Discuss whether the following are true or false:

1. On rendering some service to a manufacturing garments unit,

X is paid remuneration in kind (i.e. a silk tie). Since he has
not received anything in cash, it is not an Income.
2. On sale of goods illegally, imported from a foreign country,
X generates a surplus of Rs.25000. As the income is derived
from an illegal activity, it is not chargeable to tax.
3. A birthday gift received by Z from his father is not taxable as
income of Z.
4. Out of Rs.25000 per month received by Mrs. A from her
husband for household expenses, she saves approximately
Rs.600 per month which is deposited by her in a bank
account. Rs.600 per month is Income of Mrs. A.
5. Sale proceeds of a house property is capital receipt which is,
however chargeable to tax.
6. Salary paid to B by his employer X Ltd. out of capital
reserve, is not income in the hands of B.
7. Income under the head Income from house Property is
computed on the basis of method of accounting adopted by
the assessee.

1. False
2. False
3. True
4. False
5. True
6. False
7. False