Assessment of Individual & HUF – CS Executive Tax Laws MCQ Questions

Ram & Co., a proprietorship firm has paid tax for the assessment year 2021-22 as per Section 115JC of the Income Tax Act, 1961.

Mr. Soloman, a resident in India, aged 70 and has the following income for the previous year 2020-21. (All the incomes given below are the computed income):

RS HUF consists of R Karta, Y and S coparceners, D, the daughter of a coparcener, and W, the wife of Karta as members.

The provisions of AMT under Chapter XITBA shall not apply to an individual, a HUF, etc. if the adjusted total income of such person does not exceed:

Mr. Chandan (age 70) received ₹ 30,000 every month during the financial year 2020-21 on a reverse mortgage of his property with State Bank of India.

When Mr. X retired from X & Co. a partnership firm on 1.1.2021, he was paid ₹ 15 lakhs for not doing a competing business for the next 5 years.

A registered trade union earned ₹ 1,00,000 by way of interest on bank deposit and ₹ 1,50,000 by way of rent from letting out premises.

Mrs. Laxmi, 70 years old, received ₹ 30,000 every month from SBI under a reverse mortgage scheme by mortgaging her residential house property. She also received a monthly family pension of ₹ 15,000.

Balu paid ₹ 1,00,000 to Raj for the purchase of a standing crop (paddy). He harvested the produce, Le. paddy by incurring an expenditure of ₹ 25,000. He sold the said paddy for ₹ 1,80,000 to a trader. His other income for the year ended 31 st March 2021 was ₹ 4,60,000.

The voluntary contributions received by an electoral trust during the year is not included in its income

During the year 2020-21, Basu won ₹ 4,00,000 from a motor car rally out of which he deposited ₹ 1,50,000 in his PPF account. He does not have any other income.

Under the Income-tax Act, 1961, dividend derived from the shares held as stock-in-trade are taxable under the head

Arjun has a salary income of ₹ 6,60,000. He also received interest of ₹ 18,000 on his fixed deposit (after deducting TDS @ 10%) and ₹ 2,000 on his savings account with SBI. He deposited ₹ 50,000 in the PPF account.