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Past papers/ Taxation/ May 2024
Paper 23 Qs
Revision Test Paper (RTP) · May 2024

CA Inter Taxation

This page contains all 23 questions from the CA Inter Taxation Revision Test Paper (RTP) for the May 2024 attempt cycle, sourced from VSI Jaipur.

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Q.GST-1 00 marks easy GST rate on rental of commercial property and maintenance ma ⚡ Try this Q →
Case: ABC Ltd. has manufacturing unit in Rajasthan, ancillary units in Madhya Pradesh and Gujarat (registered in each State), and owns a hotel in Udaipur, Rajasthan. ABC Ltd. owns a commercial space rented to a registered person at monthly rent of ₹ 50,000. Maintenance is ABC Ltd.'s responsibility. During April, ABC Ltd. incurred expenses on maintenance materials recoverable from tenant with invoice. Maintenance material rate: 5%. ABC Ltd. agreed to provide hotel to Mr. X (unregistered person from Maharashtra) for a business conference. ABC Ltd. supplied machinery in June: Basic price ₹ 45,000 (befo…
For the transaction related to renting of commercial space, what should be the rate of tax charged by ABC Ltd.?
(A) The rate of GST on rent and maintenance material related recovery shall be 18%.
(B) The rate of GST on rent shall be 18% and, on the material, shall be 5%.
(C) No GST shall be charged on the recovery related to material used in maintenance. Rate of GST on rent shall be 18%.
(D) The rate of GST on rent and maintenance material related recovery shall be 5%.
CTTP

Worked Solution

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Answer: (D)

ABC Ltd. is supplying two separate services: (1) renting of the commercial space, and (2) recovery of maintenance materials used in that space.

Rent on Commercial Property: Under the CGST Act, 2017, supply of service by way of renting of immovable property used for commercial/business purposes is taxed at 5% GST. This rate applies to commercial properties such as office space, shops, and business premises. Although the general rate of GST is 18%, the specific rate for commercial property rental is 5% (reduced from 18% w.e.f. 01.04.2019).

Recovery of Maintenance Materials: When ABC Ltd. raises an invoice to the tenant for recovery of maintenance materials, this constitutes a supply of goods/materials subject to GST. The question explicitly states that the "Maintenance material rate" is 5%, indicating that the GST rate applicable to these maintenance materials is 5%.

Therefore, both the rent charged on the commercial space and the recovery of maintenance materials should be taxed at 5% GST.

CGST Act, 2017 - Supply of service by way of renting of immovable propertyGST (Goods and Services Tax) Rate ScheduleNotification reducing rate on commercial property rental from 18% to 5% w.e.f. 01.04.2019
PLAN

Write it like this

Time target 1 min 30 sec

1The skeleton

- Spot the two sub-supplies instantly — rent of space AND recovery of maintenance materials are two distinct supplies; treat them separately or you'll miss that each needs its own rate check.
- Override the 18% blanket with the specific notification rate — the scenario is deliberately dangling '18% on all supplies unless stated otherwise'; your brain must immediately flag: renting of commercial immovable property has a specific notified rate that beats the general one.
- Lock in 5% for commercial rental, then check maintenance — the question itself hands you the maintenance material rate (5%), so both legs land at 5%, which maps cleanly to one option. Pick it and move.

2Examiner-rewarded phrases

“supply of service by way of renting of immovable property used for commercial or business purposes”“GST rate applicable on renting of commercial property”“recovery of maintenance materials constitutes a separate supply of goods chargeable at the applicable rate”

3Common trap

Don't fall for this

The scenario plants '18% on all inward and outward supplies unless stated otherwise' as a deliberate trap — most students anchor on that and pick 18%, completely ignoring that a specific notification rate for commercial property rental exists and always overrides the general rate. Don't let a blanket scenario assumption kill a straightforward MCQ.

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Q.GST-10 00 marks easy Tax deduction at source under section 51 CGST Act; composite ⚡ Try this Q →
Determine amount of tax, if any, to be deducted in the above case. Will your answer be different if Ramlala Enterprises is registered under composition scheme? Examine the implications of GST on supply of food and beverages at cinema halls.
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Worked Solution

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PART (A) - TAX DEDUCTION AT SOURCE UNDER SECTION 51 CGST ACT

Ramlala Enterprises is supplying interior decoration services to Government of Andhra Pradesh. Section 51 of the CGST Act 2017 mandates that every Government entity (Central, State, UT, and local authorities) must deduct tax at source (TDS) on supplies made by registered persons.

