I

ncomef
rom Ot
herSour
ces.
Whichofthef oll
owingisnoti ncl
udedintaxabl
eincome:
(A)I
ncomef rom smuggl ingactivi
ty
(B)Casuali
ncome
(C)Gif
tsofper sonalnaturesubjecttoamax i
mum of₹50,000r
ecei
vedi
n
cash
(D)I
ncomer eceivedin-kind[Dec.2014]
Answer:
(C)Gif
tsofper sonalnaturesubjecttoamax i
mum of₹50,000r
ecei
vedi
n
cash

Questi
on2.
Theamountdeducti
blefrom afamil
ypensionisupto:
(A)₹15,000or1/
3rdoffamilypensi
onwhicheveri
sless
(B)₹15,000or1/2offamil
ypensionwhicheveri
sless
(C)₹10,000or1/
3rdoffamilypensi
onwhicheveri
sless
(D)Nodeducti
on[Dec.2014]
Answer:
(A)₹15,000or1/
3rdoffamilypensi
onwhicheveri
sless

Quest ion3.
Sameerr eceivedt hef oll
owingincomedur i
ngPY2020-21:Di
rect
or’
sfees₹
5,000
I
ncomef r
om agr iculturall
andinPaki st
an₹15,000
Rentf rom let-
outofl andi nJaipur₹20,000
I
nt erestondeposi twi t
hHDFCBank₹1, 000
Dividendf r
om I ndiancompany₹5, 000.
Hisi ncomef rom ot hersour cesis
(A)₹41, 000
(B)₹46, 000
(C)₹31, 000
(D)₹26, 000[ Dec.2014]
Hint:
5,000+15, 000+20, 000+1, 000+5, 000=46,000.
NoDDTw. e.f.1.4.2020.Thedi videndrecei
vedist
axabl
einhandsoftheshar
e
-
hol der.
Answer :
(B)₹46, 000

Question4.
Akshayrecei
vedagif
tof₹35,000eachon22ndMay2020f
rom hi
sthr
ee
fri
ends.
Theamountchargeabl
etotax,i
nthi
scase,woul
dbe
(A)₹50,000
(B)₹1,05,
000
(C)Ni
l
(D)₹55,
000[Dec.2014]
Answer:
(B)₹1,
05,000

Questi
on5.
Whichoft hefoll
owingincomewi l
lbet axableasincomef r
om othersour
ces?
(A)Purchaseofhousef rom husbandf ori
nadequat econsi
derati
on
(B)Purchaseofpainti
ngf rom t
heregistereddealerati
nvoicevaluel
essthan
fai
rmar ketval
ue
(C)Cashgi f
tfrom anon-resi
dentfr
iendonmar r
iageanniversar
y
(D)All
oft heabove[June2015]
Answer:
(C)Cashgi f
tfrom anon-resi
dentfr
iendonmar r
iageanniversar
y

Questi
on6.
John,engagedinferti
l
izertrade,recei
vedrentbysub-
lett
ingabui
l
ding.Thi
s
wil
lbetaxableunderthehead
(A)I
ncomef rom housepr operty
(B)I
ncomef rom capit
algains
(C)I
ncomef rom profi
tsandgai nsofbusinessandprofessi
on
(D)I
ncomef rom othersources[June2015]
Answer:
(D)I
ncomef rom othersources

Question7.
Apr i
vateli
mi t
edcompanyengagedi nmanuf
acturi
ngacti
vityhadageneral
reserv
eof₹20l akhs.I
tgrantedaloanof₹5lakhstoadirectorwhoheld13%
shareholdi
ngcum v oti
ngrightsint
hecompany.Thesaidloanwasr e-
paidby
him beforetheendoft heyear.
Theamountofdeemeddi videndar
isi
ngoutoftheabovetransact
ioni
s
(A)₹2,60,000
(B)₹2,40,000
(C)₹5,00,000
(D)Nil[Dec.2015]
Answer :
(C)₹5,00,000

