QviGross Income Calculation under Income Tax
4 marks easy
Case: An employee (Mr. Sahi) with salary composition: Basic Pay ₹8,34,000; Dearness Allowance ₹1,28,814; House Rent Allowance ₹75,000; Transport Allowance ₹19,200; Personal Allowance ₹5,00,000; Children Education Allowance (2 children) ₹12,000; Medical Allowance ₹15,000; Bonus ₹20,000. Deductions: Employee's RPF contribution ₹1,14,152; Profession tax ₹2,400; Life Insurance Premium ₹18,000. Additional information: Employer also contributes equivalent amount towards RPF. Dearness allowance forms part of retirement benefits. He has opted for section 115BAC for A.Y. 2023-24 and has not submitted investm…
What would be the Gross Income of Mr. Sahi for the A.Y. 2023-24, assuming the exemption is available in the hands of Mr. Sahi for the A.Y. 2023-24?
(a) ₹ 16,21,236
(b) ₹ 16,76,050
(c) ₹ 16,71,236
QviiiTax Liability and Total Income Calculation
8 marks very hard
Case: An employee (Mr. Sahi) with salary composition: Basic Pay ₹8,34,000; Dearness Allowance ₹1,28,814; House Rent Allowance ₹75,000; Transport Allowance ₹19,200; Personal Allowance ₹5,00,000; Children Education Allowance (2 children) ₹12,000; Medical Allowance ₹15,000; Bonus ₹20,000. Deductions: Employee's RPF contribution ₹1,14,152; Profession tax ₹2,400; Life Insurance Premium ₹18,000. Additional information: Employer also contributes equivalent amount towards RPF. Dearness allowance forms part of retirement benefits. He has opted for section 115BAC for A.Y. 2023-24 and has not submitted investm…
What will be the liability of Mr. Sahi for the A.Y. 2023-24, if he does not opt for section 115BAC?
Q1Section 115BAC, taxable income calculation
10 marks hard
Assuming for the purpose of carrying the burden can be an advantage is made by: Mr. Gini and his employee towards 10% - other expenses available to Mr. Gini under Question IA for the previous year 2022-23. If he does not opt for section 115BAC, the taxable income of Mr. Gini will be:
(A) ₹ 2,78,520
(B) ₹ 2,59,537
(C) ₹ 2,50,000
(D) ₹ 2,43,500
Q1Composite case: house property, capital gains, industrial un
10 marks hard
Mr. Rai, aged 52 years a resident Indian, has furnished the following particulars for the year ended 31-03-2023: (i) He occupied a portion of his own house during 2023 and has not used fully for residential use in person out of ₹ 3,34,500. He has paid municipal taxes of ₹ 900 for both financial periods. (ii) As per internet certificate from ICICI bank, he paid ₹ 1,80,000 as interest and ₹ 66,000 towards principal during the financial year. (iii) Aggregate rent of his property during the financial year 2022-23. Total amount of the undertaking was ₹ 600 lakhs, which includes ₹ 100 lakhs towards undertakings in the conditions of confinement. (iv) He employed 30 new employees for the said industrial undertaking during the previous year 2023-24. Out of 30 employees, 12 were employed on 1st May 2023 for monthly emoluments of ₹ 15,000 and remaining were employed on 1st August 2023 on monthly emoluments of ₹ 12,000. All these employees participate in recognized provident fund and they are paid their emoluments. (v) He earned ₹ 30,000 and ₹ 45,000 as interest on saving bank deposits and fixed deposits respectively. (vi) He also sold his vacant land on 01-12-2022 for ₹ 1.5 lakhs. The stamp duty value of that at the time of sale was ₹ 1.55 lakhs. He had purchased it for ₹ 1.10 lakhs. The cost of rupee in 1997 and 2023 was 1. This is also not answered registration expenses of ₹ 12,000 at that time. (vii) The cost of certain items for the financial year 2022-23 and 2001-02 are 31+ and 100 respectively. (viii) He paid insurance premium of ₹ 49,000 towards life insurance policy of his son, who is not dependent on him.
Q1Income tax computation - multiple sources of income, capital
5 marks medium
Compute the total income of Mr. Dinesh and his wife Mrs. Matura for Assessment Year 2023-24 assuming that they have not opted to be taxed under section 115BAC.
Q1GST - Composition scheme withdrawal
2 marks easy
Neelkanti & Co. needs to furnish a statement containing details of stock of inputs/inputs held in semi-finished / finished goods on the withdrawal of composition scheme by ______.
(a) 9th May
(b) 8th June
(c) 7th July
Q2Loss under house property, section 71, belated return
2 marks easy
During the A.Y 2022-23, Mr. A has a loss of ₹ 8 lakhs under the head 'Income from house property'. He also has income of ₹ 15 lakhs from other head of income as per the provisions of section 71. He has not exercised any option in the previous year. What is the position with regard to the loss and the return of income within the said due date. Assume, Mr. A filed his belated return of income for A.Y 2022-23. How will the loss be carried forward to the said next years assuming the assessee has exercised option under section 115BAC in A.Y 2022-23. Comment and suggest the best option.
