QA-1Income from House Property computation
0 marks easy
Case: Mr. Vivek Malhotra, an Indian resident, has four residential properties in India. Two of them are in Delhi, of which one is self-occupied and second is let out for monthly rent of ` 1,40,000 to Mr. Sushil, a salaried individual. The other two properties are in Mumbai. To reduce his tax liability, he gifted one of the residential house properties in Mumbai to his wife, Mrs. Anika and second one to his minor daughter, Ms. Pooja, without adequate consideration in April 2024. Expected monthly rent of self-occupied property in Delhi is ` 50,000 and expected monthly rent of property in Mumbai is ` 7…
Compute the income taxable under the head "Income from House Property" in the hands of Mr. Vivek?
(A) ` 10,92,000
(B) ` 15,12,000
(C) ` 17,22,000
(D) ` 17,20,500
QA-10Business income with capital assets, depreciation, and emplo
0 marks easy
Case: Mr. Vaibhav, a resident individual aged 46 years, engaged in the business of plywood and sculptures, maintains his books of account under section 44AB. He follows the mercantile system of accounting and regularly files his return of income. The profit and loss account for the year ended on 31.3.2025 shows a net profit of ` 51,42,000 after debiting/ crediting: (i) Legal fees of ` 1,00,000 (TDS deducted but not deposited within due date, later deposited 15.11.2025); (ii) Office renovation payment to brother of ` 2,50,000 (reasonable to ` 1,50,000); (iii) Purchase of goods from Vishnu & Co., a mi…
Compute the total income and tax liability of Mr. Vaibhav for the A.Y. 2025-26 if he opts out of the default tax regime.
QA-2Capital Gains with indexed cost
0 marks easy
Case: Mr. Vivek Malhotra, an Indian resident, has four residential properties in India. Two of them are in Delhi, of which one is self-occupied and second is let out for monthly rent of ` 1,40,000 to Mr. Sushil, a salaried individual. The other two properties are in Mumbai. To reduce his tax liability, he gifted one of the residential house properties in Mumbai to his wife, Mrs. Anika and second one to his minor daughter, Ms. Pooja, without adequate consideration in April 2024. Expected monthly rent of self-occupied property in Delhi is ` 50,000 and expected monthly rent of property in Mumbai is ` 7…
Compute the income taxable under the head "Capital Gains" in the hands of Mr. Vivek?
(A) ` 29,04,000
(B) ` 29,10,000
(C) ` 35,51,000
(D) ` 47,51,000
QA-3Tax Deducted at Source (TDS) credit
0 marks easy
Case: Mr. Vivek Malhotra, an Indian resident, has four residential properties in India. Two of them are in Delhi, of which one is self-occupied and second is let out for monthly rent of ` 1,40,000 to Mr. Sushil, a salaried individual. The other two properties are in Mumbai. To reduce his tax liability, he gifted one of the residential house properties in Mumbai to his wife, Mrs. Anika and second one to his minor daughter, Ms. Pooja, without adequate consideration in April 2024. Expected monthly rent of self-occupied property in Delhi is ` 50,000 and expected monthly rent of property in Mumbai is ` 7…
Determine the amount of tax credit to be available to Mr. Vivek for F.Y. 2024-25 if tax has been deducted by the deductor(s)?
(A) ` 88,600
(B) ` 58,800
(C) ` 55,000
(D) Nil
QA-4Life insurance policy exemption under section 10(10D)
0 marks easy
Case: Mr. Vivek Malhotra, an Indian resident, has four residential properties in India. Two of them are in Delhi, of which one is self-occupied and second is let out for monthly rent of ` 1,40,000 to Mr. Sushil, a salaried individual. The other two properties are in Mumbai. To reduce his tax liability, he gifted one of the residential house properties in Mumbai to his wife, Mrs. Anika and second one to his minor daughter, Ms. Pooja, without adequate consideration in April 2024. Expected monthly rent of self-occupied property in Delhi is ` 50,000 and expected monthly rent of property in Mumbai is ` 7…
In F.Y. 2033-34, Mr. Vivek received the maturity proceeds from both the policies of ` 40 lakhs and ` 27 lakhs, respectively. Considering the most beneficial to Mr. Vivek, which of the following statements is correct?
