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

Under the Income-tax Act, 2025, which statement about the head of income under which a dividend received by an assessee is chargeable is correct?

A dividend is chargeable under the head 'Income from other sources' because section 92(2)(a) of the Income-tax Act, 2025 expressly lists any dividend there. It is neither a capital gain nor automatically business income, and it is not exempt merely because the recipient is an individual.

  1. AIt is chargeable under 'Income from other sources' as a dividend is specifically listed in section 92(2)Correct
  2. BIt is chargeable under 'Capital gains' because it arises from holding shares
  3. CIt is chargeable under 'Profits and gains of business or profession' in every case
  4. DIt is wholly excluded from total income when the assessee is an individual

Explanation

Section 92(2)(a) lists 'any dividend' among the incomes chargeable under 'Income from other sources'. It is not a capital gain because no capital asset is transferred. It is not excluded from total income merely because the assessee is an individual.

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