Which income is classified under 'Income from Other Sources'? MCQ with Answer and Explanation

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Which income is classified under 'Income from Other Sources'?

A. Profit from a retail shop

B. Dividend income and winning from lotteries

C. Capital gains on sale of shares

D. Salary received from an employer

Answer: Option B

Solution (By JKSSB Mock Tests)

Incomes that do not fall into the first four specific heads (like dividends, lottery winnings, bank interest) are taxed as Income from Other Sources.

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Question #1

Under GST, which constitutional amendment act was passed to implement it?

A. 101st Amendment Act

B. 100th Amendment Act

C. 103rd Amendment Act

D. 102nd Amendment Act

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Correct Answer: Option A

Explanation:
The Constitution (101st Amendment) Act, 2016 paved the way for the introduction of GST in India.

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Question #2

In cost accounting, the 'Re-order Level' is calculated as:

A. Minimum consumption rate x Minimum re-order period

B. Maximum consumption rate x Maximum re-order period

C. Average consumption rate x Average re-order period

D. Normal consumption rate x Normal re-order period

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Correct Answer: Option B

Explanation:
The Re-order Level is the level at which a new order is placed. To ensure stock doesn't run out during the maximum lead time, it is calculated as Maximum consumption rate multiplied by Maximum re-order period.

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Question #3

The 'Income Tax Refund' received is:

A. Revenue receipt

B. Capital receipt

C. Deferred revenue

D. Liability

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Correct Answer: Option A

Explanation:
Income tax refund is a revenue receipt as it pertains to business profits.

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