Q1Income computation from multiple sources - clinic business,
15 marks very hard
Mr. Ayush, a resident individual, aged 62 years, is a qualified medical practitioner running his own clinic. His Income & Expenditure A/c for the year ending 31.3.2026 shows: Income from consultation fees ₹74,28,000, salary from True Care Hospitals ₹10,80,000, rental income from house property ₹2,40,000, dividend from foreign companies (gross) ₹60,000. Expenditure includes staff salary ₹7,20,000, administrative expenses ₹11,64,000, rent of clinic ₹5,76,000, conveyance ₹1,44,000, power & fuel ₹1,44,000, interest on housing loan ₹2,20,000, interest on education loan for son ₹1,56,000, amount paid to scientific research association ₹1,50,000. For part-time employment with True Care Hospitals: Basic pay ₹85,000 p.m., transport allowance ₹5,000 p.m. During the year, his son had medical treatment at the hospital free of cost, which would have cost ₹1,60,000 for unrelated patients. House reconstruction started 01.04.2025, completed 30.09.2025. Ground floor self-occupied by him, first floor rented out since 1.10.2025 at ₹40,000 p.m. plus ₹3,000 p.m. power back-up charges. Housing loan of ₹25 lakhs taken on 01.04.2025. Interest: ₹1,20,000 (01.04-30.09.2025) and ₹1,00,000 (01.10-31.03.2026). Municipal taxes paid: ₹5,000 for F.Y. 2024-25 and ₹5,000 for F.Y. 2025-26. Conveyance includes ₹48,000 for travel between house and hospital for employment. Power & fuel includes ₹10,000 for tenant's power back-up. Administrative expenses include ₹10,000 municipal taxes for house. Clinic equipment: Opening WDV ₹5,00,000, fresh purchase 28-08-2025 ₹75,000 paid in cash. Grand-daughter tuition fee ₹40,000 debited to capital account. Loan of ₹25,00,000 from bank for son's higher education; repaid principal ₹3,00,000 and interest ₹1,56,000 during P.Y. 2025-26. You are required to compute the total income for A.Y. 2026-27 under both the regimes.
Q1(a)Input tax credit, GST liability, CGST, SGST, IGST computatio
10 marks hard
Varnika Pvt. Ltd., a registered supplier of goods and services at Kolkata has furnished the following information for the month of February: (i) Intra-State supply of taxable goods including ₹1,00,000 received as advance in January, invoice for entire sale value issued on 15th February: ₹4,00,000. (ii) Purchase of goods from a composition dealer, registered in Kolkata: ₹5,50,000. (iii) Services provided by way of labour contracts for repairing a single residential unit otherwise than as part of residential complex (Intra-State): ₹1,00,000. (iv) Membership of a club availed for employees working in the factory (Intra-State): ₹1,75,000. (v) Goods transport services received from a GTA who exercised option to pay tax @18% (Inter-State): ₹2,00,000. (vi) Inter-State services provided by way of training in sports: ₹10,000. (vii) Inter-State security services provided to Arjun higher secondary school for their annual day function organised in Galib Auditorium outside the School campus: ₹15,000. (viii) Inputs to be received in 4 lots, 2nd lot received during the month: ₹40,000. Beginning ITC: CGST ₹57,000, SGST Nil, IGST ₹50,000. Rates: CGST 9%, SGST 9%, IGST 18%. Turnover previous financial year: ₹2.5 crore. All values excluding taxes. All ITC conditions met. Compute the minimum GST payable in cash by Varnika Pvt. Ltd. for February.
Q1(b)Composition scheme eligibility and tax computation
5 marks medium
"Royal Studio", a photography firm, has commenced providing photoshoot services in Delhi from the beginning of current financial year 2025-26. It has provided the following details of turnover for the various quarters till December 2025: Q1 (April-June 2025): ₹20 lakh, Q2 (July-September 2025): ₹30 lakh, Q3 (October-December 2025): ₹40 lakh. Applicable tax rate is 18%. Royal Studio wishes to pay tax at a lower rate and opts for the composition scheme. Advise whether it can do so and calculate the amount of tax payable for each quarter.
