Q.1 A State whether True or False (ANY 8) Ans. 1 Unabsorbed Speculative loss can be carried forward upto 8 A.Y. FALSE 2 Loss relating to long term capital asset is to be set off against short term capital gains. FALSE 3 Belated Return can be submitted at any time before expiry of one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier. 4 Revised return can be filed before the expiry of one year from the end of the relevant A.Y. or before the completion of assessment whichever is earlier. TRUE TRUE 5 Advance tax is payable if the tax liability is ` 5,000 or more. FALSE 6 In case of Firm having Audit under Income tax due date of filling return of income is 30th September, 2016 for P.Y. 15-16. 7 In case of Firm having Audit under Income tax due date of filling return of income for a Non-working partner is 30th September, 2016 for P.Y. 15-16. TRUE TRUE 8 Basic Exemption for a Non Resident Individual age 85 years is ` 2,50,000. TRUE 9 Tax rate on Long term capital gain on sale of shares on which STT is paid is 20%. FALSE 10 Rebate u/s 87 A is ` 5,000. TRUE B Match the following. A B 1. 234A a. 10% 2. Section 194 H b. Return furnished after due date 3. 234C c. Interest due to late filling of return 4. TDS on Rent of Land & Building d. Interest due to Shortfall of Advance Tax 5. Belated Return e. No TDS 6. Section 194 I f. TDS on Commission 7. Interest on Capital to partner g. TDS on Rent h. 2% Ans 1-c, 2-f, 3-d, 4-a, 5-b, 6-g, 7-e.
Q.2 Name of the Assessee:- M/s. Sunny Industries P.A. No.:-? Legal Status:- Partnership firm P.Y.:- 2016-17 residential Status:-R & OR A.Y.:- 2017-18 1 Claculation of Book Profit Particulars Rs. Rs. Rs. Add: Less: Net Profit for the year 115,000 Disallowed expenses Salary to partner X 120,000 Y 80,000 200,000 Interest on Y's Loan exceeding 12% (60000/20*8) 24,000 P.F Contribution disallowed u/s 43B 7,000 Cash Purchases disallowed u/s 40A 25,000 256,000 Exempt/Non-Business Income Dividend form UTI (13,000) Book Profit 358,000 2 Calculation of Allowable Deduction u/s 40(b) Particulars Rs. Rs. Book Profit Upto 3,00,000 x 90% 270,000 or 1,50,000 Whichever is higher 150,000 270,000 Balance 58,000 x 60% 34,800 Allowable Deduction 304,800 In the absence of Information,It is Assumed that Depreciation Rs. 20,000/- is Allowable under section 32 of Income Tax Act. It is assumed that rent paid to partner Y is reasonable 3 Computation of Income from Firm: Particulars Rs. Rs. Book Profit 358,000 Less: Deduction u/s 40(b) Remuneration Paid to Working Partner x 120,000 y 80,000 200,000 Or Maximum Allowable Deduction 304,800 (200,000) ( Whichever is Lower) Income from Business/Profession 158,000
Q.2 Name of the Assessee:- ABC & Co P.A. No.:-? Legal Status:- Partnership firm P.Y.:- 2016-17 residential Status:-R & OR A.Y.:- 2017-18 1 Claculation of Book Profit Particulars Rs. Rs. Net Profit as per P/L 70,000 Expenses debited ut not allowed on deduction Depreciation as per A/cs 250,000 Remuneration to Partners A 192,000 B 96,000 C 180,000 Interest exceeding 12% A 5,000 B 6,000 C 16,000 Other expense not allowed 65,000 810,000 880,000 Less: Income not taxed u/s FBP Long term Capital Gain (300,000) Short term Capital Gain u/s 111A (55,000) Other STCG (65,000) Interest on FD (50,000) Less: Depreciation as per 9 T (95,000) (565,000) Book Profit 315,000 Statement of Income of Partners Particulars A B C Remuneration of Patners allowed to firm (In the ratio of Remuneration) A = 2,79,000/4,68,000*1,92,000 114,462 B = 2,79,000/4,68,000*96,000 57,231 C = 2,79,000/4,68,000*1,80,000 107,308 Interest on Capital allowed to firm 12,000 24,000 24,000 126,462 81,231 131,308