Quest i
on8.
Raji
v( aged28y ear
s)receiv
edacashgi ftof₹2lakhsont heoccasi
onofhi
s
mar r
iage.Iti
ncl
udesgiftsfrom non¬r
elati
veof₹80,000.Hisi
ncomebywayof
l
otterywi nni
ngsis₹3lakhs.
Hisneti ncometaxli
abil
ity(i
gnori
ngTDS)woul dbe
(A)₹93, 600
(B)₹22, 660
(C)₹12,360
(D)₹25,750[ Dec.2015]
Hint:
Agi f
tof₹2l akhsreceivedont
heoccasionofhismar
riagewhetherfr
om
relat
iveornon-rel
ati
veisexempt.Onl
ylott
eryi
ncomeistaxabl
ewi t
houtbasi
c
exempt i
on.
3,00,
000×31. 296=93, 600.
Answer :
(A)₹93,600

Questi
on9.
Ms.Sit
araisinrecei
ptoff
amilypensi
onof₹15,000p.m.dur
ing2020-
2021.
I
ncomechar geablet
otaxforAY2021-22ofMs.Sit
arais
(A)₹1,80,
000
(B)₹1,
20,000
(C)₹1,65,
000
(D)Ni
l
Answer:
(C)₹1,65,
000

Question10.
Wher eaf or
eigni
nsti
tut
ionali
nvestorr
eceivedincomeinrespectofsecuri
ti
es
otherthanincomebywayofdi v
idendref
erredtoinsect
ion115-Oorr ecei
ved
i
nr espectofsecuri
ti
esotherthanunit
sreferr
edt oi
nsecti
on115AB, such
i
ncomei staxabl
e@
(A)15%
(B)10%
(C)20%
(D)30%[ Dec.2015]
Answer :
(C)20%

Question11.
Rishabhr eceiv
edt hefol
lowinggif
tsduri
ngt hepr evi
ousy ear
:
(i
)₹50, 000f r
om hisempl oyer
.
(i
i)₹1,00,000f r
om mot her’
ssist
er.
(i
ii
)₹10, 000f r
om hisfri
endont heoccasionofhi smar r
iage.
(i
v)₹60, 000int hefor
m ofscholarshi
pfrom ar egist
eredcharit
abletrust
.
Theamountoft axabl
egiftunderthehead‘ I
ncomef rom othersourcesis
(A)Nil
(B)₹50, 000
(C)₹1,50, 000
(D)₹2,10, 000[June2016]
Hint:
Taxabili
tyofgiftunderthehead‘ I
ncomef rom othersources:
Answer:
(A)Ni
l

Question12.
Comf ort( Pvt.)Ltd.issued10, 000equityshar
estoPawanat₹18pershare
whent hef ai
rmar ketvalueofeachshar ewasdet ermi
nedat₹11pershare.
Thetaxi mpl icationoft hetransacti
oni s
(A)₹70, 000t axabl easi ncomef orComf ort(
Pvt.
)Ltd.
(B)₹20,000t axabl easi ncomef orPawan
(C)₹10, 000t axabl easi ncomef orPawan
(D)Nil
Hint:
‘
Issuepr ice’shoul dbemor et hanboth‘faceval
ue’and‘
FMV’ andi
fthi
s
conditi
oni ssatisfiedthent hediff
erencebetween‘i
ssuepr
ice’and‘
FMV’shal
l
beincome.
(18–11)×10, .
000=70, 000
Answer :
(A)₹70, 000t ax ableasi ncomef orComf ort(
Pvt.
)Ltd.

Questi
on13.
Whil
emaki ngpaymentofwi nni
ngsf
rom hor
ser
ace,
thet
axwi
l
lbededuct
ed
atsour
ce, i
fthepaymentexceeds
(A)₹5,000
(B)₹10,000
(C)₹25,000
(D)₹50,000[June2016]
Answer:
(B)₹10,000

Question14.
AmemberofPar l
iamentrecei
ved₹1,
50,
000permont
hassalar
yand₹
4,50,
000asdailyall
owancesduri
ngPY2020-
21.Thet
axabl
eamountwi
ll
be
(A)Salary₹18,
00,000
(B)Incomefrom prof
essi
on₹22,50,
000
(C)I
ncomef rom ot
hersour
ces₹18,
00,
000
(D)Ni
l[Dec.2016]
Answer:
(C)I
ncomef rom ot
hersour
ces₹18,
00,
000

Questi
on15.
Aladyreceivedgift
swor t
h₹1,00,000fr
om herrel
ati
vesasdefi
nedundert
he
I
ncome- t
axAct ,1961,and₹60,000from herof
fi
cecoll
eaguesonhermarr
iage
anni
versary.
Thetaxableamountofgi ft
swouldbe
(A)₹1,60,
000
(B)₹60,000
(C)₹10,000
(D)₹1,10,
000[ Dec.2016]
Answer:
(B)₹60,000

