Taxation Online Test

Gallantry award means

Income from forest trees of spontaneous growth is an agricultural income and hence exempted from tax

Gratuity paid to government employees is always fully exempt from tax

Uncommuted pension is always taxable

Uncommuted pension means receipt of lump sum amount in lieu of periodical taxable

A. 'Gross Total Income' means aggregate of income computed under various heads and after allowing deduction under Chapter Vl-A.

If a person is resident and ordinarily resident of India, his income earned outside India is taxable in the country in which he earned that income.

Where a person does basic operations in lands and later sells the saplings grown by him in a nursery owned by him, the same will be agricultural income. If the basic operations are not done by the assessee and the saplings are sold in his nursery, the same will still be regarded as agricultural income

Vivitha, a Cost Accountant, is employed in Hema Plastics Ltd. The company pays the annual Cost accountant membership fee. The fee so paid by the company is not to be treated as a perquisite in the hands of Vivitha

Rental income from residential property owned by a company carrying on business of property rentals is taxable under the head "Income from House Property".

Business expenses are allowed to be deducted from" business in¬come even if they are in the nature of personal expenditure of the assessee, as long as they are reasonable.

No disallowance under Section 40A(3) of the Income-tax Act, 1961 arises where an assessee makes a cash payment exceeding Rs. 20,000 towards purchase of a capital asset

Depreciation is allowed when it is claimed

In the case of a dealer in shares, Income by way of dividend is tax¬able under the heads "Profits and gains of

business or profession".

An assessee claimed the exemption of gratuity in the past to the extent of Rs 250000 from his previous employer. How much exemption can he claim to the maximum extent in future

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