Element of Indirect tax || MCQ on Clubbing and Aggregation of Income

 

MCQ on Clubbing and Aggregation of Income

Income Tax MCQ

1. Revocable transfer of assets has been defined under sec...…

 A) Sec 51
 B) Sec 61
 C) Sec 71
 D) None of the above

Answer is B)
Sec 61

 

2. In order to curb tax avoidance practices, some necessary clubbing provision have been incorporated u/s …..

 A) 60 to 64
 B) 50 to 54
 C) 70 to 74
 D) None of the above

Answer is A)
60 to 64

 

3. Inclusion of others incomes in the income of the assessee is known as….

 A) Inclusion of income
 B) Other income
 C) Clubbing of income
 D) None of the above

Answer is C)
Clubbing of income

 

4. Clubbing of income of minor child has been defined under section….

 A) Sec 64(1A)
 B) Sec 74(1A)
 C) Sec 64(1B)
 D) None of the above

Answer is A)
Sec 64(1A)

  5. Exemption to parent comes u/s….

 A) Sec 10(31)
 B) Sec 10(32)
 C) Sec 10(33)
 D) None of the above

Answer is B)
Sec 10(32)

 

6. Amounting to Rs. …. Is exemption in respect to each minor child under clubbing and aggregation of income

 A) 2500
 B) 1500
 C) 3500
 D) None of the above

Answer is B)
1500

 

7. The person on whose name the property has been purchased is known as …… and the property is known as……

 A) Benamidar, Benami property
 B) Ostensible owner, own property
 C) Benami, footpath
 D) None of the above

Answer is A)
Benamidar, Benami property

8. Clubbing provision are applicable for

 A) HUF
 B) Individual
 C) Firms
 D) None of the Above

Answer is B)
Individual

9. Clubbing provision are applicable in case of

 A) Positive income
 B) Negative income
 C) Both
 D) None of the above

Answer is C)
Both

 

10. In case parent are separated, then the income of minor will be included in the income of Mother

 A) Mother
 B) Father
 C) That parent who maintain the minor
 D) None of the Above

Answer is C)
That parent who maintain the minor

1. Income of a minor child suffering from any disability of the nature specified in section 80U is __________.

a. To be assessed in the hands of the minor child 

b. To be clubbed in the income of that parent whose total income, before including minor’s income is higher 

c. Completely exempt from tax 

d. To be clubbed with the income of father 

2. Income arising to a minor married daughter is __________________.

a. To be assessed in the hands of the minor married daughter 

b. To be clubbed with the income of that parent whose total income, before including minor’s income, is 

higher 

c. Completely exempt from tax 

d. To be clubbed with the income of her husband

3. Where a member of a HUF has converted or transferred his self-acquired property for inadequate 

consideration into joint family property, income arising therefrom is ___________________.

a. Taxable as the income of the transferor-member

b. Taxable in the hands of the HUF

c. Taxable in the hands of the Karta of the HUF

d. Exempt from tax 

4. If the converted property is subsequently partitioned among the members of the family, the income derived 

from such converted property as is received by the spouse of the transferor will be taxable ___________.

a. As the income of the Karta of the HUF 

b. As the income of the spouse of the transferor 

c. As the income of the HUF 

d. As the income of the transferor-member

5. Exemption of a certain amount (not exceeding the income clubbed) is available under section 10(32), where a 

minor’s income is clubbed with the income of the parent. The maximum exemption available is _______.

a. Upto INR 1500 in respect of each minor child 

b. Upto INR 1500 in respect of each minor child maximum of two children

c. Upto INR 2000 in respect of each minor child 

d. Upto INR 2000 in respect of each minor child maximum of two children 

6. Mr. A gifts a sum of INR 1,00,000 to his brother’s wife Mrs. B. Mr. B gifts a sum of INR 1,00,000 to Mr. A. 

From the sum gifted to her, Mrs. B invests in a fixed deposit, income therefrom is INR 10,000 will be included 

in the total income of _______.

a. Mr. A