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CA Intermediate · Taxation · Income from Other Sources

During tax year 2026-27, Ms. Kavya Nair, a resident individual, received the following: (i) ₹30,000 cash from a family friend on her birthday; (ii) ₹35,000 by cheque from a colleague on her wedding anniversary; (iii) ₹1,00,000 from her maternal uncle; (iv) ₹2,00,000 from a friend on the occasion of her own marriage held in this tax year. What is the amount taxable as income from other sources on account of these receipts?

The taxable amount is ₹65,000. The uncle's gift and the marriage gift are exempt. The two other gifts from non-relatives total ₹65,000, which exceeds ₹50,000, so the entire sum is taxable, not merely the excess.

  1. A₹65,000Correct
  2. B₹15,000
  3. C₹3,65,000
  4. D₹2,65,000

Explanation

The gift from the maternal uncle is exempt because he is a relative. The gift at the time of her own marriage is exempt. Gifts (i) and (ii) come from non-relatives on non-exempt occasions and total ₹65,000, which exceeds ₹50,000, so the whole ₹65,000 is taxable. Taxing only the excess (₹15,000) is wrong because the threshold is not a basic exemption.

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