Calculation of TDS:

Total contract value (inclusive of GST) = Rs 15,50,000

Since the supplier (Ramlala Enterprises) is registered in Delhi and the recipient (Government of Andhra Pradesh) is registered in Andhra Pradesh, this constitutes an inter-state supply. Under Section 12(5) of the CGST Act, place of supply of services is where the registered recipient is located. Therefore, IGST at 18% applies.

To determine taxable value:
Let taxable value = X
X + 18% of X = 15,50,000
1.18X = 15,50,000
X = 13,13,559.32

TDS is deducted at 2% on the taxable value as prescribed under Section 51:
TDS = 2% × 13,13,559.32 = Rs 26,271 (rounded)

This amount must be deducted at the time of payment or when payment is recorded in the books, whichever is earlier.

If Ramlala Enterprises is registered under Composition Scheme:

Yes, the answer would be significantly different. Section 51 explicitly excludes suppliers registered under the composition scheme from the TDS requirement. Composition scheme suppliers cannot be subjected to TDS deduction. Therefore, no TDS would be deducted if Ramlala Enterprises is under the composition scheme. This is because composition scheme suppliers have a different tax compliance structure with fixed percentages and no input tax credit mechanism.

PART (B) - GST IMPLICATIONS ON FOOD AND BEVERAGES AT CINEMA HALLS

Nature of Supply (Composite Supply):

Supply of food and beverages at cinema halls is treated as a composite supply. The principal supply is the entry to the cinema hall (providing accommodation/viewing services), while F&B items are ancillary components. Under Section 2(c) of the CGST Act 2017, when multiple supplies are bound together with one being principal, the GST rate of the principal supply applies to the entire composite supply.

Applicable GST Rate:

Cinema services (entry to cinema halls) are taxed at 18% CGST/SGST (intra-state) or 18% IGST (inter-state). Consequently, F&B items supplied at cinema halls also attract the same 18% GST rate, regardless of whether these items would ordinarily qualify for a lower rate outside cinema halls.

Key Implications:

1. Rate Disparity: F&B items outside cinema halls are taxed at 5% (packaged food) or 0% (unpackaged food articles). However, identical items at cinema halls face 18% GST due to composite supply treatment, creating a significant rate differential.

2. Consumer Price Impact: The higher GST rate substantially increases the final consumer price of F&B at cinema halls, making such items significantly more expensive than similar items purchased from regular retail outlets.

3. No Concessional Rate: There is no exemption or reduced rate for F&B even when supplied as an integral part of cinema services. The composite supply principle uniformly applies without regard to the nature of the secondary supply.

4. Input Credit Mechanism: Cinema hall operators can claim input tax credit on GST paid on F&B purchases, but this benefit is typically passed through to end consumers via the retail pricing mechanism.

5. Economic Implication: The 18% rate on F&B at cinema halls creates an economic disadvantage for cinema operators' revenue from ancillary services while benefiting the end consumer from the operator's perspective to some extent through input credit mitigation.

Conclusion: The GST framework treats F&B at cinema halls as integrated services following the principal supply rate, resulting in significantly higher taxation compared to standalone F&B retail.

Section 51 of the CGST Act 2017Section 12(5) of the CGST Act 2017 (Place of Supply)Section 2(c) of the CGST Act 2017 (Composite Supply)Schedule III - Rate of GST on Cinema Services
PLAN

