FIN623 Solved Mcqs for Finalterm Paper

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FIN623 Solved Mcqs

Question No: 1

Taxes are important instrument of which one of the following policy?

Monetary policy

Fiscal policy

Trade Policy

Economic Policy

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Question No: 2

Removal of deficit in Balance of Payments is one of the objectives of which of the

following policy?

Monetary policy

Fiscal policy

Trade Policy

Economic Policy

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Question No: 3

In the canons of taxation, which one of the following statements best describe the

benefits principle?

Persons deriving more income leads to enjoy less benefits from the state,

should be taxed at the lower rates.

Persons deriving more income leads to enjoy less benefits from the state,

should be taxed at the higher rates.

Persons deriving less income leads to enjoy more benefits from the state,

should be taxed at the lower rates.

All persons deriving more or less income should be taxed at the same rates.

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Question No: 4

Taxation management is a strategy where by a person manages its business in

such a way so as to maximize the utilization of which of the following?

Tax holidays

Exemption, Rebates & Concession

Tax credits

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All of the given options

Question No: 5

Which of the following was the First law on Income Tax promulgated in

Pakistan?

1st July, 1979

1st July, 1969

1st July, 1949

1st July, 2002

Ref:

Question No: 6

How many Sections are included in the Income Tax Ordinance 2001?

340 sections

440 sections

140 sections

240 sections

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Basic Features of Income Tax Ordinance 2001

Scheme of the Ordinance is given below:

¾ There are thirteen chapters

¾Chapters are divided into:

ƒParts &

ƒDivisions

¾There are 240 Sections

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Question No: 7

Superior judiciary includes which of the following authorities?

City Court

Supreme Court

High Court

Both supreme and High court

Question No: 8

The _____ year is a period of twelve months arbitrarily chosen for tax purposes.

Economic

Fiscal

Economy

Monetary

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Question No: 9

Which of the following is the Special Accounting Year of Insurance Companies?

1st January to 31st December

1st July to 30th June

1st October to 30th September

1st September to 31st August

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Question No: 10      Which of the following is the Special Accounting year of the persons carrying cotton

ginning, rice husking and oil milling?

1st January to 31st December

1st July to 30th June

1st October to 30th September

1st September to 31st August

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Question No: 11

Which one of the following is the example of tax payer?

Salaried Person

LESCO

WAPDA

All of the given options

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Question No: 12

Which of the following is the legal status of the Virtual University under the

provisions of section 80 of the ordinance?

Individual

Company

Banking Company

Hindu Undivided Family

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Question No: 13

For the purpose of Taxation the total Income includes which of the following?

Income as per Section 11

Income from Capital gain

Only business income

Only Salary income

Question No: 14

Which of the following section deals with the change of accounting method

adopted by an entity?

Section 32(1)

Section 32(2)

Section 32(3)

Section 32(4)

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Question No: 15

What will be the tax treatment of any income chargeable under the head Salary

earned by an individual outside Pakistan during that year?

Wholly Taxable

Wholly Exempt

Partly Exempt

Not mention in Ordinance

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Question No: 16

Date for the exemption limit for Foreign Currency Account (FCA) under Clause

80 of the Part I of Second Schedule is available to which of the following?

16 December 1999

16 November 1999

16 July 2001

1st

July 2002

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Question No: 17

Senior citizen-age 60 years & above where taxable income not exceeding

________ tax liability reduced by 50% under Part 3 of second schedule.

Rs. 500,000

Rs. 200,000

Rs. 300,000

Rs. 400,000

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