income which-donto-form-part-of-total-income
TRANSCRIPT
CHAPATER-3
Incomes which do not form part of Total Income
1. Any receipt by a member of HUF from the HUF shall be:
(A) fully taxable
(B) fully exempt
(C) included in the total income of the member for rate purpose
(B)
2. In case of a partner, the share of the profits from the firm shall be:
(A) fully taxable
(B) fully exempt
(C) included in the total income of the partner and relief of Income-tax under
section 86 shall be allowed
(B)
3. Casual income received by the assessee is:
(A) fully exempt
(B) exempt up to Rs.5,000
(C) fully taxable
(C)
4. A cricket match organised by the Cricket Control Board of India for the benefit of
Sunil Gavaskar where he received Rs.5 lakh is:
(A) casual income
(B) exempt income
(C) fully taxable
(B)
5. ‘R’ traced a missing person and was awarded a sum of Rs.1,00,000 although there
was no stipulation to that effect. Such receipt shall be:
(A) casual income and fully taxable
(B) casual income and exempt up to Rs.5,000
(C) fully exempt
(A)
6. An award of Rs.1,00,000 was announced for tracing a missing person. ‘R’ traced
the person and received the award amount. Such receipt shall be:
(A) casual income
(B) fully exempt
(C) fully taxable
(C)
7. Scholarship received by a student to meet the cost of education is:
(A) casual income
(B) fully taxable
(C) fully exempt
(C)
8. Scholarship received by a student was Rs.1,000 p.m. He spends Rs.8,000 for
meeting the cost of education. The balance Rs.4,000 is:
(A) taxable
(B) a casual income
(C) exempt
(C)
9. An author was awarded by Central Board of Direct Taxes a sum of Rs.50,000 for
writing a book in Hindi as first prize. Such award is:
(A) casual income
(B) fully exempt
(C) fully taxable
(B)
10. A local authority has earned income from the supply of water or electricity outside
its own jurisdictional area. Such income is:
(A) exempt
(B) taxable
(C) casual income
(A)
11. A local authority has earned income from the supply of commodities outside its
own jurisdictional area. Such income is:
(A) exempt
(B) taxable
(B)
12. An income under the head capital gain to a local authority is:
(A) exempt
(B) taxable
(A)
13. An income under the head capital gain to a trade union is:
(A) exempt
(B) taxable
(B)
14. A subsidy received from the Tea Board by an assessee carrying on business of
growing and manufacturing tea for re-plantation or replacement of tea bushes is:
(A) taxable
(B) exempt
(B)
15. The daily allowance received by a Member of Parliament is:
(A) exempt
(B) taxable
(C) included in total income for rate purposes
(A)
16. The daily allowance received by an MLA is:
(A) exempt
(B) taxable
(C) included in total income for rate purposes
(D) Exempt up to Rs.2,000
(A)
17. The constituency allowance received is:
(A) fully exempt in the hands of MLAs’ only
(B) fully exempt in the hands of both MLAs’ and MLCs’
(C) exempt up to Rs.2,000 p.m. in the hands of MLAs’ and MLCs’
(B)
18. Dividend received by a company from a domestic company is:
(A) exempt
(B) taxable
(A)
19. Dividend received by a foreign company from a domestic company is:
(A) exempt
(B) taxable
(B)
20. Subsidy received by the assessee from Rubber Board for re-plantation or
replacement of rubber plant is:
(A) exempt
(B) taxable
(A)
21. Income arising from the transfer of units of the Unit Trust of India or of mutual
fund covered under section 10(23D) shall:
(A) be exempt
(B) not be exempt
(B)
22. Any sum received under a Life Insurance Policy including bonus shall be exempt:
(A) in all kinds of policies
(B) in all kinds of policies except under a Keyman Insurance Policy
(C) in all kinds of policies except when received under Keyman Insurance or
under a policy covered under section 80DDA(3)
(D) in all kinds of policies except when received under Keyman Insurance
Policy or such policy as is covered under section 80DD(3) or policy issued
on or after 1.4.2003, if the premium paid for any year exceeds 20 % of
actual sum assured, except on death
(D)
