Articleship assessment test ICAI – Level 1 | Direct Tax MCQ – Clubbing of Income

Articleship assessment test ICAI – MCQ

Question 1:- 

Mrs. Y holds 18% of equity shares of Swisso Ltd. Mrs. Y is also working in Swisso Ltd. as Finance Head. She do not possess any qualification to hold the position in Swisso Ltd. The salary received by Mrs. Y  will be included in the total income of __________, assuming neither Mrs. Y nor any of her relatives are entitled to receive 20% or more profit in Swisso Ltd.

(a) Y

(b) Neither Mr. Y nor Mrs. Y

(c) Y

(d) Either Mr. Y or Mrs. Y whose income is higher

Question 2:- 

Ganesh holds 25% equity shares in Agni Pvt Ltd & his wife Geeta holds 21% equity shares in the same company. Both are in receipt of salary from Agni Pvt. Ltd and are not professionally qualified for the job. The salary received by Ganesh will be included in the income of:

(a) Ganesh

(b) Geeta

(c) Neither Ganesh nor Geeta

(d) Either Ganesh or Geeta, whoever’s total income is higher before including such income




Question 3:- 

As per the provisions of clubbing, who among the following are not included in the definition of relative of an individual?

(a) Spouse of individual

(b) Brother or sister of individual

(c) Lineal ascendant or descendant of individual

(d) Lineal ascendant or descendant of spouse of individual

Question 4:- 

As per the provisions of clubbing, who among the following are included in the definition of relative of an individual?

(a) Brother or sister of spouse of individual

(b) Spouse of brother or sister of individual

(c) Grandparents of individual

(d) Parents of spouse of individual

Question 5:- 

Avinash & his wife Anu, both are working in Voogle Pvt. Ltd. with a salary of Rs. 9,60,000p.a. & Rs. 7,50,000 p.a. respectively and total income of Rs. 10,00,000 and Rs. 9,50,000 before including such salary. They do not possess any professional qualification. Also, Avinash holds 25% equity shares of the company and Anu holds 30% equity shares of the company. The salary received by Anu will be included in the total income of ___________.

(a) Avinash

(b) Anu

(c) Neither Avinash nor Anu

(d) Both Avinash & Anu in proportion to the shares held by them

Answers

  1. (c) Mrs. Y
  2. (d) Either Ganesh or Geeta, whoever’s total income is higher before including such income
  3. (d) Lineal ascendant or descendant of spouse of individual
  4. (c) Grandparents of individual
  5. (a) Avinash

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