Computation of Income from Firm: Particulars Rs. Rs. Book Profit 315,000 (-) Remuneration Paid to Working Partner A 192,000 B 96,000 C 180,000 A 468,000 Maximum Allowed 3,00,000*90% 270,000 1,50,000*60% 9,000 B 279,000 Loses of A & B (279,000) Income from Business/Profession 36,000 Computation of Total Income of Firm Particulars ` ` (I) Income from Business / Profession 36,000 (-) B/f Business Loss (30,000) 6,000 (III) Income From Capital Gain LTCG 300,000 (-) B/f Long term loss (15,000) 285,000 Short term Capital gain u/s 111A 55,000 Other Short Term Capital Gain 65,000 120,000 Income From Other Source (FD Int.) 50,000 Gross Total Income 461,000 (6,050) Net Total Income 454,950
Q.4 Name of the Assessee:- Ak & SK P.A. No.:-? Legal Status:- Individual P.Y.:- 2016-17 residential Status:- R & OR A.Y.:- 2017-18 A B AK Statement of Capital Gains Rs. Rs. Long term Capital Gain /Loss Shares 1,500,000 land (600,000) 900,000 Short term Capital Gain/loss Machinery and plant 920,000 Jewellary (1,250,000) (330,000) IFCG 570,000 SK A Rs. Long Term Building (2,000,000) Tenancy Right 800,000 To be Carry Forward (1,200,000) Rs. B Short term Bonds & Debentures 1,750,000 Goodwill (350,000) 1,400,000 1 IFCG 1,400,000 Note: Losses to be Carry Forward Capital loss of Building of Rs.12,00,000 can be C/F for 8 Subsequen set off against long term Capital gain.
Q.4 Name of the Assessee:- ARB & AB P.A. No.:-? Legal Status:- Individual P.Y.:- 2016-17 residential Status:- R & OR A.Y.:- 2017-18 Statement of Income from Other Sources ARB RS Rs. A B C Casual Income: Winings from Card games 300,000 300,000 Income from Owning & Maintaining Race Hourses : Loss at Kanpur (400,000) Profit at Mumbai 250,000 to be Carry Forward (150,000) Other Income /Loss: Interest on Securities 200,000 Loss from Letting out P/M (250,000) Not to be Carry Forward (50,000) ( Lapsed) IFOS 300,000 1 Loss from card game & loss from betting should be ignored, not considered 2 Loss of Rs. 1,50,000 form owning & maintaining race hourse should be 3 Loss of Rs. 50,000 in both assesses ARB & AB in other income is not carry 4 Casual Income should be taxed @ 30% as per I.T. rule, not available for set off of any loss. Statement of income From Other Sources AB Rs Rs A B C Casual Income Wining on Betting 500,000 500,000 Owning & maintaining Race Hourse Profit on Owning & maintaining Race Hourse 300,000 Other Income/Loss Loss in Leasing P/M (350,000) Not to C/Fd ( Lapsed) (50,000) IFOS 500,000
Q.3 Name of the Assessee:- Mr. Hiroda P.A. No.:-? Legal Status:- Individual P.Y.:- 2016-17 residential Status:- R & OR A.Y.:- 2017-18 A Inter Source Adjustments Rs Rs 1 Income from Salary 40,000 2 Income from House Property: House I 25,000 House II (35,000) (10,000) 3 income from Business/Profession: a Non Speculative Business I 54,000 Business II (14,000) 40,000 4 Income from Capital Gains: Long Term 30,000 5 Income from Other Source: a Interest on Debentures 1,000 Less Deduction u/s 57 Collection Charge (1,500) (500) b Lottery Winnings 8,000 B Inter Head Adjustments Rs Rs 1 Income from Salary 40,000 Less Income from House Property (10,000) Less Income from other source (500) 29,500 (Interest on Debentures) 2 Income form Business 40,000 3 Income from Capital gain 30,000 (Long term) 4 Income from other source 8,000 (Lottery) C Set off brought forward losses: Rs Rs 1 income from Salary 29,500 2 Income from Business 40,000 Less brought forward loss of PY 08-09 (10,000) 30,000 3 income from Capital gain 30,000 Less brought forward loss of PY 09-10 (35,000) to be Carry forward (5,000) 4 Income from other Sources 8,000 Net taxable income 67,500 Note 1 2 loss ( Long Term) Rs.5,000 can be carry forward to Winning from lottery is Casual income is not available for set-