(A) The maturity proceeds from both the policies "A" and "B" is exempt under section 10(10D).
(B) The maturity proceeds from policy "A" is exempt but from policy "B" is taxable.
(C) The maturity proceeds from policy "B" is exempt but from policy "A" is taxable.
(D) The maturity proceeds from both the policies "A" and "B" is taxable since the annual premium payable exceeds ` 5 lakhs.
QA-5Total tax liability computation
0 marks easy
Case: Mr. Vivek Malhotra, an Indian resident, has four residential properties in India. Two of them are in Delhi, of which one is self-occupied and second is let out for monthly rent of ` 1,40,000 to Mr. Sushil, a salaried individual. The other two properties are in Mumbai. To reduce his tax liability, he gifted one of the residential house properties in Mumbai to his wife, Mrs. Anika and second one to his minor daughter, Ms. Pooja, without adequate consideration in April 2024. Expected monthly rent of self-occupied property in Delhi is ` 50,000 and expected monthly rent of property in Mumbai is ` 7…
Compute the tax liability of Mr. Vivek for A.Y. 2025-26?
(A) ` 7,74,370
(B) ` 9,32,330
(C) ` 9,18,750
(D) ` 8,35,220
QA-6Residential status and taxability of foreign income
0 marks hard
Case: Ms. Aanchal, an Indian Citizen, is a government employee working for the Indian Government. For the previous year ending on 31.03.2025: (1) Salary income received in Malaysia for services rendered there: ` 2,00,000; (2) Profits from business carried on in Chennai: ` 80,000; (3) Loss from business carried on in Vadodara: ` (20,000); (4) Loss from business carried on in USA (though profits are not received in India, business is controlled from Rishikesh): ` (46,000); (5) Unabsorbed depreciation of business in USA: ` (16,000); (6) Profits from business in Bali (controlled from Delhi) with 60% of …
Determine the gross total income of Ms. Aanchal for the A.Y. 2025-26 assuming that she has opted out from the provisions of section 115BAC
QA-7Section 89 relief on arrears of salary
0 marks easy
Case: Ms. Ashima, aged 45 years, has been the HR manager for the past 15 years in Shipra Ltd. For F.Y. 2024-25: Basic Salary ` 70,000 p.m., Dearness Allowance ` 24,000 p.m. (30% of which forms part of retirement benefits), Bonus ` 21,000 p.m. Ms. Ashima contributes 18% of basic salary as contribution to RPF. Her employer contributes the same amount to her RPF account. The company pays medical insurance premium of ` 20,000 to effect insurance on the health of Ms. Ashima. She received arrears of salary of ` 3,35,000. Arrears details: 2021-2022: ` 1,20,000; 2022-2023: ` 1,10,000; 2023-2024: ` 1,05,000
Compute the relief available under section 89 and the tax payable for the A.Y. 2025-26. Assume that Ms. Ashima exercises the option of shifting out of the default tax regime provided under section 115BAC(1A) for A.Y. 2025-26. For A.Y. 2022-23 and A.Y. 2024-25, Ms. Ashima has paid tax as per section 115BAC. However, for A.Y. 2023-24, she has paid tax under normal provisions of the Act.