Write it like this

Time target 14 min 24 sec

1The skeleton

- Cite Section 51 and identify the deductor in line 1 — write 'Government of Andhra Pradesh is liable to deduct TDS u/s 51 CGST Act' before any calculation, because examiners award the legal identification mark first.
- Back-calculate taxable value from the GST-inclusive contract amount — write out the 'X + 18%X = 15,50,000 → X = 13,13,559' working explicitly, because the TDS base is taxable value NOT gross contract value and showing this step is where a full-calculation mark sits.
- State inter-state trigger before applying IGST — one sentence: supplier registered in Delhi, recipient in AP → inter-state supply → IGST 18%; without this your rate choice looks arbitrary to the examiner.
- Answer the composition scheme variant with a direct 'No TDS' conclusion first, then the reason — flip the order students usually write; examiner needs to see 'No TDS' in the first clause, not buried after a paragraph of explanation.
- Open Part B by naming the supply type and its section upfront — write 'Supply of F&B at cinema halls is a composite supply u/s 2(6) CGST Act, the principal supply being admission to exhibition of cinematograph films' before discussing any rate, because the composite supply classification is the entire scoring point.
- End Part B with the rate consequence as a standalone sentence — 'Accordingly, GST @ 18% applies to the entire composite supply including F&B, irrespective of the rate applicable to F&B sold independently.' This mirrors the model-answer conclusion format and picks up the application mark.

2Examiner-rewarded phrases

“the supply of food and beverages at cinema halls constitutes a composite supply, the principal supply being the admission to exhibition of cinematograph films”“tax is to be deducted at the rate of 2% on the value of the taxable supply”“no deduction under section 51 shall be made where the supplier is registered under the composition levy”

3Common trap

Don't fall for this

The single biggest mark-killer here is applying 2% TDS directly on Rs 15,50,000 (the gross GST-inclusive amount) instead of first extracting the taxable value — you lose the calculation mark even if your logic is right. Second trap: in Part B, students call F&B a 'mixed supply' and argue for the highest rate that way — wrong classification entirely; it's a composite supply with a specific principal supply, and writing 'mixed supply' signals to the examiner you haven't read the CBIC circular on cinema halls.

🎯 Practice more Tax deduction at source under section 51 CGST Ac questions →
Q.GST-2 00 marks easy Value of supply under section 15 CGST Act; treatment of TCS ⚡ Try this Q →
Case: ABC Ltd. made a supply of machinery in June with basic price ₹ 45,000 (before TCS), Tax Collected at Source under Income-tax Act ₹ 2,500, and subsidy of ₹ 3,500 from Green Foundation Pvt. Ltd. for usage of green energy (linked to units of energy saved, not machinery).
Compute the value of supply under section 15 of the CGST Act, 2017 made by ABC Ltd. in the month of June.
(A) ₹ 45,000
(B) ₹ 47,500
(C) ₹ 48,500
(D) ₹ 51,000
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Worked Solution

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Answer: (B)

Under Section 15 of the CGST Act, 2017, the value of supply comprises the transaction value (basic price) plus any taxes collected, minus excludable subsidies.

Treatment of TCS: Tax Collected at Source (₹2,500) under the Income-tax Act is part of the consideration paid for the supply and must be included in the value of supply under Section 15(1).

Treatment of Subsidy: The subsidy of ₹3,500 from Green Foundation Pvt. Ltd. is explicitly linked to units of energy saved, NOT to the machinery supplied. Per Rule 29 of CGST Rules, 2017, subsidies are excluded from the value of supply when they are not linked to the price of the supply and are independent of the transaction. Since this subsidy is contingent on green energy usage and energy savings achieved (separate from the machinery itself), it does not form part of the value of supply for GST purposes.

Calculation:
Value of Supply = Basic Price + TCS − Excluded Subsidy
Value of Supply = ₹45,000 + ₹2,500 − ₹0 = ₹47,500

Section 15 of the CGST Act, 2017Rule 29 of CGST Rules, 2017
PLAN

Write it like this

Time target 1 min 30 sec

1The skeleton

- Anchor to Section 15(1) first — write 'As per Section 15(1) of the CGST Act, 2017, value of supply = transaction value' before anything else; examiners award the definition mark even in MCQs.
- Handle TCS in one crisp line — state that TCS under the Income-tax Act forms part of the consideration paid by the recipient and is therefore INCLUDED under Section 15; don't over-explain, just cite and include.
- Kill the subsidy in one line with the linkage test — the subsidy is NOT directly linked to the price of the machinery (it's linked to energy units saved), so it fails the Section 15(2)(e) inclusion test and is EXCLUDED; naming the 'directly linked to price' test is what gets the tick.
- Show the arithmetic explicitly — even for MCQ justification, write: ₹45,000 + ₹2,500 − ₹0 = ₹47,500 so the examiner sees your logic trail, not just a circled option.

