NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation
Which of the following is treated as capital receipt not chargeable to tax as income under the general principles of taxation?
A gift of money from a relative as defined in the Income-tax Act is exempt from tax. Salary, house property rent and bank deposit interest are revenue receipts that are taxable under their respective heads.
- ASalary received by an employee
- BRent received from letting out a flat
- CGift of money received by a person from a relative as defined in the ActCorrect
- DInterest on a bank fixed deposit
Explanation
Receipts from a specified relative as gift are exempt from tax under the Act. Salary, rent and interest are revenue receipts taxed under their respective heads.
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