QA-8Total income computation with multiple income sources and sp
0 marks easy
Case: Mr. K is a 48-year-old resident individual with diversified businesses and investment portfolio for P.Y. 2024-25: (i) Manufacturing business profit ` 10,00,000 and speculative business loss ` 7,00,000; (ii) Loss from let-out property ` 2,15,000 and income from owning and maintaining race horses ` 50,000 with expense ` 5,000; (iii) Short-term capital gains ` 50,000 from equity shares sold 10.05.2024 with STT paid, and long-term capital loss ` 75,000 from other assets sold 15.10.2024; (iv) Divorce in April 2024, house property transferred to wife generating rental income ` 5,00,000; (v) Monthly …
Compute the total income of Mr. K assuming that he exercises the option of shifting out of the default tax regime. Assume Mr. K's total income, excluding the minor's income, is higher than that of his wife.
QA-9Tax Deduction at Source (TDS) applicability
0 marks easy
Examine the applicability and determine the amount of tax deduction at source as per the Income-tax Act, 1961 for the A.Y. 2025-26
QB-1GST registration and revised invoices
0 marks easy
Case: ABC Associates, engaged in the hospitality sector in Rajasthan under the trade name "Paradize Resorts", commenced operations on 01-04-2025. Its aggregate turnover crossed ` 20 lakh on 01-06-2025. The application for registration was filed on 15-06-2025, and registration was granted with effect from 01-07-2025. Consequent to the grant of registration, Paradize Resorts issued revised tax invoices for the period beginning with 15-06-2025. For its hotel interiors, Paradize Resorts availed interior designing services free of cost from DEF Interiors, Japan, whose proprietor is the son of one of the …
Whether issuance of revised tax invoices by Paradize Resorts is valid as per the relevant provisions of the GST Law?
(A) Yes, revised tax invoices may be issued for the period 15-06-2025 to 01-07-2025, within one month from 01-07-2025.
(B) No, revised tax invoices may be issued for the period 01-06-2025 to 01-07-2025, within one month from 01-07-2025.
(C) Yes, revised tax invoices may be issued for the period 15-06-2025 to 01-07-2025, within 15 days from 01-07-2025.
(D) No, revised tax invoices can be issued only after registration is granted, i.e., post 01-07-2025.
QB-10GST registration liability
0 marks easy
Determine whether liability to obtain registration arises or not under GST law in the following independent cases.
QB-2GST treatment of classical music performances
0 marks easy
Case: ABC Associates, engaged in the hospitality sector in Rajasthan under the trade name "Paradize Resorts", commenced operations on 01-04-2025. Its aggregate turnover crossed ` 20 lakh on 01-06-2025. The application for registration was filed on 15-06-2025, and registration was granted with effect from 01-07-2025. Consequent to the grant of registration, Paradize Resorts issued revised tax invoices for the period beginning with 15-06-2025. For its hotel interiors, Paradize Resorts availed interior designing services free of cost from DEF Interiors, Japan, whose proprietor is the son of one of the …
What is the GST treatment of the performance by Darohar Group?
(A) Entire consideration of ` 2.5 lakh is taxable.
(B) Only ` 1 lakh is taxable, as ` 1.5 lakh is exempt.
(C) Entire ` 2.5 lakh is exempt from GST.
(D) Only ` 50,000 is taxable, as ` 2 lakh is exempt for classical performances.
QB-3GST on free supply of services
0 marks easy
Case: ABC Associates, engaged in the hospitality sector in Rajasthan under the trade name "Paradize Resorts", commenced operations on 01-04-2025. Its aggregate turnover crossed ` 20 lakh on 01-06-2025. The application for registration was filed on 15-06-2025, and registration was granted with effect from 01-07-2025. Consequent to the grant of registration, Paradize Resorts issued revised tax invoices for the period beginning with 15-06-2025. For its hotel interiors, Paradize Resorts availed interior designing services free of cost from DEF Interiors, Japan, whose proprietor is the son of one of the …
Whether there will be any GST liability on interior designing services provided free of cost by DEF Interiors? Which of the following statement(s) is most appropriate in this regard?
(A) Yes, since import of services from a related person in the course or furtherance of business will be treated as supply even if made without consideration.
(B) No, since no consideration was paid, the same is not taxable.
(C) No, import of services from a related person is exempt.
