Chapter 7 Income from Other Sources


Income from Other Sources – CS Executive Tax Laws MCQsIncome from Other Sources – CS Executive Tax Laws MCQs

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The provisions of “deemed dividend” under section 2(22)(e) of the Income-tax Act, 1961, in respect of advances or loans to shareholders, or any payment on behalf of shareholders or any payment for the individual benefit of a shareholder are applicable to:

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State which out of the following gifts received during the year by Girish from different persons shall be subject to tax in the assessment year 2021-22:

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ABC Pvt. Ltd. has a business loss of ₹ 10 lakhs. There is unexplained share application money to the tune of ₹ 25 lakhs.

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Mr. Pankaj, a salaried employee, has taken a house on rent of ₹ 12,000 p.m. which was sub-let by him for ₹ 15,000 p.m. He has incurred miscellaneous expenses in relation to the sub-let of the house of ₹ 1,000. How much income from the sub-letting of the house shall be taxable in the AY 2021-22 where the house was taken on rent and also sublet by him from 1 st April 2020 onwards:

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Babu Lai won a prize of ₹ 1,00,000 in Rajasthan State Lottery and the Lottery Department paid him an amount of ₹ 70,000 after deduction of tax at source of 130,000. He had purchased lottery tickets for ₹ 8,000.

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In the hands of Mr. Sarath, a salaried employee, the following income shall be chargeable to tax as income under the head “Income from other sources”:

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Suresh (age 65) won a prize on a lottery ticket on 30.9.2020. The prize amount was ₹ 5,50,000. He had bought lottery tickets for 175,000 during the year.

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Lokesh (age 62) received the following gifts on the occasion of his birthday:

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Ms. Anshu received a dividend of ₹ 80,000 for her equity shareholding in MNO Ltd. (a listed company). She paid an interest of ₹ 12,500 for the amounts borrowed for investment in those shares. The taxable dividend income would be:

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Ms. Laxmi received ₹ 60,000 by way of family pension from the State Government.

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Ram received ₹ 80,000 by way of gifts from friends upon retirement from service in a private company.

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Mr. Ravi solved a crossword puzzle and received ₹ 84,000 after deduction of tax at source.

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Where a firm or closely held company received from any person any property being shares of the closely held company without consideration:

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Rakesh acquired a motor car for ₹ 3,00,000 from his friend (non-relative) when the fair market value of the motor car was ₹ 5,00,000.

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Libra P. Ltd. engaged in trading activity had accumulated profits of ₹ 15,00,000 as of 1.4.2020, Mr. Gautam having 30% of the equity shares and voting rights in the company received ₹ 5 lakhs as loan on 1-6-2020 from the company. The loan was repaid by him on 30-11-2020.

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Ms. Mala received a family pension of ₹ 15,000 per month during the previous year 2020-21. Also, she was employed in a private firm where she got a monthly consolidated salary of ₹ 20,000 per month. Her total income chargeable to tax is:

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R has taken a house on rent and sublets the same to G. Income from such house property shall be taxable under the head:

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Agni (P.) Ltd. issued equity shares of ₹ 10 each at ₹ 40 per share. The fair market value of the share on the date of issue was ascertained as ₹ 25 per share. The company issued 1,00,000 equity shares.

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Mr. Ram received a cash gift of ₹ 51,000 from his friends on the occasion of his 50th birthday. None of the friends are relatives.

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Amit received ₹ 70,000 being winnings from lottery after deduction of tax at source.

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A lady received gifts worth ₹ 1,00,000 from her relatives as defined under the Income-tax Act, 1961, and ₹ 60,000 from her office colleagues on her marriage anniversary.

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A member of Parliament received ₹ 1,50,000 per month as salary and ₹ 4,50,000 as daily allowances during PY 2020-21. The taxable amount will be

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While making payment of winnings from horse race, the tax will be deducted at source, if the payment exceeds

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Comfort (Pvt.) Ltd. issued 10,000 equity shares to Pawan at ₹ 18 per share when the fair market value of each share was determined at ₹ 11 per share. The tax implication of the transaction is

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Rishabh received the following gifts during the previous year:

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Where a foreign institutional investor received income in respect of securities other than income by way of dividend referred to in section 115- O or received in respect of securities other than units referred to in section 115AB, such income is taxable @

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Ms. Sitara is in receipt of family pension of ₹ 15,000 p.m. during 2020-2021. Income chargeable to tax for AY 2021-22 of Ms. Sitara is

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Rajiv (aged 28 years) received a cash gift of ₹ 2 lakhs on the occasion of his marriage. It includes gifts from non¬relative of ₹ 80,000. His income by way of lottery winnings is ₹ 3 lakhs.

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A private limited company engaged in manufacturing activity had a general reserve of ₹ 20 lakhs. It granted a loan of ₹ 5 lakhs to a director who held 13% shareholding cum voting rights in the company. The said loan was re-paid by him before the end of the year.

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John, engaged in fertilizer trade, received rent by sub-letting a building. This will be taxable under the head

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Which of the following income will be taxable as income from other sources?

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Akshay received a gift of ₹ 35,000 each on 22nd May 2020 from his three friends.

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Sameer received the following income during PY 2020-21: Director’s fees ₹ 5,000

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The amount deductible from a family pension is up to:

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Which of the following is not included in taxable income:

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