Test 2 (Exemptions)
Q. No. 1
Fill in the blanks
1. Sections _____ through ______ of income tax Ordinance, 2001 deal with the exemptions and
tax concessions available to a taxpayer.
2. Any Amount received on encashment of LPR is exempt, if it is received by a _____________.
3. Any profit and gain from electric power generation project setup in Pakistan shall be exempt
from tax if the project is set up on or after ___________.
4. Amount of donation allowed as deduction in case of a company should not exceed the ______
% of the taxable income.
5. An Industrial undertaking set up in of an export processing zone can carry forward losses to an
__________ period instead of 06 years.
6. Minimum tax u/s 113 shall be reduced to 0.50% in cases of oil marketing companies. It shall
be applicable only for those cases where annual turnover exceeds rupees __________.
7. The salary income of a person working as expert, advisor in any institute run by AKDNP is
exempt if the said person is / is not citizen of Pakistan.
8. Any Allowance and perquisite paid by athe Government to a Pakistani, rendering services
outside Pakistan are/ are not exempt from tax.
9. Any income received as annuity is exempt upto RS. __________ per annum if it is received
from Pakistan Postal Annuity Certificate Scheme.
10. Salary income of a Pakistani seafarer working on a __________ shall be exempt from tax if the
person has worked on _______ for _______ days or more during the tax year.
Q. No. 2
False and True
1. The amount of any scholarship granted by an associate will be exempt from tax.
2. Income from transport business carried on such vehicles, if the tax payer is resident in Pakistan
and non resident in AJK shall be exempt from tax.
3. Any amount received on encashment of bonds issued under the special US Dollar Bonds rules
1988 shall be exempt from tax.
4. Profit and gains of taxpayer from running of any vocational institute shall be exempt from tax
for a period of 06 years.
5. capital gain on sale of Shares of public company set up in Export Industrial zone shall be
exempt 3 years from the date of commencement of commercial production.
6. Agriculture income derived from the land situated in Pakistan is exempt from tax.
7. Income from cattle or sheep farming is Agriculture income.
8. Income from business of a contractor shall be exempt from tax if the person received income
out of the funds of grant available according to the agreement.
9. The amount received as monthly installment from an income payment plan shall be exempt
from tax if the amount is invested out of accumulated balance of an individual pension
accounts with a pension fund manager.
10. Any amount received as compensatory allowance is exempt up to 65% of gross salary of the
recipient if the recipient is a citizen of Pakistan.