FIN623 Solved MCQs and Subjective Question by Instructor -2

FIN623 Taxation Management MCQs and Subjective Questions Solved and Verified by Course Instructor of VU ,

Shared by Fuad Hasan from LMS Moderated Discussion Board

FIN623  Taxation Management - Question: Being a tax student i feel, i must understand the concept, Sir, We see many private schools  around us, which are giveing educatin to our children, sir they are not approved by HEC,  however they are registered with federal board, please advise if they earn some revenue,  should they submit return and paid tax, and they fall under what category. Propritership  or else.. Please explan the concept. Ever Best Regards//.

Instructor's Reply:

The schools are not administed by the HEC. The local board is responsible for this. The  schools are required to get registered with the board. They are required to file  the tax return and it is a form of sole proprietorship and it can be partnership if there  are more than one persons involved.

FIN623  Taxation Management - Question: who we pay tax in advance without calculation.More No of time this point is in exercise,

Instructor's Reply:

The advance tax is also paid to the CBR.

FIN623  Taxation Management - Question:

What is  means "Tribunal". Please brief in this regards with reference to Taxation Management.

Instructor's Reply:

In simple words it means court. The judge deals all the matters of taxation like appeals againt tax.

FIN623  Taxation Management - Question: Clause (10) and (11) of Part 1 of second schedule related to Pension are omitted by which of the following? Finance Ordinance 2004 Finance Ordinance 2005 Finance Bill 2006 Finance Bill 2007

Instructor's Reply:

Finance Bill 2006

FIN623  Taxation Management - Question: Which of the following is the tax treatment for Income from property received as a rent for the year 2007? 1 /4 of the rent is deduct able as repairs allowance 1 /2 of the rent is deduct able as repairs allowance 1 /5 of the rent is deduct able as repairs allowance No deduction is allowed

Instructor's Reply:

1/5 is allowed as repair allowance.

FIN623  Taxation Management - Question: A person where taxable income for a tax year exceeds the maximum amount not chargeable to tax is required to file a return of income for the tax year, presently this amount is how much?

Instructor's Reply:

For individuals it is Rs. 100,000

FIN623  Taxation Management - Question: What is the Tax Treatment of utilities for the year 2009?

Instructor's Reply:

They are totally taxable.

FIN623  Taxation Management - Question: Sir kindly tell me the right option Income Tax is charged on which of the following? ► Income of the current tax year ► Income of the previous year ► Income of the coming year ► Any Receipt of money

Instructor's Reply:               v u z s

Income of currrent year.

FIN623  Taxation Management - Question: sir kindly tell me Pension is defined in which of the following schedule of the Income Tax Ordinance 2001?

Instructor's Reply:

2nd Schedule Part 1 Cl. (8)

FIN623  Taxation Management - Question: Concessional loan provided by the employer is taxable and added back to the income of employee. But under which of the following conditions there is no need to add back such loan? ► When loan is used for the purchase of furniture ► When loan is used for the education of children ► When loan is used for the construction of house ► When loan is used for the purchase of shares

Instructor's Reply:

When loan is used for the construction of house

FIN623  Taxation Management - Question: Mrs. Waseem has rented out her house at Rs. 15,000 per month. As per rent deed she has received an amount of Rs. 75,000 as advance, which is non adjustable against rent. What would be the amount of rent chargeable to tax where the fair market rent is Rs. 100,000?

Instructor's Reply:

15,000*12=180,000 75,000/10= 7,500 So, 187,500

FIN623  Taxation Management - Question: Mr. Qasim received income from business of Rs. 107,000. He has received gain on sale of residential house of Rs. 140,000. What will be his taxable income

Instructor's Reply:

His income will be Rs. 107,000 because income from residential house is exempt from tax.

FIN623  Taxation Management - Question:    w w w . v u z s . n e t Mr. Jamil has received income from poultry farm of Rs. 645,000 and gain on sale of shares of private company Rs. 136,000 where the shares were disposed off after 12 months. The capital loss amounted to Rs. 15,000 was reported. What will be his taxable income?

Instructor's Reply:

Income from poultry form = 645,000 Income from shares = 132,000*75%= 10, 2000                                                          = 647,000 Less                                                   = 15,000                                                            = 732,000  If share are held for one year then their 75% amount is treated as taxable.

FIN623  Taxation Management - Question: Dear Sir            Explain me this term and you have not disscusse this point in your Salary Income head. point is that            12000 . 800 . 19200. ( employment contract) sir this point is related to salary and explain me what is menat by this point.            and sir explain me when we saw in news paper salary package. such as 12000 + basic allowance. sir explain me these two point throughly. plz sir don't refuse. both points pertain to salary.

Instructor's Reply:

This is MTS of the salary. The first value shows the minimum salary the next is the annual increment and third is the maximum salary.