topic income from other sources (jan26)

1. Where a closely held company gives any loan/advance to a shareholder who has 10% voting power in the company or to a concern in which such shareholder has 20% profit share in case such concern is a non-corporate assessee or has substantial interest (ie, 20% voting power) in case it is a company, then loan/advance so paid shall be deemed as dividend to the maximum extent of:

a) Accumulated profits, whether capitalized or not

b) Accumulated profits, excluding capitalized profits

c) The loan or advance so paid

d) None of the above

None

a) ₹ 25,00,000

b) ₹ 44,00,000

c) ₹ 45,00,000

d) ₹ 52,00,000

None

3. Mr Kashyap has acquired a building from his friend on 10.10.2024 for ₹ 15,00,000. SDV of the building on the date of purchase is ₹ 16,20,000. Income chargeable to tax in the hands of Mr Kashyap is:

a) ₹ 70,000

b) ₹ 50,000

c) Nil

d) ₹ 1,20,000

None

4. Mr Harish, aged 40 years, earned income of ₹ 15,000 during PY 2024-25 from post office savings bank account. What portion of such income would be ultimately included in his total income?

a) ₹ 15,000

b) ₹ 5,000

c) ₹ 1,500

d) Nil

None

5. APM Ltd is a pioneer company in textile industry. At the end of FY 2024-25, it distributed deposit certificates (without interest) to its shareholders (preference as well as equity shareholders). Total value of accumulated profits of APM Ltd was ₹ 25L. Mr A is an equity shareholder of APM Ltd holding 10% of share capital. During FY 2024-25, Mr A received deposit certificates (without interest) valuing ₹ 5L from APM Ltd. Comment upon taxability of receipt of deposit certificates in the hands of Mr A.

a) Deposit Receipts (without interest) are taxable to the extent of ₹ 2,50,000 u/h ‘income from other sources’.

b) Deposit Receipts (without interest) are fully taxable u/h ‘income from other sources’.

c) Deposit Receipts (without interest) are exempt since DDT is payable by the company.

d) Deposit Receipts (without interest) are fully taxable and shall be included in Gross total income. But such receipts shall be allowed as deduction under Chapter-VIA.

None

6. Mr X, aged 61 years, received dividend of ₹ 12L from ABC Ltd in PY 2024-25. Interest on loan taken for the purpose of investment in ABC Ltd, is ₹ 3,00,000. Income included in the hands of Mr X for PY 2024-25 would be:

a) ₹ 12,00,000

b) ₹ 9,60,000

c) ₹ 9,00,000

d) ₹ 2,00,000

None

7. Mr Vikas transferred 600 unlisted shares of XYZ (P) Ltd to ABC (P) Ltd on 15.6.2024 for ₹ 3,50,000 when the market price was ₹ 5,15,000. The indexed cost of acquisition of shares for Mr Vikas was computed at ₹ 4,25,000. Determine the income chargeable to tax in the hands of Mr Vikas and ABC (P) Ltd in respect of the above transaction.

a) ₹ 90,000 chargeable to tax in the hands of Mr Vikas as LTCG and nothing is taxable in the hands of ABC (P) Ltd.

b) ₹ 75,000 chargeable to tax in the hands of Mr Vikas as LTCG and nothing is taxable in the hands of ABC (P) Ltd.

c) ₹ 90,000 chargeable to tax in the hands of Mr Vikas as LTCG and ₹ 1,65,000 is taxable u/h “Income from other sources” in the hands of ABC (P) Ltd.

d) ₹ 75,000 chargeable to tax in the hands of Mr Vikas as LTCG and ₹ 1,65,000 is taxable u/h “Income from other sources” in the hands of ABC (P) Ltd.

None

8. Neeraj was working as an accountant with the company Ujala Ltd. He died on 30.04.2024 and on account of his death, his wife Neha started receiving a pension of ₹ 10,000 per month w.e.f. 01.06.2024. Determine under which head of income, the pension received by Neha during FY 2024-25 shall be taxable. Also, compute the taxable amount in her hands.

a) Income from other sources – ₹ 1,00,000

b) Income from other sources – ₹ 85,000

c) Income from salary – ₹ 1,00,000

d) Income from salary – ₹ 85,000

None

9. Ms Shalini received interest on enhanced compensation of ₹ 5L. Out of this interest, ₹ 1.5L relates to PY 2022-23, ₹ 1.9L relates to PY 2023-24 and ₹ 1.6L relates to PY 2024-25. She paid ₹ 1L to her advocate for his efforts in the matter. What amount would be taxable in PY 2024-25 and taxable, if any, under which head of income?

a) Income from other sources – ₹ 2,50,000

b) Income from other sources – ₹ 4,00,000

c) Income from other sources – ₹ 1,60,000

d) Capital gains – ₹ 1,60,000

None

10. Mr Vikas received a gold ring worth ₹ 60,000 on the occasion of his daughter’s wedding from his best friend Mr Vishnu. Mr Vishnu also gifted a gold chain to Kavya, daughter of Mr Vikas, worth ₹ 80,000 on the said occasion. Would such gifts be taxable in the hands of Mr Vikas and Ms Kavya?

a) Yes, the gift of gold ring and gold chain is taxable in the hands of Mr Vikas and Ms Kavya, respectively

b) Such gifts are not taxable in the hands of Mr Vikas nor in the hands of Ms Kavya

c) Value of gold ring is taxable in the hands of Mr Vikas but value of gold chain is not taxable in the hands of Ms Kavya

d) Value of gold chain is taxable in the hands of Ms Kavya but value of gold ring is not taxable in the hands of Mr Vikas

None

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Topic - Income From Other Sources (Sections 56 to 59)

Topic -
Income From Other Sources (Sections 56 to 59)