Total Income 17,60, Rounded off u/s 288A 17,60, Computation of Tax Liability
|
|
- Geoffrey Taylor
- 5 years ago
- Views:
Transcription
1 (iii) CORRECTION IN INCOME TAX VOLUME 2 PAGE NO. 29 & 30 As per the provisions of section 47, transfer by way of conversion of bonds into shares is not regarded as transfer for the purpose of capital gains. Therefore, capital gains tax liability does not arise in the given situation. Question 19. Write a note on cost with reference to certain modes of Acquisition. Answer: Cost with reference to certain modes of acquisition Section 49(1) If any person has received an asset through the transaction section 47 and subsequently asset was sold by him, in such cases cost of acquisition and cost of improvement of previous owner shall be considered to be cost of acquisition/improvement of the assessee and also cost of improvement by assessee shall be taken into consideration. As per section 2(42A), time period of previous owner shall also be taken into consideration. E.g. Mr. X purchased house ,00,000 and incurred 3,00,000 on improvement on and it was received by his son Mr. Y on and Mr. Y incurred 4,00,000 on improvement and house was sold by him on ,00,000, in this case tax liability of Mr. Y shall be Full value of consideration 100,00, = 2,00,000 / 100 x 272 (5,44,000.00) Less: Indexed Cost of improvement = 3,00,000 / 105 x 272 (7,77,142.86) Less: Indexed Cost of improvement = 4,00,000 / 220 x 272 (4,94,545.45) Long term capital gains 81,84, Gross Total Income 81,84, Total Income (rounded off u/s 288A) 81,84, Tax on LTCG 79,34,310 (81,84,310 20% 15,86, Add: 10% 1,58, Tax before education cess 17,45, Add: 2% 34, Add: 17, Tax Liability 17,97, Rounded off u/s 288B 17,97, Cost of acquisition in case of assets received as gift Section 49(4) (applicable w.e.f ) If any individual or HUF has received gift in kind and it was taxable under section 56, in such cases, at the time of sale, cost of acquisition of such asset shall be the value which has been taken into consideration for the purpose of computing taxable amount of gift. Example Mr. X purchased one house property on for 2,00,000 and it was gifted to Mr. Y on and value for the purpose of charging stamp duty was 5,00,000 and subsequently the house property was sold by Mr. Y on for 25,00,000, in this case tax liability of Mr. Y shall be computed in the manner given below: Income under the head capital gain Full value of consideration 25,00, Less: Indexed Cost of acquisition 5,00,000 x 17-18/11-12 (7,39,130.43) (5,00,000 x 272/184) Long term capital gain 17,60, Gross Total Income 17,60, Total Income 17,60, Rounded off u/s 288A 17,60,870.00
2 2 Tax on 15,10,870 20% u/s 112 3,02, Add: 2% 6, Add: 1% 3, Tax Liability 3,11, Rounded off u/s 288B 3,11, Illustration 18: Mr. X purchased one house on for 2,00,000 and incurred 5,00,000 on its improvement in F.Y and Mr. X gifted the house on to his friend Mr. Y when its value for the purpose of charging stamp duty was 10,00,000. Mr. Y sold the house on for 42,00,000. Compute his tax liability. Computation of Capital Gains Full value of consideration 42,00, = 10,00,000 / 200 x 272 = 13,60, (13,60,000.00) Long Term Capital Gain 28,40, Income under the head Capital Gain 28,40, Gross Total Income 28,40, Total Income 28,40, {Since normal income is nil, as per section 112 deficiency of 2,50,000 shall be allowed from long term capital gain and balance income shall be taxed at flat rate of 20%} Tax on 25,90,000 (28,40,000 20% u/s 112 5,18, Add: 2% 10, Add: 1% 5, Tax Liability 5,33, (b) Presume Mr. Y is son of Mr. X. Computation of Capital Gains Full value of consideration 42,00, = 2,00,000 / 105 x 272 = 5,18, (5,18,095.24) Less: Indexed cost of improvement = 5,00,000 / 148 x 272 = 9,18, (9,18,918.92) Long Term Capital Gain 27,62, Income under the head Capital Gain 27,62, Gross Total Income 27,62, Total Income (Rounded off u/s 288A) 27,62, {Since normal income is nil, as per section 112 deficiency of 2,50,000 shall be allowed from long term capital gain and balance income shall be taxed at flat rate of 20%} Tax on 25,12,990 (27,62,990 20% 5,02, Add: 2% 10, Add: 1% 5, Tax Liability 5,17, Rounded off u/s 288B 5,17, Question 20: Explain Reverse Mortgage. Answer: As per section 47, reverse mortgage shall not be considered to be transfer for the purpose of capital gain. Under reverse mortgage, an individual can mortgage his house property to the bank and the bank shall grant a loan against the security of house property and such loan shall be given in monthly/quarterly installments
3 3 CORRECTION IN INCOME TAX VOLUME 2 PAGE NO. 34 capital gains, its cost of acquisition shall be reduced by the amount of the exemption earlier allowed. 7. Capital gains account Scheme 1988: The amount of capital gain has to be utilised till the last date of furnishing of return of income otherwise amount should be deposited in capital gains account scheme 1988 and proof of such deposit should be enclosed with the return of income. Subsequently the amount should be withdrawn from this scheme and should be utilised for the specified purpose otherwise it will be considered to be long term capital gain of the year in which the prescribed period has expired. 8. Extension of time for acquiring new asset or depositing or investing amount of capital gain section 54H: If the asset has been acquired compulsorily by the Government, period of investment shall be determined from the date of payment instead of the date of compulsory acquisition. 