CA Inter Knowledge Portal

Income Tax Question for Today:- Ms. Sheetal and her brother jointly own a bungalow. They had taken a housing loan to purchase the bungalow. The loan is sanctioned in the name of Ms. Sheetal and her brother in the year 2015. Interest on housing loan for the P.Y. 2022-23 amounted to Rs. 4,50,000 which is paid by Ms. Sheetal (Rs. 2,25,000) and her brother (Rs. 2,25,000). The bungalow is used by them for their residence. In this case, what will be the amount of deduction available under section 24(b) to Ms. Sheetal and her brother? a) Rs. 30,000 each b) Rs. 2,00,000 each c) Rs. 2,25,000 each d) Rs. 4,50,000 each

The correct answer to above question would be (B). In respect of point (iii), since the premium exceeds 10% of sum assured, exemption u/s 10(10D) shall not be applicable. Further, in respect of NPS, only 60% of the amount received is exempt.

2nd Income Tax Question for Today:- Which of the following incomes are exempt incomes as per the provisions of Income-tax Act, 1961? (i) Allowance paid by Government to a citizen of India for rendering services outside India (ii) Death-cum-retirement gratuity received by a government employee (iii) Any sum received under a life insurance policy taken on 01.05.2016, if the premium payable for any of the years exceeds 10% of the actual capital sum assured. (iv) Any payment from National Pension System Trust to an employee on account of closure of his NPS account. (a) (i), (ii), (iii), (iv) (b) (i) & (ii) (c) (i), (ii) & (iv) (d) (ii) & (iv)

The correct answer to above question would be (C). Sec 80TTB allows deduction to any resident senior citizen in respect of Interest income on any deposits with any bank/cooperative bank or Post office. No deduction is allowed in respect of Interest received from NBFC. Hence, in this case, Mr. Krishna shall be eligible for deduction only in respect of Rs. 20,000 interest received from cooperative bank.

Income Tax Question for Today:- Mr. Krishna, a resident Indian aged 61 years, maintains a saving account with a co-operative land development bank and he earns Rs. 20,000 as interest on saving account for the Financial Year 2021-22. Mr. Krishna also maintains a fixed deposit and recurring deposit account with Mani Finance (A Non-Banking Finance Company) and earns Rs. 25,000 and Rs. 10,000 as interest on fixed deposit and recurring deposit, respectively. What would be the deduction allowable to Mr. Krishna under Chapter VI-A if he does not opt for the section 115BAC for the A.Y. 2023-24? (a) Rs. 55,000 (b) Rs. 10,000 (c) Rs. 20,000 (d) Rs. 50,000

The correct answer to above question would be (B). Since education loan has been taken higher education of spouse, interest paid during PY 22-23 shall be eligible for deduction u/s 80E. Hence Total Income = Rs. 6,00,000 - Rs. 65,000 = Rs. 5,35,000

Income Tax Question for Today:- Gross total income of Arpita for P.Y. 2022-23 is Rs. 6,00,000. She had taken a loan of Rs. 7,20,000 in the financial year 2019-20 from a bank for her husband who is pursuing MBA course from IIM, Kolkata. On 02.04.2022, she paid the first installment of loan of Rs. 45,000 and interest of Rs. 65,000. Compute her total income for A.Y. 2023-24. (a) Rs. 6,00,000 (b) Rs. 5,35,000 (c) Rs. 4,90,000 (d) Rs. 5,55,000

The correct answer to above question would be (B). As per Sec 2(1A), income from farm building located in rural area shall be considered as agricultural income if such building is, by reason of connection with the land, used as a dwelling house or a store house or an out-house by the cultivator or receiver of rent in kind. In the given case, Building 1 is covered in above purposes but Building 2 and 3 don’t satisfy the above condition

Income Tax Question for Today:- Ms. Sowmya has three farm buildings situated in the immediate vicinity of a rural agricultural land. In the P.Y.2022-23, she earned - Rs. 3 lakh from letting out her farm building 1 for storage of food grains, - Rs. 10 lakh from letting out her farm building 2 for storage of dairy products and - Rs. 15 lakh from letting out her farm building 3 for residential purposes of Mr. Sumanth, whose food grain produce is stored in farm building 1. What is the amount of agricultural income exempt from income-tax? (a) Nil (b) Rs. 3,00,000 (c) Rs. 13,00,000 (d) Rs. 18,00,000

The correct answer to above question would be (B). Any capital gains arising from transfer of an agricultural land is not covered in definition of Agricultural income and hence exemption u/s 10(1) shall not be applicable. However, since the land is located outside India, such capital gain would be considered as accrued as well as received outside India which can’t be taxed in hands of NR

Income Tax Question for Today:- During the P.Y. 2022-23, Mr. Samar, a non-resident, received Rs.75,00,000 on account of sale of agricultural land in Mauritius. The money was first received in Mauritius and then remitted to his Indian bank account. Is the sum taxable in India? (a) No, as agricultural income is exempt u/s 10(1). (b) No, as the income has accrued and arisen outside India and is also received outside India. (c) Yes, since it is remitted to India in the same year. (d) Yes, as agricultural income earned outside India is not exempted in India in the hands of a non-resident

From 2moro, we will start with daily practice of MCQs on our Telegram group. 2 MCQ questions will be posted everyday in form of Poll Till exam, we will be able to practice more and more MCQs through telegram