(A) No loss. Mr. A cannot set off loss of 8 lakhs during A.Y. 2023-24 as he failed to file his return of income within due date of A.Y 2022-23.
(B) Yes, Mr. A can claim set off of loss of 2 lakhs, out of 8 lakhs, from his income from house property for A.Y 2023-24 and the balance has to be carried forward to A.Y 2024-25.
(C) Yes, Mr. A can claim set off of loss of 2 lakhs, out of 8 lakhs, from his income from any head of income in A.Y 2023-24 and the balance has to be carried forward to A.Y 2024-25.
(D) No, the loss cannot be carried forward to the next year.
Q2Non-resident income taxation, section 9(1)(e), section 115BA
14 marks very hard
Mr. Arun, an ambassador in Japan. He received certain income of ₹2,40,000 during the year 2023-24. (Given brief reason)
(a) Mr. Arun of India has appointed Mr. Arand as an ambassador in Japan. He received taxable income of ₹2,40,000 during the year 2023-24. He rendered his services in Japan. He is an Indian citizen having status of non-resident in the year 2023-24.
Mr. Kaka: a non-resident in India is engaged in operations which are confined to purchase materials in India but rendered service charges of ₹30,000 during the period.
Mr. Vikas, a non-resident in India, has earned ₹3,00,000 as royalty for a patent right made by him. He also is a non-resident. He has sought certain rights for building a commercial complex on his property in Delhi for which he has earned royalties in India.
A NRI borrowed ₹10,00,000 on 01.04.2022 from Mr. Arjun who is also a non-resident. The money was lent for business purpose of an Indian Company. Mr. Kailash who received interest @ 12% per annum.
(b) ABC is a partnership. State are selling on producing certain IT through E-commerce Platform provided services need to work in Bangalore. Need to check if the income is covered under the income-tax Act with reference to A.Y. 2023-24.
(c) Design LLP paid an advance for expenses during year 2023 to Mrs. XYZ Co., a partnership firm for doing embroidery work on the fabric supplied by the design LLP.
Q2Gross total income computation, loss carryforward, capital l
5 marks medium
Determine gross total income of Mr. Nigam for the assessment year 2023-24 and the losses to be carried forward to the subsequent year assuming he has not opted to be taxed under section 115BAC.
Q2GST - Invoice issuance on sale or return
2 marks easy
In respect of the goods sent on sale or return basis, Neelkanti & Co. shall issue the invoice by ______.
(a) 15th September
(b) 10th December
(c) 10th December
Q3Indexed cost of acquisition, capital gains
2 marks easy
Mr. Hari acquired some shares of XYZ (P) Ltd. in 2018 for ₹ 3,50,000 and in April 2023, when the market price was ₹ 5,15,000. The indexed cost of acquisition of shares for Mr. Hari was
(A) ₹ 2,00,000
(B) ₹ 3,50,000
(C) ₹ 4,20,000
(D) ₹ 5,15,000
Q3House property income, resident but not ordinarily resident
8 marks very hard
(a) Mr. Malani, a citizen of the Country Y, is a resident but not ordinarily resident in India during the financial year 2023-24. He has two house properties in Country Y and a land in residence in India. The annual value of the house property in Country Y is ₹30,000. He took ownership and possession of a flat in Delhi on 01.10.2022, which is used for self-occupation. While his it is 10% in August, his rent used by him for 3 months of the time when he
Q3GST - ITC computation
2 marks easy
A taxpayer in the month of eligible input tax credit that can be availed by Neelkanti & Co. for the month of ______.
(a) Nil
(b) ₹ 19,000
(c) ₹ 22,000
(d) ₹ 50,000
Q3GST registration threshold and supplier eligibility
4 marks medium
Examine whether the supplier of goods is liable to get registered in the following independent conditions:
(i) Register of Assam is exclusively engaged in intra-State taxable supply of readymade garments. His turnover in the current financial year P-7.3 lakh.
(ii) Prince of Permium, Goa is exclusively engaged in intra-State taxable supply of shoes. His aggregate turnover in the current financial year is ₹ 9.8 lakh.
(iii) Harry and Jai are engaged in intra-State taxable supply of pan-related materials. Their aggregate turnover in the current financial year is ₹ 24 lakh.
Q3Return of goods under GST and applicable provisions
4 marks hard
Case: Rajesh Printing Ltd., a wholesaler of toys registered in Chandigarh, is announced in the local market for the supply of toys and their reasonable prices. Kidpee Toys Ltd. makes supply of 100 pieces of baby gaming items and shall supply shoes to Nancy General Store on 25th September by 'sale' arrangement. However, the said toys were returned by Nancy General Store on 30th September.
Rajesh Printing Ltd., a wholesaler of toys registered in Chandigarh, is announced in the local market for the supply of toys and their reasonable prices. Kidpee Toys Ltd. makes supply of 100 pieces of baby gaming items and shall supply shoes to Nancy General Store on 25th September by 'sale' arrangement. However, the said toys were returned by Nancy General Store on 30th September. Discuss which section would be applicable to discuss in such a case?
