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    Question

    Under the Income Tax Act, 1961, which of the following

    incomes is exempt from tax in the hands of an individual?
    A Agricultural income from land located in India Correct Answer Incorrect Answer
    B Salary received from a foreign company for services rendered in India Correct Answer Incorrect Answer
    C Winning from lotteries Correct Answer Incorrect Answer
    D Interest income on fixed deposits Correct Answer Incorrect Answer

    Solution

    • Agricultural income earned from land situated in India is exempt under Section 10(1). • Other options are taxable: o Salary (even from a foreign company) is taxable if earned in India o Lottery winnings are taxed at flat 30% u/s 115BB o FD interest is taxable as “Income from Other Sources”

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