Income from Other Sources (Final)

1. Which of these incomes is taxed under the head 'Other Sources'-

• A. Income from owning and maintaining of race horses

• B. Interest income from govt. securities

• C. Sale of a house to another person for higher consideration than SDV

• D. NOTA

2. You are exempt from taxation on receipt of gift, if the donor is one of the following-

• A. Your Uncle's only child

• B. An insitution registered u/s 12AAB

• C. A hospital registered u/s 10(23C)

• D. NOTA

3. You are a lawyer working with Srinath & Associates. One of your clients going by the name of Mr. Rajnish gave you a gold coin worth Rs. 60,000 for successfully fighting your court case. Under which head, you are to be taxed as per the Act-

• A. Other Sources

• B. Salary

• C. PGBP

• D. Capital Gains

4. What is deemed dividend?

• A. Dividend paid by a closely held company

• B. Dividend paid by foreign companies

• C. Dividend from which income earned is exempt from tax

• D. A company distributing its assets among shareholders instead of distributing profits

5. How will you define 'Casual Income'?

• A. Income that is of 'Luck-by-chance' nature

• B. Income earned by one's children

• C. Income that is exempt from income tax

• D. Income from illegal sources

6. Income from betting on horse race is taxed at flat rate of-

• A. 10%

• B. 15%

• C. 50%

• D. 30%

7. Deductions allowable from 'Family Pension' income?

• A. Upto Rs. 15,000

• B. Upto 1/3rd of 'Family pension' income

• C. 50% of 'Family Pension' income

• D. Whichever is lower of options A & B

Q. How are 'enhanced compension' and 'interest from enhanced compensation' taxed?

• A. Income from 'enhanced compensation' taxed under 'Other Sources' whereas 'interest from enhanced compensation' under 'Capital Gains"

• B. Both are taxed under 'Capital Gains'

• C. Income from 'enhanced compensation' taxed under 'Capital Gains' whereas 'interest from enhanced compensation' under 'Other Sources"

• D. Income from 'enhanced compensation' taxed under 'Capital Gains' whereas 'interest from enhanced compensation' is exempt from taxation

9. For the purposes of taxation of gifts under the Income Tax Act, 1961, which of the following properties come under meaning of 'prescribed movable property'?

• A. Sports car with 'Fair Market Value' of Rs. 5,00,000

• 2. Smartphone worth Rs. 50,500

• 3. Sculpture of 'Fair Market Value' of Rs. 10,000

• D. NOTA

10. What does section 2(14) of the Income Tax Act, 1961 pertain to-

• A. Transactions not considered as transfer of 'Capital Asset'

• B. Definition of the term 'Capital Asset'

• C. Definition of the term 'Relative' for the purpose of taxation

• D. Determination of 'Fair Market Value' of a movable property