Question16.
Amitreceived₹70, 000beingwi
nningsf
rom l
ott
eryaf
terdeduct
ionoft
axat
source.
Hisgrosswi nni
ngsf rom t
helot
ter
ytobeincl
udedint
hetotali
ncomeis
(A)Nil
(B)₹1,00,000
(C)₹70,000
(D)₹30,000[ Dec.2016]
Answer :
(B)₹1,00,000

Quest i
on17.
Mr .Ram r ecei vedacashgi f tof₹51, 000f r
om hisf r
iendsont heoccasi
onof
his50t hbir thday.Noneoft hef ri
endsar erelat
ives.
Theamountl i
abletot axint hehandsofMr .Ram woul dbe:
(A)Ni l
(B)₹1, 000
(C)₹51, 000
(D)₹46, 000af terdeduct i
ngcausal incomeof₹5, 000[June2017]
Hint:
Grosswi nnings=  00070% 
70, =1, 00,000
Answer :
(C)₹51, 000
Quest i
on18.
Agni (P.)Lt d.issuedequi t
yshar esof₹10eachat₹40pershar e.Thefair
mar ketv alueoft heshar eont hedat eofissuewasascer t
ainedas₹25per
share.Thecompanyi ssued1, 00,000equityshar es.
Theamountl i
abletot axint hehandsoft hecompanywoul dbe:
(A)₹15,00,
000
(B)₹30,00,
000
(C)Nil
(D)₹40,00,
000[June2017]
Hint
:
(40–25)×1, 00,
000=15,00,
000.
Answer:
(A)₹15,00,
000

Questi
on19.
Rhastakenahouseonr entandsublet
sthesametoG.Incomefrom such
houseproper
tyshallbetaxabl
eunderthehead:
(A)I
ncomef r
om housepr opert
y
(B)I
ncomef r
om othersources
(C)I
ncomef r
om housepr opert
yorincomefr
om ot
hersourcesasdecidedby
R
(D)Noneoftheabove[ June2017]
Answer:
(B)I
ncomef r
om othersources

Quest i
on20.
Ms.Mal arecei
v edaf ami
l
ypensionof₹15,000permonthduri
ngtheprev
ious
year2020- 21.Also,shewasempl oy
edinaprivat
efir
m whereshegota
mont hlyconsolidatedsal
aryof₹20,000permonth.Hert
otali
ncome
chargeablet otaxis:
(A)₹4, 20,
000
(B)₹2,40,000
(C)₹3, 60,
000
(D)₹3, 55,
000[ June2017]
Hint
:

Answer
:
(D)₹3,
55,
000

Quest
ion21.
LibraP.Lt d.engagedintr
adingacti
vit
yhadaccumul atedpr
ofi
tsof₹
15,00,000asof1. 4.
2020,Mr.Gaut
am having30%oft heequi
tysharesand
votingrightsinthecompanyr ecei
ved₹5lakhsasl oanon1- 6-
2020f r
om t
he
company .Theloanwasr epaidbyhim on30-11-2020.
Theamountl i
abletotaxi
nthehandsofMr .Gautam asdeemeddi v
idendi
s:
(A)₹4, 50,000
(B)₹15, 00,000
(C)₹5, 00,000
(D)₹1, 50,000[June2017]
Answer :
(C)₹5, 00,000

Question22.
Rakeshacqui r
edamot orcarf or₹3,00,
000from hi sf
riend( non-
rel
ativ
e)when
thefai
rmar ketval
ueoft hemot orcarwas₹5, 00,000.
Theamountl iabl
etotaxi nthehandsofRakeshf rom t
het r ansacti
onis:
(A)₹3,00,000
(B)₹2,00,000
(C)₹1,50,000
(D)Nil[June2017]
Hint:
Forthepur poseofsection56( 2)(
vii
),‘
MotorCar’isnoti ncludedint he
defi
niti
onof‘ Proper
ty’
,andhencei snot axli
abil
ityisattract edevenifiti
s
purchasedf oranamountl essthanfai
rmarketv alue.
Answer :
(D)Nil

