Revision Video Classes 15 Golden Hours on pen drive |
CA-IPCC Income tax – Nov 2019 – AY 19-20
STUDENT MUST SOLVE THESE QUESTION FOR BOOSTING PERFORMANCE IN EXAM.
Full computation - Tax Liability – Residential Status
Problem (Revision Class on pen drive 15 golden hours) ID - 01
Miss Charlie, an American national got married to Mr Radhey of India in USA and came to India for the first time on 16.03 of preceding previous year. She remained in India up till 19.9 and left for USA on 20.9 She returned to India again on 27.03 While in India, she had purchased a show room in Mumbai on 01.05., which was leased out to a company on a rent of 20,000 p.m. from 1.05. She had taken loan from a bank for purchase of this show room on which bank had charged interest of 97,500 up to 31.03.
She had received the following gifts from her relatives and friends during the year:
From parents of husband 51,000
From married sister of husband 11,000
From two very close friends of her husband 1,51,000 and 21,000 total 1,72,000
She owned a piece of land acquired 8 years before in Hyderabad which was sold during the year and profit on sale of the land computed as per capital gains chapter is 30,000.
She has professional fees income of Rs. 5000 earned and received in Canada.
You are required to
Determine her residential status and compute the total income chargeable to tax along with the amount of tax payable.
Would your answer be different if she would have been staying in India during whole of previous year.
What if she stays in India for every year for 160 days since last 15 years.
Full computation with Income and Expense account
Problem (Revision Class on pen drive 15 golden hours) ID - 02
Dr Niranjana, a resident individual, aged 60 years is running a clinic. Her Income and Expenditure Account for the year is as under:
Expenditure | | Income | |
To Medicine consumed | 35,38,400 | By Consultation and Medical charges | 58,85,850 |
To Staff salary | 13,80,000 | By Income-tax refund (Principal 5,000 interest 450) | 5,450 |
To Clinic consumables | 1,10,000 | By Dividend from units of UTI | 10,500 |
To Rent paid | 90,000 | By Winning from game show in TV (net of TDS 15,000) | 35,000 |
To Administrative expenses | 2,55,000 | By Rent | 27,000 |
To Amount paid to scientific research association approved under section 35 | 1,50,000 | | |
Net Profit | 440,400 | | |
Total | 59,63,800 | Total | 59,63,800 |
Rent received relates to property situated at Surat. Gross Annual Value 27,000. The municipal tax of 2,000. paid in December, has been included in “administrative expenses’
She received salary of 7,500 p.m. from Full Cure Hospital” which has not been included in the “consultation and medical charges”
Dr Niranjana availed a loan of 5,50,000 from a bank for higher education of her daughter She repaid principal of 1,00,000, and interest thereon 55,000 during the year.
She paid 1,00,000 as tuition fee (not in the nature of development fees/donation) to the university for full time education of her daughter
An amount of 28,000 has also been paid by cheque on 27 March, for her medical insurance premium.
LTCG on listed shares Rs. 2,00,000 (computed as per provisions of income tax) is directly transferred to capital account.
For the security of clinic she has acquired a Rottweiler Dog for 120,000. The amount is capitalised in books of accounts.
You are required to
From the above, compute the total income and tax liability of Dr. Niranjana.
Salary paid includes Amount of 900,000 paid as salary to Dr. Raja (Assistant doctor in clinic). Dr Raja has informed about his other incomes and losses. Professional loss is 20000, house property (net) loss is 30000 and Interest income is 12000. He has invested in LIC policy with annual premium of 5,000. Tax deducted is 5,000 on his property income. You are required to compute the tax deductible out of payments made to Dr. Raja.
(All questions are solved as per the assessment year of this book, however in some of the questions there is reference to earlier year say for PY 2006-07, this is only for illustrative purposes. Answers are solved as per provisions, limits, % of laws, deductions of the assessment year only.)
