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CA Intermediate · Taxation · Basic Concepts

Ms. Sunita Rao, a resident, receives during tax year 2026-27: salary Rs 6,40,000 (taxable), interest on a bank fixed deposit Rs 50,000, and agricultural income from land in Karnataka Rs 3,00,000. She has also received a gift of Rs 20,000 from a friend. Assuming agricultural income is exempt and the gift is below the taxable threshold, what is her gross total income before any deduction?

Gross total income is Rs 6,90,000, being salary of Rs 6,40,000 plus interest of Rs 50,000. Agricultural income is exempt and the Rs 20,000 gift is under the Rs 50,000 threshold, so neither is included.

  1. ARs 6,90,000Correct
  2. BRs 9,90,000
  3. CRs 6,40,000
  4. DRs 7,10,000

Explanation

Agricultural income from land in India is exempt and so is not included in total income. The gift of Rs 20,000 is below Rs 50,000 and is not taxable. Gross total income = 6,40,000 + 50,000 = Rs 6,90,000. Option B wrongly adds agricultural income; option D adds the gift.

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