Q1(i)Salary computation with multiple allowances and retirement b
2 marks easy
Case: Mr. Nikhil, a resident aged 42 years, is employed in an MNC in Gurugram since 2013. He submitted his resignation on 31st July, 2025 for starting his own business. He received: Basic pay ₹45,000 p.m., Dearness Allowance (forming part of retirement benefits) 10% of Basic pay, Medical allowance ₹5,000 p.m., Entertainment allowance ₹2,500 p.m., Commission ₹10,000 p.m., Employee's contribution to RPF ₹7,500 p.m., Employer's contribution to RPF same amount, Interest accrued in RPF@13% ₹14,300. In October 2025, he started manufacturing footwear business. He withdrew entire RPF amount in September 202…
What is the amount of salary chargeable under the head "Salaries" to Mr. Nikhil for A.Y. 2026-27?
(A) ₹2,71,650
(B) ₹2,99,300
(C) ₹2,96,650
(D) ₹2,84,150
Q1(i)Effective date of GST registration
2 marks easy
Case: Mr. Vyansh started interior designing practice from January. Turnover up to March was ₹12,50,000. On 30th June, turnover exceeded ₹20,00,000 and reached ₹20,05,000. Mr. Vyansh applied for GST registration (as regular taxpayer) on 15th July and registration certificate was issued on 25th July. On 16th July, he entered into a contract for designing the flat of Mr. Yuvan. The service was completed on 22nd July and invoice was issued on the same day for ₹6,00,000. On 5th July, he purchased capital goods amounting to ₹4,50,000 and from 25th July to 31st July, he availed input services amounting to …
What is the effective date of registration for Mr. Vyansh?
(A) 30th June
(B) 15th July
(C) 25th July
(D) 16th July
Q1(ii)Chapter VI-A deductions - housing loan interest
2 marks easy
Case: Mr. Nikhil, a resident aged 42 years, is employed in an MNC in Gurugram since 2013. He submitted his resignation on 31st July, 2025 for starting his own business. He received: Basic pay ₹45,000 p.m., Dearness Allowance (forming part of retirement benefits) 10% of Basic pay, Medical allowance ₹5,000 p.m., Entertainment allowance ₹2,500 p.m., Commission ₹10,000 p.m., Employee's contribution to RPF ₹7,500 p.m., Employer's contribution to RPF same amount, Interest accrued in RPF@13% ₹14,300. In October 2025, he started manufacturing footwear business. He withdrew entire RPF amount in September 202…
What is the amount of deduction available to Mr. Nikhil under Chapter VI-A for A.Y. 2026-27?
(A) ₹27,37,500
(B) ₹26,25,000
(C) ₹25,87,500
(D) Nil
Q1(ii)Deadline for issuing revised tax invoice
2 marks easy
Case: Mr. Vyansh started interior designing practice from January. Turnover up to March was ₹12,50,000. On 30th June, turnover exceeded ₹20,00,000 and reached ₹20,05,000. Mr. Vyansh applied for GST registration (as regular taxpayer) on 15th July and registration certificate was issued on 25th July. On 16th July, he entered into a contract for designing the flat of Mr. Yuvan. The service was completed on 22nd July and invoice was issued on the same day for ₹6,00,000. On 5th July, he purchased capital goods amounting to ₹4,50,000 and from 25th July to 31st July, he availed input services amounting to …
Mr. Vyansh can issue a revised tax invoice till which date?
(A) 23rd October
(B) 8th September
(C) 25th September
(D) 25th August
Q1(iii)Total income computation
2 marks easy
Case: Mr. Nikhil, a resident aged 42 years, is employed in an MNC in Gurugram since 2013. He submitted his resignation on 31st July, 2025 for starting his own business. He received: Basic pay ₹45,000 p.m., Dearness Allowance (forming part of retirement benefits) 10% of Basic pay, Medical allowance ₹5,000 p.m., Entertainment allowance ₹2,500 p.m., Commission ₹10,000 p.m., Employee's contribution to RPF ₹7,500 p.m., Employer's contribution to RPF same amount, Interest accrued in RPF@13% ₹14,300. In October 2025, he started manufacturing footwear business. He withdrew entire RPF amount in September 202…
What is the total income of Mr. Nikhil for A.Y. 2026-27?