23. Any pension received by an individual or family pension received by an individual
or family pension received by any member of his family where such individual is in
the service of Central or State Government and was awarded Paramvir Chakra,
Mahavir Chakra or Vir Chakra or any other notified gallantry award shall be:
(A) exempt
(B) taxable
(A)
24. Venture capital company or venture capital fund are given exemption from IT for:
(A) any income by way of dividend or LTCG from investments made by way
of equity shares in a venture capital undertaking
(B) any income from investment in a venture capital undertaking
(C) any income wherever invested
(B)
25. Any amount received or receivable from the Central Government or a State
Government or a local authority by an individual or his legal heir by way of
compensation on account of any disaster shall be:
taxable
fully exempt
exempt except to the extent the amount received or receivable has been
allowed as deduction on account of any loss or damage caused by such
disaster
(C)
26. Where the income of an individual includes the income of minor children, such
individual shall be entitled to an exemption of:
(A) Rs.1,500
(B) Rs.1,500 per minor child
(C) Rs.1,500 per minor child to the extent of income of the minor child
included in the total income of the assessee whichever is less
(C)
27. Income of newly Established undertaking in a Free Trade Zone is:
(A) exempt
(B) exempt for 5 years in a block of eight assessment years
(C) exempt for 10 years but not beyond assessment year 2009-10
(C)
28. Income from units of UTI or Mutual Fund covered u/s 10(23D) shall be:
(A) exempt
(B) taxable
(A)
29. Family pension received by the legal heir of army personnel who died during
operational duties shall be:
(A) fully exempt
(B) taxable
(A)
30. Capital gain arising from compulsory acquisition of urban agricultural land shall
be:
(A) taxable
(B) exempt
(C) exempt if certain conditions are satisfied
(C)
31. Any capital gain whether short-term or long-term shall be exempt if:
(A) it is from the transfer of urban agricultural land
(B) it is from the compulsory acquisition by law of urban agricultural land
(B)
32. Income from LTCG from transfer of equity shares shall be exempt if:
(A) such shares are sold through National Stock Exchange
(B) such shares are sold through any Recognised Stock Exchange in India
(C) such shares are sold through any Recognised Stock Exchange in India and
such transaction is subject to Securities Transactions Tax
(C)
33. In case of an individual, any income by way of interest on any money standing to
his credit in a Non-Resident (External) Account in any bank in India shall be:
(A) exempt
(B) fully taxable
(C) exempt up to Rs.13,000
(A)
34. Notified allowance or perquisite to Chairman or retired Chairman or any member
of retired member of the Union Public Service Commission Shall be :
(A) Exempt (B) fully taxable (C) exempt upto Rs 50,000 (A)
35. Write True or False :
i) Overseas allowance or overseas perquisites paid or allowed by the
Government to a citizen of India for rendering service outside India are
exempt.(T)
ii) Salary received by a member of Parliament is exempt(F)
iii) Any Compensation received from Central Government or a State
Government or a local authority on account of any disaster is exempt(T)
iv) Casual income received by the assessee is fully exempt(F)
v) Scholarship received by a student to meet the cost of education is casual
income(F)
vi) Dividend received by a company from a domestic company is
exempt(T)
vii) Dividend received by a foreign company from a domestic company is
exempt.(T)
viii) Exemption under Section 11 is not available unless a trust is
registered(T)
ix) A trust is created on 20.08.2011. The last date for submission of the
registration application is 31.3.2012.(T)
x) A trust is created on 8.3.2005. Registration is applied on 8.4.2011.
Section 11 provisions are applicable from the assessment year 2011-
12(F)
xi) The reasons for refusal of registration shall be given by the
Commissioner.(T)