BBA IV Semester (Taxation and Law) Unit IV

1. If there is a transfer of income by a person to another person without the transfer of the 
asset from which the income arises, such income shall be included in the income of - 
(a) Transferor 
(b) Transferee 
(c) Transferor, if transfer is revocable 
2. If there is revocable transfer of an asset by any person to another person, any income 
arising from such asset shall be included in the income of - 
(a) Transferor 
(b) Transferee 
(c) Both Transferor & Transferee 
3. If there is a transfer of asset to the transferee which is not revocable during his life time 
to the transferee, income arising from such asset shall be included in the income of - 
(a) Transferor 
(b) Transferee 
(c) Transferee till his death and thereafter in the hands of the Transferor 
4. Where an individual has substantial interest in a concern, there shall be included in his 
Total Income any remuneration paid by such concern to - 
(a) the wife of such individual 
(b) the husband of such individual 
(c) the spouse of such individual 
5. Substantial Interest for the purpose of clubbing provision u/s 64(i)(ii) shall be of - 
(a) the individual only 
(b) the individual & his spouse taken together 
(c) the individual along with his relatives 
6. As per Sec. 64(i)(iv), there shall be included in the income of an individual, any income 
arising from the gift to the spouse of - 
(a) any Capital Asset 
(b) any Asset 
(c) any Asset other than House Property 
7. A has sold 2000 14% Debentures of Rs. 100 each to his wife for Rs. 90,000. The 
Market Value of debentures on the date of transfer was Rs. 1,80,000. In this case, 
Interest Income to be included in the Total Income of A shall be - 
(a) Rs. 28,000 
(b) Rs. 14,000 
(c) Rs. 25,200 
8. Where an individual transfers the HP to his wife without adequate consideration, the 
income from such HP shall be subject to the provision of - 
(a) Sec. 64(1)(iv) 
(b) Sec. 27 
(c) None of these 
9. Clubbing provisions under Sec. 64(1)(vi) are applicable where the asset is transferred 
by an individual for inadequate consideration to - 
(a) Daughter’s Husband 
(b) Son’s Wife 
(c) Major Son 
(d) Major Daughter 
10. B gifts Rs. 5,00,000 to his wife who invested the same in the Partnership business. Mrs. 
B receives Rs. 60,000 as her share of profits from such Firm. In this case amount to be
clubbed in the income of B shall be - 
(a) Rs. 60,000 
(b) Rs. 10,000 after giving maximum exemption of Rs. 50,000 to Mrs. B 
(c)
Nil
11. C has gifted Rs. 10,00,000 to his wife on 1.4.2016. The wife invested the above sum as 
capital contribution to the Firm where she is a Partner and earned interest every year. 
The total capital of Mrs. C as on 1.4.2019 including 3 years’ interest was Rs. 15,00,000. 
During the year she earned Rs. 1,80,000 as interest on such capital balance. The income 
to be clubbed in the hands of C shall be - 
(a) Rs. 1,20,000 
(b) Rs. 1,80,000 
(c)
Nil
12. As per Sec. 64(1A), income accruing to a minor shall be clubbed in the income of - 
(a) Father 
(b) Mother 
(c) Father or Mother at their option 
(d) Parent whose income before this clubbing is greater 
13. If the marriage of the parents does not subsist, the income of the minor child shall be 
clubbed in the income of - 
(a) Father 
(b) Parent who maintains the child 
(c) Father or Mother whose income is higher 
14. When income of minor child is clubbed in the income of the parent concerned, such 
parent will be allowed exemption of - 
(a) Rs. 1,500 
(b) Rs. 1,500 per minor child 
(c) To the extent of actual income clubbed or Rs. 1,500 per minor child whichever is 
less
15. If any income has to be clubbed under Sec. 64, it will be clubbed under the head - 
(a) Income from Other Sources 
(b) Relevant Head to which it belongs 
(c) None of the above 
16. 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 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. 
17. Where a member of a HUF has converted or transferred his self-acquired property for 
inadequate consideration into joint family property, income arising there from is 
taxable: 
(a) As the income of the Transferor Member
b) In the hand of the HUF 
(c) In the hands of Karta of HUF 
(d) Completely exempt from tax 
18. Mr. A gift cash Rs. 1,00,000 to his brother’s wife Mrs. B, Mr. B gift cash of Rs. 
1,00,000 to Mrs. A. From cash gifted to her, Mrs. A invests in a fixed deposit, income 
