CA Final DT – Part I – Chapter 9 – Income of Other persons included in Assessees Total Income MCQs

In case of Individuals , Indian income tax system is ________________

The provisions relating to clubbing of Income is contained in-

Clubbing provisions have been incorporated in order to prevent –

If any person transfers the income from any asset without transferring the asset itself, such income is to be included in the total income of

Mr. Ajay confers the right to receive rent in respect of his house property on his wife Mrs. Anitha, without transferring the house. In this case, the rent received by Mrs. Anitha will be _________

All the income arising to any person by virtue of a revocable transfer of assets is to be included in the total income of ______

For Transfer to be considered as revocable, which of the following conditions needs to be satisfied?

In case of revocable transfer, clubbing provision will operate –

Clubbing provisions will not apply in case of a revocable transfer in which of the following cases?

What is the condition that needs to be satisfied by the transferor in case of a revocable transfer so that income from transferred asset is not included in his total income?

When would the income arising by virtue of a revocable transfer be included in the total income of transferor?

Mr. Sujith holds 25% of equity shares in Vamshi Ltd. His wife Suchitra is an employee in Vamshi Ltd and receives salary of Rs. 9,60,000/- and commission of Rs. 2,00,000/-. Which of the following relates to taxability of such incomes?

As per the provisions of clubbing, if individual holds substantial interest in the entity from which spouse receives salary, commission, fees etc., which of the following is considered to be a circumstance in which the individual is deemed to have substantial interest in a concern other than a company

What are the conditions the satisfaction of which clubbing provisions wouldn’t apply to the income received by spouse from a concern in which an individual holds substantial interest?

Mr. Santhosh holds 30% of equity shares in S Ltd. His wife Deepa is an employee in S Ltd and receives remuneration of Rs. 6,00,000/- and fees of Rs.50,000/-. Mrs. Deepa is a CA and above incomes is attributable to application of her professional knowledge. Which of the following relates to taxability of such incomes?

Mr. Aneesh and Mrs. Anu together hold 35% of interest in J Ltd. Mr. Aneesh receives commission of Rs. 2,00,000/- from J Ltd. He also has income from house property amounting to Rs. 1,80,000/- during P.Y. 2021-22. Anu has a total income of Rs. 5,00,000/- for P.Y 2021 -22. Analyse the taxability of the above incomes.

Manu holds shares carrying 55% of voting power in M (P) Ltd. His wife Anisha is working as software programmer in M (P) Ltd. At a salary of Rs. 45,000/- p.m. She is however, not qualified for the job. The other income of Manu and Anisha are Rs. 9,50,000/- and Rs. 5,20,000/- respectively. Compute Gross Total Income of Manu and Anisha for A.Y. 2022 – 23 assuming that they do not opt for Section 115BAC.

Arjun transfers a machine in the name of Sindhu, his wife as part of an agreement to live apart. Sindhu hires this machine and earns an income of Rs. 1,80,000/- in P.Y. 2021-22. This income would be –

Sidharth transfers a house property in the name of Sowmya, his wife, as part of an agreement to live apart. Sowmya lets out such house property and receives rental income. Enlighten the taxability of above.

Mr. Vijay transfers a machine to his wife Ms. Mitra. She lets the machine on hire and earns an income of Rs. 15,00,000/- in P.Y. 2021-22. Such income is invested in FD in bank which fetches interest of Rs. 9,0000/-. How would these incomes be taxed?

Mr. Bhaskar runs a proprietary business with a capital of Rs. 5,00,000/-. He incurred a loss of Rs. 2,00,000/- during the year 2020- To overcome the financial struggle, his wife, Mrs. Raji gave a gift of Rs. 9,00,000/- on 01/04/2021 which was immediately invested in business by Mr. Bhaskar. He earned a profit of Rs. 7,00,000/- during the year 2021-22. What amount would be clubbed in the hands of Mrs. Raji?

Mr. Bhaskar runs a proprietary business with a capital of Rs. 5,00,000/-. He incurred a loss of Rs. 2,00,000/- during the year 2020-21. To overcome the financial struggle, his wife, Mrs. Raji gave a bonafide loan of Rs. 9,00,000/- on 01/04/2021 which was immediately invested in business by Mr. Bhaskar. He earned a profit of Rs. 7,00,000/- during the year 2021- What amount would be clubbed in the hands of Mrs. Raji?

Mr. Jyothilal transfers an apartment to his daughter in law Mrs. Rinky as a gift on her birthday. She lets out such apartment and earns rental income. Which of the following statements is correct?

Mrs. Sandhya transferred an immovable property to SJP Ltd subject to a condition that out of the rental income, a sum of Rs. 50,000/- p.a shall be utilised for the benefit of her son’s wife. Which of the following statements is correct?

Income of a minor is –

Janaki aged 10 years is a trained Bharatanatyam dancer who earns income by giving dance performances across India. Which of the following statements is correct?

Income of a minor is included in the income of–

Which of the following statements is true?
Once clubbing of minor’s income is done with that of one parent, in subsequent years, the income of such minor–

When the marriage of the parents of the minor does not subsist, the income of the minor will be –

Income of the minor child suffering from any disability of nature specified in Section 80 U shall be

Clubbing provisions is attracted in respect of

Exemption available to the parent u/s 10(32) in case where income of such parent includes income of his/her minor child is –

Deepak (minor son) receives a house property transferred to him from his father as a gift. Income from such house property will be taxable in the hands of-

Thejas (minor son) receives a house property transferred to him by his father as a gift. Which of the following statements is true with respect to income from such house property?

Thejaswini (minor married daughter) receives a house property transferred to her by her father as a gift. Which of the following statements is true with respect to income from such house property?

Child in relation to an individual includes

In case of cross transfers, the income from the assets transferred would be assessed in the hands of –

Mr. J transfers his self acquired property to ‘J’ HUF on 1st April 2021. The income from such property will be included in the Total Income of:

Mr. J transfers his self acquired property to ‘J’ HUF on 1st April 2021. Subsequently such converted property is partitioned among all members of the HUF including Mr. J’s wife. The income from such converted property received by J’s wife upon partition will be included in the Total Income of:

Which of the following statements are true?

Income arising on accretion of income arising from transferred asset would be clubbed-

Notice of Demand in respect of income arising from transfer of assets as specified under Sections 61 to 64 is to be served to whom?

Mr. Ram gifted a house property to his wife, Ms. Sita and a flat to his daughter-in law, Ms. Teena. Both of the properties were let out. Which of the following statements are correct?

Mr. Arun Ghosh has four minor children consisting 2 daughters and 2 sons. The annual income of 2 daughters was 7,500 and 5,000 and of sons was 5,500 and 1,250 respectively. The daughter who was having income of 5,000 was suffering from a disability specified under section 80U. Calculate the amount of income earned by minor children to be clubbed in the hands of Mr. Arun Ghosh.

Where the converted property has been the subject matter of a partition amongst the members of the family, the income derived from such converted property as is received by _________ on partition shall be deemed to arise to the individual from assets transferred indirectly by the individual to the _________and shall be clubbed in the hands of such individual.