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CA Final · Direct Tax Laws & International Taxation · Income from Other Sources

Deepak, a resident individual, received the following during the tax year: Rs. 40,000 cash from a friend on his birthday; Rs. 30,000 cash from a client's firm; Rs. 2,00,000 from his father's brother; and shares of fair market value Rs. 1,20,000 gifted by an unrelated friend without consideration. Considering the Income-tax Act, 2025, what is the amount taxable under section 92(2)(m)?

Rs. 1,90,000 is taxable. The uncle's gift is exempt as he is a relative. Cash from non-relatives aggregates to Rs. 70,000, above Rs. 50,000, so all of it is taxed, and the shares worth Rs. 1,20,000 are also taxed in full.

  1. ARs. 1,90,000Correct
  2. BRs. 70,000
  3. CRs. 1,20,000
  4. DRs. 3,90,000

Explanation

Gift from father's brother is exempt as he is a relative (brother of a parent). Money received from non-relatives totals 40,000 + 30,000 = Rs. 70,000, which exceeds Rs. 50,000, so the whole Rs. 70,000 is taxable. Shares are property with fair market value Rs. 1,20,000 exceeding Rs. 50,000, so the whole amount is taxable. Total = 70,000 + 1,20,000 = Rs. 1,90,000. Taxing only the shares ignores the aggregate rule for money.

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