INSPECTOR INLAND REVENUE (FBR) MCQs

The Central Board of Revenue became Federal Board of Revenue by the enactment of

(a) FBR Act 2006

(b) FBR Act 2007    (Answer)

(c) FBR Act 2008

(d) FBR Act 2009


The current chairman of FBR is

(a) Qamar Zaman Chaudhry

(b) Dr. Muhammad Ashfaq Ahmed    (Answer)

(c) Nisar Muhammad Khan

(d) Usman Yousaf Mobeen


The Chairman FBR is

I. Executive head of the Board

II. Secretary of the Revenue Division

III. Chief Commissioner Inland Revenue

(a) I only

(b) II only

(c) I and II    (Answer)

(d) I, II and III


To provide convenience to the Large Taxpayers, the posts of Chief Commissioner Inland
Revenue Large Taxpayers Unit (LTU) were established in

(a) Islamabad, Lahore and Karachi    (Answer)

(b) Islamabad, Karachi and Peshawar

(c) Islamabad, Lahore, Karachi, Peshawar and Quetta

(d) Islamabad, Lahore, Karachi, Peshawar, Quetta and Muzaffarabad


The Chief Collectors Southern region include Chief Collectors:

(a) Karachi, Lahore and Hyderabad

(b) Karachi, Hyderabad and Quetta

(c) Lahore, Rawalpindi and Peshawar

(d) Karachi, Hyderabad, Quetta and Gwadar    (Answer)


The Chief Collectors Northern region include Chief Collectors:

(a) Lahore, Rawalpindi and Peshawar

(b) Lahore, Rawalpindi, Peshawar and Multan

(c) Lahore, Rawalpindi, Peshawar, Multan and Faisalabad

(d) Lahore, Rawalpindi, Peshawar, Multan, Faisalabad and Sambrial    (Answer)


Which from the following are the responsibilities of FBR chairman?

l. Formulation and administration of fiscal policies

II. Levy and collection of federal taxes

III. All matter relating to administrative control

(a) I and II  (Answer)

(b) II and III

(c) I, II and III

(d) I and III


Which from the following are called domestic taxes?
(a) Income Tax

(b) Sales Tax

(c) Federal Excise Duty

(d) All of the above    (Answer)


The Inland Revenue Wing of the FBR is responsible to collect

(a) Income Tax

(b) Sales Tax

(c) Federal Excise Duty

(d) All of the above taxes    (Answer)


Domestic Taxes constitute about
of the Revenue collected by FBR.

(a) 80%

(b) 85%

(c) 90%    (Answer)

(d) 95%


Which from the following is the direct responsibility of chairman FBR?

(a) All matter relating to administrative control

(b) All legal issues pertaining to the jurisdiction

(c) Quasi-judicial function of hearing of appeals    (Answer)

(d) Generation of revenue within jurisdiction


Which from the following is NOT the responsibility of Chief Commissioners LTUS?

(a) Enforcement/collection of revenue

(b) Facilitation of Taxpayer 

(c) Generation of revenue within jurisdiction

(d) Interaction with the concerned ministries    (Answer)


Which from the following is the responsibility of Chief Commissioners LTUs?

(a) All matter relating to administrative control

(b) Generation of revenue within jurisdiction

(c) All legal issues pertaining to the jurisdiction

(d) All of the above    (Answer)


The total number of Inland Revenue Wings chiefs at the FBR Headquarter is

(a) 3

(b) 4   

(c) 5

(d) 6    (Answer)


Which from the following sections work under Chief Inland Revenue (IR) Headquarter?