9. If any person has purchased a house and has deposited some amount in capital gain account scheme for construction on the same house, In that case exemption shall be allowed even for the amount so deposited as decided in B.B. Sarkar vs Commissioner Of Income-Tax (CALCUTTA HC) Illustration 22: Mr. X purchased one residential house on for 2,00,000 and it was sold by him on for 100 lakhs and he purchased one house in for 20,00,000. He sold this house on for 22,00,000. Compute his Tax Liability for A.Y and also capital gains for various years. Full value of consideration 1,00,00, = 2,00,000 / 100 x 272 = 5,44,000 (5,44,000.00) Long Term Capital Gains 94,56, Less: Exemption u/s 54 (20,00,000.00) Long Term Capital Gains 74,56, Income under the head Capital Gain (LTCG) 74,56, Gross Total Income 74,56, Total Income 74,56, {Since normal income is nil, as per section 112 deficiency of 2,50,000 shall be allowed from long term capital gain and balance income shall be taxed at flat rate of 20%} Tax on 72,06,000 (74,56,000 20% 14,41, Add: 10% 1,44, Tax Before Education cess 15,85, Add: 2% 31, Add: 1% 15, Tax Liability 16,32, Rounded off u/s 288B 16,32, Computation of Capital Gain for the assessment year Capital gain on sale of House Full value of consideration 22,00, Less: Cost of acquisition (20,00,000 20,00,000) () Short Term Capital Gain 22,00, Illustration 23: Mr. X purchased one residential house on for 5,00,000. This house was acquired compulsorily by the Government on and compensation of 50,00,000 was fixed by the government but the amount was paid by the Government on The assessee has purchased one residential house on for 2,00,000 and the house was sold by him on for 4,00,000. Compute his tax liability for the assessment year and also capital gains for the various years. Computation of capital gains under section 45(5) Capital gain shall be computed in the year in which the asset was acquired i.e. in the previous year and shall be taxed in the year in which the first payment has been received i.e. in the previous year Full value of consideration 50,00,000.00
4 4 CORRECTION IN INCOME TAX VOLUME 2 PAGE NO. 75 As per section 50C, FVC shall be taken to be 22,00,000 for land and 13,00,000 for the building and capital gains shall be computed separately for land and building. In the given problem, land has been held for a period exceeding 24 months and building for a period less than 24 months. Therefore, land is a long-term capital asset, whereas building is a short-term capital asset. Computation of Capital Gains chargeable to tax Long term capital gain on sale of land Consideration received or accruing as a result of transfer of land 5,19,000 /122 x 272 Long-term capital gain (A) Short-term capital loss on sale of building Consideration received or accruing from transfer of building Less: Cost of construction Short term capital loss (B) 22,00,000 (11,57,114.75) 10,42, ,00,000 (14,00,000) (1,00,000) Long-term capital gain (A-B) 9,42, Question 6(a). (5 Marks) Compute the total income of Mr. X for the assessment year from the following particulars: () Income from business before adjusting the following items: 1,75,000 (a) Business loss brought forward from assessment year ,000 (b) Current depreciation 40,000 (c) Unabsorbed depreciation of earlier year 1,55,000 Income from house property (Gross annual value) 4,32,000 Municipal taxes paid 32,000 Mr. X sold a plot at Noida on 12 th Sep., 2017 for a consideration of 6,40,000, which had been purchased by him on 20 th Dec., 2015 at a cost of 4,10,000. Long-term capital loss on sale of shares sold through recognized stock exchange (STT paid) (75,000) Long-term capital gain on sale of land 60,000 Dividend from domestic company on shares held as stock in trade 22,000 Dividend from a domestic company carrying on agricultural business 10,000 During the previous year , Mr. X has repaid 1,67,000 towards housing loan from a scheduled bank. Out of 1,67,000, 97,000 was towards payment of interest and rest towards principal payments. Cost inflation indices are as under: Financial Year Index Computation of total income of Mr. X for the A.Y I. Income from house property Gross Annual Value Less: Municipal taxes paid Net Annual Value (NAV) Less: Deductions under section 24 (a) 30% of NAV u/s 24(a) (b) Interest on housing loan u/s 24(b) Income under the head House Property II. Income from business Income from business Less : Current year depreciation under section 32 4,32,000 (32,000) 4,00,000 (1,20,000) (97,000) 1,83,000 1,75,000 (40,000) 1,35,000