(A) ₹25,09,150
(B) ₹27,84,150
(C) ₹24,61,800
(D) ₹25,59,150
Q1(iii)Input tax credit eligibility on capital goods and input serv
2 marks easy
Case: Mr. Vyansh started interior designing practice from January. Turnover up to March was ₹12,50,000. On 30th June, turnover exceeded ₹20,00,000 and reached ₹20,05,000. Mr. Vyansh applied for GST registration (as regular taxpayer) on 15th July and registration certificate was issued on 25th July. On 16th July, he entered into a contract for designing the flat of Mr. Yuvan. The service was completed on 22nd July and invoice was issued on the same day for ₹6,00,000. On 5th July, he purchased capital goods amounting to ₹4,50,000 and from 25th July to 31st July, he availed input services amounting to …
Eligible input tax credit that can be availed by Mr. Vyansh for the month of July is?
(A) CGST ₹40,500 & SGST ₹40,500
(B) CGST ₹15,750 & SGST ₹15,750
(C) CGST ₹56,250 & SGST ₹56,250
(D) CGST ₹36,000 & SGST ₹36,000
Q1(iv)Time of supply for services
2 marks easy
Case: Mr. Vyansh started interior designing practice from January. Turnover up to March was ₹12,50,000. On 30th June, turnover exceeded ₹20,00,000 and reached ₹20,05,000. Mr. Vyansh applied for GST registration (as regular taxpayer) on 15th July and registration certificate was issued on 25th July. On 16th July, he entered into a contract for designing the flat of Mr. Yuvan. The service was completed on 22nd July and invoice was issued on the same day for ₹6,00,000. On 5th July, he purchased capital goods amounting to ₹4,50,000 and from 25th July to 31st July, he availed input services amounting to …
The time of supply of services provided by Mr. Vyansh to Mr. Vedant is?
(A) 7th August
(B) 1st August
(C) 29th August
(D) 6th August
Q1(v)Tax liability under section 10(2A) - discounted rate
2 marks easy
Case: Mr. Vyansh started interior designing practice from January. Turnover up to March was ₹12,50,000. On 30th June, turnover exceeded ₹20,00,000 and reached ₹20,05,000. Mr. Vyansh applied for GST registration (as regular taxpayer) on 15th July and registration certificate was issued on 25th July. On 16th July, he entered into a contract for designing the flat of Mr. Yuvan. The service was completed on 22nd July and invoice was issued on the same day for ₹6,00,000. On 5th July, he purchased capital goods amounting to ₹4,50,000 and from 25th July to 31st July, he availed input services amounting to …
What will be the tax liability of July month if Mr. Vyansh is paying tax under section 10(2A) of the CGST Act, 2017?
(A) CGST Nil and SGST Nil
(B) CGST ₹54,000 & SGST ₹54,000
(C) CGST ₹18,000 & SGST ₹18,000
(D) CGST ₹78,150 & SGST ₹78,150
Q2(a)Non-resident assessment, foreign income, remittance provisio
6 marks medium
Mr. Dhruv, an Indian citizen aged 32 years, a Central Government officer serving in the Ministry of Corporate Affairs, left India for the first time on 31.03.2025 due to transfer to High Commission of UK. He did not visit India any time during the previous year 2025-26. He received the following income: Salaries for services rendered in London (computed) ₹20,00,000, Foreign Allowances ₹10,00,000, Interest on saving bank deposit in State Bank of India ₹1,00,000, Short term capital gains on sale of shares of an Indian Company received in London ₹2,00,000, Dividend from PP Ltd., an Indian company, paid in London ₹50,000, Rent from property in London deposited in a bank in London, later remitted to India through approved banking channels ₹1,80,000. Compute the Total Income of Mr. Dhruv for the Assessment Year 2026-27 under optional tax regime.
