Skip to content

CA Intermediate · Taxation · Basic Concepts

Sunita, a resident individual, received in tax year 2026-27: salary Rs 8,00,000, a gift of cash Rs 70,000 from her cousin (not a relative as defined), and agricultural income Rs 3,00,000 from India. Considering that the Act does not tax agricultural income and that a gift from a non-relative above Rs 50,000 aggregate is income from other sources, what is the amount of her income that is chargeable as income other than agricultural income, ignoring deductions and the salary head details?

The chargeable amount is Rs 8,70,000. Salary of Rs 8,00,000 is taxed, and the Rs 70,000 gift from a non-relative is wholly taxable because it exceeds Rs 50,000. The Rs 3,00,000 agricultural income from Indian land is exempt and is left out.

  1. ARs 8,00,000
  2. BRs 8,70,000Correct
  3. CRs 11,70,000
  4. DRs 11,00,000

Explanation

Agricultural income of Rs 3,00,000 is excluded. The cash gift of Rs 70,000 from a person who is not a relative exceeds Rs 50,000 in aggregate and so is wholly taxable. Total = 8,00,000 + 70,000 = Rs 8,70,000. Rs 8,00,000 ignores the gift; Rs 11,70,000 wrongly adds agricultural income.

Did you get it right without looking?

One question tells you little. A timed set on Basic Concepts shows your real accuracy, how long you take and where you lose marks.

Practise Basic ConceptsFree diagnostic mock

More Basic Concepts questions