5 5 CORRECTION IN INCOME TAX VOLUME 2 PAGE NO. 153 Problem 20. Following is the profit & Loss account of Mr. A, a dealer in shares and securities for the year ended on 31 st March, 2018: (Debits) (Credits) To Trading Expenses 103,60,000 By Sales 113,54,000 To Administrative Expenses 1,15,000 By Interest on fixed deposit with bank 18,500 To Financial Expenses 50,265 By Dividend from Indian company 66,360 To Demat and Delivery charges 5,350 By Interest on GST refund 330 (Assessment Year ) To Securities Transaction Tax 6,500 To Net profit before depreciation 9,02, ,39, ,39,190 Compute Total Income and Tax Liability of Mr. A for Assessment Year Answer = Total Income: 8,35,720; Tax Liability: 82,030 Problem 21. Mr. X is engaged in the business of plying goods carriages. On 1 st April, 2017, he owns 10 trucks (out of which 6 are heavy goods vehicles). On 2 nd May, 2017, he sold two of the heavy goods vehicle and purchased two light goods vehicles on 6 th May, Those new vehicles could however be put to use only on 15 th June, Compute the Total Income and Tax Liability of Mr. X for the Assessment Year , taking note of the following data in two situations i.e. presumptive basis and normal basis. Freight charges collected 9,90,000 Less: operational expenses 5,25,000 Depreciation as per sec 32 1,85,000 Other office expenses 15,000 (7,25,000) Net Profit 2,65,000 Other business and non-business income 1,00,000 Answer = Presumptive Basis: Total Income: 10,15,000; Tax Liability: 1,20,510 Non-presumptive Basis: Total Income: 3,65,000; Tax Liability: 5,920 Problem 22. Profit and loss account of Mr. A for the previous year is asunder: (Debits) (Credits) Salaries & Wages 6,00,000 Gross Profit 14,50,000 Advertisement 1,00,000 Long term capital gains 4,00,000 Travelling Expenses 2,00,000 Recovery of bad debts (earlier it was 50,000 allowed) Depreciation on business assets 50,000 Donation to an approved institution for 70,000 rural development eligible project Interest paid 2,30,000 General Expenses 3,50,000 Net Profit 3,00,000 19,00,000 19,00,000 Additional informations: (i) Salaries and wages include the sum of 1,60,000 paid to Mr. A (ii) Payment of interest includes:
6 6 REVISED SOLUTION OF ILLUSTRATION 15 INCOME TAX VOLUME 2 PAGE NO. 228 Illustration 15: Mr. X is retired from ABC Ltd. on after serving the employer for 20 years and 10 months. The employer has paid him leave salary of 5,00,000. The employee was entitled for 2 month leave per year of service. During entire service, he has availed 6 month leave and has encashed 7 month leave. The employee was getting basic pay 27,000 p.m. but it was increased to 33,000 p.m. w.e.f He was getting DA 9,000 per month but it was increased to 12,000 per month w.e.f % of DA forms part of salary. Compute his Tax Liability for the Assessment Year Basic Pay [(27,000 x 3)+(33,000 x 4)+(33,000 /30 x 10)] 2,24, DA [(9,000 x 3)+(12,000 x 4)+(12,000 /30 x 10)] 79, Leave Salary {Sec 10(10AA)} 2,56, Working Note: Least of the following is exempt: 1. 5,00, x 34,750 = 3,47, ,00, x 34,750 = 2,43,250 Received = 5,00,000 Exempt = (2,43,250) Taxable = 2,56,750 Computation of leave at the credit Leave Entitlement = 1 month x 20 = 20 month Less: Leave availed = (6) month Less: Leave Encashed = (7 ) month Leave at the credit = 7 month Calculation of average salary to Basic Pay [(27000/30 x 20) + (27,000 x 5) + (33,000 x 4)+ (33,000/30x10)] = 2,96,000 Dearness Allowance [(4,500/30 x 20) + (4,500 x 5) + (6,000 x 4)+ (6,000/30x10)] = 51,500 Total 3,47,500 Average Salary = 3,47,500/10 = 34,750 Gross Salary 5,59, Income under the head salary 5,59, Gross Total Income 5,59, Total Income 5,59, Tax on 5,59,750 at slab rate 24, Add: 2% Add: 1% Tax Liability 25, Rounded off u/s 288B 25,180.00
MOCK TEST SOLUTION A.Y Total No. of Question 7] [Total No. of Printed Pages 20 Time Allowed 3 Hours Maximum Marks 100 MKG
MOCK TEST SOLUTION IPC (Intermediate) (Computation of Total Income And Tax Liability, Taxability of Gift, Advance Payment of Tax, Residential Status & Scope of Total Income, House Property, Agricultural
More informationMTP_ Inter _Syllabus 2016_ June 2017_Set 1 Paper 7 Direct Taxation
Paper 7 Direct Taxation Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7 Direct Taxation Time Allowed: 3 Hours Full Marks: 100
More information2 (a) Municipal taxes paid by Mr. Hari `4,200 per annum (b) House insurance `1,000 (iii) He earned `1,00,000 in share speculation business and lost `1
NEW COURSE INCOME TAX PAPER SECTION-A Marks: 60 Question No. 1 is compulsory. Candidates are also required to answer any Five questions from the remaining Six questions. In case, any candidate answers
More informationMarking Scheme. Session TAXATION (782) CLASS XII. Total marks: 100 Theory: 60 Marks Practical: 40 Marks. 1 Deduction From Gross Total Income
Marking Scheme Session 2018-19 TAXATION (782) CLASS XII Total marks: 100 Theory: 60 Marks Practical: 40 Marks UNITS UNIT NAME TOTAL 1 Deduction From Gross Total Income 2 Computation Of Ta x Liability Of
More informationSUGGESTED SOLUTION INTERMEDIATE MAY 2019 EXAM. Test Code CIM 8174
SUGGESTED SOLUTION INTERMEDIATE MAY 2019 EXAM SUBJECT- DT Test Code CIM 8174 BRANCH - () (Date :) Head Office :Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel : (022) 26836666 1
More informationUNIT- 1. Computation of Total/Taxable Income And Tax liability of an Individual
UNIT- 1 Computation of Total/Taxable Income And Tax liability of an Individual Steps in computation of total income & tax liability Income-tax is a tax levied on the total income of the previous year of
More information13. PROBLEMS ON TOTAL INCOME
No.1 for CA/CWA & MEC/CEC MASTER MINDS 13. PROBLEMS ON TOTAL INCOME SOLUTIONS TO ASSIGNMENT PROBLEMS Problem No.1 Name of the Assessee: Mr. Rajesh A.Y: 2015-2016 Computation of Taxable Income : Income
More informationPaper 7 Direct Taxation
Paper 7 Direct Taxation Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7 Direct Taxation Time Allowed: 3 Hours Full Marks: 100
More informationIGP-CS Basic Concept M.Test 1 CA Vivek Gaba