Q2(a)Input tax credit eligibility for capital goods and inputs in
5 marks medium
As per the CGST Act 2017, Prakash Limited was not mandatorily required to get registered, however it opted for voluntary registration and applied on 12th October 2025. Registration certificate granted on 24th October 2025. Not engaged in making inter-State outward taxable supplies. CGST and SGST liability for October 2025: ₹31,000 each. Prakash Limited provides information of goods held in stock on 23rd October 2025: (1) Capital goods procured on 5th October 2025 (CGST and SGST @9% each, intra-State): ₹2,00,000. (2) Input "A" contained in finished goods stock procured on 13th October 2024 (IGST @18%, inter-State): ₹3,00,000. (3) Input "B" in semi-finished goods held, received on 10th June 2025 (CGST and SGST @9% each, intra-State): ₹2,50,000. (4) Inputs "C" procured on 1st October 2025 in semi-finished goods stock (CGST and SGST @2.5% each, intra-State): ₹1,50,000. (5) Inputs "D" procured on 8th October 2025 in finished goods (IGST @18%, inter-State): ₹60,000. Amounts are exclusive of GST. Determine the eligible ITC available and amount of net minimum GST to be paid in cash for October 2025.
Q2(b)TDS and TCS applicability on rent and vehicle sales
4 marks medium
Examine the applicability of Tax Deduction at Sources (TDS) or Tax Collection at Source (TCS) as per the Income-tax Act, 1961 for the assessment year 2026-27 in the following independent situations: (i) XYZ Limited paid rent of ₹75,000+18% GST per month to Mr. Raja for the office premises from 01.04.2025 to 31.03.2026. Mr. Raja has furnished his PAN and also filed his return of income before due date regularly. (ii) ABC Pvt. Ltd sells two cars to Mrs. Shilpa costing ₹4,00,000 and ₹12,00,000 respectively on 01.05.2025 and 25.12.2025. Mrs. Shilpa has furnished her PAN and filed her return of income regularly before the due date.
Q2(b)Place of supply for goods and services
5 marks medium
Determine the place of supply in the following independent cases: (i) Mohan (New Delhi) boards the New Delhi-Kota train at New Delhi. He sells the goods taken on board by him (at New Delhi), in the train, at Jaipur during the journey. (ii) PC Industries (Mumbai, Maharashtra) gives a contract to Chugwani Ltd. (Ranchi, Jharkhand) to supply a machine which is required to be assembled in a power plant in its refinery located in Kutch, Gujarat.
Q2(i)Income of gift recipient and minors
2 marks easy
Case: Mr. Deepak gifted ₹15 lakhs to his wife, Natasha, on her birthday on 22nd January 2025. Natasha lent ₹6,00,000 out of the gifted amount to Deepika on 1st April 2025 for six months and received interest of ₹40,000. The ₹40,000 was invested in shares of a listed company on 12th November 2025, sold for ₹76,000 on 25th March 2026 with STT paid. Balance of gift was invested on 1st April 2025 as capital in Natasha's new business. She suffered loss of ₹50,000 in the business in F.Y. 2025-26. Natasha works as sales executive at ₹62,000 p.m. and paid ₹3,500 p.m. tuition fees for her daughter Dhanvi stu…
In whose hands, the interest income received from Deepika and interest on fixed deposits in the name of Dhanvi would be included?