2Examiner-rewarded phrases

“forms part of the consideration paid by the recipient and is includible in the value of supply”“subsidy directly linked to the price of the supply, excluding subsidies provided by the Central Government and State Government”“value of supply shall be the transaction value, which is the price actually paid or payable for the said supply”

3Common trap

Don't fall for this

Heads up — almost everyone EXCLUDES TCS thinking 'it's a tax, so it must be like GST and excluded.' Wrong. GST itself is excluded under Section 15(3)(b), but TCS under the Income-tax Act is not GST — it's part of the money the buyer pays, so it goes IN. Flip this, and you'll pick option A (₹45,000) instead of B (₹47,500) and lose the MCQ.

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Q.GST-3 00 marks easy Place of supply and GST applicability for hotel accommodatio ⚡ Try this Q →
Case: ABC Ltd. owns and operates a hotel in Udaipur, Rajasthan. ABC Ltd. agreed to provide the hotel to Mr. X for a business conference to be held at Udaipur. Mr. X is an unregistered person residing in Maharashtra.
With respect to the hotel accommodation service provided to Mr. X, GST payable by ABC Ltd. is ____________.
(A) nil, GST on accommodation service is payable by the recipient, Mr. X, under reverse charge
(B) nil, GST on accommodation services provided to an unregistered person is exempt from GST
(C) in the nature of CGST and SGST
(D) in the nature of IGST
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Q.GST-4 00 marks easy Input Tax Credit availability for CSR goods ⚡ Try this Q →
Case: ABC Ltd. spent an amount of ₹ 5 lakh on the procurement of certain goods which were distributed as part of the corporate social responsibility [CSR] expenditure required under the provisions of the Companies Act, 2013.
Which of the following options is correct with regard to the availability of ITC to ABC Ltd. in respect of GST paid on the procurement of goods meant for the purpose of corporate social responsibility activity?
(A) The amount of ITC related to such procurement of goods is not available to ABC Ltd.
(B) The amount of ITC related to such procurement of goods is available to ABC Ltd.
(C) The amount of ITC only to the extent of 50% of amount of such procurement of goods is available to ABC Ltd.
(D) The amount of ITC shall be available to the registered person to whom such goods are distributed under CSR activity.
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Q.GST-5 00 marks easy GST audit requirements for annual return and reconciliation ⚡ Try this Q →
Case: During the scrutiny proceedings in the State of Gujarat, jurisdictional GST officer asked ABC Ltd to submit the copy of audited financial statements for Gujarat and was of the view that ABC Ltd. is required to get his accounts audited by a Chartered Accountant separately under GST Law for filing annual return and reconciliation statement in each State.
Which of the following options is correct with regard to the advice given by GST officer in respect of auditing of accounts?
(A) There is no requirement of separate audit of the financial statements from the perspective of GST provisions.
(B) Only reconciliation statement shall be audited by a Chartered Accountant.
(C) The annual return as well as the reconciliation statement shall be audited by a Chartered Accountant.
(D) Separate audit of financial statements at each State level is required by ABC Ltd. under the GST law.
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Q.GST-6 00 marks easy GST computation; output tax; input tax credit; reverse charg ⚡ Try this Q →
Case: M/s Cute & Co., a partnership firm, registered supplier under GST in Bengaluru (Karnataka State), for October 2023: (i) Intra-State taxable supply of Direct Selling Agent (DSA) service to public sector Bank: ₹ 2,50,000. (ii) Rent paid for residential dwelling for office: ₹ 25,000 (Owner not GST registered; intra-State supply availed). (iii) Purchased car for official use of managing partners: ₹ 9,00,000 (Inter-State purchase). (iv) Availed IT services for business from Partner's friend Mr Allan Waugh from Melbourne, Australia (no consideration; Open Market value ₹ 1,25,000; Inter-State transac…