Q.3 Name of the Assessee: Rahul PAN:??? Legal Status: Individual Previous Year: 2016-17 Residential Status: R & OR Assessment Year: 2017-18 Step 1: Inter-source Adjustment Particulars Rs. Rs. I. Income from Salaries 400,000 II. Income from house Property: House Property I 150,000 House Property II (200,000) (50,000) III. Profits and gains of business: A. Speculative - Loss from Business I (30,000) (to be c/f to next A.Y.) B. Non-Sepculative Profit from Business I 100,000 Loss from Business II (200,000) (100,000) IV. Income from Capital gains: Short term capital Loss (120,000) Long term capital Gain 160,000 40,000 V. Income from other sources: Winning from Lucky Draw 60,000 Step 2: Inter-head Adjustment Particulars Rs. Rs. I. Income from Salaries: 400,000 Less Loss from house Property: (50,000) 350,000 II. Income from Capital gains: 40,000 Less: Income from Business & Prof. (100,000) To be c/f to next 8 A.Y. (60,000) III. Income from other sources: 60,000 Gross Total Income 410,000 Losses to be c/f to next A.Y. Particulars A.Y. No. of yrs Rs. I. Speculation business Loss 2012-13 4 30,000 II. Non Speculation business Loss 2012-13 8 60,000
Q.3 Name of the Assessee: Vaishali PAN:??? Legal Status: Individual Previous Year: 2016-17 Residential Status: R & OR Assessment Year: 2017-18 Step 1: Inter-source Adjustment Particulars Rs. Rs. I. Income from Salaries 100,000 II. Income from house Property: 300,000 III. Profits and gains of business: (150,000) IV. Income from Capital gains: Short term capital Loss 10,000 Long term capital Loss Debenture (50,000) Gold (14,000) To be c/f to next 8 A.Y.s (64,000) Step 2: Inter-head Adjustment Particulars Rs. Rs. I. Income from Salaries: 100,000 II. Income from House Property 300,000 Less: Loss fom Business (150,000) 150,000 III. Income from Capital gains: 10,000 Step 3: Set off of b/f Losses Particulars Rs. Rs. I. Income from Salaries: 100,000 II. Income from House Property 150,000 Less: Loss fom House property (150,000) - III. Income from Capital gains: 10,000 Gross Total Income 110,000 Losses to be c/f to next A.Y. Particulars Rs. I. Long Term Capital Loss 64,000 for next 8 A.Y.s II. Non Speculation business Loss 40,000 if 8 yrs are not over
Q.4 Name of the Assessee: Ashok PAN:??? Legal Status: Individual Previous Year: 2016-17 Residential Status: R & OR Assessment Year: 2017-18 Computation of Total Income Particulars Rs. Rs. I. Income from Salaries 540,000 II. Income from house Property: 280,000 III. Income from Other Sources: Winning from Lotteries 300,000 Winning from Horse races 150,000 Bank interest 40,000 Dividned from Foreign Company 120,000 610,000 Gross Total Income 1,430,000 Less:- Deduction u/s 80 80C: Contribution to Provident Fund (50,000) (50,000) Net Taxable Income 1,380,000 Computation of Tax Liability 13,80,000 Casual Income Other Income (3,00,000 + 1,50,000) 9,30,000 4,50,000 @ 30% 250,000 250,000 430,000 0% 10% 20% Rs. 1,35,000 nil 25,000 86,000 Particulars Rs. Tax Computed (1,35,000 + 25,000 + 86,000) 246,000 Add: 3% education cess 7,380 Tax liability 253,380 Less:- Tax deducted at source Salary (14,000) House Property (22,500) Lottery winning (90,000) Horse races (45,000) Bank Interest (4,000) (175,500) Net tax liability 77,880
On before Cumulative Cumulative Instalment % tax 15/06/2016 15% 11,682 11,682 15/09/2014 45% 35,046 23,364 15/12/2014 75% 58,410 35,046 15/03/2015 100% 77,880 42,834 Note: Dividend from Indian Company is exempt from taxation u/s 10 (32)
Q.4 Name of the Assessee:-Mrs. X P.A. No.:-? Legal Status:- Individual P.Y.:- 2016-17 residential Status:-R & OR A.Y.:- 2017-18 Computation of Total Income Particulars X A B (I) Income from Business / Profession 340,000 60,000 70,000 (II) Income From Other Sources Interest on Company deposit of A 30,000 Less: Deduction u/s 10(32) (1,500) 28,500 Interest on Company deposit of B 10,000 Less: Deduction u/s 10(32) (1,500) 8,500 Gift received by A - X's Freind 60,000 Gross Total Income 474,000 60,000 70,000 Gift received from Grandfather and Gift received from Relative will be exempt.