Question23.
Wher eafir
m orcloselyheldcompanyr eceiv
edfrom anypersonanypr
oper
ty
beingsharesofthecloselyheldcompanywi t
houtconsi
derati
on:
(A)thewholeofthef airmarketval
ueoft hesharesshal
lbetaxabl
e
(B)thewholeoftheFMVshal lbetaxableifi
texceeds₹50,000
(C)thewholeofFMVshal lbeexempt
(D)thewholeofthecostofsuchshar esshallbeexempt[June2017]
Answer :
(B)thewholeoftheFMVshal lbetaxableifi
texceeds₹50,000

Questi
on24.
Mr.Ravisolvedacrosswordpuzzl
eandrecei
ved₹84,
000aft
erdeduct
ionof
t
axatsour ce.
Hi
sincomef rom cr
osswor
dpuzz l
echar
geabl
etotaxwoul
dbe:
(
A)₹84, 000
(
B)Nil
(
C)₹72, 000
(
D)₹1, 20,
000[ June2017]
Hi
nt:
00070% 
84, =1,
20,
000
Answer:
(D)₹1,20,
000
Questi
on25.
Ram recei
ved₹80, 000bywayofgift
sfr
om fr
iendsuponr
eti
rementf
rom
serv
iceinaprivat
ecompany .
Theamountofgi ftchar
geabl
etoincome-t
axwouldbe:
(A)Nil
(B)₹30,000
(C)₹70,000
(D)₹80,000[Dec.2017]
Answer:
(D)₹80,000

Questi
on26.
Ms.Laxmi r
eceived₹60,000bywayoffami
lypensi
onfrom t
heStat
e
Government.
Theamountoff amilypensi
onel
igi
blef
orexempti
onundersect
ion10(
79)i
s:
(A)₹60,000
(B)₹40,000
(C)₹20,000
(D)₹15,000[Dec.2017]
Hint
:

Answer:
(D)₹15,
000

Question27.
Ms.Anshur ecei
vedadivi
dendof₹80,000forherequit
ysharehol
dingi
nMNO
Ltd.(ali
stedcompany )
.Shepaidaninter
estof₹12,500fort
heamounts
borrowedf orinv
estmenti
nthoseshares.Thetax
abledivi
dendincomewoul
d
be:
(A)₹80,000
(B)₹Ni l
(C)₹67,500
(D)₹92,500
Answer :
(C)₹67,500
Quest i
on28.
Lokesh( age62)r eceivedthef ol
lowinggi ftsont heoccasionofhi sbirthday:
(i
)Cashgi ftfrom el derbrother₹30, 000;
(i
i)Goldchai nf rom y oungersi st
ermar ketv alueont hedat eofgiftI.₹38,000;
(i
ii
)Cashgi ftsfrom f ri
ends( non-rel
ati
v es)₹45, 000;
(i
v)Pur chasedshar esfrom youngerbr ot herf or₹1l akhwhent hemar ket
valueoft heshar eswas₹1, 35,000.
Theamountofi ncomechar geabletot axi nr espectt otheabov etransactions
wouldbe:
(A)₹1, 48, 000
(B)₹1, 18, 000
(C)180, 000
(D)Ni l[
Dec.2017]
Hint:
W. e.
f.1/ 4/ 2020, theDi vi
dendr eceiv
edbyt heshar eholderistaxableisinhi s
hands.[ DDTpay abl ebycompanyu/ s115- 0i snotappl icable]
.Amountspent
toear nsuchdi vi
dendi sal l
owedasdeduct i
on.
∴Tax abl eDi vidend=₹80, 000( -
)₹12, 500
=₹67, 500/ -

Answer:
(D)Ni
l

Questi
on29.
Suresh(age65)wonapr izeonal ott
eryticketon30.9.
2020.Thepri
zeamount
was₹5, 50,000.Hehadboughtl otter
yticketsfor175,
000duringt
heyear.
Assumingt hathehadnoot heri
ncomechar geabl
etotaxforthey
ear,hi
s
i
ncome- taxli
abil
it
y(incl
udingcess@ 496)woul dbe:
(A)₹1,71,600
(B)₹30900
(C)₹36,050
(D)₹10,300[ Dec.2017]
Hint:
5,50,
000×31.2%=1,
71,
600.
Answer:
(A)₹1,71,
600

