Q1Residential status determination
0 marks easy
Case: Mr. Raj, aged 38 years, is an Indian citizen carrying on manufacturing business in Canada. He was in India for 190 days in 2021-22, 145 days in 2022-23, and 155 days in 2023-24. He decided to shift permanently to India and came on 1.11.2024 to start business in Mumbai. His profits from Canadian business till 31.10.2024 is ` 15 lakhs and from Indian business is ` 5 lakhs. He stays in rented accommodation from 1.11.2024 at monthly rent of ` 20,000. He donated ` 50,000 to PM Cares Fund and ` 20,000 to Prime Minister's Drought Relief Fund by cheque during P.Y. 2024-25. He purchased 10,000 debentur…
What is the residential status of Mr. Raj for the previous year 2024-25?
(A) Resident but not ordinarily resident
(B) Resident and ordinary resident
(C) Non-resident
(D) Deemed resident
Q1Registration cancellation - due date for return
0 marks easy
Case: Sambhav Ltd., a company registered under GST, is engaged in manufacturing and e-commerce operations in multiple States. The company discontinued operations in Assam from 15th December 2024. The online application for cancellation of registration was furnished on 5th January 2025. The registration was suspended from the same day. The order for cancellation of registration was passed on 2nd February 2025, with cancellation effective from 31st January 2025. The company paid ` 5,00,000 plus tax to its supplier Rudraksh Enterprises pursuant to settlement of dispute in December 2024. The company had…
What is the due date for filing the final return in the State of Assam?
(A) within 3 months from 5th January
(B) within 3 months from 31st January
(C) within 3 months from 2nd February
(D) within 3 months from 15th December
Q2Capital gains on debentures
0 marks easy
Case: Mr. Raj, aged 38 years, is an Indian citizen carrying on manufacturing business in Canada. He was in India for 190 days in 2021-22, 145 days in 2022-23, and 155 days in 2023-24. He decided to shift permanently to India and came on 1.11.2024 to start business in Mumbai. His profits from Canadian business till 31.10.2024 is ` 15 lakhs and from Indian business is ` 5 lakhs. He stays in rented accommodation from 1.11.2024 at monthly rent of ` 20,000. He donated ` 50,000 to PM Cares Fund and ` 20,000 to Prime Minister's Drought Relief Fund by cheque during P.Y. 2024-25. He purchased 10,000 debentur…
What is the amount of capital gains chargeable to tax in the hands of Mr. Raj on sale of debentures for the P.Y. 2024-25?
(A) LTCG of ` 1,00,000
(B) LTCG of (` 14,750) and STCG of ` 37,500
(C) LTCG of (` 2,09,000)
(D) LTCG of ` 62,500 and STCG of ` 37,500
Q2Re-availment of ITC after dispute settlement
0 marks easy
Case: Sambhav Ltd., a company registered under GST, is engaged in manufacturing and e-commerce operations in multiple States. The company discontinued operations in Assam from 15th December 2024. The online application for cancellation of registration was furnished on 5th January 2025. The registration was suspended from the same day. The order for cancellation of registration was passed on 2nd February 2025, with cancellation effective from 31st January 2025. The company paid ` 5,00,000 plus tax to its supplier Rudraksh Enterprises pursuant to settlement of dispute in December 2024. The company had…
Which of the following statements is correct in relation to the re-availment of the input tax credit that had been reversed earlier, upon payment of disputed amount by the company to Rudraksh Enterprises?
(A) The company could have re-availed the ITC only up to 30th November of the previous financial year
(B) The company could have re-availed the ITC only up to 30th November of the current financial year
(C) The company could have re-availed the ITC only up to the end of the previous financial year
(D) ITC can be re-availed without any time limit after making the payment of disputed amount alongwith tax payable thereon to Rudraksh Enterprises
Q3Gross total income computation
0 marks easy
Case: Mr. Raj, aged 38 years, is an Indian citizen carrying on manufacturing business in Canada. He was in India for 190 days in 2021-22, 145 days in 2022-23, and 155 days in 2023-24. He decided to shift permanently to India and came on 1.11.2024 to start business in Mumbai. His profits from Canadian business till 31.10.2024 is ` 15 lakhs and from Indian business is ` 5 lakhs. He stays in rented accommodation from 1.11.2024 at monthly rent of ` 20,000. He donated ` 50,000 to PM Cares Fund and ` 20,000 to Prime Minister's Drought Relief Fund by cheque during P.Y. 2024-25. He purchased 10,000 debentur…
What will be the gross total income of Mr. Raj for the A.Y. 2025-26?