(a) IR General and IR Judicial section

(b) IR General, IR Judicial section and IR coordination section

(c) IR General, IR Judicial section, IR coordination section and IR Revenue Budget    (Answer)

(d) IR General, IR Judicial section, IR coordination section, IR Revenue Budget and IR
ST/FED section


Valuation of goods and tariff values is the responsibility of

(a) Chief IR (HQs)

(b) Chief (ST/FED – Policy)    (Answer)

(c) Chief (Income Tax – Policy)

(d) Chief IR (Operations)


Post budget clarifications and issuance of SROs is the responsibility of

(a) Chief IR (HQs)

(b) Chief (ST/FED – Policy)    (Answer)

(c) Chief (Income Tax – Policy)

(d) Chief IR (Operations)


Taxpayers Registration for Income Tax and Sales Tax is the responsibility of Inland Revenue

(a) General Section

(b) Judicial Section

(c) Coordination Section    (Answer)

(d) Revenue Budget Section


Assignment and monitoring of collection targets of Income Tax, Sales Tax and Federal Excise duty is the responsibility of IR

(a) General Section    (Answer)

(b) Judicial Section

(c) Coordination Section

(d) Revenue Budget Section


Matters pertaining to Income Tax, Sales Tax and Federal Excise duty Jurisdiction is the responsibility of IR

(a) General Section

(b) Judicial Section

(c) Coordination Section

(d) Revenue Budget Section    (Answer)


All budget and policy matters relating to dutiable / taxable goods and services is the
responsibility of

(a) Chief IR (HQs)

(b) Chief (ST/FED – Policy)    (Answer)

(c) Chief (Income Tax – Policy)

(d) Chief IR (Operations)


The each chief of the three Chiefs Inland Revenue (IR) is assisted by Secretary and Second
Secretary and RTOs/LTUS offices.

(a) 5

(b) 6

(c) 7    (Answer)

(d) 8


Which from the following sections work under the Chief (Income Tax – Policy)?

(a) Secretary (ITP) and Secretary (WHT)

(b) Secretary (ITP), Secretary (WHT) and Secretary (Exemptions)/(I.T Rules)

(c) Secretary (ITP), Secretary (WHT) and Secretary (International Taxes)

(d) Secretary (ITP), Secretary (WHT), Secretary (Exemptions)/(I.T Rules) and Secretary
(International Taxes)    (Answer)


Matters pertaining to reforms/ restructuring/ reorganization is the responsibility of IR

(a) General Section    (Answer)

(b) Judicial Section

(c) Coordination Section

(d) Revenue Budget Section


Matters related to parliament business, cabinet matters and ADR, FTO matters (Income
Tax/Sales Tax) is the responsibility of IR

(a) General Section

(b) Judicial Section    (Answer)

(c) Coordination Section

(d) Revenue Budget Section


A tax that takes a larger percentage from high-income earners than it does from low-

income earners is called

(a) proportional tax

(b) progressive tax    (Answer)

(c) regressive tax

(d) suppressive tax


Which from the following is NOT an indirect type of tax?

(a) Income Tax    (Answer)

(b) Sales Tax

(c) Custom Tax

(d) Federal Excise Duty


The sales tax paid at any stage does not exceed of the total sales price of the supplies.

(a) 15%

(b) 16%

(c) 17%    (Answer)

(d) 18%


Income tax is levied generally on the

(a) net income    (Answer)

(b) gross income

(c) gross income – net income

(d) any from the above


Capital Value Tax is levied on transaction of

(a) movable property

(b) immoveable property    (Answer)

(c) perishable property

(d) damaged goods


Which from the following is NOT among the heads of “Total Income”?

(a) Salary

(b) Income from property/business

(c) Income from sales    (Answer)

(d) Capital gains


Custom duty is levied on goods

I. imported into Pakistan

II. exported from Pakistan

III. transported through Pakistan

(a) I only

(b) II only

(c) I and II    (Answer)

(d) I and III


Excise duties are levied on a limited number of goods manufactured, and services provided Pakistan.

(a) in    (Answer)

(b) outside

(c) both A and B

(d) None of these


All exports are liable to Federal Excise Duty.

(a) 0%    (Answer)

(b) 5%

(c) 10%

(d) 17%


Which from the following is/are considered as “Good(s)””?

(a) Actionable claims

(b) Money

(c) Stocks, Shares and Securities

(d) None of these    (Answer)


Which Section of the Sales Tax Act 1990 stipulates the goods that are exempt from levy of sales tax?

