Unite 1 (Chapter 3)
Exempted Incomes
A. Answer Whether following Statements are true or false
(i) Agricultural income in India is exempt from tax under section 10 (1)
Answer: True
(ii) Agricultural income in foreign country is exempt from tax in India.
Answer: False
(iii) Share of income received by a partner from his partnership firm is taxable in the hands of partner.
Answer: False
(iv) When income received by a member from his HUF is taxable in the hands of member.
Answer: False
(v) Winning from lottery is exempt upto ₹ 10,000.
Answer: False
(vi) When income of minor is clubbed with the income of the parent, the parent is entitled to an exemption of ₹ 5,000.
Answer: False
(vii) Lumpsum amount received from statutory provident fund is fully taxable.
Answer: False
(viii) Long term capital gain on share (Covered under STT) is exempt from tax.
Answer: True
(ix) Interest on Public Provident fund is exempt from tax.
Answer: True
(x) Lumpsum amount received from unrecognized provident fund is fully taxable in the year of receipt.
Answer: False
B. Fill up the blanks with appropriate words
(i) Income received as share of Profit from firm by a partner is fully .............. for him.
Answer: exempt
(ii) Daily allowance received by a Member of Parliament is fully ..............
Answer: exempt
(iii) Agricultural income in a foreign country is fully ................
Answer: taxable
(iv) Interest on post office saving bank account (in single name) is exempt upto ...............
Answer: ₹ 3,500
(v) Maximum exempted amount of grauity for a non-government employee is ................
Answer: ₹ 10,00,000
C. Multiple Choice Question
1. Exempted income tax mentioned under section
(a) 24 (b) 22
(c) 19 (d) 10
Answer: (d) 10
2. Where the income of a minor is clubbed with the income tax of the parent, the parent is entitled to and exemption of
(a) Actual income clubbed
(b) ₹ 1,500 (fixed)
(c) Actual income clubbed on ₹ 1,500 which ever is less
(d) ₹ 50,000
Answer: (c) Actual income clubbed on ₹ 1,500 which ever is less
3. Causal income are
(a) fully taxable (b) fully exempt
(c) exempt upto ₹ 10,000 (d) exempt upto ₹ 2,50,000
Answer: (a) fully taxable
4. Amount received under padam Shree award of Government is
(a) Fully taxable (b) Fully exempt
(b) exempt upto ₹ 5,000 (d) exempt upto ₹ 50,000
Answer: (b) fully exempt
5. Perquisites received by a Government employee posted abroad is
(a) fully taxable (b) fully exempt
(c) taxable in excess of ₹ 50,000 (d) taxable as other source income
Answer: (b) fully exempt
D. Long Answer Question
1. Discuss the incomes which are not included in total income-tax is payable on them.
Answer:
2. Give ten examples of income which are totally exempt from income -tax.
Answer:
3. Write shorts note on Casual Income.
Answer:
4. Explain the provisions of Low relating to tax holiday in respect of Free Trade Zones.
Answer:
5. Write one paragraph of about 100 words on following terms:
(i) Casual Income
Answer:
(ii) House Rent Allowance
Answer:
(iii) Gratuity
Answer:
(iv) Leave Travel Concession
Answer:
(v) Interest paid to non-residents
Answer:
(vi) Commuted Pension
Answer:
(vii) Interest exempted u/s 10(15)
Answer:
(viii) Tax Exemption for 100% export- oriented units.
Answer:
(ix) Technicians working in India under Technical Assistance Programme
Answer:
Question Type- Ishan Bora................