Q.4 or A Name of the Assessee:-Mr.X (29 Years) P.A. No.:-? Legal Status:- Individual P.Y.:- 2016-17 residential Status:-R & OR A.Y.:- 2017-18 Computation of Income Particulars ` ` (I) Income from Business / Profession 180,000 (II) Income from Capital Gain (Long Term) 46,000 (III) Income From Other Sources Bank Interest 26,000 Other Income 10,000 36,000 Gross Total Income 262,000 Particulars Income Rate Tax LTCG 46,000 20% 9,200 Basic 200,000 0% - Slab 1 16,000 10% 1,600 Balance 20% - Total Tax Payable 10,800 Add: 3% Educationcess 324 Total 11,124 Less TDS (42,000) Refund Due Name of the Assessee:-B&Co.Firm and A Ltd P.A. No.:-? Legal Status:- Firm & Co. P.Y.:- 2016-17 residential Status:-R & OR A.Y.:- 2017-18 Computation of Income Particulars ` ` (I) Income from Business / Profession 180,000 (II) Income from Capital Gain (Long Term) 163,000 (III) Income From Other Sources Bank Interest 120,000 Other Income 110,000 230,000 Gross Total Income 573,000 Particulars Income Rate Tax LTCG 163,000 20% 32,600 Balance 410,000 30% 123,000 Total Tax Payable 155,600 Add: 3% Educationcess 4,668 Total 160,268 Less : TDS (42,000) Balance Tax Payable 118,268 Round off 118,270
Calculation Of Advance Tax payable Mr. X B & Co Firm & A LTD Particulars Tax --> Nil Total Tax 118,270 Cum % Cum Rs. Cum % Cum Rs. On or before 15/6/12 15 Nil 15% 17,741 17,741 On or before 15/8/12 45% - 45% 53,222 35,481 On or before 15/12/12 75% - 75% 88,703 35,481 On or before 15/3/13 100% - 100% 118,270 29,568
1 Q.4 or B Aakash an individual made gross turnover in the last year Rs. 90,00,000 which is more than limit of Rs. 60,00,000 therefor He is liable to liable to deduct Tax Deducted at Source (TDS) for payment made in this year. Payment of Rs. 12,500 is made to Economic Times for Advertisement which is less than Rs. 20,000 So No TDS should be deducted. 2 Nitin Ltd. is a private company so it is liable to deduct TDS @ 10% for any sum of money paid exceeding Rs. 30,000 & agrregate of Rs. 75,000. TDS will be 10% of 1.5 crore 3 Tejal a Ltd. company so it is liable to deduct TDS @ 10% for any sum of money paid exceeding Rs. 30,000 & agregate of year exceeding Rs. 75,000. In given case, Rs. 9,000 is paid to Lemon Parcel services which is less 30,000, so no TDS deduction Rs. 5,00,000 paid to Indian Railways i.e. (government) is not liable to deduct TDS as the receipt is government & its organisation. 4 Parth Pvt. Ltd. has entered into the contract with SNCC Ltd. for supply of material Rs. 30,00,000. Supply of material is not work contract. 5 Mrs.Seema has turnover of last year Rs. 45 lacs which exceeds the loastic limit of Rs. 40 lacs. Mrs. Seema paid Rs. 5 lacs to a contractor during last quarters of 31/3/2012. Therefore TDS is deducted @ 1% therefore She should deduct TDS (5 lacs * 1%) i.e. TDS = Rs. 5,000/-