(a) Section 4

(b) Section 10

(€) Section 13    (Answer)

(d) Section 15


Which Schedule of Section 13 of the Sales Tax Act 1990 includes a list of items on which no

sales tax is levied?

(a) Third Schedule

(b) Fourth Schedule

(c) Fifth Schedule

(d) Sixth Schedule    (Answer)


Sales Tax is levied at the rate of on all goods imported into Pakistan.

(a) 0%

(b) 5%

(c) 10%

(d) 17%    (Answer)


The sales tax on goods imported into Pakistan is paid by the

(a) importers    (Answer)

(b) exporters

(c) both A and B

(d) None of these


All supplies made in Pakistan by a registered person in the course of any business carried
on by him, is liable to pay sales tax.

(a) 0%

(b) 5%

(c) 10%

(d) 17%    (Answer)


Taxable supply means a supply of taxable goods. The supply of taxable goods does not
include taxable supply made by a/an

(a) importer

(b) transporter    (Answer)

(c) retailer    

(d) manufacturer


Which from the following transactions do not constitute taxable supply?

(a) Supply of exempt goods

(b) Supply of goods chargeable to tax at the rate of zero per cent

(c) Supply made by an importer  

(d) Supply made by a banker       (Answer)


Zero-rated supply means a taxable supply which is charged to tax at the rate of 0%. Which Section of the Sales Tax Act 1990 elucidates the goods that are chargeable to tax at
the rate of 0 percent?

(a) Section 4    (Answer)

(b) Section 10

(c) Section 13

(d) Section 17


Which Schedule of Section 4 of the Sales Tax Act 1990 includes a list of items on which 0%
sales tax is levied?

(a) Third Schedule

(b) Fourth Schedule

(c) Fifth Schedule    (Answer)

(d) Sixth Schedule


Under which section of the Sales Tax Act 1990, the Federal Government is empowered to
prescribe any specified taxable goods which can be imported without payment of whole or
part of sales tax?

(a) Section 30

(b) Section 40

(c) Section 50

(d) Section 60    (Answer)


Retailer means a person supplying goods to
for the purpose of consumption.

(a) Departmental stores

(b) General public    (Answer)

(c) Wholesaler

(d) Shops


Which from the following taxes is not included in the Retail Price?
(a) Sales tax    (Answer)

(b) Excise duty

(c) Utilities

(d) Capital value tax


Registered Person means a person who is:
I. Registered
II. Liable to be registered
III. Tax avoider or Tax escaper

(a) I only

(b) II only

(c) I and II    (Answer)

(d) I, II and III


Which from the following activity is not considered as a taxable activity?

(a) An economic activity carried on for profit

(b) An economic activity carried on not for profit

(c) Rendering services

(d) Employee work and services    (Answer)


Value of supply is equal to

(a) Taxable Supply

(b) Taxable supply + All Taxes

(C) Taxable Supply + All taxes + Duty Paid    (Answer)

(d) Taxable Supply + All taxes – Duty Paid


In general, according to Sales Tax Act 1990, tax period is a period of

(a) one month    (Answer)

(b) six months

(c) nine months

(d) one year


The due date to furnish a return at the end of the tax period is the
following month.
day of the

(a) 7th

(b) 10th

(c) 15th    (Answer)

(d) 18th


A computerized program for analysing and cross-matching of sales tax returns is called

(a) Matlab

(b) SPSS

(c) SAS

(d) CREST    (Answer)


Cottage industry means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed

(a) Rs. 1.00 million

(b) Rs. 5.00 million

(c) Rs. 10.0 million    (Answer)

(d) Rs. 100 million


Local supplies of goods made by a cottage industry are exempt from

(a) Income Tax

(b) Sales Tax    (Answer)

(c) Capital Value Tax

(d) Federal Excise Duty


General Sales Tax (GST) is charged on

(a) Selling Price

(b) Retail Price    (Answer)

(c) Manufacturing Cost

(d) None of these


Selling Price is equal to

(a) Retail Price + GST    (Answer)