Compute the net GST payable in cash, by M/s Cute & Co. for the month of October, 2023. Correct legal provisions should form part of your answer.
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Q.GST-7 00 marks easy Time of supply of vouchers and interest/late fees under sect ⚡ Try this Q →
Case: M/s Sasta Bazaar issued and redeemed the following coupons: (i) Coupon issued 20.06.2023, worth ₹ 2,000 redeemable against purchase of specific plastic items, redeemed on 31.07.2023. (ii) Coupon issued 01.08.2023 worth ₹ 3,000 redeemable against purchase of any item, redeemed on 18.08.2023. (iii) Interest of ₹ 10,000 for late payment from a customer on 11.11.2023 for supply of goods originally made on 24.06.2023.
Determine the time of supply for the purpose of payment of GST.
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Q.GST-8 00 marks easy Place of supply under section 12 IGST Act for services and g ⚡ Try this Q →
Determine the place of supply with reasons in the following independent circumstances.
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Q.GST-9 00 marks easy Supply of services through refraining from act; e-invoicing ⚡ Try this Q →
Briefly explain with correct legal provision whether the compensation amount received is liable to GST or not. If considered as taxable, calculate the total GST payable. State the conditions to be complied with. Advice whether it is mandatory to issue e-invoice and list entities exempt from mandatory e-invoicing requirement.
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Q.1 00 marks easy Section 10(10D) exemption on life insurance maturity proceed ⚡ Try this Q →
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned the following income: Salary of ₹ 45 lakhs, long-term capital gain on sale of listed equity shares (STT paid) amounting to ₹ 6,54,000, dividend of ₹ 12,00,000 from shares of Indian companies, interest on saving bank account with SBI of ₹ 16,000, interest on fixed deposits with BOB of ₹ 45,000. He has multiple life insurance policies with the following details: X (issued 1.4.2017, annual premium ₹ 40,000 + GST ₹ 7,200, matured 31.3.2026, consideration ₹ 7,00,000, sum assured ₹ 5,00,000), Y (issu…
Which are the life insurance policies in respect of which Mr. Akash would be eligible for exemption under section 10(10D) in respect of maturity proceeds? Choose the option most beneficial to Mr. Akash.
(A) X, Y and Z
(B) X and Y
(C) X, Z and A
(D) Y and Z
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Q.2 00 marks easy Section 10(10D) exemption on life insurance surrender ⚡ Try this Q →
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned the following income: Salary of ₹ 45 lakhs, long-term capital gain on sale of listed equity shares (STT paid) amounting to ₹ 6,54,000, dividend of ₹ 12,00,000 from shares of Indian companies, interest on saving bank account with SBI of ₹ 16,000, interest on fixed deposits with BOB of ₹ 45,000. He has multiple life insurance policies with the following details: X (issued 1.4.2017, annual premium ₹ 40,000 + GST ₹ 7,200, matured 31.3.2026, consideration ₹ 7,00,000, sum assured ₹ 5,00,000), Y (issu…
What would be your answer to MCQ 1, if Mr. Akash surrendered LIC A in A.Y. 2026-27 and claimed exemption under section 10(10D) in respect of such LIC? This information is only for the purpose of this MCQ.
(A) X, Y and Z
(B) X and Y
(C) X, Z and A
(D) Y and Z
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Q.3 00 marks easy Chapter VI-A deductions under normal tax regime ⚡ Try this Q →
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned the following income: Salary of ₹ 45 lakhs, long-term capital gain on sale of listed equity shares (STT paid) amounting to ₹ 6,54,000, dividend of ₹ 12,00,000 from shares of Indian companies, interest on saving bank account with SBI of ₹ 16,000, interest on fixed deposits with BOB of ₹ 45,000. He has multiple life insurance policies and also made payments towards medical insurance premium.
What would be the amount of deduction available to Mr. Akash under Chapter VI-A for the A.Y. 2024-25 if he has exercised the option to shift out of the default tax regime?