Q.5 A Name of the Assessee:-Mr.R P.A. No.:-? Legal Status:- Individual P.Y.:- 2015-16 residential Status:-R & OR A.Y.:- 2016-17 Computation of Income Particulars ` ` (I) Income from Business / Profession - Income from Profession 300,000 - Share of Income from partnership is country X 200,000 500,000 (II) Income From Other Sources Commission from X Country 40,000 Interest on sheduled banks 20,000 60,000 Gross Total Income 560,000 Computation of Tax liability Particulars Tax Scab Tax Rate Income Tax 0-2,50,000 0% 250,000-2,50,000-5,00,000 10% 250,000 25,000 5,00,000-10,00,000 20% 60,000 12,000 Total 560,000 37,000 Add: Education cess @ 3% 1,110 Gross Tax Liability 38,110 Computation of releif u/s 91 Average Rate of tax A) In India = 38,110/5,60,000*100 B) Foreign Country = 25,000/2,00,000*100 6.81 % 12.50 - Country Y 20% Less: Releif u/s 91 Country X :- 2,00,000*6.81% (13,620) Country Y :- 40,000*6.81% (2,724) Net Tax Liability 21,766
Q.5 B Name of the Assessee:-Mrs. Rinku P.A. No.:-? Legal Status:- Individual P.Y.:- 2016-17 residential Status:-R & OR A.Y.:- 2017-18 Statement of Total Income Particulars ` (I) Business Income 220,000 (II) Income from Capital Gains - Long term (LTCG) 200,000 - Short term (STCG) 30,000 (III) Income From Other Sources Winning from TV Show 20,000 (IV)Gross Total Income 470,000 (V) Less:- Deduction u/s 80 (60,000) (VI) Net Taxable Income 410,000 Computation of Tax Liability Mrs. Rinku (62years) 1. 41,000 + 4,000 = 45,000 LTCG Casual Income Other Income 2,00,000 20,000 2,30,000 2,00,000-70,000 30% exmept = 1,30,000 (basic exemption @ 20% Rs. 3,00,000) = Rs. 26,000 6,000 2. Basic exemption + Agriculture Income = 3,00,000 + 40,000 = 3,40,000 3,40,000 3,00,000 40,000 0% 10% Nil 4,000 3. Net Tax Liabilty = 32,000-4,000 = 28,000 4. Add: education cess 3% = 840 Tax Payable = 28,840 Thus, the net tax payable by Mrs. Rinku is Rs. 28,840
Q.5 C Tax on Business Income Particulars Rs. Business Income 8,000,000 Tax @ 30% 2,400,000 Add: 3% education cess 72,000 Tax liability 2,472,000 Tax on long term capital gains (1/12/16) Particulars Rs. Long term Capital Gain 2,000,000 Tax @ 20% 400,000 Add: 3% education cess 12,000 Tax liability 412,000 1 Interest u/s 234A for date filling of return:- Total tax payable = Rs. 28,84,000 Tax paid = Rs. 27,75,000 Shortfall = Rs. 1,09,000 Due date of filling return: 30th September Date of actual filling :- 31st December Delay is filling = 3 months Interest = 1,09,000*1%*3 3,270 2 Interest u/s 234B Total tax payable = Rs. 28,84,000 Tax paid = Rs. 27,75,000 Shortfall = Rs. 1,09,000 10% of tax payable = Rs. 2,88,400/- Since shortfall < 10% of tax payable, interest is not payable u/s 234B
Interest u/s 234C On before Cumulative Cumulative Tax Payable Cumm Tax % Normal LTCG Total Paid 15/06/2016 15% 370,800 370,800-15/09/2016 45% 1,112,400 1,112,400 700,000 15/12/2016 75% 1,854,000 309,000 2,163,000 1,475,000 15/03/2017 100% 2,472,000 412,000 2,884,000 2,775,000 Total Interest
shortfall Interest 1% per month 370,800 11,124 412,400 12,372 688,000 20,640 109,000 1,090 45,226