(D) Yes, fully taxable irrespective of whether used for business or personal purposes.
QB-4GST time of supply
0 marks easy
Case: ABC Associates, engaged in the hospitality sector in Rajasthan under the trade name "Paradize Resorts", commenced operations on 01-04-2025. Its aggregate turnover crossed ` 20 lakh on 01-06-2025. The application for registration was filed on 15-06-2025, and registration was granted with effect from 01-07-2025. Consequent to the grant of registration, Paradize Resorts issued revised tax invoices for the period beginning with 15-06-2025. For its hotel interiors, Paradize Resorts availed interior designing services free of cost from DEF Interiors, Japan, whose proprietor is the son of one of the …
What will be the time of supply in respect of the marriage function hosted on 01-06-2025?
(A) 01-06-2025
(B) 28-06-2025
(C) 29-06-2025
(D) 30-06-2025
QB-5GST place of supply and transfer of business
0 marks easy
Case: ABC Associates, engaged in the hospitality sector in Rajasthan under the trade name "Paradize Resorts", commenced operations on 01-04-2025. Its aggregate turnover crossed ` 20 lakh on 01-06-2025. The application for registration was filed on 15-06-2025, and registration was granted with effect from 01-07-2025. Consequent to the grant of registration, Paradize Resorts issued revised tax invoices for the period beginning with 15-06-2025. For its hotel interiors, Paradize Resorts availed interior designing services free of cost from DEF Interiors, Japan, whose proprietor is the son of one of the …
Which of the following statement(s) is/are correct? Statement 1: The place of supply of services provided to Mr. Ajay will be the location of the immovable property, i.e., Rajasthan. Statement 2: No GST is payable in case of transfer of business as a going concern.
(A) Both statements are correct
(B) Only Statement 1 is correct
(C) Only Statement 2 is correct
(D) Both statements are incorrect
QB-6GST computation with ITC and forward/reverse charges
0 marks easy
Case: Mr. Prithviraj, registered under GST, is engaged in supplying services in Maharashtra. During February he furnished the following: (i) Carnatic music performance given by Mr. Prithviraj to promote a brand of readymade garments: ` 1,40,000; (ii) Outdoor catering services availed for a marketing event organised for his prospective customers: ` 50,000; (iii) Services of transportation of students provided to Subhaskar College providing education as part of a curriculum for obtaining a recognised qualification: ` 1,00,000; (iv) Legal services availed for official purpose from an advocate located i…
Compute the net GST payable in cash, by Mr. Prithviraj for the month of February.
QB-7GST place of supply rules
0 marks easy
Determine the place of supply in respect of following independent cases. Brief reason should form part of your answer.
QB-8GST exemptions for healthcare and public services
0 marks easy
Examine the taxability of supplies in the following independent cases in terms of the relevant provisions of the CGST Act, 2017. Brief reason should form part of your answer.
QB-9GST on insurance premium with no claim bonus
0 marks easy
Mr. Bose took a health insurance policy for the coverage amount of ` 5,00,000 upon making payment of premium of ` 10,000 annually (exclusive of GST) from Swasthya Bima Insurance Co. on 01.10.2024. Mr Bose had no claim during 2024-25. On 01.10.2025 Swasthya Bima Insurance Co. offered a discount of 5% on the renewal premium amount to Mr Bose for having claim free year 2024-25 in form of no claim bonus. The Swasthya Bima Insurance Co. made disclosure of the fact of availability of discount in form of NCB, subject to certain conditions, to Mr. Bose in the insurance policy document itself. Also, there is specific mention of the discount in form of no claim bonus in the invoice issued by Swasthya Bima Insurance Co. to Mr. Bose. As per Mr Bose's accountant, he has to pay GST on whole renewal premium amount without any deduction as no claim bonus is for agreeing to the obligation to refrain from the act of lodging insurance claim during 2024-25. Is the contention of the Accountant, correct? Reason for the same should form part of your answer.