(A) ₹ 82,170
(B) ₹ 78,500
(C) ₹ 2,28,500
(D) ₹ 2,32,170
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Q.4 00 marks easy Tax liability under section 115BAC default tax regime ⚡ Try this Q →
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned salary of ₹ 45 lakhs, long-term capital gain of ₹ 6,54,000, dividend of ₹ 12,00,000, and interest income of ₹ 61,000.
What is Mr. Akash's tax liability for A.Y.2024-25 under the default tax regime under section 115BAC?
(A) ₹ 16,97,350
(B) ₹ 16,80,190
(C) ₹ 18,41,270
(D) ₹ 18,84,170
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Q.5 00 marks easy Tax liability under normal provisions of the Act ⚡ Try this Q →
Case: Mr. Akash (aged 47 years) is a CEO of BAC Enterprises (P) Ltd. During the P.Y.2023-24, he has earned salary of ₹ 45 lakhs, long-term capital gain of ₹ 6,54,000, dividend of ₹ 12,00,000, and interest income of ₹ 61,000.
What is Mr. Akash's tax liability for A.Y.2024-25 if he has exercised the option to shift out of the default tax regime?
(A) ₹ 17,30,470
(B) ₹ 18,93,720
(C) ₹ 17,29,210
(D) ₹ 17,27,500
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Q.6 00 marks easy Deduction of purchases under mercantile system of accounting ⚡ Try this Q →
Case: Mr. Anil started business of manufacturing tables in February 2024. He follows mercantile system of accounting. He purchased wood from: Mr. A (15.02.2024, ₹ 5 lakhs, payment due within 30 days, paid on 29.03.2024), Mr. B (17.03.2024, ₹ 7 lakhs, no written agreement, paid on 15.04.2024), Mr. A again (25.03.2024, ₹ 8 lakhs, payment due within 40 days, paid on 30.11.2024).
How much deduction would be available to Mr. Anil in A.Y. 2024-25 in respect of purchases made during the P.Y. 2023-24 while computing business income?
(A) Nil
(B) ₹ 5 lakhs
(C) ₹ 13 lakhs
(D) ₹ 12 lakhs
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Q.7 00 marks easy Tax Collected at Source under Liberalised Remittance Scheme ⚡ Try this Q →
Case: Mr. Sunil took an education loan of ₹ 8 lakhs on 1.7.2023 from State Bank of India, Mumbai, for his son's MBA from University of Oxford, UK and remitted the said amount through the same bank (authorised dealer) under LRS. He further remitted ₹ 2 lakhs on 15.10.2023 to his son for personal expenditure through Bank of India (authorised dealer) under LRS. He also remitted ₹ 6 lakhs on 28.3.2024 out of personal savings under LRS through Union Bank of India for his sister's medical treatment in London. He furnished undertaking containing details of earlier remittances.
What is the amount of tax to be collected from Mr. Sunil in respect of the remittance of amounts to his son and sister?
(A) TCS@0.5% of ₹ 1 lakh in respect of remittance for son's education; @5% of ₹ 2 lakhs in respect of remittance for son's personal expenditure and 5% of ₹ 6 lakhs in respect of remittance for sister's medical treatment.
(B) TCS@0.5% of ₹ 1 lakh in respect of remittance for son's education; @20% of ₹ 2 lakhs in respect of remittance for son's personal expenditure and 5% of ₹ 6 lakhs in respect of remittance for sister's medical treatment.
(C) TCS@0.5% of ₹ 1 lakh in respect of remittance for son's education; no TCS in respect of remittance for son's personal expenditure and sister's medical treatment since each transaction is of less than ₹ 7 lakhs.
(D) TCS@0.5% of ₹ 1 lakh in respect of remittance for son's education; @5% of ₹ 1 lakh in respect of remittance for sister's medical treatment.
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Q.8 00 marks easy Tax liability under section 115BAC with various capital gain ⚡ Try this Q →
Case: Mr. Garg, aged 45 years and a resident in India, is having a total income of ₹ 5,70,000 comprising of long term capital gains taxable under section 112 of ₹ 70,000, long term capital gains taxable under section 112A of ₹ 1,50,000, short term capital gains taxable under section 111A of ₹ 1,00,000 and other income of ₹ 2,50,000.
Compute his tax liability for A.Y. 2024-25 under the default tax regime under section 115BAC.
(A) Nil
(B) ₹ 5,200
(C) ₹ 9,360
(D) ₹ 19,760
