CA Inter Income Tax MCQs – Income From Other Sources

Question 1

Which of the following conditions need to be satisfied, so that an income can be taxed under the head “Income from Other Sources” ?

a) Assessee has an income

b) Income should not be tax exempt

c) Income should not be taxable under any of the other heads

d) All of the above

Question 2

Aman earned certain interest income, which he wants to offer to tax under the head “Income from other sources” on cash basis. However, he wants to claim deduction for certain expenditure on accrual basis. He can claim deduction __________

a) Only on accrual basis

b) Only on cash basis

c) Accrual or cash basis, whichever is more beneficial to him

d) None of the above

Question 3

As per Section 56(2), which of the following income are not chargeable to tax under the head “Income from Other Sources” ?

a) Occasional one time gains derived from sale of capital asset

b) Winning from lotteries, crossword puzzles and races including horse races.

c) Interest on securities which is not chargeable to tax under the head PGBP

d) Sum received under Keyman insurance policy not taxable under Salaries or PGBP

Question 4

SunSun India Private Limited, an Indian company, declared dividend amounting to Rs. 5,00,000 out of which 50% were received by Sumit. He wants to claim deduction of Rs. 50,000 against dividend income. The taxable income in the hands of Sumit would be Rs. _________

a) 2,50,000

b) 2,00,000

c) Nil

d) 5,00,000

Question 5

Arun owned certain securities as on 31.3.2018, on which interest of Rs. 1,00,000 was received. The deductions which shall be allowed to Arun against such interest income would be __________

a) Collection charges paid to banker

b) Interest on money borrowed to make such Investments

c) Both A and B

d) Either A or B

CA Inter Income Tax MCQs

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