CA Final DT – Part I – Chapter 8 – Income from Other Sources MCQs – Set II

If an asset being Immovable property is held as stock in trade, then transfer of such asset would result in ________________ in the hands of transferor

In case of transfer of immovable property is for inadequate consideration, SDV as on the date of ____________ is to be considered, where date of agreement is different from date of registration and whole or part of consideration is paid as per modes specified, on or before the date of agreement

In case of transfer of immovable property for inadequate consideration, SDV as on the date of ____________ is to be considered, where date of agreement is different from date of registration and whole or part of consideration is paid after the date of agreement

Mr. Arun, dealer in shares, received a cash gift of Rs. 75,000/- from his friend Mr. Varun on his birthday, 15th April 2021. Identify the amount taxable under the head Income from Other Sources

Ms. Nisha, a member of her father’s HUF, transfered a house property to HUF without consideration. The stamp duty value of the house property is Rs. 29,00,000/- Discuss the taxability in the hands of HUF and Ms. Nisha.

Mr. Dhanush received 100 shares of Sky Ltd from his friend as a gift on the occasion of his 30Th Birthday. The FMV on that date was Rs. 100/- per share. He also received jewellery worth Rs. 45,000/- (FMV) from his niece on the same day. What is the amount taxable in the hands of Mr. Dhanush u/s 56(2)(x)?

Rupesh HUF gifted a car to son of Karta for Scoring good marks in X Std examination. The fair market value of the car is Rs. 6,50,000/-. What is the amount taxable in the hands of Karta’s son u/s 56(2)(x)?

Mr. Vishnu is a property dealer who sold a building in the course of his business to his friend Mr. Sanjay, who is a dealer in automobile spare parts, for Rs. 70 lakhs on 1.1.2022, when stamp duty value was Rs. 130 lakhs. The agreement was entered on 01.09.2021 when the stamp duty value was Rs. 120 lakhs. Mr. Vishnu received down payment of Rs. 15 lakhs by a crossed cheque from Mr. Sanjay on the date of agreement. What would be the amount taxable in the hands of Mr. Sanjay and under which head of Income?

Compensation or any other payment, due or received by any person, in connection with termination of his employment or modification of terms and conditions, from his employer is taxable under which head of income?

Compensation or any other payment, due or received by any person, in connection with termination of his employment or modification of terms and conditions, from a person other than his employer is taxable under which head of income?

Any sum received by employer from his employees as contributions to PF, superannuation fund or any other fund for the welfare of employees, is taxable under the head?

Mr. Rahul has received Interest on Post Office Savings Bank Account amounting to Rs. 10,000/-. What would be the amount taxable under the head Income from Other sources

Mr. Rahul has received Interest amounting to Rs. 20,000/-. on Post Office Savings Bank Account which he has jointly opened along with his sister. What would be the amount taxable under the head Income from Other sources

Sum received by an employer / employee, under a Keyman Insurance policy including the sum allocated by way of bonus on such policy is chargeable under the head

Sum received by any person other than an employer / employee, under a Keyman Insurance policy including the sum allocated by way of bonus on such policy is chargeable under the head

Mr. Vasu wins a lottery of Rs. 40,00,000/-. Expenses incurred towards the release of such winnings amounts to Rs. 1,00,000/-. He has invested an amount of Rs. 1,00,000/- in PPF. His unexhausted Basic exemption limit amounts to Rs. 2,50,000/-.
What would be the tax liability inclusive of cess on the above winnings?

In case of dividend or income in respect of units of a mutual fund u/s 10(23D) or income in respect of units of a specified company, what is the allowed limit of interest expenditure to earn such income?

Where income from letting on hire of machinery, plant and furniture, with or without building is taxable under the head Income from Other Sources, which of the following items are allowed as deduction in computation of such Income?

What is the deduction allowable against income in the nature of family pension?

Interest on enhanced compensation received by Mr. Gowtham during the previous year 2021-22 amounts to Rs. 10,00,000/-. Out of this interest, Rs. 3,00,000/-relates to P.Y 2017-18, Rs. 3,30,000/- relates to P.Y 2018-19, and Rs. 3,70,000/- relates to P.Y 2019- 20. What would be the amount of Interest chargeable to tax under the head IFOS in A.Y.2022-23?

