Which of the following is an example of a tax-exempt income?

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Question: Which of the following is an example of a tax-exempt income?

Options:

Correct Answer: Dividend from Indian companies

Solution:

Dividend from Indian companies is an example of tax-exempt income.

Which of the following is an example of a tax-exempt income?

Which of the following is an example of a tax-exempt income?

Step 1: Understand what tax-exempt income means. Tax-exempt income is money you earn that is not subject to income tax.
Step 2: Look for examples of tax-exempt income. Common examples include certain types of interest, gifts, and dividends.
Step 3: Identify the specific example given in the question. The question mentions 'dividend from Indian companies.'
Step 4: Confirm that dividends from Indian companies are indeed not taxed for the recipient, making them tax-exempt.
Step 5: Conclude that the correct answer to the question is 'dividend from Indian companies' as it is an example of tax-exempt income.

No concepts available.