(A) Both interest income to be included in the hands of Mr. Deepak
(B) Both interest income to be included in the hands of Mrs. Natasha
(C) Interest income from Deepika to be included in the hands of Mrs. Natasha and interest on two years term deposits to be included in the hands of Mr. Deepak
(D) Interest income from Deepika to be included in the hands of Mr. Deepak and interest on two years term deposits to be included in the hands of Mrs. Natasha
Q2(ii)Business income and capital gains of gift recipient
2 marks easy
Case: Mr. Deepak gifted ₹15 lakhs to his wife, Natasha, on her birthday on 22nd January 2025. Natasha lent ₹6,00,000 out of the gifted amount to Deepika on 1st April 2025 for six months and received interest of ₹40,000. The ₹40,000 was invested in shares of a listed company on 12th November 2025, sold for ₹76,000 on 25th March 2026 with STT paid. Balance of gift was invested on 1st April 2025 as capital in Natasha's new business. She suffered loss of ₹50,000 in the business in F.Y. 2025-26. Natasha works as sales executive at ₹62,000 p.m. and paid ₹3,500 p.m. tuition fees for her daughter Dhanvi stu…
In whose hand, loss from business and capital gains would be included in Assessment Year 2026-27? Assume that capital invested in the business was entirely out of the funds gifted by her husband.
(A) Both loss from business and capital gains would be included in the hands of Mr. Deepak
(B) Both loss from business and capital gains would be included in the hands of Mrs. Natasha
(C) Loss from business included in the hands of Mr. Deepak and capital gains included in the hands of Mrs. Natasha
(D) Loss from business included in the hands of Mrs. Natasha and capital gains included in the hands of Mr. Deepak
Q2(iii)Total income computation with salary, interest, business los
2 marks easy
Case: Mr. Deepak gifted ₹15 lakhs to his wife, Natasha, on her birthday on 22nd January 2025. Natasha lent ₹6,00,000 out of the gifted amount to Deepika on 1st April 2025 for six months and received interest of ₹40,000. The ₹40,000 was invested in shares of a listed company on 12th November 2025, sold for ₹76,000 on 25th March 2026 with STT paid. Balance of gift was invested on 1st April 2025 as capital in Natasha's new business. She suffered loss of ₹50,000 in the business in F.Y. 2025-26. Natasha works as sales executive at ₹62,000 p.m. and paid ₹3,500 p.m. tuition fees for her daughter Dhanvi stu…
What would be the total income of Mrs. Natasha for the previous year 2025-26?
(A) ₹7,28,000
(B) ₹7,38,000
(C) ₹6,98,000
(D) ₹6,88,000
Q3Resident status determination
2 marks easy
Who among the following will qualify as resident for the P.Y. 2025-26? (i) Mr. Pop, an Italian singer, came on visit to India to explore Indian classic singing on 15.09.2025 and left on 01.12.2025. For past four years, he visited India for singing competition and stayed in India for 120 days each year. (ii) Mr. Abhishek born and settled in Canada, visits India each year for 100 days to meet his parents and grandparents, born in India in 1946, living in Delhi. His Indian income is ₹15,20,000. (iii) Mr. Joseph, an American scientist, left India to his home country for fixed employment there. He stayed in India for study and research in medicines from 01.01.2020 till 01.07.2025.
(A) Mr. Pop and Mr. Joseph
(B) Mr. Abhishek
(C) Mr. Pop, Mr. Abhishek and Mr. Joseph
(D) None of the three
Q3(a)Slump sale and capital gains computation
6 marks medium
Mr. Shivam is the proprietor of Star Stores having 2 units. On 1.4.2025, he transferred Unit 2, which he started in 2014-15, by way of slump sale for a total consideration of ₹18 lakhs. The professional fees & brokerage paid for this transfer are ₹78,000. Balance Sheet as on 31-03-2025 shows: Unit 1 assets: Land ₹12,75,000, Furniture ₹2,00,000, Debtors ₹2,00,000. Unit 2 assets: Land ₹7,50,000, Furniture ₹5,00,000, Debtors ₹3,50,000, Patents ₹7,25,000. Liabilities: Own Capital ₹20,50,000, Revaluation reserve ₹2,50,000, Bank Loan ₹8,50,000 (70% for Unit 1), Trade Creditors ₹4,50,000 (20% for Unit 2), Unsecured Loan ₹4,00,000 (30% for Unit 2). Land of Unit 2 was purchased at ₹5,00,000 in 2014 and revalued at ₹7,50,000 as on 31.3.2025. No individual value of any asset is considered in the transfer deed. Patents were acquired on 01.12.2023 on which no depreciation has been provided. Furniture of Unit 2 (₹5,00,000) was purchased on 01.12.2024 on which no depreciation has been provided. Fair market value of capital assets transferred by way of slump sale of Unit 2 is ₹18,10,000. Compute the capital gain for A.Y. 2026-27.
