Tax Book 2023

Banking Business Chapter- 27

MULTIPLE CHOICE QUESTIONS

Q.1. Rules of ___ schedule shall apply in calculating the income, profit and gain of a banking company.

(a) 3 rd

(b) 4 th

(c) 5 th

(d) 7 th

Q.2. Which of the following is admissible deduction while calculating income of a banking company?

(a) Tax depreciation

(b) Initial allowance

(c) Tax amortization

(d) all of above

Q.3. Provision of advances and off balance sheet items is restricted to __% for consumers and
SMEs.
(a) 2

(b) 4

(c) 5

(d) 1

Q.4. Provision of advances and off balance sheet items for consumers and SMEs in excess of 5% shall be
____.
(a) Ignored

(b) allowed as deduction

(c) carried forward

(d) none of above

Q.5. Bad debts classified as “sub-standard” shall be ____.

(a) Admissible

(b) inadmissible

(c) added into income

(d) none of above

Q.6. If a taxpayer reclassify any addition on account of sub-standard debts in subsequent year as
recoverable then __.
(a) allowed as deduction

(b) it shall be added into income

(c) it shall be ignored

(d) none of above

Q.7. The adjustments made on account of Financial Instruments (IAS 39) and Investment Property (IAS
40) shall be __ in computing the taxable income
(a) Included