there from is Rs. 10,000. Aforesaid Rs. 10,000 will be included in the total income of - 
(a) Mr. A 
(b) Mr. B 
(c) Mrs. A 
(d) Mrs. B 
19. Mr. Y who is physically handicapped minor (suffering from a disability of the nature 
specified in Sec 80U) earns Bank Interest of Rs. 50,000 and Rs. 60,000 from marking 
bags manually by himself. The Total Income of Mr. Y shall be computed in the hands 
separately. 
(a) True 
(b)
False
Answer the next 2 questions based on this case: 
Mr. Rose out of his funds had taken FDR for Rs. 10,00,000 bearing interest at 10% p.a. 
payable half-yearly in the name of his wife Lilly. The income of interest earned for the 
financial year 2018-2019 of Rs. 1,00,000 was invested by Mrs. Lilly in the business of 
packed spices, which resulted into a Net Profit of Rs. 55,000 for the year ended 
31.3.2019. 
20. The sum of Rs. 1,00,000 received interest on FDRs shall be chargeable to tax in the 
hands of 
(a) Mr. Rose as “Income from Other Sources”. 
(b) Mrs. Lilly as “Income from Other Sources”. 
(c) Exempt in the hands of both Mr. Rose and Mrs. Lilly. 
21. The sum of Rs. 55,000 earned as profit from spices business shall be chargeable to tax 
in the hands of 
(a) Mrs. Lilly as “Profits and Gains of Business or Profession”. 
(b) Mr. Rose as Profits and Gains of Business or Profession”. 
(c) Mrs. Lilly as “Income from Other Sources”. 
Answer the next 2 questions based on this case: 
Rajesh is the Minor son of Mr. Rahul and Mrs. Sheela whose Total Income for the year 
ended 31.03.2020 is Rs. 5,40,000 and Rs. 6,00,000 respectively. Rajesh earned Rs. 
50,000 from stage acting. This money was deposited in Bank FDRs and interest of Rs. 
4,500 was received by the Minor. 
22. Rs. 50,000 earned by Rajesh will be taxed/clubbed in the hands of - 
(a) Mr. Rahul 
(b) Mrs. Sheela 
(c) Rajesh 
(d) None 
23. Rs. 4,500 earned as Interest from FDR will be clubbed/taxed in the hands of - 
(a) Mr. Rahul 
(b) Mrs. Sheela 
(c) Rajesh 
(d) None 
Answer the next 2 questions based on this case: 
Mr. Mittal has 4 minor Children consisting of three daughters and one son. The Annual 
Income of all the Children for the Assessment Year 2020-2021 were as follows – 
First Daughter (including Scholarship received Rs. 5,000)
Rs. 10,000
Second Daughter 
Rs. 8,500
Third Daughter (suffering from Disability specified u/s 80U) 
Rs. 4,500
Son
Rs. 40,000
Mr. Mittal gifted 2,00,000 to his Minor Son who invested the same in the business and 
derived Income of 20,000 which is included above. 
24. The Income of the First Daughter, Second Daughter, Third Daughter and Son 
considered for clubbing would be - 
(a) Rs. 10,000, Rs. 8,500, Rs. 4,500 and Rs. 2,40,000 respectively 
(b) Rs. 5,000, Rs. 8,500, Rs. 4,500 and Rs. 40,000 respectively 
(c) Rs. 5,000, Rs. 8,500, Rs. Nil and Rs. 40,000 respectively 
(d) Rs. 10,000, Rs. 8,500, Rs. 4,500 and Rs. 40,000 respectively 
25. Exemption u/s 10(32) will be - 
(a) Rs. 4,500 
(b) Rs. 6,000 
(c) Rs. 3,000 
(d)
Nil
Answer the next 5 questions based on this case 
Mr. B is the Karta of a HUF, whose Members derive Income as given below – 
Particulars 
Rs.
(i)
Income from B’s Profession
45,000
(ii) Mrs. B’s Salary as Fashion Designer
76,000
(iii) Minor son D (Interest on Fixed Deposits with a Bank which were gifted 
to him by his Uncle)
10,000
(iv) Minor Daughter P’s earnings from sports 
95,000
(v)
D’s winnings from Lottery (Gross)
1,95,000
26. Which of the following incomes of D will be qualified for being clubbed in the hands of 
his parent? 
(a) Interest on fixed deposit 
(b) Winnings from lottery 
(c) Both (a) and (b)
27. Will P’s earnings from sports to clubbed in the hands of the parents? 
(a)
Yes
(b)
No
28. D’s Income will be clubbed/taxed in the hands of - 
(a) Mr. B 
(b) Mrs. B 
(c) D 
(d) Equally between Mr. B and Mrs. B 
29. P’s Income will be clubbed/taxed in the hands of - 
(a) Mr. B 
(b) Mrs. B 
(c) P 
(d) Equally between Mr. B and Mrs. B 
30. What is the Total Income of Mr. B and Mrs. B after clubbing of Income of Minors. 
(a) Rs. 2,48,500 and Rs. 76,000 respectively 
(b) Rs. 45,000 and Rs. 2,78,000 respectively 
(c) Rs. 2,47,000 and Rs. 76,000 respectively 
(d) Rs. 45,000 and Rs. 2,79,500 respectively 
ANSWERS 
1.a
2.a
3.c
4.c
5.c
6.c
7.a
8.b
9.b
10.a
11.a
12.d
13.b
14.c
15.b
16.b
17.a
18.a
19.a
20.a
21.a
22.c
23.b
24.c
25.a
26.c
27.b
28.b
29.c
30.d