Q3(a)E-way bill generation requirements and conditions
5 marks medium
Mr. Mayank, a trader registered under GST in Delhi is engaged in wholesale business of toys for kids. Mr. Rihaan registered under GST in Patiala, a regular return filer supplies toys in bulk to Mr. Mayank for selling to end consumers. Mr. Mayank paying tax in regular scheme in Delhi, has not filed GSTR-3B for last 2 months. Mr. Rihaan wants to generate e-way bill for toys amounting to ₹5,00,000 to be supplied to Mr. Mayank. Also Mr. Manoj from Jammu approached Mr. Mayank for purchasing toys amounting to ₹75,000 for the purpose of return gift on his son's first birthday party. Mayank wants to generate an e-way bill in respect of an outward supply of goods to Mr. Manoj. Examine with reference to the provisions under GST law, whether Mr. Rihaan and Mr. Mayank can generate e-way bill.
Q3(b)Taxable income from various sources - dividend, advance forf
4 marks medium
From the following, calculate the taxable amount under the proper head of income for the Financial Year 2025-26 of Mr. Lalit, who is resident and 56 years old. He is paying tax under default tax regime. The reasons should form part of your answer: (i) Dividend of ₹45,000 (Net) received in April 2025 from LMN Ltd. (ii) Advance forfeited amounting to ₹1,00,000 on 01.05.2025 as the negotiation for transfer of capital asset did not result in transfer of Capital Asset. (iii) Cash gift received from non-relative on the occasion of marriage of son ₹51,000. (iv) He received ₹99,000 as pension from employer of deceased wife.
Q3(b)Late fees payment and Electronic Credit Ledger usage
5 marks medium
M/s TMT & Co. have defaulted in filing the return under Section 39 of CGST Act, 2017 i.e. GSTR-3B for the month of March within the specified due date. Reason for such delay is attributable to delay in closure of books for March, which have been finalised during May. The GST Common portal prompted for payment of late fees payable under Section 47 of CGST Act, 2017 for a sum of ₹2,000 under CGST and SGST each. Accountant of M/s TMT & Co., sought your confirmation for payment of such late fees through the balance available in Electronic Credit Ledger. Give your guidance in this regard.
Q4Tax deduction on partnership salary and interest
1 marks easy
A firm pays salary and interest on capital to its resident partners. The salary and interest paid fall within the limits specified in section 40(b). Which of the following statements is true?
(A) Tax has to be deducted u/s 192 on salary and u/s 194A on interest
(B) Tax has to be deducted u/s 192 on salary but no tax needs to be deducted on interest
(C) No tax has to be deducted on salary but tax has to be deducted u/s 194A on interest
(D) Tax has to be deducted u/s 194T on salary and interest
Q4(a)Senior citizen assessment with multiple deductions including
6 marks medium
Mr. Shashank (aged 67 years) is retired from a Public Sector Undertaking and resides in Ujjain. He provides the following particulars for the previous year 2025-26: Pension income of ₹7,80,000, Interest from fixed deposits of ₹2,35,000 (Gross), Life insurance premium paid by cheque ₹25,500 for insurance of his life (policy taken on 08-09-2020, sum assured ₹2,50,000), Premium of ₹36,000 paid by cheque for health insurance of self and his wife (also a senior citizen), ₹3,500 paid in cash for health check-up and ₹4,500 paid through cheque for preventive health check-up of his mother (aged 90 years), Interest of ₹9,500 paid on loan taken from bank for MBA course pursued by his daughter, A sum of ₹95,000 donated by cheque to an institution approved for section 80G for promoting family planning, ₹20,000 contributed towards PM CARES Fund by cheque. Compute the total income for the assessment year 2026-27 under optional tax regime.
