Taxation Law- AILET, 2021

Question was: "Which of the following is exempted from Income-tax as per the provisions of the Income-tax Act, 1961? a) Capital gains on sale of equity shares b) Income from a non-resident company c) Interest on bonds d) Income from sale of a self-occupied property"

Tricky part was option 'c') - you can't be sure if the bonds are Govt bonds or not. Govt bonds are exempt but it's not stated explicitly.

Correct approach is: Read carefully, eliminate options which have a clear NO (d - income from self-occupied property is exempt). Then think about the exemptions - what are the conditions? Govt bonds are exempt, but the question doesn't specify. So, option c) was the correct answer but don't be sure, it's a tricky one.