Part A – Chapter 3 – Incomes which do not form part of Total Income MCQs – Set II

X Ltd. an Indian company made an agreement with Sophie Ltd. a Swedish company with the approval of Central Government for lease of aircraft. The agreement was made on 28.3.2007. During the previous year 2021-22, X paid ₹ 7,00,000 as rent and also paid ₹ 60,000 for providing spares. The amount exempt in the hands of Sophie Ltd. u/s 10(15A) will be:

Amount received under keyman insurance policy is:

ABX, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September, 2021 and an amount of ₹ 75 lakh was paid by the insurers to the managing partner. The amount so received on maturity of the policy by the managing partner is

Pawan & Co., a partnership firm, received ₹ 5,00,000 from an insurance company under keyman insurance policy consequent to demise of partner ‘Chaman’. The amount of premium ₹ 2,30,000 paid earlier was claimed as deduction under Section 37 by the firm. The amount received from the insurance company is-

Any income of a pension fund setup by the Life Insurance Corporation of India in terms of section 10(23AAB) of the Income-tax Act, 1961, is:

The income received on behalf of following funds except is exempt u/s 10(23C) from tax.

The income of following education institution which exist solely for educational purposes and not for profit making is exempt from tax under section 10(23C) except:

A trust eligible for exemption u/s 10(23C)(v) will lose the benefit of exemption in respect of

A registered trade union earned income by way of interest on fixed deposit held with State Bank of India of ₹ 5,60,000. The interest income chargeable to tax in the hands of trade union would be:

Dividend received u/s 2(22)(e) is:

Kaushal, aged 72 years mortgages his property with housing finance company under a reverse mortgage scheme. The company paid, Kaushal, ₹ 25,000 p.m during the P.Y 21-22. The amount

Nayak, a retired person of 68 years of age obtained 110,000 per month from 1 st April 2021 on reverse mortgage of his self-occupied residential property from a bank. The fair rent of the property is ₹ 15,000 per month. The income chargeable to tax in respect of amount received on reverse mortgage for his self-occupied house property for the F.Y. 2021-22 would be:

In case of retired chairman and members of UPSC a sum of maximum per month, received for defraying the services of an orderly and for meeting expenses incurred towards secretarial assistance on contractual basis is exempt in the A.Y. 2022-23 to the extent of:

The donations received by an electoral trust will be exempt under section 13B if

Which of the following income derived by a political party is exempt u/s 13A

A political party shall be allowed exemption u/s 13A of any income by way of voluntary contributions provided donation exceeding ₹ to be received by account payee cheque/draft

Mr. Gajar employed in XLU Ltd, took voluntary retirement in December 2021 and received ₹ 2,00,000 from National Pension System Trust. The amount so received chargeable to income-tax is:

Section 115BBC taxes anonymous donations at a special rate of

Section 115BBC is not applicable

Deduction u/s 10AA is available to an entrepreneur who set up a unit in special economic Zone on or after 1.4.2006 but before 1.4.2021 the deduction will be

Tax holiday under Section 10AA in respect of new established units in SEZ is allowed for a total period of –

Income of a minor child up to ₹ in respect of each minor child whose income is includible under section 64(1A) is exempt u/s 10(32)

Incomes of two minor children are included in the income of their father. Father is entitled to exemption u/s 10(32) upto

Pension and family pension of gallantry award winners is

Salary received by a foreign citizen as an employer of a foreign enterprise provided his stay in India does not exceed days is exempt u/s 10(6)(vi)

Manali received ₹ 1 lakh from the HUF of which he is a coparcener. The HUF consists of four coparceners including his father who is the Karta of the HUF. The amount paid was by way of debit to the capital account of HUF engaged in textile business. Is the amount of receipt chargeable to tax –

Choose the correct statement

Income of an assessee engaged in the business growing and manufacturing tea in India is taxable to the extent of-

If non -agricultural income is ₹ 2,52,000 and net agricultural income is ₹ 40,000 the tax liability of an individual assessee will be

Which of the following additional in-comes will not be treated as agricultural income

Palak reports net income of ₹ 5 lakh from the activity of growing and manufacturing rubber. How much of such income is to be treated as non-agricultural income –

Mrs. Rashi derives ₹ 5,40,000 by way of income from sale of coffee grown and manufactured in India. The income charge-able to income tax would be –

Mr. John aged 52 years received monthly pension of ₹ 30,000 during the Financial year 2021-2022. His agricultural income in India is ₹ 50,000. His net income-tax liability is:

Mr. Ankit derived income from sale of tea manufactured and grown in Coorg, Karnataka. His income for the previous year 2021-22 from the said activity is ₹ 20 lakhs. The amount exempt from tax by way of agricultural income is:

Mr. Kostubh engaged in the business of growing and manufacturing tea in India received 21 lakhs from Tea Board towards replacement of tea hushes destroyed by forest fire. The amount received from Tea Board by Mr. Ramesh is:

Mr. Manoj having tea estate in Munnar (Kerala) earned X 5 lakh by way of growing tea leaves and manufacturing tea. The income chargeable to tax would be:

Registered political parties have to maintain a record of the contributions and names and addresses of the persons who have made such contribution where each contribution exceeds:

Mr. X grows sugarcane and manufactures Sugar. The cost of cultivating sugar cane was ₹ 75,00,000 where as the market price of this sugarcane was X 89,00,000. His total profits were ₹ 30,00,000. What will be his agricultural income, as exempt under section 10(1) of the Income-tax Act, 1961 and Rule 7 of the Income-tax Rules, 1962.

The income derived from growing, manufacturing and sale of Centrifuged latex or Cenex or Latex based crops as per Rule 7A of the Incometax Rules, 1962 shall be taken as agricultural and non-agricultural income in the following ratio :

A non-resident (other than company) and a foreign company will pay tax on the income of interest received from an infra-structure debt fund referred to in section 10(47) at the rate of :

The reason for totally exempting agricultural income from the scope of Income-tax is :

As per Explanation 3 to Section 2(1 A) income derived from saplings or seedlings grown in a nursery would be deemed to be agricultural income :

The process employed by Mr. X to render the agricultural produce fit to be taken to the market is exempt u/s 10(1) as agricultural income if:

As per Rule 7 of the Income-tax Rules, 1962, in determination of market value of agricultural produce which is not capable of being sold in the market in raw form or after application of any ordinary process, the market value will be:

Income from the sale of forest trees of spontaneous growth:

Any income of a specified person in the nature of dividend, interest or long-term capital gains arising from an investment made by it in India, whether in the form of debt or share capital or unit, is exempt u/s 10(23FE) if the investment is held for at least:

Which of the following is not a “Specified person” for the purposes of section 10(23FE):

Exemption u/s 10(48C) is available to:

Exemption u/s 10(48C) will not be available if the crude oil is not replenished in the storage facility within years from the end of the financial year in which the crude oil was removed from the storage facility for the first time.

Capital asset excludes all except