(b) Retail Price – GST

(c) Manufacturing Cost + GST

(d) Manufacturing Cost – GST


According to Income Tax Ordinance 2001, the Normal tax year is a period of twelve months from

(a) 1 January, 31 December

(b) 1 April, 30 March

(c) 1 July, 30 June    (Answer)

(d) 1 September, 31 August


The income of a resident person is computed by taking into account amounts that are:
I. Pakistan-source income
II. Foreign-source income

(a) I only

(b) II only

(c) I + II    (Answer)

(d) I-II


The income of a non-resident person is computed by taking into account amounts that are:

I. Pakistan-source income

II. Foreign-source income

(a) I only      (Answer)

(b) II only

(c) I + II

(d) I-II


FUNCTIONS OF FBR

When the Central Board of Revenue has been converted To Federal Board of Revenue

a. 2005

b. 2006

c. 2007     (Answer)

d. 2008


When Did The Central Board of Revenue (CBR) was created ?

a. 1920

b. 1922

c. 1924     (Answer)

d. None


When Did FBR was made an attached department of the Ministry of Finance?

a. 1974     (Answer)

b. 1976

c. 1978

d. None


When did the status of FBR as a Revenue Division was restored ?

a. 1990

b. 1991

c. 1992

d. 1993


Executive head of the Board as well as Secretary of the Revenue Division has the responsibility for:

a. Formulation and administration of fiscal policies

b. Levy and collection of federal taxes and    (Answer)

c. Quasi-judicial function of hearing of appeals

d. All of these


Which One Is The Major function of FBR Pakistan?

a. Domestic Taxes,

b Sales Tax,

c. Federal Excise Duty

d. All of these     (Answer)


7. FBR Is not responsible for the revenue for country.

a. auditing

b.enforcing

c. collecting

d. Removing      (Answer)


FTN Stands for

a Full

b. Free      (Answer)

c. Federal

d. All of these


NTN Stands for
a. National      (Answer)

b. New

c. Notional

d. None


FBR Pakistan facilitate issuance of NTN/FTN
to unregistered Withholding Agents in respective Regional Tax Office through Pakistan
_______Automation Limited
a Regional
b. Revenue       (Answer)
C. Record
d. None


FBR monitors the certificates of exemption from withholding taxes, issued by concerned tax authorities, for their proper_______ by all concerned.

a. Collection

b. Enforcement

c. Utilization      (Answer)

d. All of these avon abg


FBR Can ______ in whole of Pakistan, the Withholding regime and other relevant provisions of the Income Tax Ordinance, 2001 and Sales Tax of 1990.
a. Check
b. supervise
c. ascertain
d. All of these      (Answer)


FBR has how many major wings?
a. 1
b. 2      (Answer)
C. 3
d. 4


Which of the following is not the wing
of FBR?

a. Inland revenue

b. Custom

c. Import Export      (Answer)

d. None


Which include The Powers Of FBR ?

a. carrying out  inquiries and audits/investigations into the tax affairs.

b.. arrests

c. attachment as well as public of auction movable and immovable assets of a non compliant

d. All of These     (Answer)


Which of the following is the main tool of Fiscal Policy?

a. Taxes     (Answer)

b. Deficit Financing

c. Subsidies

d. Transfer Payments


Which of the following is the general
formula for calculating tax credits
Under FBR?

a. (A + B) X C

b. (A – B) x C

c. (A/B) x C      (Answer)

d. None


Which of the following is tax, where the tax rate decreases as the amount to which the rate is applied increases?

a. proportional tax

b. Progressive Tax

c. Corporate Tax

d. Regressive Tax     (Answer)


Which one of the following is the general definition of tax In The Rules of FBR?

a. Compulsory contribution of wealth by persons

b. Optional contribution of wealth by persons

c. Compulsory contribution wealth by state     (Answer)

d. Optional contribution of wealth by state


In Accordance Functions, Which of the following
Section deal with tax treatment of person who is a cultivator or receiver of agricultural produce as With the FBR as rent-in-kind in the business of  cultivator?

