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CMA Intermediate · Direct and Indirect Taxation · Income from Other Sources

Meera received Rs. 60,000 in cash from her friend Kavita and Rs. 1,00,000 from her husband's brother in the same tax year. What is the amount taxable under section 92(2)(m) in Meera's hands?

Rs. 60,000 is taxable. The Rs. 1,00,000 from the husband's brother is exempt because a spouse's brother is a relative. The Rs. 60,000 from the friend exceeds Rs. 50,000, so the whole amount, not merely the excess, is chargeable.

  1. ARs. 1,60,000
  2. BRs. 10,000
  3. CRs. 60,000Correct
  4. DNil

Explanation

Under section 92(3)(a), sums received from a relative are outside section 92(2)(m). Spouse's brother is a relative under section 92(5)(g)(i)(C), so Rs. 1,00,000 is excluded. Kavita is not a relative, and Rs. 60,000 exceeds Rs. 50,000, so the whole Rs. 60,000 is taxable, not just the excess.

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