IGP-CS Basic Concept M.Test 1 CA Vivek Gaba 1. Power to impose income tax on agriculture income is with a) Central government b) State government c) Partly with central government and partly with state
More informationPaper 7- Direct Taxation
Paper 7- Direct Taxation Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7- Direct Taxation Full Marks: 100 Time Allowed: 3 hours
More informationBATCH : GI 1 to GI 5
(0.5 6=3M) MITTAL COMMERCE CLASSES BATCH : GI 1 to GI 5 DATE: 18.08.2017 MAXIMUM MARKS: 100 TIMING: 3 Hours PAPER 4 : TAXATION Question No. 1 is Compulsory Answer any five questions from the remaining
More informationSOLUTIONS TO ASSIGNMENT PROBLEMS. Problem No. 1. Self study. Problem No. 2
7. CAPITAL GAINS SOLUTIONS TO ASSIGNMENT PROBLEMS Problem No. 1 Self study Problem No. 2 We know that capital gains arise only when we transfer a capital asset. The liability of capital gains tax in the
More informationInterim Union Budget 2019 & Important changes for AY CA. PRAMOD JAIN B. COM (H), FCA, FCS, FCMA, LL.B, MIMA, DISA, IP
Interim Union Budget 2019 & Important changes for AY 2019-20 CA. PRAMOD JAIN B. COM (H), FCA, FCS, FCMA, LL.B, MIMA, DISA, IP Shared at Nehru Place CPE Study Circle of NIRC of ICAI 7 th February 2019 INCOME
More informationQuestion 1. The Institute of Chartered Accountants of India
Question 1 PAPER 5 : TAXATION Answer all questions. Working notes should form part of the answer. Wherever necessary suitable assumptions may be made by the candidates. Answer the following with reasons
More informationComparison with other Heads of Income
Sec 45 to 55 A Comparison with other Heads of Income In the other heads of income if an assessee s income is not taxable under one head it will be taxable under other heads. Eg. Family pension paid to
More informationSuggested solutions to 3-mark and 4-mark problems contained in the Sample Paper - Exam 4: Tax Planning & Estate Planning
Suggested solutions to 3-mark and 4-mark problems contained in the Sample Paper - Exam 4: Tax Planning & Estate Planning Section II Question 6 Mrs. A whose date of birth is 30th March 1956 has a total
More information1 Basics of Income Tax Law &
1 Basics of Income Tax Law & Residential Status This Chapter Includes : Basics of Taxation; Direct Taxes & Indirect Taxes; Sources and Authority of Taxes in India; Seventh Schedule of the Constitution;
More informationFinance (No. 2) Bill 2014
Finance (No. 2) Bill 2014 Proposed Income Tax Amendments Mr. R.N. LAKHOTIA Leading Income Tax Consultant & Author The Finance Minister presented the Finance (No.2) Bill 2014 along with the Union Budget
More informationCapital Gain. seen the invisible believes the incredible and receives the imposable
Capital Gain 1. Basis of charge ( sec-45) A) There must be capital asset. B) Capital asset must have been transferred C) There must be profit or loss on such transfer D) Such capital gain should not be
More informationASSESSMENT OF AOP / BOI (Sec. 86)
ASSESSMENT OF AOP / BOI (Sec. 86) The assessment of the members of AOP or BOI depends on whether the AOP or BOI is chargeable to tax at the maximum marginal rate or at slab rate or is not chargeable to
More informationCHAPTER 1: BASIC CONCEPTS AND CALCULATION OF INCOME TAX
CHAPTER 1: BASIC CONCEPTS AND CALCULATION OF INCOME TAX (1) TAX RATES FOR INDIVIDUAL, HUF, AOP, BOI AND AJP: The slabs rates for the AY 2018-2019 i.e. PY 2017-2018 are as follows: Total Income Range Basic
More information6. PROFITS AND GAINS OF BUSINESS OR PROFESSION 2
Ph: 98851 25025/26 www.mastermindsindia.com 6. PROFITS AND GAINS OF BUSINESS OR PROFESSION 2 SOLUTIONS TO ASSIGNMENT PROBLEMS Problem No. 1 Computing business income for A.Y.2015-16 is as follows Amount
More informationINCOME TAX TEST 3 SOLUTIONS
Question 1 Computation of Total Income of Mr. Suraj Particulars Rs. Rs. Income from House Property (WN-1) Profits and gains from business or profession (WN-2) Capital gains -Short term capital loss (WN-3)
More informationCHAPTER 8: RECOVERY OF TAX TAX DEDUCTED AT SOURCE
CHAPTER 8: RECOVERY OF TAX TAX DEDUCTED AT SOURCE SECTIONS RATE PARTICULARS 192: Deduction of Tax on Slab Every Employer has a liability to deduct TDS on salary on monthly basis on tax from salary Rate
More informationINCOME UNDER THE HEAD PROFITS AND GAINS FROM BUSINESS AND PROFESSION AND IT S COMPUTATION
INCOME UNDER THE HEAD PROFITS AND GAINS FROM BUSINESS AND PROFESSION AND IT S COMPUTATION 1. NATURE OF INCOME :- Such Income Includes income from: - Business, Vocation and Profession carried on by the
More informationQuestion 1(6marks) Computation of taxable capital gains of Mr. Aakash for the A.Y (2 Marks)
IPCC November 2017 DIRECT TAXATION Test Code 8067 Branch (MULTIPLE) (Date : 23.07.2017) (50 Marks) Note: All questions are compulsory. Question 1(6marks) Computation of taxable capital gains of Mr. Aakash
More informationNav 2011 KFC. Question No.1 is compulsory. Attempt any five questions from the remaining six questions.
Roll No. """""""""""""'" Total No. of Questions - 7 Nav 2011 IPCO GROUP.} PArSB- TAXATie. Total No. of Printed Pages-11 Time Allowed - 3 Hours Maximum - 100 Answers to questions are to be given only in
More informationCapital Gain Mock Test IGP-CS CA Vivek Gaba
1. Second Proviso to Section 48 is applicable while computing a) Only on Short Term Capital Gain b) Only on Long Term Capital Gain c) Both Short Term and long Term Capital Gain d) None of the above 2.
