Income Tax: Heads of Income

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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'?

Investments like house and jewelry Signup and view all the answers

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

'Income from Business or Profession' Signup and view all the answers

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

Interest paid on a home loan Signup and view all the answers

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

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

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

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

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

Dividend income Signup and view all the answers

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

Agricultural Income Signup and view all the answers

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

Rent or revenue from land for commercial use Signup and view all the answers

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

Capital Gains Signup and view all the answers

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

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

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

Yes, an assessee can have different residential status for different assessment years 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?

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

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

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

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

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

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

Involuntary stay does not affect residency status determination Signup and view all the answers