Tax Laws MCQ on Clubbing of Incomes | Tax Laws MCQs for CS Executive and Other Competitive Exams | Commerce Classes

Tax Laws MCQ on Clubbing of Incomes: Check the below Tax Laws MCQ on Clubbing of Incomes with Answers Pdf free download. Tax Laws MCQ on Clubbing of Incomes Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Clubbing of Incomes with Answers to help students understand the concept very well. Students should practice Clubbing of Incomes – CS Executive Tax Laws MCQ Questions with Answers based on the latest syllabus.

Tax Laws MCQ on Clubbing of Incomes


1. Transfer of income is revocable in the following cases :
(A) Sale with a condition of re-purchase
(B) Power to change beneficiary or trustees
(C) Both (A) and (B)
(D) Neither (A) nor (B)

View Answer

(C) Both (A) and (B)


2. Which out of the following income is not to be clubbed while computing income of the Hindu Undivided Family (HUF) for the assessment year 2021-22?
(A) Fees or remuneration received by the member as a director or a partner in the company or firm if the funds of the HUF are invested in a company or firm
(B) Income from ‘strident and personal income of the members
(C) Income of minor sons out of the investments of the family funds
(D) None of the above

View Answer

(B) Income from ‘strident and personal income of the members


3. Baby Meena (age 12) a child artist acted in feature films and earned ₹ 3,50,000. The total income of her father is ₹ 5,20,000 and her mother is ₹ 4,80,000.
The minor’s income would be:
(A) Chargeable to tax in the hands of father
(B) Chargeable to tax in the hands of mother
(C) Chargeable to tax in her own hands
(D) Fully exempt from tax

View Answer

(C) Chargeable to tax in her own hands


4. Shyam transferred 2,000 shares of X Ltd. to Ms. Babita without any consideration. Later, Shyam and Ms. Babita got married to each other. The dividend income from the shares transferred would be
(A) Taxable in the hands of Shyam both before and after marriage
(B) Taxable in the hands of Shyam before marriage but not after marriage
(C) Taxable in the hands of Shyam after marriage but not before marriage
(D) Never taxable in the hands of Shyam 

View Answer

(D) Never taxable in the hands of Shyam 


5. All income which arises or accrues to the minor child (not suffering from any disability as specified in section 80U) shall be clubbed with the income of parent whose total income excluding the income to be included of the minor not derived from any activity involving application of his skill, talent or specialized knowledge:
(A) in the hands of the father only
(B) in the hands of a mother only
(C) equally in the hands of both mother and father
(D) with the income of that parent whose total income is greater before clubbing of such income

View Answer

(D) with the income of that parent whose total income is greater before clubbing of such income


6. Rohit (a Chartered Accountant) is working as Accounts Officer in Raj (P) Ltd. on a salary of ₹ 20,000 p.m. He got married to Ms. Pooja who holds 25% shares of this company. What will be the impact of salary paid to Rohit by the company in the hands of Ms. Pooja
(A) 100% salary to be clubbed
(B) 50% salary to be clubbed
(C) No amount be clubbed
(D) 25% salary be clubbed

View Answer

(C) No amount be clubbed


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