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Q.9 00 marks easy Residential status under section 6(1) and 6(1A); taxable inc ⚡ Try this Q →
Case: Ms. Rita, an Indian citizen and an MBA from Howard University, was employed in AFL LLP of Country A since June, 2016. She came to India on 15.11.2023 and joined as CEO of Autofit Ltd. Ms. Rita was in India before she left for overseas education in May, 2012 and was subsequently employed outside India and never visited India thereafter. There is no income-tax in Country A. She has earned interest income of ₹ 2,40,000 (net) in Country A and salary income from AFL LLP of ₹ 15 lakhs up to the date of her return to India in the financial year 2023-24. Salary income (computed) of Ms. Rita from Autof…
What would be the residential status of Ms. Rita and her total income for the A.Y. 2024-25?
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Q.10 00 marks easy Income from house property; deductions under section 24; sta ⚡ Try this Q →
Case: Mr. Raj, a resident in India, owns two house properties, one in Delhi and another in Kanpur. The Delhi property is let out. Delhi property: Standard rent ₹ 1,72,000 p.a., Municipal valuation ₹ 2,05,000 p.a., Fair rent ₹ 1,95,000 p.a., Rent received ₹ 15,000 p.m., Municipal tax 5% of municipal valuation. Kanpur property (self-occupied): Municipal tax paid ₹ 3,500 on 10.6.2023. Loans: SBI loan of ₹ 35 lakhs@12% p.a. in April 2021 for Delhi house (stamp duty value ₹ 40 lakhs); Loan of ₹ 25,00,000@10% on 1-7-2021 for Kanpur house construction (began June 2021, completed December 2022). No repaymen…
Compute total income of Mr. Raj for the A.Y. 2024-25 under both tax regimes.
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Q.11 00 marks easy Section 54 exemption; capital gains on residential property; ⚡ Try this Q →
Case: Mr. Rajkumar bought a residential house for ₹ 5 crores in March 2016. He entered into an agreement for sale with Ms. Nikita (not a relative) in July 2023 for ₹ 17 crores. Payment: 10% through account payee bank draft on agreement date, 80% on possession date (10.11.2023), balance after registration completion (05.02.2024). Stamp duty value: July 2023 was ₹ 19 crores, revised to ₹ 20 crores on 05.02.2024. Brokerage: 1% on sale consideration. Subsequently purchased another residential house for ₹ 13 crores in Mumbai in March 2024. CII: 2015-16: 254; 2023-24: 348.
Compute the capital gains chargeable to tax in the hands of Mr. Rajkumar for A.Y. 2024-25. What would be the capital gain, if any, in A.Y. 2025-26 if Mr. Rajkumar transfers the new residential house in December 2024 for ₹ 15 crores?
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Q.12 00 marks easy Partnership firm income; SEZ deductions; business income; in ⚡ Try this Q →
Case: Mr. Rajesh is a working partner in M/s Sunflower Associates with capital contribution of ₹ 15 lakhs. Partnership deed authorises: interest to partners @ 13%, remuneration to partners @20,000 per month (wholly allowable as deduction). SEZ unit set up in May 2017: total turnover ₹ 120 lakhs, export turnover ₹ 45 lakhs, net profit ₹ 7.5 lakhs (export turnover received in convertible foreign exchange by 30.9.2024 was ₹ 40 lakhs). Warehousing facility for storage of edible oil: net profit ₹ 7,50,000 (P&L items: debited - personal drawings ₹ 70,000, advance income-tax ₹ 1,00,000, purchase of warehou…
Compute the total income and tax payable by Mr. Rajesh for the A.Y. 2024-25 under default tax regime and normal provisions of the Act.
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Q.13 00 marks easy Aadhaar number intimation; PAN operative/inoperative status; ⚡ Try this Q →
Case: Mr. Rahul, an Indian citizen residing in Mumbai, files his return of income every year on time. He has Aadhaar number as well. He has not intimated his Aadhaar number to the prescribed authority till August 2023. He approached you on 1.9.2023.
What would be the consequences for not intimating the Aadhaar number to the prescribed authority and the effective date from which those consequences would become effective? What would be your answer if Mr. Rahul wants to intimate his Aadhaar number to the prescribed authority now?
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