Initial and Enhanced Compensation received on compulsory acquisition would be charged to tax under the head___?

Interest on Initial and Enhanced Compensation received on compulsory acquisition would be charged to tax under head ___?

Income chargeable under the head “Income from Other sources “will be computed as per __________________ accounting system

ICDS is to be followed by the assessee following which system of accounting?

ICDS is to be followed by assessee for the purpose of computation of income under which head?

Mr. Anirudh, a property dealer, sold a flat in Mumbai, the stamp duty of which is Rs. 20 lakhs at Rs. 18 lakhs to his friend Mr. Ashwin, a college lecturer. Mr. Anirudh had purchased the flat one year back for Rs. 15 lakhs and the stamp duty value on that date was also Rs. 15 lakhs. What are the tax implications of such sale?

Priya is a salaried employee. On 01.06.2020, he gets a gift of house property situated in Mumbai (stamp duty value Rs. 90,00,000) from Kavya. On 02.08.2020, Priya gets a gift of house property in a small town near Pune (stamp duty value Rs. 50,000) from Rekha. On 03.09.2020, Priya also gets a gift of house property in a small town near Kanpur in Uttar Pradesh from Rekha, the stamp duty value of which is Rs. 1,00,000. What will be the tax implications in the hands of Priya, Kavya and Rekha, assuming that they are not related to each other?

D Ltd., a domestic company, declared interim dividend of Rs. 75lakh for the year F.Y.2020-21 and distributed the same on 27.6.2020. Mr. G, a resident, holding 15% shares in Delta Ltd., receives dividend of Rs. 10.75 lakh and Mr. R, a resident, holding 10% shares in Delta Ltd., receives dividend of Rs 7.50 Lakh. Which of the following statements is correct?

Mr. Yogesh is found to be the owner of two gold chains of 50 gms each (value of which is Rs. 1,45,000 each) during the financial year ending 31.3.2021 but he could offer satisfactory explanation for Rs. 50,000 spent on acquiring these gold chains. As per section 115BBE, Mr. Yogesh would be liable to pay tax of –

Mrs. Kavitha, wife of Mr. Sundar, is a partner in a firm. Her capital contribution of Rs. 5 lakhs to the firm as on 1.4.2020 included Rs. 3 lakhs contributed out of gift received from Sundar. On 2.4.2020, she further invested Rs. 1 lakh out of gift received from Sundar. The firm paid interest on capital of Rs. 60,000 and share of profit of Rs. 50,000 during the F.Y.2020-21. The entire interest has been allowed as deduction in the hands of the firm. Which of the following statements is correct?

Aravind. Ltd., an Indian company, bought back its listed shares from its shareholders and Bindu Ltd., an Indian company, bought back its unlisted shares from its shareholders in the month of March 2022. What are the tax consequences of such buyback in the hands of Aravind Ltd., Bindu Ltd and the Shareholders?

Mr. Shyam asks you to compute his taxable income from the following transactions which took place with his friends during January 2022 –
(i)        A sculpture and jewellery worth 70,000 and 85,000 respectively were gifted by Mr E and Mr F.
(ii)      A silver coin purchased by him at 12 lakhs from Mr. G, when prevalent market value is 12.5 lakhs and shares purchased by him at 3.6 lakhs from Mr. H, when
fair market value thereof was 4 lakhs.
(iii)    A diamond ring purchased at 50 lakhs from M/s. Pearl Jewels (a jewellery shop of his close friend) when the fair market value was 55 lakhs.

Mr. Ajith moved to Bangalore and took a property on rent for his residential purpose. However, the property was not fully occupied by him. He let out the property to his friend at 15,000 p.m. from 01-04-2021 to 31-03-2022. Mr. Ajith is of the view that income from subletting of property is taxable as Income from House Property. As tax advisor of Mr. Ajith, find out whether his view is correct?

Income from Other Sources include

The amount of Dividend received from Co-operative Society is

Mr. Sanal receives a gift from his wife. Such gift is-

Income from other sources falls under the purview of Section