a. Section 41 of the Income Tax Ordinance 2001    (Answer)

b. Rule 11 of the IT Rule 2002

C. Section 40 of the Income Tax Ordinance 2001

d. None


Under the functions of FBR Agricultural income does NOT include which one of the following?

a. Rent or Revenue derived by a person from land

b. Income derived from land situated in Pakistan

c. The land is used for agricultural purposes

d. Income from spontaneous forest     (Answer)


Which part of income is charged to tax of non resident person under FBR Rules?

a. Pakistani source of income     (Answer)

b. Foreign source of income

c. Both Pakistan and foreign source of income

d. None


Which of the following tax is paid in relation to how much you earn?

a. Income Tax     (Answer)

b. Inheritance Tax

c. Value added Tax

d. Sales Tax


Which one of the following is the general meaning of Tax?

a. Relax

b. Lighten

c. Relieve

d. Fatigue     (Answer)


According to the functions of FBR which of the following is the important content for calculating tax on income?

a. Taxable income

b. Residential Status

c. Tax Year

d. All of these     (Answer)


In a tax of FBR you give information about what you earn every year
a. Return     (Answer)
b. Statement
c. Sheet
d. Report


A woman taxpayer shall be charged to tax to FBR if taxable income is:
a. Less than 100000
b. Less Than 200000
C. More Than 200000     (Answer)
d. None If These


Interpretation of Tax Laws is the prime responsibility of which of the following?

a. FBR

b. high Court     (Answer)

C. Supreme Court

d. None


Taxes are important instrument of which of the following policy Under Functions of FBR?
a. Monetary Policy
b. Fiscal Policy     (Answer)
C. Trade Policy
d. None


FBR can Take Which one of the following as ‘e-Filing of return’?
a. Return on notice
by
commissioner
b. Specimens of return
c. Electronically filed return     (Answer)
d. None


Pension received by a citizen of Pakistan is from tax
a. Partially taxable
b. Fully taxable
c. Taxable 25% of the pension received
d. Totally exempt  (Answer)


In an association of person, 25% tax rate is applied by FBR where the taxable income exceeds:
a. Rs 1,300,000     (Answer)

b. Rs 1,000,000

c. Rs 15,00,000

d. Rs. 17,00,000


Officer of Income Tax Section of FBR may grant approval to any gratuity fund.

a. True    (Answer)

b. False

c. under Special powers

d. None


If a resident company sustains loss, what will be the minimum tax rate?

a. 0.5% of invoice    (Answer)

b. 0.5% of bills

c.0.5% of turnover

d. 0.5% of company’s share


Under the Jurisdiction Of FBR Income from building leased out together with Plant & Machinery falls under

a. Income from property

b. Incomefrom salary

c. Income from capital gain

d. Income from other sources    (Answer)


Which one of the following canons of taxation suggests easiness in time of payment and mode of collection of tax Under The Function of FBR?

a. Simplicity

b. convenience    (Answer)

c. Certainty

d. Capacity to Pay


What is the tax treatment of the reimbursement of expenditure made by the employer?

a. Wholly Taxable    (Answer)

b. Wholly exempt

c. Partly Taxable

d. None


The process of clubbing of income results in which of the following?

a. Lower Bracket rate of tax is charged

b. Higher Bracket rate of tax is charged    (Answer)

c. Moderate Bracket rate of tax is charged

d. No change occur due to clubbing


(A / B) X C is the formula for calculating tax credit by FBR A represents which of the following?

a Amount of Gross tax    (Answer)

b. Person’s taxable income for the tax year

c. Amount of exemption as per Ordinance

d. Net Income of the year


which part of the Income Tax Ordinance 2001 deals with Tax credits?

a. Chapter III Part VII

b. Chapter III Part VIII

c. Chapter III Part IX    (Answer)

d. Chapter III Part X


Which of the following is the Tax year available for salaried individual declared by FBR?

a. 1st January to 31st December

b. 1st July to 30th June    (Answer)

c. 1st October to 30th September

d. 1st September to 31st August


Which of the following is NOT the type of tax?