More informationBATCH : LI 1, 2, 3, 4, 5, 6, 7 & 8
BATCH : LI 1, 2, 3, 4, 5, 6, 7 & 8 DATE: 04.10.2016 MAXIMUM MARKS: 100 TIMING: 3 Hours PAPER 4 : TAXATION Question No. 1 is Compulsory Answer any five questions from the remaining six questions. Wherever
More informationPGBP Mock Test IGP-CS CA Vivek Gaba
1. A Company purchased plant and machinery for Rs. 2 Crores for a specified business and claimed deduction under section 35AD. However the very next year the machinery purchased put to use for unspecified
More informationSuggested Answer_Syl12_June 2016_Paper_7 INTERMEDIATE EXAMINATION
INTERMEDIATE EXAMINATION (SYLLABUS 2012) SUGGESTED ANSWERS TO QUESTIONS JUNE 2016 Paper-7: DIRECT TAXATION Time Allowed: 3 Hours Full Marks: 100 The figures in the margin on the right side indicate full
More informationINCOMES WHICH DO NOT FORM PART OF TOTAL INCOME
3 INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME Question 1 Choose the correct answer with reference to the provisions of the Income-tax Act, 1961. (i) For an employee in receipt of hostel expenditure
More information2 Income under the head other sources Interest from axis bank saving account 10,000 Interest credited in recognised provident fund in excess of 9.5% 2
OLD COURSE INCOME TAX SOLUTIONS Question No.1 is compulsory. Attempt any four questions from the REST. In case, any candidate answers extra questions (s)/sub questions (s) over and above the required number,
More informationCA IPCC Taxation Nov 2014 solutions (Both Direct and Indirect taxes) CA N Rajasekhar M.Com FCA DISA (ICAI) Chennai
CA IPCC Taxation Nov 2014 solutions (Both Direct and Indirect taxes) Compiled by This questions were solved by me under examination conditions within 2 hours 40 minutes and later on typed adding solution
More informationPROBLEM NO: 1. Computation of capital gain of Mr. C for the A.Y
SOLUTIONS TO PROBLEMS FOR CLASSROOM DISCUSSION PROBLEM NO: 1 Computation of capital gain of Mr. C for the A.Y. 2017-18 7. CAPITAL GAINS Gross sale consideration 90,00,000 Less: Expenses on transfer 50,000
More informationCA Final Paper 7 Direct Tax Laws Ch13 Unit1 CA Sudhindra Kumar Jain
CA Final Paper 7 Direct Tax Laws Ch13 Unit1 CA Sudhindra Kumar Jain 2 Definition Section 2(17) In Which Public Are Substantially Interested Section 2(18) Indian Company Section 2(26) Domestic Company Section
More informationMTP_ Inter _Syllabus 2016_ June 2018_Set 1 Paper 7 Direct Taxation (DTX)
Paper 7 Direct Taxation (DTX) Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7 Direct Taxation Time Allowed: 3 Hours Full Marks:
More informationAnswer_MTP_ Inter _Syllabus 2016_ Dec 2017_Set 2 Paper 7 Direct Taxation
Paper 7 Direct Taxation Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7 Direct Taxation Time Allowed: 3 Hours Full Marks: 100
More informationTax Deduction at Source FY (AY )
Tax Deduction at Source FY 2017-18 (AY 2018-19) CA Pranjal Joshi M.com, F.C.A., DipIFR (ACCA-UK), Cert. Business Valuation (ICAI) M/s Pranjal Joshi & Co Chartered Accountants TDS introduction - Income
More informationMTP_ Intermediate _Syllabus 2012_Dec2016_Set 1 Paper 7- Direct Taxation
Paper 7- Direct Taxation Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7- Direct Taxation Full Marks : 100 Time allowed: 3 hours
More informationContents. Finance Act, Increase in standard deduction of salaried taxpayers
Contents Amendments made by Finance Act, 2019 at a Glance I-13 1 Finance Act, 2019 1.1 Highlights of amendments made to income-tax provisions 1 1.2 Relief to small taxpayers 1 1.3 Standard deductions raised
More informationComputation of total income and tax liability of Sneha for AY
Q2 (a) Computation of total income and tax liability of Sneha for AY 2011-12 Profit and Gains of Business or Profession : Rs. Rs. Net Profit as per Profit and Loss Account 3,62,250 Add : Expenses not allowed
More informationComputation of income from house property of Mr. Aakarsh for A.Y (i) Unrealised rent recovered 17,000. (ii) Arrears of rent received 28,000
IPCC November 2017 DIRECT TAXATION Test Code 80107 Branch (MULTIPLE) (Date : 17.09.2017) (50 Marks) Note: All questions are compulsory. Question 1(4 marks) Since the unrealised rent was recovered in the
More informationPaper 4A Income-tax Law (New Course)
Paper 4A Income-tax Law (New Course) 1. Mr. Karan filed his return of income for A.Y.2019-20 showing total income of Rs.7 lakhs on 1.1.2020. The fee payable by him under section 234F is (a) Nil (b) Rs.1,000
More informationMOCK TEST PAPER 2 INTERMEDIATE (IPC) GROUP I PAPER 4 : TAXATION Question 1 is compulsory. Answer any five questions from the remaining six questions.
