Tax Book 2023

Insurance Business Chapter- 25

MULTIPLE CHOICE QUESTIONS

Q.1. Profit and gains from life insurance business shall be computed ____ other businesses under
the head “income from business”.
(a) separately from

(b) together with

(c) none of above

Q.2. Neither dividend nor any payment to debenture holders shall be declared or paid other than from the
___.
(a) cash and bank balance

(b) shareholder’s fund

(c) sinking fund

(d) all of above

Q.3. A deduction of the amounts paid to, or reserved for, or expended on behalf of policy-holder shall be
__.
(a) allowed

(b) not allowed

(c) ignored

(d) added to income

Q.4. Profit on debt accrued in the inter-valuation period in respect of any securities of the Federal
Government shall be _____.
(a) taxable

(b) exempt from tax

(c) treated as income from other sources

(d) none of above

Q.5. The CIR may make reasonable adjustments to the allowance for depreciation / appreciation if it
appears to him, that the outstanding policies are _____ with the valuation of investment so as to
artificially reduce the surplus.
(a) not in accordance with Insurance Ordinance

(b) consistent

(c) inconsistent

(d) all of above

Q.6. Any expenditure which is not deductible in computing the income chargeable under the head
___ shall be excluded for computation of income from insurance.
(a) Income from other sources

(b) capital gains

(c) Income from business

(d) Income from property