Q.28 Rohit a person of Indian origin residing in US visited India on 29th September 2017 and went back on 5th April 2018. During his stay in India he visited Dhaka (Bangladesh) on 11th October 2017 and came back to India on 14th October 2017. During last seven previous years he was in India for 709 days. What will be his residential status for AY 2018-19. a) Resident and ordinary resident b) Non resident c) Resident but not ordinary resident Q.29 X a ‘citizen of Canada’ came to India on 10th April 2017 and went back on 7th June 2017. He again came to India at 6 a.m. on 14th November 2017 and went back on same day at 7 p.m. During the last four PY he was in India for 368 days. He earned income from a business in India worth Rs.8,00,000 and remitted Rs.4,00,000/- from his foreign business income in India during PY 17-18 to Finance the education of his ‘son’ who is studying at ISB, Bangalore. Taxable Income of X in India shall be a) Rs.12,00,000/- b) Rs.8,00,000/- c) Rs.4,00,000/- d) Nil Q.30 A simple interest is payable by assessee to income tax department under section 234D in case of excess refund granted. The rate of interest so payable is a) 0.5% per month (or part thereof) b) 1% per month (or part thereof) c) 1.5% per month (or part thereof) d) 2% per month (or part thereof) Q.31 If advance tax installment are not paid on or before due dates interest is charged U/s a) 234A b) 234B c) 234C d) 234D Q.32 Dividend on Fixed Maturity Plans is Page 49 a) exempt in the hands of investor b) taxed at 15% c) taxed at normal rates d) taxed at 20% CFP Level 3 - Module 2 – Estate Planning – India - Workbook
Q.33 In case of company paying rent of building in excess of Rs.180000 p.a. TDS is applicable at the rate a) 10% b) 5% c) 2% d) 15% Q.34 Interest on bank deposits is not-subject to TDS if it is earned on: a) Saving bank account b) Recurring deposit account c) Fixed deposit account d) Gold bond accounts Q.35 If total income of an individual exceeds 1 crore, then surcharge is payable at the rate a) 12% b) 10% c) 15% d) 3% Q.36 Trust is created for benefit of relatives of venture capital. Shares of 4 beneficiaries are 40%, 25%, 20%, 15%. While they are assessable respectively in Tax slab on 5%, 20%, 20%, 30%, beneficiary in 5% tax slab has income from Trust only, Tax on 2nd beneficiary in 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust. Total Income of 8.5 lakh is to be distributed amongst the beneficiaries during the year. What would be tax payable by trustee on account of Trust in that year (Ignore education cess.) a) 119250 b) 75000 c) 148750 d) 114750 Q.37 What shall be tax payable in previous case including surcharge and education cess. a) 127462.50 b) 122830 c) 153210 d) 146850 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 50
Q.38 Assume in previous question that the tax on 2nd beneficiary in 20% bracket exceeds previous slab by 80000 before including income from trust. Compute tax payable including surcharge and education cess. a) 146580 b) 127460 c) 134415 d) 134420 Q.39 A management college professor retired from service on 1st March 2016 at the age of 60 year. She had accumulated a balance of Rs.1.25 crore in her retirement account. She also received gratuity from the college under the payment of Gratuity Act. She commuted the tax exempt value of her retirement fund. The rest of the amount was utilized by the college to buy her a 25 year fixed annuity differed by a year and paid annually thereafter. If the effective yield from such annuity product were 7.5% p.a. and she is willing to save maximum permissible amount under section 80C and 80D, what tax liability you estimate for her for AY 18-19. a) 39670 b) 34523 c) 26800 d) 39673 Q.40 Mr. A purchased 1,000 shares of an unlisted company at Rs.983 per share on 25th April 2011. The company allotted rights shares at Rs.245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2014 which was subscribed by Mr. A. The company got listed on 1st March 2017 and Mr. A sold 1400 shares at Rs. 1975 per share in off market transaction on 1stFeb, 2018. Find the capital gains in the transaction. a) Original shares LTCG 521870 (20% option) Right Shares LTCG 692000 (10% Option) b) Original Shares 992000 (10% option) Right Shares LTCG 692000 (10% Option) c) Original Shares 521870 (20% option) Right Shares LTCG 668836 (20%) d) Original Shares 521870 (10% Option) Right Shares LTCG 668836 (20% Option) Q41 Mr. A redeemed the entire units of a debt oriented Mutual Fund on 31st December 2017 at Rs.22.16 per unit. He originally purchased 3500 units at a piece of Rs.17.47 per unit under dividend reinvestment option on 4thDecember 2014. He received dividends of 20%, 18%, 17% in this period on his outstanding units which were reinvested respectively at NAVs of Rs.19.43, Rs.20.91, Rs.22.61 in the month of CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 51
