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

During the tax year, Anil, a resident individual, received the following: (a) Rs. 3,00,000 as winnings from an online card game show; (b) shares of an unlisted company with fair market value Rs. 4,00,000 from a friend (not a relative) for a consideration of Rs. 3,60,000; (c) jewellery with fair market value Rs. 2,00,000 from his wife's brother, without consideration; (d) Rs. 1,20,000 forfeited advance from a prospective buyer of his vacant plot (a capital asset), negotiations failing. Ignoring any other income, what is the income under Income from other sources (before any deductions)?

Rs. 4,20,000. Game show winnings of Rs. 3,00,000 and the forfeited advance of Rs. 1,20,000 are taxable. The share shortfall of Rs. 40,000 does not exceed Rs. 50,000, and the jewellery came from the spouse's brother, a relative, so neither is taxed.

  1. ARs. 4,20,000Correct
  2. BRs. 4,60,000
  3. CRs. 6,60,000
  4. DRs. 4,40,000

Explanation

(a) Card game winnings of Rs. 3,00,000 are taxable under 92(2)(b) and 92(5)(b). (b) Shortfall is Rs. 40,000, which does not exceed Rs. 50,000, so nothing is taxable. (c) Jewellery from the spouse's brother is from a relative, so excluded. (d) The forfeited advance of Rs. 1,20,000 is taxable under 92(2)(h). Total = Rs. 3,00,000 + Rs. 1,20,000 = Rs. 4,20,000. Including Rs. 40,000 from (b) gives Rs. 4,60,000, which is wrong.

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