TAX1: Pre Post Test Other Sources of Income

Which section of the Income Tax Act 1967 covers "other gains or profits" that do not fall under Sections 4(a) to 4(e) and Section 4A?

• Section 4(d)

• Section 4(e)

• Section 4(f)

• Section 4(g)

What is the basis of assessment for annuities in Malaysia since January 1, 2000?

• Previous calendar year

• Current calendar year

• Financial year

• Preceding year basis

Under the single-tier system in Malaysia, how are dividends received by shareholders treated for tax purposes?

• Taxed at a flat rate of 15%

• Taxed at progressive rates

• Exempt from tax

• Subject to withholding tax

Which of the following is NOT considered an exempt pension income according to Schedule 6 of the Income Tax Act?

• Pension paid to a resident person reaching 55 or compulsory retirement age

• Pension paid under written law relating to widows' and orphans' pension

• Wound and disability pension for armed forces service

• Pension received by a non-resident retiree

What is the exemption limit for royalty income from publication or use of any artistic work (other than original painting) according to Paragraph 32, Schedule 6?

• RM5,000

• RM10,000

• RM12,000

• RM20,000

Why is income under Section 4(f) considered broader than other sections of the Income Tax Act?

• It includes all types of income

• It only applies to high-income earners

• It covers miscellaneous income that is often casual or occasional in nature

• It is exclusively for foreign-sourced income

How does the Malaysian taxation system treat interest income received by individuals from money deposited in an approved financial institution?

• It is always tax-exempt

• It is taxable up to a certain limit

• It was taxable but became exempt effective 30 August 2008

• It is subject to a flat withholding tax

What is the main difference between rental income classified under Section 4(d) and Section 4(a) of the Income Tax Act?

• Section 4(d) is for commercial properties, while 4(a) is for residential

• Section 4(d) arises from an investment activity, while 4(a) arises from a business activity

• Section 4(d) is for long-term rentals, while 4(a) is for short-term rentals

• There is no difference; they are treated the same for tax purposes

How are losses from rental properties treated under Section 4(d) of the Income Tax Act?

• They can be carried forward indefinitely

• They can be offset against other income sources

• They are considered permanent losses and cannot be carried forward

• They can be carried back to previous years

What is the tax treatment for royalty income received from the translation of books at the specific request of the Ministry of Education?

• Fully taxable

• Fully exempt

• Exempt up to RM12,000

• Exempt up to RM20,000