Comments

Post a Comment

Popular posts from this blog

BBA 2nd Semester CMA 2025 MCQ

What is the main purpose of cost accounting? a) Tax computation b) Cost control and decision-making c) External reporting d) Dividend calculation Answer: b) Cost control and decision-making Financial accounting differs from cost accounting because it: a) Focuses on historical data b) Is used for internal decisions c) Ignores profit calculation d) Uses estimated costs Answer: a) Focuses on historical data Costs that vary with production levels are called: a) Fixed costs b) Variable costs c) Semi-variable costs d) Overhead costs Answer: b) Variable costs Prime cost includes: a) Direct materials and direct labor b) Factory overheads c) Selling expenses d) Administrative costs Answer: a) Direct materials and direct labor In a cost sheet, factory overheads are added to: a) Prime cost b) Selling cost c) Administrative cost d) Distribution cost Answer: a) Prime cost Marginal costing excludes: a) Variable costs b) Fixed costs c) Direct costs d) Overhead c...
Read more

BBA 4th Sem Taxation & Laws MCQs 2025

Unit I: Basic Concepts 1. Which of the following is not considered as "Income" under the Income Tax Act, 1961? a) Salary received b) Capital receipt c) Profit from business d) Rent received Answer: b) Capital receipt 2. Agricultural income is a) Fully taxable b) Fully exempt from tax c) Partly taxable and partly exempt d) None of the above Answer: b) Fully exempt from tax 3. Casual income includes a) Salary income b) Business income c) Winning from lottery d) Rental income Answer: c) Winning from lottery 4. The period for which income is calculated for tax purposes is known as a) Financial Year b) Previous Year c) Accounting Year d) Calendar Year Answer: b) Previous Year 5. Which of the following is included in Gross Total Income? a) Exempted income b) Salary, House property income, and Business income c) Gifts received from relatives d) Agricultural income Answer: b) Salary, House property income, and Business income Unit II: Basis of C...
Read more

BBA Sem VI CSR MCQs 2025

UNIT 1: Introduction to Corporate Governance What is the primary objective of corporate governance? a) Maximizing shareholder wealth b) Reducing government regulations c) Increasing company size d) Avoiding taxation Answer: a) Maximizing shareholder wealth Which of the following is NOT a function of corporate governance? a) Ensuring transparency b) Managing daily business operations c) Protecting shareholders' rights d) Ensuring accountability Answer: b) Managing daily business operations Which of the following is NOT a pillar of corporate governance? a) Accountability b) Transparency c) Profit maximization d) Fairness Answer: c) Profit maximization Which of the following organizations plays a crucial role in corporate governance in India? a) SEBI b) RBI c) TRAI d) IRDAI Answer: a) SEBI Which committee introduced the first formal corporate governance norms in India? a) Narasimham Committee b) Kotak Committee c) Kumar Mangalam Birla Committe...
Read more