Quest i
on30.
InthehandsofMr .Sarath,
asalar
iedemployee,t
hefol
l
owi
ngincomeshallbe
chargeabl etotaxasi ncomeunderthehead“ I
ncomefr
om ot
hersour
ces”
:
(i
)Di vi
dend
(i
i)Incomef r
om thehi r
ingofmachiner
y
(i
ii
)Wi nningf r
om Lot t
ery
(i
v)Interestonsecur it
ies
Selectthecor rectanswerfrom t
heoptionsgi
venbel
ow:
(A)(i)and( i
ii
)
(B)(ii
i)and( i
v)
(C)Al lt
hef ourabov e
(D)(i),(
ii
i)and( i
v)[June2018]
Answer :
(C)Al lt
hef ourabov e

Questi
on31.
BabuLai wonapri
zeof₹1, 00,
000inRajast
hanStat
eLotter
yandtheLott
ery
Depart
mentpaidhim anamountof₹70, 000aft
erdeduct
ionoft
axatsource
of130,
000.Hehadpur chasedlot
teryt
icket
sfor₹8,
000.
TheamountchargeabletotaxinthehandsofBabuLaiunderot
hersour
ces
shal
lbe:
(A)₹70,000
(B)₹1,
00,000
(C)₹92,000
(D)Noneoftheabove[June2018]
Answer:
(B)₹1,
00,000

Quest ion32.
Mr .Pankaj,asalariedempl oy
ee, hastakenahouseonr entof₹12,000p.m.
whi chwassub- letbyhimf or₹15, 000p.m.Hehasi ncurredmiscel
laneous
ex pensesinrelati
ont othesub-letofthehouseof₹1, 000.Howmuchi ncome
from thesub-letti
ngoft hehouseshal lbetaxabl
eintheAY2021- 22wher ethe
housewast akenonr entandalsosubl etbyhimfrom 1stApr i
l2020onwards:
(A)₹36, 000
(B)₹26, 000
(C)₹1, 44,
000
(D)Noneoft heabov e[June2018]
Hint :
I
ncomef
rom sub-
let
ti
ng(
3,000×
36,
000
12)

(
-)Expenses (
1,000)

Neti
ncome 35,
000

Answer:
(D)Noneoft
heabov
e

Questi
on33.
ABCPv t.Ltd.hasabusinesslossof₹10l akhs.Ther
eisunexpl
ainedshar
e
appli
cati
onmoneyt othet uneof₹25l akhs.
Thetotalincomeofthecompanywi llbe:
(A)15lakhs
(B)35lakhs
(C)25lakhs
(D)Noneoft heabove[June2018]
Answer:
(C)25lakhs

Quest i
on34.
Statewhi choutoft hefoll
owinggif tsreceiveddur ingtheyearbyGi r
ishfr
om
diff
erentper sonsshal lbesubjecttot axi ntheassessmenty ear2021-22:
(i
)Wr istwatchof₹75, 000givenbyanon- r
esidentfri
end.
(i
i)Cashof₹51, 000givenbyherel derbr other.
(i
i)Cashof₹21, 000eachgi venby4f r
iendsonhi sbir
thday.
(i
v)Pai nti
ngof₹30, 000givenbyempl oy eronhi sbir
thday.
Selectthecor rectanswerf rom theopt i
onsgi venbelow:
(A)(ii
i)and( iv
)
(B)(i),(
in)and( iv)
(C)(ii
)and( iii
)
(D)Al lt
hef ourin( i
),(
ii
),(i
i
i)and( i
v)[ Dec.2018]
Hint:
Awr istwatchi snotapr operty.Ther efore,it
sr ecei
ptisnottaxableevenifi
ts
FMVi sexceedi ng₹50, 000/-.
Further,brotherisrelati
ve.Hence, anyr eceiptf r
om himi snottaxabl
e.
Answer :
(A)(ii
i)and( iv
)

Quest
ion35.
Theprovi
sionsof“
deemeddi
vi
dend”undersect
ion2(
22)
(e)oft
heI
ncome-
tax
Act,1961, i
nr espectofadvancesorloanstoshareholder
s,oranypaymenton
behalfofshar eholdersoranypaymentfortheindiv
idualbenefi
tofa
shareholderar eappli
cableto:
(A)APubl icLimi t
edListedCompany
(B)APubl icLimi t
edUnlist
edCompany
(C)Acl oselyheldCompany
(D)Noneoft heabov e[Dec.2018]
[Note:ThisMCQi swr ongl
ydraft
ed.Forfur
therclar
ifi
cati
onpleaseseethe
hint
s.]
Hint
:
Opti
on( B)andOpt ion(C)botharecorr
ectandhenceMCQi tsel
fiswrong.