Q4(a)Person liable to pay GST - forward and reverse charge
5 marks medium
State the person liable to pay GST in the following independent cases, provided recipient is located in the taxable territory: (i) Sponsorship services provided by a company to an individual. (ii) Renting of immovable property service provided by the Central Government to a registered business entity.
Q4(a)Definition and scope of charitable activities under GST
5 marks medium
Services provided by an entity registered under section 12AB of the Income-tax Act, 1961 are exempt from GST if such services are provided by way of charitable activities. Elaborate the term 'charitable activities'.
Q4(b)Filing requirements based on cash deposits and withdrawals
4 marks medium
In each of the following independent situations, examine whether these persons are required to file their return of income or loss for A.Y.2026-27 if their total income for the P.Y. 2025-26 do not exceed the basic exemption limit: (i) Mr. Dilip has savings bank account in SBI and HDFC and a current account in Axis Bank with opening balance of ₹20 lakhs, ₹10 lakhs and ₹30 lakhs, respectively. He deposited ₹40 lakhs in SBI account, ₹25 lakhs in HDFC account and ₹75 lakhs in Axis account during the P.Y. 2025-26. (ii) Mr. Kumar, aged 50 years, has withdrawn cash of ₹1,15,00,000 during the P.Y. 2025-26 from his saving account in HDFC Bank. Mr. Kumar regularly filed his return of income till A.Y. 2025-26.
Q4(b)Revision of return - timing and eligibility under section 13
4 marks medium
Mr. Vineet exercised the option of shifting out of the default tax regime provided under section 115BAC(1A) and submits his return of income under the optional tax regime (i.e., the normal provisions of the Act) on 12.07.2026 for A.Y. 2026-27 consisting of income under the head "Salaries", "Income from house property" and bank interest. On 21.12.2026, he realized that he had not claimed deduction under section 80TTA in respect of his interest income on the Savings Bank Account. He wants to revise his return of income. Can he do so? Examine. Would your answer be different if he discovered this omission on 21.03.2027?
Q4(b)Tax obligations upon registration cancellation
5 marks medium
Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled?
Q6Debit notes and credit notes for invoice corrections
2 marks easy
Kamna Enterprises issued invoices pertaining to two independent outward supplies, wherein one invoice value of supply was understated by ₹75,000 and in another invoice, value was overstated by ₹45,000. Which of the following is correct in respect of document to be issued by the firm for understatement and overstatement of invoice value? (i) Debit note is to be issued for ₹75,000. (ii) Credit note is to be issued for ₹75,000. (iii) Debit note is to be issued for ₹45,000. (iv) Credit note is to be issued for ₹45,000.
(A) (i) & (iii)
(B) (ii) & (iii)
(C) (i) & (iv)
(D) (ii) & (iv)
Q7GST treatment of immovable property renting and reverse char
2 marks easy
Mangla Electronics, registered in Ahmedabad, Gujarat under GST, deals in electronic items like TV, cooler, mobile phones etc. Due to the festival season, Mangla Electronics took a godown for a period of 6 months near its shop on rent from Mr. Moti (unregistered person) for storing electronic items. The rent amounted to ₹15,000 per month. What should be the GST treatment for rented godown?
(A) Exempt because rent amount is less than ₹20,000 per person per month and taken for minimum continuous period of 90 days
(B) This transaction will be taxable under reverse charge hence Mangla Electronics need to pay tax under RCM
(C) Mr. Moti, owner of the godown has to pay GST under forward charge and take registration for the same as he is supplying renting services
(D) This transaction will be exempt from GST because it falls under the forward charge mechanism and the supplier (Mr. Moti) is an unregistered person
Q8Place of business determination under GST
1 marks easy
'Vidya' Ltd. has its registered office under the Companies Act, 2013, in the State of Maharashtra from where it ordinarily carries on its business of taxable goods. It also has a warehouse in the State of Telangana for storing said goods. What will be the place of business of 'Vidya' Ltd. under the GST law?
(A) Telangana
(B) Maharashtra
(C) Both (a) and (b)
(D) Neither (a) nor (b)