MOCK TEST PAPER 2 INTERMEDIATE (IPC) GROUP I PAPER 4 : TAXATION Question 1 is compulsory. Answer any five questions from the remaining six questions. 1 Test Series : October, 2015 Time Allowed 3 Hours
More informationBudget Highlights
Budget Highlights 2018-19 DIRECT TAX PROPOSALS Chartered Accountants 1 st Floor, Sapphire Business Centre, Above SBI Vadaj Branch, Usmanpura, Ashram Road, Ahmedabad-380013 Email: apcca@apcca.com Website:
More information(A) received from the Government in pursuance of an agreement made by the non-resident/ foreign company with the Government, or
Section 115A - 10% on Royalty and FTS Where the total income of a foreign company or a non-resident includes any income by way of royalty or fees for technical services other than the income referred to
More informationINTERMEDIATE EXAMINATION GROUP - I (SYLLABUS 2016)
INTERMEDIATE EXAMINATION GROUP - I (SYLLABUS 2016) SUGGESTED ANSWERS TO QUESTIONS DECEMBER - 2017 Paper - 7 : DIRECT TAXATION Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on the right
More information(ALL BATCHES) DATE: MAXIMUM MARKS: 100 TIMING: 3¼Hours. PAPER 2 : Taxation
(ALL BATCHES) DATE: 02.08.2018 MAXIMUM MARKS: 100 TIMING: 3¼Hours PAPER 2 : Taxation SECTION - A Answer:1 (a) Computation of total income and tax liability of Dr. Niranjana for A.Y. 2018-19 I Income from
More informationSUPPLEMENTARY ILLUSTRATIONS PAPER - 16 DIRECT TAX LAWS AND INTERNATIONAL TAXATION
SUPPLEMENTARY ILLUSTRATIONS PAPER - 16 DIRECT TAX LAWS AND INTERNATIONAL TAXATION Illustration 1 Compute gross total income of Minakshi Ltd. under the head Profits & gains of business or profession for
More informationFINAL CA May 2018 DIRECT TAXATION
FINAL CA May 2018 DIRECT TAXATION Test Code F 90 Branch: MULTIPLE Date: (50 Marks) compulsory. Note: All questions are Question 1 (10 marks) Computation of Book Profit for levy of MAT under section 115JB
More informationIPCC Gr. I (Solution of November ) Paper - 4 : Taxation
Solved Scanner Appendix IPCC Gr. I (Solution of November - 2015) Paper - 4 : Taxation Chapter - 2 : Basic Concepts 2015 - Nov [2] (a) An Indian Citizen who comes on a visit to India during PY shall be
More informationSUGGESTED SOLUTION IPCC May 2017 EXAM. Test Code - I N J
SUGGESTED SOLUTION IPCC May 2017 EXAM DIRECT TAXATION Test Code - I N J 1 0 7 3 Head Office : Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel : (022) 26836666 1 P a g e Answer-1
More informationBudget Presented For: Klaus Vogel Group Presented By: Mr. Kuntal Dave Date: March 8, 2013
Budget 2013 Presented For: Klaus Vogel Group Presented By: Mr. Kuntal Dave Date: March 8, 2013 Index Direct Tax Proposals Implications of amendments proposed in the Finance Bill, 2013 2 Direct Tax Proposals
More informationBasics of Income Tax
CHAPTER : Basics of Income Tax CONCEPT 1: Short Title, Extent and Commencement [Section 1] a) Short title : Income Tax Act 1961 b) Extent : Whole of India c) Commencement : 1 st April, 1962 CONCEPT 2:
More informationSolved Scanner. (Solution of December ) CMA Inter Group - I (Syllabus-2012) Paper - 7 : Direct Taxation
Solved Scanner (Solution of December - 2016) CMA Inter Group - I (Syllabus-2012) Paper - 7 : Direct Taxation [Chapter - 21] Objective Questions 1. (a), (b), (c) (5 marks each) (a) (i) ` 10,000 (ii) ` 5,00,000
More informationTax Deduction and Collection at Source
(iii) Ravi Kumar aged 67 years derived ` 6,00,000 as salary from his employer, XYZ Ltd. for the year ended 31-03- 2019. The following details are provided by him to the employer: Particulars ` Loss from
More informationSuper 25 Q&A for Last Day Revision by CA BB
1. BB Ltd., an Indian company, receives the following dividend income during the P.Y. 2016-17 - (i) from shares held in BCD Inc., a Danish company, in which it holds 25% of nominal value of equity share
More informationINCOME FROM CAPITAL GAINS :
SEC.2(14) - CAPITAL ASSET : INCOME FROM CAPITAL GAINS : 1. Property of any kind whether or not connected with business or profession; 2. Investment in any securities held by a Foreign Institutional Investor
More informationBudget 2017 Synopsis Part II Analysis of Rupiya
Budget 2017 Synopsis Part II Analysis of Rupiya Facts & Findings: Out of 125 crore Indians only 15% ie 19 crore pay income tax % of Taxpayers (Out of 19 Crore) % Contribution To Tax Revenue 01% 26% 1%
More informationIssues in Taxation of Income (Non-Corporate)
Issues in Taxation of Income (Non-Corporate) By CA Mahavir Jain B.Com.; DISA; FCA Partner : JMT & Associates Email: jmtca301@gmail.com Issues in Taxation of Non-Corporate Income is a very vast subject.
More informationNet Tax (Round off) u/s 288 B Computation of Income from Profits & Gains from Business and Profession Income of Mrs.
