Which of the following is NOT one of the 5 heads of income under the Income Tax Act? MCQ with Answer and Explanation

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Which of the following is NOT one of the 5 heads of income under the Income Tax Act?

A. Income from Exports

B. Income from Other Sources

C. Income from Capital Gains

D. Income from Salaries

Answer: Option A

Solution (By JKSSB Mock Tests)

The 5 heads are: Salaries, House Property, Profits and Gains of Business/Profession, Capital Gains, and Other Sources.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The accounting treatment for loss by fire of uninsured goods is:

A. No entry

B. Debit Trading A/c

C. Debit Capital A/c

D. Debit Profit & Loss A/c

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Correct Answer: Option D

Explanation:
Loss by fire is abnormal loss, charged to Profit & Loss Account, not to Trading Account.

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Question #2

The 'Expected Credit Loss' for trade receivables:

A. No impairment

B. Always requires 12-month ECL

C. Can use simplified approach (lifetime ECL) if there is no significant financing component

D. Only when default occurs

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Correct Answer: Option C

Explanation:
Ind AS 109 allows the simplified approach for trade receivables and contract assets.

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Question #3

S1: Bank Reconciliation Statement is prepared to find the causes of difference between Cash Book and Pass Book. S2: BRS is prepared on a specific date. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S2 only

C. Both S1 and S2

D. S1 only

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Correct Answer: Option C

Explanation:
The primary objective of BRS is to identify and explain the reasons for the difference in balances between the Cash Book and the Bank Pass Book. It is always prepared for a specific date to compare the balances on that day. Both are correct.

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