Tax Laws MCQ on Income from Other Sources: Check the below Tax Laws MCQ on Income from Other Sources with Answers Pdf free download. Tax Laws MCQ on Income from Other Sources Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Income from Other Sources with Answers to help students understand the concept very well. Students should practice CS Executive Tax Laws MCQ on Income from Other Sources with Answers based on the latest syllabus.

Tax Laws MCQ on Income from Other Sources

1. R has taken a house on rent and sublets the same to G. Income from such house property shall be taxable under the head:
(A) Income from house property
(B) Income from other sources
(C) Income from house property or income from other sources as decided by R
(D) None of the above 

2. Where a firm or closely held company received from any person any property being shares of the closely held company without consideration:
(A) the whole of the fair market value of the shares shall be taxable
(B) the whole of the FMV shall be taxable if it exceeds ₹ 50,000
(C) the whole of FMV shall be exempt
(D) the whole of the cost of such shares shall be exempt

3. Which of the following is not included in taxable income:
(A) Income from smuggling activity
(B) Casual income
(C) Gifts of personal nature subject to a maximum of ₹ 50,000 received in cash
(D) Income received in-kind

4. Ram received ₹ 80,000 by way of gifts from friends upon retirement from service in a private company. The amount of gift chargeable to income-tax would be:
(A) Nil
(B) ₹ 30,000
(C) ₹ 70,000
(D) ₹ 80,000 

5. The amount deductible from a family pension is up to:
(A) ₹ 15,000 or 1/3rd of family pension whichever is less
(B) ₹ 15,000 or 1 /2 of family pension whichever is less
(C) ₹ 10,000 or 1/3rd of family pension whichever is less
(D) No deduction

6. In the hands of Mr. Sarath, a salaried employee, the following income shall be chargeable to tax as income under the head “Income from other sources”. Select the correct answer from the options given below:
(A) Dividend
(B) Income from the hiring of machinery
(C) Winning from Lottery
(D) Interest on securities
(E) All of the above

7. Akshay received a gift of ₹ 35,000 each on 22nd May 2020 from his three friends. The amount chargeable to tax, in this case, would be
(A) ₹ 50,000
(B) ₹ 1,05,000
(C) Nil
(D) ₹ 55,000

8. John, engaged in fertilizer trade, received rent by sub-letting a building. This will be taxable under the head
(A) Income from house property
(B) Income from capital gains
(C) Income from profits and gains of business and profession
(D) Income from other sources

9. Which of the following income will be taxable as income from other sources?
(A) Purchase of house from husband for inadequate consideration
(B) Purchase of painting from the registered dealer at invoice value less than fair market value
(C) Cash gift from a non-resident friend on marriage anniversary
(D) All of the above

10. Ms. Anshu received a dividend of ₹ 80,000 for her equity shareholding in MNO Ltd. (a listed company). She paid an interest of ₹ 12,500 for the amounts borrowed for investment in those shares. The taxable dividend income would be:
(A) ₹ 80,000
(B) ₹ Nil
(C) ₹ 67,500
(D) ₹ 92,500

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By Team Learning Mantras