Disclaimer Clause : These solutions are prepared by expert faculty team of Resonance. Views and answers provided may differ from that would be given by ICAI due to difference in assumptions taken in support
More informationIncome Tax Reckoner AY:
1. Rates of Income Tax Individuals having income > 5 Lacs* Individuals & Charitable Trust Senior Citizen (60 to 79) Very Senior citizen (80 and above) Rates Up to ` 2.00 Lacs Up to ` 2.50 Lacs Up to `
More informationGurukripa s Guideline Answers to May 2016 Exam Questions CA Inter (IPC) Taxation
Gurukripa s Guideline Answers to May 2016 Exam s CA Inter (IPC) Taxation No.1 is compulsory (4 5 = 20 Marks). Answer any five questions from the remaining six questions (16 5 = 80 Marks). [Internal Choice
More informationAnswer_MTP_ Inter _Syllabus 2016_ June 2018_Set 2 Paper 7 Direct Taxation (DTX)
Paper 7 Direct Taxation (DTX) Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7 Direct Taxation Time Allowed: 3 Hours Full Marks:
More informationTaxation of dividends of mutual fund schemes. Liquid funds 25.75% 28.32% Other debt funds. Equity funds Nil Nil
8 Tax Corner Tax Corner Mutual Fund What tax benefits are available to those who invest in mutual funds? Dividends declared by debt-oriented mutual funds (i.e. mutual funds with less than 65% of assets
More informationARTICLE. On Finance Bill (Budget) Proposals 2013 Income Tax Act, 1961 By CA. SATISH AGARWAL
ARTICLE On Finance Bill (Budget) Proposals 0 Income Tax Act, 96 By CA. SATISH AGARWAL Mobile : +99808957 Phone : +95769 Office : 9/4, East Patel Nagar, (Near Jaypee Sidharthe Hotel) New Delhi - 0008 :
More informationFB.COM/SUPERWHIZZ4U Income Tax Amendment for the Assessment
FB.COM/SUPERWHIZZ4U Income Tax Amendment for the Assessment Year 2014-15 - SIPOY SATISH Highlights of Change in Direct Taxes in the Union Budget 2013 1. Rate of Income Tax for Individual a) Slab Rate Assessment
More informationUnion Budget 2014 Analysis of Major Direct tax proposals
RATES OF INCOME TAX Union Budget 2014 Analysis of Major Direct tax proposals Basic exemption limit has been increased from Rs 2 lacs to Rs 2.50 lacs for resident individuals or HUF. Income slabs Income
More informationTotal turnover/ Gross receipts 30% 30% of FY > Rs 50 Cr No change in rate of Surcharge
1. Income Tax Rates: Category of Income New rate of tax Old rate Taxpayer for FY 2017-18 of tax Individuals/ Upto Rs 2.5 L Nil Nil HUF/ BOI/ Rs 2.5 to 5 L 5% 10% AOP/ Rs 5 to 10 L 20% 20% Artificial Above
More informationSyNoPSIS of the FINaNce BILL, 2017
SyNoPSIS of the FINaNce BILL, 2017 By PaRaS KocHaR, advocate The following changes in the finance bill has been proposed by the Hon ble Finance Minister to the Income Tax Act, 1961 from 01-04-2017 TAX
More information(60-79 YEARS) NIL up to 250,000 up to 300,000 up to 500,000 20% 500,001 10,00, ,001 10,00, ,001 10,00,000
Income Tax Rates (A. Y. 2019-20) For Individual/HUF : TAX RATE INDL/HUF/WOMEN SENIOR CITIZEN (60-79 YEARS) VERY SENIOR CITIZEN (80 YEARS ABOVE) NIL up to 250,000 up to 300,000 up to 500,000 5% 250,001
More informationIncomes Which Do Not Form Part of Total Income
3 Incomes Which Do Not Form Part of Total Income Section Key Points Particulars 10(1) Agricultural income is exempt under section 10(1). However, agricultural income has to be aggregated with non-agricultural
More informationSURENDER KR. SINGHAL & CO
PROPOSED TAX RATES FOR FINANCIAL YEAR 2016-17 A. Y. 2017-18 Income Tax Rates for Individuals, HUF Individuals, Hindu Undivided Families (HUF) and Artificial Jurisdictional Person: Net Income Range Income
More informationFORM NO. 2 [See rule 12(1)(b)(i) of Income-tax Rules,1962]
FORM NO. 2 [See rule 12(1)(i) of Income-tax Rules,1962] RETURN OF INCOME SARAL ITS-2 For Non-Corporate assessees not claiming exemption u/s 11 and having income from ACKNOWLEDGEMENT business or profession)
More informationInstructions for SUGAM Income Tax Return AY
Instructions for SUGAM Income Tax Return AY 2016-17 1. General Instructions These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant
More informationTax Withholding Section 195 and CA certification
Tax Withholding Section 195 and CA certification October 1, 2011 Bijal Desai Presentation Outline Non-resident payments Withholding tax Lower or NIL withholding of tax CA Certification Consequences of
More informationSAMVIT ACADEMY IPCC MOCK EXAM
Disclaimer (Read carefully) SUGGESTED ANSWERS - Group 1 Taxation (Code GST) The answers given below are prepared by the faculty of Samvit Academy as per their views and experience. The working notes, notes
More informationIMPORTANT AMENDMENTS OF THE FINANCE ACT, /6/2011 Lecture Meeting of BCAS - C.A.Vipul Gandhi
IMPORTANT AMENDMENTS OF THE FINANCE ACT,2010 22/6/2011 Lecture Meeting of BCAS - C.A.Vipul Gandhi 1 TAX RATES AND SLABS OF INCOME TAX RATES FOR INDIVIDUAL,HUF,AOP & BOI, ARTIFICIAL JUDICIAL PERSON U/S
More informationMOCK TEST I INTERMEDIATE (IPC) GROUP I PAPER 4: TAXATION SUGGESTED ANSWERS/HINTS
MOCK TEST I INTERMEDIATE (IPC) GROUP I PAPER 4: TAXATION SUGGESTED ANSWERS/HINTS Test Series: September, 2014 1. (a) Computation of taxable income and tax liability of Smt. Sudha Sharma for A.Y. 2014-15
More informationFBT. Answer all questions. Wherever required, suitable assumptions may be made by the candidate and stated clearly in the answer.
