CAF-2 · Chapter 11 · Question 6 of 15
Mr. Y has a taxable income of Rs. 1,400,000. He paid tuition fees of Rs. 500,000 for his three children during the tax year. What is his maximum deductible allowance for education expenses under Section 60D?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A) Rs. 25,000
Explanation
For individuals with taxable income under Rs. 1.5 million, the allowance is the lesser of (a) 5% of tuition fee (25,000), (b) 25% of taxable income (350,000), or (c) Rs. 60,000 x 3 children (180,000). The lowest is Rs. 25,000.
More Losses, Deductible Allowances, Tax Credits and Exemptions MCQs
- Q8If a taxpayer is eligible for multiple tax credits in a tax year, in what mandatory order must they be applied against the gross tax…
- Q9A Tier-1 retailer installs a new point of sale (POS) machine integrated with the FBR’s system, costing Rs. 180,000. What is the maximum…
- Q10Which of the following is NOT treated as agricultural income and is therefore fully taxable under the Income Tax Ordinance, 2001?
- Q11Mr. Ahmed cultivates cotton on his own agricultural land and uses it as raw material in his textile factory. The market value of the…
- Q12A citizen of Pakistan returns to the country and becomes a resident individual in Tax Year 2026. For how many preceding tax years must he…