Test 2 (exemptions)
1. Sections 11 through 13 of the Income Tax Ordinance, 2001 deal with exemptions and tax concessions available to taxpayers. 2. Key points covered in the document include exemptions for amounts received on encashment of long-term pension plans by Pakistani citizens, profits from electric power generation projects set up in Pakistan on or after a certain date, donations allowed as deductions for companies, carryforward periods for losses for industrial undertakings set in export processing zones, and minimum tax rates for oil marketing companies over a certain annual turnover threshold. 3. The document also asks about exemptions for salary income of experts advising certain institutes, allowances for Pakistanis working overseas, annual exemption limits for amounts received
Test 2 (exemptions)
- 1. 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.
- 2. 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.