a. Direct taxes

b. Indirect Taxes

c. Value Added Taxes

d. Fees And Penalties    (Answer)


FBR Imposes which of the following tax on merchandise imported or exported from one country to another?

a. Custom duty

b. Income tax

c. sales Tax    (Answer)

d. Wealth tax


Which of the following is a general compulsory contribution of wealth by the state, to meet the expenses incurred in providing common benefits upon the residents?

a. Fee

b. Taxes    (Answer)

c. Charges

d. Penalties


In the normal circumstances on which of the following tax is charged By FBR Pakistan?

a. Resident Company

b. Gross Receipt

c. Totai Income

d. Taxable income    (Answer)


Which of the following is the tax treatment of free hospitalization services provided under the terms of employment?
a. Exempt up to 10% of MTS
b. Exempt up to 10% of MTS
C. Taxable up to 10% of MTS
d. Wholly Exempt    (Answer)


Which of the following tax is paid
from money you received from
someone who has died?
a. Income tax
b. inheritance tax
C. Property Tax    (Answer)
d. Sales Tax


In FBR Pakistan Gives tax
concessions on which of the
following?
a. Reduction in tax liability
b. Reduction in tax rate
C. Reduction in taxable income
d. All of These    (Answer)


Which of the following person fulfilled
the criteria of a Taxpayer?
a. Any representative of a person
who derives an amount
chargeable to tax
b. Any person who is required to
deduct or collect tax
c. Any person required to furnish a
return of income
d. All of These    (Answer)


The Chairman of CBR has the
responsibility for which of the
following measures?
a. Formulation and administration
of fiscal policies
b. Levy And Collection Of Federal
Tax
C. Both A & B    (Answer)
d. None


In FBR Point Of View an Individual
will be termed as Short Term
Resident in which of the following
condition ?
a. His period of stay equal to 183
days
b. The employee of Federal
Government
The citizen of Pakistan
d. Resident solely by reasons of Individual Employment    (Answer)


Mr Ali is an employee of ABC Co. the
company has provided a driver and
a gardener to Mr. Ali. What will be
the treatment of their salaries as per
FBR rules?
a. Their Salaries Will be Added o
the salaries of Mr. Ali    (Answer)
b. The salaries paid to them
subtracted in the salary of MR.
Ali
C. Have no relation with salary of
Mr. Ali
d. The Salaries paid are exempted
from Tax


A firm ABC maintaining its account in accrual basis, at June 27, 2008 it is entitled to receive Rs. 10,000 but actual payments made at 01 August 2008. In which year it is charged to tax?

a. Tax will be charged only on Rs. 100,000

b. Tax will be charged only on Rs. 10,000

c. Tax will be charged only on Rs. 110,000    (Answer)

d. Exempt as Agriculture Income permanent
then


If a business carried on by Non- resident person in Pakistan through establishment according to FBR what will be the tax of Treatment on the traveling expenditures born by the non-resident for spending his holidays in his home land?

a. Wholly taxable due to PE    (Answer)

b. Wholly taxable as no concerned with PE in Pakistan

c. Not permissible as deduction from the income of Non-resident

d. None of the given options


In the normal circumstances on which of the following tax is charged?

a. Gross Receipt

b. Total Income

c. Taxable income

d. All of the given options    (Answer)


Mr. A employed in Pakistan received dividend
amounting Rs. 10,000 in UK from Pakistani
resident company. According to FBR What is the tax treatment for calculating his gross total income?

a. Added in total income    (Answer)

b. Subtracted from the total income

c. Added in income after tax

d. Exempt from tax


Special tax year is adopted after seeking approval from the

a.Commissioner    (Answer)

b. Tax Officer

c. Appellate Tribunal

d. Supreme Court


Which of the following tax is paid in

relation to how much you earn?

a. Income Tax    (Answer)

b. Inheritance Tax

C. Value added Tax

d. Sales Tax


ADR Stands for

(a) Alternate dispute Record

(b) Alternative dispute record

(c) Alternate dispute resolution    (Answer)

(d) None of above

   
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