Q3aIncome tax - filing of return, consequences of non-filing, s
5 marks medium
Mr. Kabir, a resident and ordinarily resident in India, could not file the return of income for the assessment year 2023-24 before due date prescribed under section 139(1). Advise Mr. Kabir as a tax consultant: what are the consequences for non-filing of return of income within the due date.
Q4Residential status, foreign business income
2 marks hard
Case: Mrs. Vinita: retail trade business in Canada (since 2018), visiting India Dec 2022 to Jan 2023, managing business in both Canada and India
Mrs. Vinita started a retail trade business of toys in Canada in the year 2018. From Canada, she is managing her retail business. She wants to return to India for the purpose of her Indian business. Now she wants entry from 1st December 2022 to 31st January 2023 for 2 months and also wants to start her business in Canada and in India. Respectively for the F.Y. 2022-23. She has no other income during the year. For A.Y. 2023-24. Determine her residential status and income taxable to her in India.
(A) Resident and ordinarily resident in India and income of ₹ 18 lakhs and ₹ 23.50 lakhs would be taxable.
(B) Non-Resident and ₹ 18 lakhs from Indian retail trade business would only be taxable.
(C) Resident and ordinarily resident in India; business in Canada and in India. Respectively for the F.Y. 2022-23 will have no other income during the year.
Q4Gross total income computation, income from salary and busin
0 marks easy
(a) Mr. Dinesh, who is 45 years old and his wife Mrs. Heena who is 42 years old furnished the following information:
(i) Salary income (computed) of Mrs. Heena: ₹9,00,000
(ii) Income under head "Salaries" who suffers from disability specified under RPWD act: ₹3,08,000
(iii) Income of minor daughter "Nisha" from script writing: ₹1,80,000
(iv) Serials
(v) Income from garment trading business of Mr. Dinesh: ₹17,50,000
(vi) Premium paid on insurance policy in name of Mrs. Heena: ₹49,000
(vii) Income of minor son "Harsh" from scholarship received from his school to meet the cost of education: ₹1,00,000
(viii) Income of minor son "Harsh" from fixed deposit with Purnish: ₹5,000
Q4GST - ITC reversal
2 marks easy
Compute the amount of ITC to be reversed for the month of September? (ignore internal liability, if any)
(a) ₹ 28,000
(b) ₹ 15,000
(c) ₹ 13,000
Q4GST exemption for charitable activities
4 marks medium
Services provided by an entity registered under section 1248 of the Income Tax Act, 1961 are exempt from GST if such services are provided by way of charitable activities. Elaborate the same.
Q4Consignment value definition under GST
15 marks very hard
Explain the meaning of consignment value of goods.
Q5Professional income, capital expenditure, section 43 deducti
2 marks easy
Mr. Raghu (aged 32 years), an interior decorator, has professional receipts of ₹ 25,60,000 for the previous year 2022-23. She also earned ₹ 1,25,000 as dividend and ₹ 4,85,000 as interest income on fixed deposits. She incurred expenses of ₹ 13,00,000 for her profession and ₹ 30,000 as interest on borrowed funds. She took the business loan of ₹ 5,00,000 during the financial year 2022-23 and wants to claim the deduction under section 43 for A.Y. 2023-24. However, she wishes to make maximum tax saving without getting her income amended.
Q5GST - Time of supply for services
2 marks easy
Time of supply in respect of service imported by Neelkanti & Co. from its Associated Enterprise is ______.
(a) 1st September
(b) 30th September
(c) 1st October
(d) 10th October
Q6GST - Tax invoice exemption threshold
1 marks easy
Subhas & Co., a registered person, supplies textile goods to unregistered persons. It need not issue tax invoice. If the value of supply of goods to such person is ______ and the recipient does not require.
(a) ₹1,200
(b) ₹ 500
(c) ₹150
(d) ₹600
Q7GST - Electronic credit ledger utilization
1 marks easy
Balance in electronic credit ledger can be utilised against payment of ______.
(a) output tax
(b) penalty
(c) interest
(d) late fees
Q8GST - ITC computation and utilization for regular scheme
12 marks very hard
Case: Paritosh & Co., a supplier of goods, pays GST under regular scheme.
Paritosh & Co., a supplier of goods, pays GST under regular scheme. It has made the following relevant details: Intra-State supply of goods: ₹10,00,000, Inter-State supply of goods: ₹8,00,000. It has also furnished the following information in respect of purchases made by it in that period: Intra-State purchases of goods: Amount (₹) 3.00,000, Inter-State purchases of goods: 2.00,000. Paritosh & Co. has following opening balance of ITCs for the period: Particulars: CGST ₹57,000, SGST ₹60,000, IGST ₹1,40,000
Q9GST - Supply of goods with subsidy
12 marks very hard
Case: Red Pepper Ltd., Delhi, a registered supplier manufactures taxable goods.
Red Pepper Ltd., Delhi, a registered supplier manufactures taxable goods. It provides the following details of taxable items supplied by it in March: List price of taxable goods supplied inter-State (exclusive of taxes): ₹15,00,000, Subsidy received from the Central Government for supply of taxable goods to Government School (exclusively related to supply of goods):