(A) ` 21,00,000
(B) ` 6,33,750
(C) ` 5,37,500
(D) ` 5,71,500
Q3TDS by Government agency
0 marks easy
Case: Sambhav Ltd., a company registered under GST, is engaged in manufacturing and e-commerce operations in multiple States. The company discontinued operations in Assam from 15th December 2024. The online application for cancellation of registration was furnished on 5th January 2025. The registration was suspended from the same day. The order for cancellation of registration was passed on 2nd February 2025, with cancellation effective from 31st January 2025. The company paid ` 5,00,000 plus tax to its supplier Rudraksh Enterprises pursuant to settlement of dispute in December 2024. The company had…
The amount of tax to be deducted at source under GST law by Governmental Agency of Gujarat is __________.
(A) IGST - ` 25,000
(B) CGST - ` 12,500 and SGST - ` 12,500
(C) nil
(D) IGST - ` 50,000
Q4Chapter VI-A deductions
0 marks easy
Case: Mr. Raj, aged 38 years, is an Indian citizen carrying on manufacturing business in Canada. He was in India for 190 days in 2021-22, 145 days in 2022-23, and 155 days in 2023-24. He decided to shift permanently to India and came on 1.11.2024 to start business in Mumbai. His profits from Canadian business till 31.10.2024 is ` 15 lakhs and from Indian business is ` 5 lakhs. He stays in rented accommodation from 1.11.2024 at monthly rent of ` 20,000. He donated ` 50,000 to PM Cares Fund and ` 20,000 to Prime Minister's Drought Relief Fund by cheque during P.Y. 2024-25. He purchased 10,000 debentur…
What is the amount of deduction available under Chapter VI-A to Mr. Raj for A.Y. 2025-26?
(A) ` 60,000
(B) ` 85,000
(C) ` 70,000
(D) ` 1,20,000
Q4Tax collection at source by e-commerce operator
0 marks easy
Case: Sambhav Ltd., a company registered under GST, is engaged in manufacturing and e-commerce operations in multiple States. The company discontinued operations in Assam from 15th December 2024. The online application for cancellation of registration was furnished on 5th January 2025. The registration was suspended from the same day. The order for cancellation of registration was passed on 2nd February 2025, with cancellation effective from 31st January 2025. The company paid ` 5,00,000 plus tax to its supplier Rudraksh Enterprises pursuant to settlement of dispute in December 2024. The company had…
The amount of tax to be collected at source by the company under the GST law during January is ____________ (ignore bifurcation of CGST, SGST and IGST).
(A) ` 50,000
(B) ` 40,000
(C) ` 37,500
(D) ` 30,000
Q5Tax liability calculation
0 marks easy
Case: Mr. Raj, aged 38 years, is an Indian citizen carrying on manufacturing business in Canada. He was in India for 190 days in 2021-22, 145 days in 2022-23, and 155 days in 2023-24. He decided to shift permanently to India and came on 1.11.2024 to start business in Mumbai. His profits from Canadian business till 31.10.2024 is ` 15 lakhs and from Indian business is ` 5 lakhs. He stays in rented accommodation from 1.11.2024 at monthly rent of ` 20,000. He donated ` 50,000 to PM Cares Fund and ` 20,000 to Prime Minister's Drought Relief Fund by cheque during P.Y. 2024-25. He purchased 10,000 debentur…
What is the tax liability of Mr. Raj for A.Y. 2025-26?
(A) ` 25,290
(B) ` 28,340
(C) ` 29,380
(D) Nil
Q5Invoice issuance date for construction services
0 marks easy
Case: Sambhav Ltd., a company registered under GST, is engaged in manufacturing and e-commerce operations in multiple States. The company discontinued operations in Assam from 15th December 2024. The online application for cancellation of registration was furnished on 5th January 2025. The registration was suspended from the same day. The order for cancellation of registration was passed on 2nd February 2025, with cancellation effective from 31st January 2025. The company paid ` 5,00,000 plus tax to its supplier Rudraksh Enterprises pursuant to settlement of dispute in December 2024. The company had…
What is the last date for issuance of invoice in relation to construction of road by the company for the last tranche of payment received?
