hitechpathshala

Q. 1

Mr. Vishal started a proprietary business on 01.04.2022 with a capital of ₹5,00,000. He incurred a loss of ₹ ₹ 1,00,000 during the year 2022-23. To overcome the financial position, his wife Mrs Kamini, a Chartered Accountant, gave a gift of ₹ 4,00,000 on 01.04.2023, which was immediately invested in the business by Mr. Vishal. He earned a profit of ₹ 2,00,000 during the year 2023-24. What is the amount to be clubbed in the hands of M₹ Kamini for the Assessment Year 2024-25?

₹ 88,888

₹ 1,00,000

₹ 2,00,000

Nil

Q. 2

Mr. Raj Makes a gift of ₹ 25,000 to his wife, Mrs Rama, on 27.03.2023. M₹ Rama, on 2.4.2023, invests ₹ 75,000 (25,000 out of gift and 50,000 of her own) in a partnership firm as capital which is her total capital contribution in the firm. During the year ended 31.03.2024 she earns an interest of ₹ 12,000 and salary of ₹ 1,20,000 from the firm. What amount shall form part of total income of Mr. Raj for the previous year 2023-24?

₹ 3,000 as interest on capital from firm

₹ 3,000 as interest on capital from firm and ₹40,000 as salary from firm

₹ 4,000 as interest on capital from firm and ₹40,000 as salary from firm

Nil

Q. 3

Pankaj gifted an amount of ₹ 3,00,000 to his wife, Nikki and ₹ 2,00,000 to his daughter, Pinki aged 20 years, on 1st April 2020. Both Nikki and Pinki invested the amounts on the same date in Government of India 11% Taxable Bonds. The interest accrues yearly and is reinvested in the same bonds. Determine what will be the amount taxable in hands on Nikki for A.Y. 2024-25?

₹ 4,473

₹ 12,132

₹ 33,000

Nil

Q. 4

Mrs. Archana, wife of Mr. Raj, started a business of trading in beauty products on 15.5.2023. She invested ₹ 5 lakhs in the business on 15.5.2023 out of gift received from her husband, Mr. Raj. She further invested ₹ 4 lakhs from her own savings on 15.12.2023. She earned profits of ₹ 1,50,000 from her business for the financial year 2023-24. Which of the following statements is correct?

Share of profit of ₹ 1,50,000 is includible in the hands of Mrs. Archana.

Share of profit of ₹ 66,667 is includible in the hands of Mr. Raj and share of profit of ₹ 83,333 is includible in the hands of Mrs. Archana.

Share of profit of ₹ 83,333 is includible in the hands of Mr. Raj and share of profit of ₹ 66,667 is includible in the hands of Mrs. Archana.

Share of profit of ₹ 1,50,000 is includible in the hands of Mr. Raj.

Q. 5

Ram owns 500, 15% debentures of Reliance Industries Ltd. of ₹ 500 each. Annual interest of ₹ 37,500 was declared on these debentures for P.Y. 2023-24. He transfers interest income to his friend Shyam, without transferring the ownership of these debentures. While filing return of income for A.Y. 2024-25, Shyam showed ₹ 37,500 as his income from debentures. As tax advisor of Shyam, do you agree with the tax treatment done by Shyam in his return of income?

Yes, since interest income was transferred to Shyam therefore, after transfer it becomes his income.

No, since Ram has not transferred debentures to Shyam, interest income on the debentures is not taxable income of Shyam.

Yes, if debentures are not transferred, interest income on debentures can be declared by anyone, Ram or Shyam, as taxable income depending upon their discretion.

No, since Shyam should have shown the income as interest income received from Mr. Ram and not as interest income earned on debentures.

Income of Other Person included in Assesses Total Income

Marks: 5