Question

Indicate the category of income under the income tax act into which each of the following items falls: 1: Directors fees received by an individual. 2: Receipt of alimony (spousal support) payments 3: Dividends received from a foreign corporation 4:Loss from a loan to a small business corporation 5: Gain from the sale of shares of a public corporation 6: Gain on the scale of an automobile purchased for resale.

Answer 1

Solution

Particulars

Category

1: Directors fees received by an individual Income from Salary

2: Receipt of alimony (spousal support) payments Exempt (Assumed as received from already taxed income)   

3: Dividends received from a foreign corporation Income from other sources

4: Loss from a loan to a small business corporation Income/Loss from Business and Profession

5: Gain from the sale of shares of a public corporation Capital Gains

6: Gain on the scale of an automobile purchased for resale Income/Loss from Business and Profession

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