(A) 31st December
(B) 15th January
(C) 5th February
(D) 20th February
Q6Income from salaries - perquisites and deductions
0 marks easy
Mr. Kunal (age 27 years) is an employee in a private company posted in Delhi. He was appointed on 01.02.2023 in the scale of ` 60,000 - ` 1,000 - ` 70,000. He furnishes the following information for the previous year 2024-25: (i) Dearness allowance @25% of basic salary (60% of DA forms part of retirement benefits); (ii) Bonus equal to one month salary, paid in November 2024 on basic salary applicable for that month; (iii) Leave encashment for P.Y. 2024-25 of ` 10,000; (iv) He received a motor car on 01.12.2024 (cubic capacity exceeds 1.60 litres) with chauffeur for both official and personal use, owned by employer with all expenses met by employer; (v) Employer granted a loan of ` 2,00,000 on 1st June 2024, repayable in equal quarterly installments over 2 years starting 1st October 2024; SBI lending rate for such loans is 9.5% per annum as on 01.04.2024, while employer recovers interest @5.5% per annum; (vi) Employer provided rent-free furnished accommodation in Delhi from 01.04.2023, owned by employer, with perquisite value during P.Y. 2023-24 of ` 92,000, continued in P.Y. 2024-25; (vii) Furniture and appliances provided with house were bought at aggregate cost of ` 1,50,000 on 01.01.2023; Electricity and water bills of ` 5,000 p.m. paid by employer; (viii) Colleagues gifted mobile phone worth ` 45,000 from their own contribution on account of his marriage. Cost Inflation Index: F.Y. 2023-24: 348, F.Y. 2024-25: 363. Compute the income chargeable under the head Salaries in the hands of Mr. Kunal for the Assessment Year 2025-26 assuming he wants to pay tax under default tax regime under section 115BAC.
Q6GST liability computation
0 marks easy
Surya is engaged in providing a bouquet of goods and services. It is registered in Jaipur, Rajasthan. It provides the following information for the month of January: (i) Organised a business exhibition in Gujarat for Jignesh Industries (registered in Surat, Gujarat) for ` 20,00,000; (ii) Provided accommodation services to 10 CA students (originally from outside Rajasthan) in hostel Surya Homes, located in Jaipur, Rajasthan - hostel accommodation charges ` 22,000 per student per month; as per agreement, minimum period of stay is 4 months; (iii) Performed carnatic music to promote brand Rigley Garments (registered in Udaipur, Rajasthan) for ` 1,45,000; (iv) Intra-State services provided as business correspondent of Manimani Bank (registered in Rajasthan) with respect to accounts in its Jaipur city branch for ` 1,20,000; (v) Rented commercial property in Jaipur, Rajasthan to Ganga Ltd. (supplier of goods and services registered in Jodhpur, Rajasthan) for ` 3,00,000 (Surya is a director in Ganga Ltd.); (vi) Sponsored a Business Summit organized in Bikaner, Rajasthan by Associated Chamber of Commerce, paying sponsorship fee of ` 5,00,000 (Associated Chamber registered in Jaipur, Rajasthan); (vii) Received transportation of goods by road services from Sindhu Transporters (unregistered GTA of Jodhpur, Rajasthan) for ` 2,00,000; (viii) Taken cars on rental basis from Ajay Limited (registered in Jodhpur, Rajasthan) for ` 1,50,000. Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively for both inward and outward supply except car rental and transportation services (5% IGST / 2.5% CGST and SGST). All amounts exclusive of taxes. No opening balance of ITC. Compute the minimum net GST liability payable in cash (CGST, SGST or IGST) for the month of January.
Q7Capital gains on gold and property
0 marks easy
Ms. Priya has always been financially aware and strategic with her investments. In January 2022, she purchased gold jewellery worth ` 3,25,000 believing it would be a safe investment. In October 2024, gold prices increased and she decided to sell her jewellery on 31.10.2024 for ` 4,75,000. She also sold her house property in Delhi on 01.12.2024 for ` 80 lakhs. The stamp duty value of property at the time of transfer was ` 90 lakhs. She purchased this property on 15.07.1998 for ` 8.80 lakhs. The FMV of the property as on 1st April 2001 was ` 10.8 lakhs and stamp duty value on that date was ` 10 lakhs. She had incurred brokerage and other expenses @1% on purchase price. CII: F.Y. 2001-02: 100; F.Y. 2021-22: 317; F.Y. 2024-25: 363. Compute the capital gain tax to be paid by Ms. Priya for A.Y. 2025-26 assuming her other income exceeds the basic exemption limit.
Q7Amendment of GSTR-1 and GSTR-2B
0 marks easy
Mehul Enterprises, registered under GST in Uttar Pradesh and a monthly return filer, is engaged in making taxable supplies of goods and services. It furnished the details of its outward supplies in Form GSTR-1 for the month of January on 11th February. However, on 14th February, the accountant of Mehul Enterprises noticed that one invoice issued to Vaishali Traders (registered in Gujarat) for supply of goods of value of ` 1,00,000 (taxable @ 18%) pertaining to January has been inadvertently missed to be declared in Form GSTR-1 furnished for January. You are required to briefly discuss whether Mehul Enterprises can amend the details of outward supply furnished in Form GSTR-1 of January. If such amendment is permitted and details of Form GSTR-1 are amended, whether the details of said invoice will be available in Form GSTR-2B of Vaishali Traders for the month of January.
