Income Tax: Heads of Income
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Questions and Answers

What type of relationship must exist in order for income to be charged under the head 'Income from Salary'?

  • Employer-employee relationship (correct)
  • Business partnership
  • Friendship
  • Family relationship

    • Which of the following is considered a part of 'Gross Salary' under the head 'Income from Salary'?

  • Money received as a loan repayment
  • Annuity (correct)
  • Money earned from freelance work
  • Gift from a friend

    • Under which head of income would income earned from one's profession be charged?

  • Income from Salary
  • Income from Capital Gains
  • Income from House Property
  • Income from Business or Profession (correct)

    • What type of assets can generate income chargeable under the head 'Income from Capital Gains'?

    <p>Investments like house and jewelry</p> Signup and view all the answers

    'Income from Other Sources' includes income that does not fall under which of the following heads?

    <p>'Income from Business or Profession'</p> Signup and view all the answers

    Which type of income would contribute towards 'Negative Income from House Property'?

    <p>Interest paid on a home loan</p> Signup and view all the answers

    What does agricultural income generally mean as per section 2(1A) of the Income-tax Act?

    <p>Any income derived from land by agriculture operations and processing of agricultural produce</p> Signup and view all the answers

    What is the key difference between Exempt Incomes and Taxable Incomes?

    <p>Exempt Incomes are never included in total income, while Taxable Incomes are always included</p> Signup and view all the answers

    Which of the following is an example of Exempt Income according to the provided text?

    <p>Dividend income</p> Signup and view all the answers

    Under section 10(1) of the Income-tax Act, which type of income is Wholly exempt?

    <p>Agricultural Income</p> Signup and view all the answers

    Which one of the following is NOT considered as agricultural income according to section 2(1A)?

    <p>Rent or revenue from land for commercial use</p> Signup and view all the answers

    What type of income is generally charged to tax under the Income Tax law?

    <p>Capital Gains</p> Signup and view all the answers

    If a person is non-resident in India, is their foreign income taxable in India?

    <p>No, foreign income of a non-resident is not taxable in India</p> Signup and view all the answers

    Can an assessee have different residential status for different assessment years?

    <p>Yes, an assessee can have different residential status for different assessment years</p> Signup and view all the answers

    Is it possible for a person to be resident in more than one country at the same time for tax purposes?

    <p>Yes, a person can be resident in multiple countries simultaneously</p> Signup and view all the answers

    How is the residential status of a Firm, Association of Persons (AOP), Body of Individuals (BOI) determined?

    <p>Control and management of affairs must be situated wholly outside India to be non-resident</p> Signup and view all the answers

    What determines if a company is considered resident in India for tax purposes?

    <p>Its Place of Effective Management (POEM) is in India</p> Signup and view all the answers

    Does involuntary stay in India have any impact on determining residency status?

    <p>Involuntary stay does not affect residency status determination</p> Signup and view all the answers

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