**Case Scenario - II** Mr. A transferred a house property to his wife in P.Y. 2023-24 for inadequate consideration. She received a rent of ₹ 2 lakh from letting out this property and spent ₹4,800 as municipal taxes. She deposited the same with bank and earned an interest of ₹ 15,000 during the P.Y. 2023-24. Based on the above information, answer the following MCQ no. 4 to 6:
Sub-questions (3)
The income of rent and interest will be chargeable to tax in the hands of -
(A) Mr. A ₹ 2,15,000 as income of spouse clubbed under clubbing provisions.
(B). Mr. A - ₹ 2 lakh under income from House Property (HP) and Mrs. A - ₹ 15,000 under Income From Other Sources (IFOS).
(C) Mrs. A ₹ 1,36,640 under income from House Property and ₹ 15,000 under IFOS.
(D) Mr. A - ₹1,36,640 under income from HP and Mrs. A - ₹15,000 under IFOS.
If Mrs. A invests this rent amount in a business and incurs a loss of ₹20,000 and she has income from other business of ₹4 lakh. The income of rent and business will be chargeable to tax in the hands of -
(A) Mr. A - ₹ 1,36,640 under income from HP and Mrs. A - ₹3.80 lakh under income from business.
(B) Mr. A ₹ 1,22,640 under income from HP and Mrs. A ₹4 lakh as business profits.
(C) Mrs. A - ₹ 1,36,640 under income from HP and ₹3.80 lakh as business profits.
(D) Mr. A ₹ 1.80 lakh under income from HP and Mrs. A - ₹ 4 lakh as business profits.
If Mr. A transfers the above property for inadequate consideration with an agreement to live apart, then the income of rent and interest will be chargeable to tax in the hands of -
(A) Mr. A - Nil and Mrs. A - ₹ 1,36,640 under income from HP and ₹15,000 under IFOS.
(B) Mr. A - ₹2.15 lakh under clubbing provisions and Mrs. A - NIL
(C) Mr. A - ₹ 2 lakh under income from HP and Mrs. A - ₹15,000 under IFOS.
(D) Mr. A - ₹ 1,36,640 under income from HP and Mrs. A - ₹ 15,000 under IFOS.