CAF-2 · Chapter 5 · Question 1 of 10
Under the Income Tax Ordinance, 2001, what is the basis of chargeability for income under the head "Salary"?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Receipt basis
Explanation
Salary is taxable strictly on a receipt basis; any salary received by an employee in a tax year shall be chargeable to tax in that year.
More Salary MCQs
- Q3Mr. Zaid is provided with a rent-free accommodation by his employer. His basic salary is Rs. 120,000 per month, but his minimum of time…
- Q4A company provided a leased 1300cc car to its marketing manager for both official and private use. The fair market value of the car at the…
- Q5ABC Ltd. granted a loan of Rs. 2,000,000 to an employee on 1 July 2025 at a concessional interest rate of 4% per annum. The benchmark rate…
- Q6Mr. Tariq's employer agreed to bear the tax chargeable on his salary. According to Section 12(3) of the Income Tax Ordinance, 2001, how…
- Q7Mr. Fahad resigned from his job and received Rs. 500,000 from an unapproved gratuity fund. He has never received any gratuity before. What…