the taxable income exceeds Rs. 250,000 but does not exceed Rs. 350,000?
        Nil
        0.250%
        0.50%
► 0.75%

Question No: 36      ( Marks: 1 ) - Please choose one        
Mr. A is an employee of Government of the Punjab, his data for the year 2009 is given
below.
Salary   Rs. 60,000 per month
Gratuity            Rs. 1,000,000
Tax deducted at source Rs. 54,000
What will be the Mr. A's taxable income for tax year 2009?
        774,000
        720,000
        1,060,000
        1,720,000

Question No: 37      ( Marks: 1 ) - Please choose one
Statutory Provident Fund is governed by:
► Finance Act 2006
► Insurance Act 1969
► Provident Funds Act 1925
► None of the given options appetence

Question No: 38      ( Marks: 1 ) - Please choose one
 What will be the tax liability of an individual under the head income from property
        Rs.17,750
        Rs. 23,500
        Rs. 47,000
        Rs. 70,500

Question No: 39      ( Marks: 1 ) - Please choose one
Any salary paid or payable exceeding    paid other than by a crossed
cheque or direct transfer of funds to the employee's bank account is not allowed to deduct under section 21 of the ordinance.
        Five thousand rupees per month
        Ten thousand rupees per month
        Fifteen thousand rupees per year
        Two hundred thousand rupees per year

Question No: 40      ( Marks: 1 ) - Please choose one
Which of the following is the rate of tax for AOP for ta income exceeds Rs. 100,000 but does not exceed Rs. 180000
►0%
►0.25%
►0.50%
► 0.75%


Question No: 41      ( Marks: 1 ) - Please choose one
What is the tax rate of Banking companies for the
        35%
        44%
        54%
        42%

Question No: 42      ( Marks: 1 ) - Please choose one
Amount of Capital value tax for the year 2009 for a mo should be which of the following? By: Adeel Abbas, www.allvupastpapers.blogspot.com
        Rs. 3,500
        Rs. 7,500
        Rs. 8,500
        Nil

Question No: 43      ( Marks: 3 )
What is the main purpose of Gratuity?

Question No: 44      ( Marks: 3 )      
Mr. Farooq's salary is Rs.22, 000 per month. He received commission during the year amounting to Rs.33, 000. He is provided a jeep by his employer for personal as well a official use. The employer took this jeep from a leasing company at an annual lease of
 Rs.80, 000. The fair market value of the 000.Calculate the taxable income of Mr.

Question No: 45      ( Marks: 3 )
What are the Penalties in case of failure to maintain record and non compliance with the notice under section 185 and 186 of Income Tax Ordinance 2001 respectively?

Question No: 46      ( Marks: 5 )
 What are the exemptions available un Tax Ordinance 2001 related to Prope Income
 By: Adeel Abbas, www.allvupastpapers.blogspot.com
Question No: 47      ( Marks: 5 )
What are the basic features of Sales T

Question No: 48      ( Marks: 10 )
Compute the taxable income and tax liability of M         r. Jamil,            a salaried individual. The data pertaining to tax year 2009 is given below:                
1.   Basic salary                        Rs 20,000p.m.            
2.   House rent allowance                      Rs 5,000   p.m.
3.   Bonus                     Rs. 6,000p.m.             
4.   Medical Allowance             Rs 5,100   p.m.
5.   Free hospitalization services availed under   terms of employment.   Rs 40,000
6.   Driver's salary paid by employer                 Rs 8,000 p.m.             
7.   Dearness Allowance                       Rs 6,000 p.m.             
8.  Utilities                    Rs. 40,000

Question No: 49      ( Marks: 10 )
 For tax year 2009 in respect of Compute taxable income and tax thereon employee of Government of the Punjab. Relevant information/data is given below
Salary By: Adeel Abbas, www.allvupastpapers.blogspot.com
Utilities
Bonus
Dearness Allowance
Gratuity
Conveyance allowance (Partly for Person
Cost of vehicle to the employer was
Tax deducted at source
Concessional Loan of Rs 1 million provid
(bench mark rate for tax year 2009 is 11%

Rs. 500,000
Rs. 50,000
Rs. 72,000
Rs. 60,000
Rs. 1,000,000
y for office use)
Rs 1,000,000
Rs. 54,000
oyer @ of markup of 6% per anum

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