Roll No..... ; ~. Total No. of Questions-81 ltotal No. of Printed Pages-7 Time Allowed-3 Hours Maximum -100 Answers to questions are to be given only in English except in the case of candidates who have
More informationUNION BUDGET 2018 AMENDMENTS
INCOME TAX RATES UNION BUDGET 2018 AMENDMENTS FOR INDUVIDUALS, HUF, AOP AND BOI Total Income up to 2,50,000 - NIL Total Income from 2,50,000 to 5,00,000-5% Total Income from 5,00,000 to 10,00,000-20% Total
More informationALL GUJARAT FEDERATION OF TAX CONSULTANTS Seminar on 14/9/2011
ALL GUJARAT FEDERATION OF TAX CONSULTANTS Seminar on 14/9/2011 PRESUMPTIVE TAXATION U/S 44AD OF THE ACT - CA Sanjay R. Shah, Ahmedabad (1) (a) Section 44AD : Upto Assessment Year 2010-11 (1) Applicable
More informationMost Important Question of INCOME TAX
Most Important Question of INCOME TAX Residential Status 1. In 2 nd additional condition, assessee should have stayed in India for: a) more than 730 days during 7 immediately preceding previous year b)
More informationPAPER 4 : TAXATION SECTION A: INCOME TAX
PAPER 4 : TAXATION SECTION A: INCOME TAX Question No.1 is compulsory. Attempt any four from the rest. Working notes shall form part of the respective answer. All questions pertaining to income-tax relate
More informationUNION BUDGET
UNION BUDGET 2017-18 Hon ble Prime Minister Narendra Modi has shown his determination to come heavily on tax evaders. He has also shown his commitment to eliminate high value cash transactions from the
More informationSubject: (305 FIN) Direct Taxation
Subject: (305 FIN) Direct Taxation 1. Explain the following terms under the Income Tax Act, 1961. a) Assessment Year. b) Person. c) Assessee. d) Previous year e) Gross Total Income f) Agriculture Income
More informationGuideline Answers for Taxation IPCC
Guideline Answers for Taxation IPCC 31.03.2016 Question 1: 10 Marks Rajat is a Chartered Accountant in practice, he maintains accounts on cash basis. He is a Resident and Ordinarily Resident in India.
More informationCHANGES IN ITR FORMS FOR A.Y Presented by: CA. Sanjay K. Agarwal
CHANGES IN ITR FORMS FOR A.Y. 2018-19 1 Presented by: CA. Sanjay K. Agarwal Email: agarwal.s.ca@gmail.com TYPES OF INCOME TAX FORMS: FORM(s) ITR 1 ITR 2 ITR 3 ITR 4 PARTICULAR For individuals being a resident
More informationPaper 7 Direct Tax Laws (Old Course)
Paper 7 Direct Tax Laws (Old Course) 1. Air India Ltd. has paid amount of Rs.20 lakhs during the year ended 31.3.2019 to Airports Authority of India towards landing and parking charges. (a) No tax is deductible
More information(v) Status of limited liability partnership (LLP) is just like as the status of a Partnership Firm and tax rate is 30% + 2% Education Cess +1% SHEC.
Solved Answer Tax CA Pcc May. 2010 1 Qn 1. Answer the following with reasons having regard to the Provisions of the Income tax Act, 1961 for the Assessment Year 2010-11 : [ 5 x 2 = 10 marks ] (i) State
More information1
TAX & LEGAL & GENERAL INFORMATION A. Taxation on investing in Mutual Funds As per the taxation laws in force as at the date of this Scheme Information Document and the enactment of Finance Bill 2008,,the
More informationPROPOSED AMENDMENTS FOR INCOME TAX IN FINANCE BILL, 2018 - By PARAS KOCHAR, Advocate NO CHANGE IN PERSONAL INCOME TAX. Education Cess and Secondary and Higher Education Cess shall be discontinued and a
More informationTax Planning/Tax Management/Tax Evasion
Model Test Paper - 1 CA Final Group- II Paper - 7 Direct Tax Laws May - 2017 1. (a) Specify with reason, whether the following acts can be considered as (I) tax planning or (ii) tax management or (iii)
More informationSUGGESTED SOLUTION CA FINAL MAY 2017 EXAM
SUGGESTED SOLUTION CA FINAL MAY 2017 EXAM DIRECT TAX LAWS Test Code - F M J 4 0 1 3 Head Office : Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel : (022) 26836666 1 P a g e Answer-1
More informationSet Off and Carry Forward of Losses
10 Set Off and Carry Forward of Losses Question 1 X carrying on a business as sole proprietor, died on 31 st March, 2014. On his death, the same business was continued by his legal heirs, by forming a
More informationCS Professional Programme Solution June Paper - 6 Module-III Advanced Tax Laws and Practice Part-A
CS Professional Programme Solution June - 2013 Paper - 6 Module-III Advanced Tax Laws and Practice Part-A Answer: 2013 - June [1] (a) (i) Ch-14 The statement is True. As per Section 115 BBD, dividend from
More informationIncome-tax and Death are the only two inevitable things in life In India, taxes were levied even in ancient times refer to Manu Smriti & Arthashastra
Income-tax and Death are the only two inevitable things in life In India, taxes were levied even in ancient times refer to Manu Smriti & Arthashastra Why to Pay Tax? It was only for the good of his subjects
More informationSuggested Answer_Syl2008_Jun2014_Paper_7 INTERMEDIATE EXAMINATION GROUP I (SYLLABUS 2008)
INTERMEDIATE EXAMINATION GROUP I (SYLLABUS 2008) SUGGESTED ANSWERS TO QUESTIONS JUNE 2014 Paper-7: APPLIED DIRECT TAXATION Time Allowed : 3 Hours Full Marks : 100 Wherever required, the candidate may make
More informationMTP_ Inter _Syllabus 2016_ June 2018_Set 2 Paper 7 Direct Taxation (DTX)
Paper 7 Direct Taxation (DTX) Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 7 Direct Taxation Time Allowed: 3 Hours Full Marks:
More information