Q8Total income and loss carry forward computation
0 marks easy
Mr. Akshay, a resident individual, provides the following details of his income/losses for the year ended 31.03.2025: (i) Income from salary (computed) ` 35,20,000; (ii) Rent received from house property in Delhi ` 5,00,000; (iii) Repayment of loan taken for purchase of above property ` 15,25,000, including payment of interest of ` 7,00,000 (loan taken from friend); (iv) Rent received from house property in Jaipur ` 3,20,000; (v) Interest on loan taken for repair of house properties in Mumbai and Delhi ` 1,50,000 (property in Mumbai is self-occupied; loan taken on 01.04.17 and utilized in 50:50 ratio); (vi) Long-term capital gains on sale of equity shares on which STT paid ` 7,95,000; (vii) Interest on fixed deposit ` 73,000; (viii) Loss from textile business ` 7,50,000; (ix) Speculation business profit ` 2,30,000; (x) Lottery income (Gross) ` 75,000; (xi) Loss incurred by firm (in which he is partner) ` 1,60,000; (xii) Salary received as partner from partnership firm ` 50,000 (same allowed to firm); (xiii) Life insurance premium paid for son (age 30, working in USA) ` 15,000. Brought forward losses from A.Y. 2024-25: Short-term capital loss on sale of gold ` 2,75,000; Loss on sale of equity shares u/s 111A ` 25,000. Compute total income of Mr. Akshay for assessment year 2025-26 and the amount of loss that can be carried forward. Mr. Akshay has opted out of the default tax regime.
Q8Place of supply determination
0 marks easy
Mr. Bindusaar is an employee in Galgotia and Sons, working at its Mumbai (Maharashtra) office. Mr. Bindusaar is unregistered under GST law. His family is located in Bareilly, Uttar Pradesh. His son requires a laptop for his school project on urgent basis. Therefore, Mr. Bindusaar places an order on Amazing.in (an e-commerce platform) for supply of a laptop of latest configuration to be delivered at his residential address located in Bareilly, Uttar Pradesh. While placing the order on the e-commerce platform, Mr. Bindusaar provides the billing address of his apartment located in Mumbai, Maharashtra. Determine the place of supply of the supply of laptop in the given case.
Q9TDS and TCS applicability
0 marks easy
Examine the applicability and amount of Tax deduction at source (TDS) or Tax collection at source (TCS) as per the Income-tax Act, 1961 for the A.Y 2025-26 in the following situations:
Q9Taxability of railway services
0 marks easy
Determine the taxability or otherwise of the following services provided by Indian Railways:
Q10Business income computation and tax liability
0 marks easy
Mr. Ganesh, a resident and ordinarily resident aged 61 years, is engaged in the business of manufacturing furniture. He is subject to tax audit under section 44AB. Profit & Loss account for the year ended 31st March 2025 shows net profit of ` 53,74,500. Other information: (i) Opening and closing stock of finished goods were undervalued by 10% (opening stock ` 14,50,000; closing stock ` 15,58,000); (ii) Salaries & wages (` 80,00,000) include: (a) Contributed 20% of basic salary in NPS for employee Mr. Ramesh (basic salary withdrawn ` 5,00,000; DA 40% of basic salary; 50% of DA forms part of salary); (b) VRS payments of ` 3,40,000 on 1st January 2025; (iii) Interest on loan (` 7,50,000) includes 15% per annum on ` 12,00,000 SBI loan taken 01.05.2022 for personal use electric car (` 15,00,000); (iv) Depreciation as per books is ` 6,17,000, but motor car purchased for ` 3,00,000 on 25.08.2024 for supply of goods was not considered in depreciation calculation (income-tax depreciation allowance is ` 4,50,000); (v) Asset purchased ` 6,00,000 on 23.7.2021 for scientific research; deduction claimed u/s 35; sold 05.09.2024 for ` 4,00,000; (vi) Administrative expenses (` 64,30,000) include ` 1,75,000 paid to approved scientific research association u/s 35 (` 50,000 used for land purchase); (vii) Received ` 3,00,000 from debtor written off as bad in 2018-19 (amount due was ` 5,00,000; tax officer allowed ` 3,00,000 in A.Y. 2018-19). Compute the total income and tax liability of Mr. Ganesh for assessment year 2025-26 assuming he wants to pay tax under section 115BAC.
Q10Registration cancellation grounds under GST
0 marks easy
Mr. Hridya has obtained a voluntary registration under the GST law in the State of Madhya Pradesh in January but has not commenced the business till the month of September. In October, the proper officer issues a show cause notice to him for cancellation of his registration. Examine whether the action taken by the proper officer is justified in law. Also, list the other circumstances when the proper officer can cancel registration under section 29(2).