1.In the tax year 20X8, Mr. Chaman Lal was present in Pakistan for 85 days before he was posted abroad by his employer on official assignment for a period of 2 years. 

In which of the following cases will Chaman Lal be considered as resident in accordance with the Pakistani Tax Laws for the tax year 20X8: 

(A)He is an employee of a company which is incorporated and listed in Pakistan

(B)He has a permanent residential address in Pakistan which has already been provided to the tax department

(C)He has never been a non-resident person in the past

(D)He is an employee of the Ministry of Environmental Protection, Government of Pakistan

2.Mr. Bukhari is a Pakistani national who has been residing in United Kingdom (UK) for the past 15 years and never visited Pakistan during this period. 

His father who was in Pakistan died on 20.3.20X8.

He came to Pakistan on 22.3.20X8, disposed off his father’s assets in Pakistan and transferred the amount to UK after getting the required permission from the State Bank of Pakistan.

However, he decided to live in Pakistan till 30.6.20X8 due to corona virus situation in England.

His salary income for the period up to February 20X8 from his UK employer was UK £ 240,000. Exchange rate is 1 £ = Pak Rupees 190

For the year ended 30.6.20X8, his salary from UK employer will be: 

(A)Taxable in Pakistan under the head salary

(B)Exempt in Pakistan as foreign source salary of resident individual

(C)Exempt in Pakistan as foreign source salary of returning expatriate

(D)None of the above is correct

3.If a conveyance is purchased by an employer and provided to an employee for personal and office purposes, the amount to be included in taxable salary of the employee is: 

(A)5% of the cost of vehicle

(B)5% of the fair market value of vehicle at the commencement of lease

(C)10% of the cost of vehicle

(D)None of the above is correct

4.Mr. Zafar Jamali joined a group of companies as a group tax coordinator on 1st February 20X5 at a monthly salary of Rs.1,200,000. 

The group of companies has a policy for payment of salary to its employees that the amount of salary would be transferred directly to employees’ bank accounts in the first week of the next month. 

However, Mr. Jamali needs some cash for the coming birthday of his third wife in the last week of June 20X5 and therefore he submitted an application to the group for early payment of salary and his salaries of June and July 20X5 were transferred in his bank account in the last week of June 20X5. 

His salary for the tax year 20X5 would be taxed for:

(A)4 months

(B)5 months

(C)6 months

(D)At the option of the employee

Answer rating: 100% (QA)

Chaman Lal will be considered as a resident in accordance with Pakistani Tax Laws for the tax year 20X8 if he meets any of the following conditions B ... View the full answer