November in the years 2015 to 2017. What is the tax treatment of these transactions for AY 2018-19. a) LTCG 1257 and STCG 4303 b) LTCG 8262 and STCG 1257 c) LTCG Loss 20 and STCG 1257 d) LTCG 20 and STCL 1257 Q.42 A person taken home loan and education loan, he paid 30000 as principal 13000 as interest against home loan and 18000 as principal and 8000 as interest against education loan, what would be education u/s 80C and 80E? a) 43000 & 26000 b) 30000 & 26000 c) 13000 & 8000 d) 30000 & 8000 Q.43 A house property in Kolkatta having a municipal value of Rs.5 lakh, Fair Rental Values of 6 lakh was intended to be let out to tenants. Unfortunately during previous year no tenant was found. Municipal Tax is 5000 (of which Rs.1200 is payable). Interest paid on loan taken for purpose of property is Rs.179000. What is deemed income from house property? a) NIL b) Loss 179000 c) Loss 3800 d) Loss 182800 Q.44 An assesses lives with parents. From 1stAugust, 2017 he takes a rented accommodation for this he is paying 10000 pm, his basic salary is 240000 and HRA received is 5500 pm. What is taxable HRA. a) 44000 b) 66000 c) 22000 d) 6000 Q.45 Mr. Arun invested Rs.80000 in debt oriented mutual fund on 26th March 2015 @15.21 per units under dividend reinvestment option. He received dividend 18% in 2016 and 20% in 2017 on his outstanding units which were reinvested at NAV of Rs.17.16, and Rs.19.10, on the last business day of February. Compute the taxable CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 52
income from this transaction if he sold the units in 30th March 2018 @22.15 per unit. a) LTCG 28050 and STCG 4608.88 b) LTC loss 30826 and STCL 4608.88 c) LTCG 30826 and STCL 4608.88 d) LTCL 30826 and STCG 4608.88 Q.46 X acquired 1000 shares @900/- per share of a company on 6/6/15. Later on company gave one right for 2 shares held @680/- per share on 18/3/17. X sold 1200 shares @2825/- per share on 30/1/18. Calculate his capital gains and Tax liability, if he has no other Income. a) 13290 b) 22510 c) 27660 d) 25080 Q.47 What if in last question shares are unlisted. a) 392630 b) 385146 c) 42900 d) 410146 Q.48 In an unfortunate incident, Keshav’s plant catches fire and machinery gets destroyed. Keshav had insured the factory against it written down value of machinery was Rs.38200 and replacement cost Rs. 6,00,000. The insurance company has paid compensation of Rs.4,50,000. What shall be Taxable amount? If he has not yet replaced the machine. a) Short term loss Rs.1,50,000 b) Loss from business Rs.1,50,000 c) STCG Rs.4,11,800 d) Business Income Rs.68,000 Q.49 ‘X’ Purchases equity shares in Y ltd. a listed company on BSE on March 1, 2016. He sold off all the shares on March 4, 2018 at a loss of Rs.1,30,000. He wants to set off the loss against LTCG of Rs.60,000 from gold and business income of Rs.70,000. Shares were purchased and sold on Recognized stock exchange. Whether such a loss can be set off. CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 53
a) Yes, uptoRs.60,000 against LTCG on gold. b) Yes, entire Rs.1,30,000 can be set off c) No, it cannot be set off but can be carried forward d) No, it can be set off, neither can be carried forward Q.50 Neetu invests Rs.2,40,000 in an debit oriented scheme on 1/02/2017 and receives a dividend of Rs.32,000 on 31/03/2018, the record date. The investment sold on 02/06/2018 for Rs.1,92,000. How much short term loss if any arising from this investment is allowable for set off in AY 2018-19. a) Entire Rs.48,000 can be set off b) NIL c) Rs.32,000 since provision of 94(7) apply d) Rs.16,000 Q.51 What it in previous question units are purchased on 02/01/2018. a) Rs.48,000 b) NIL c) Rs.32,000 d) Rs.16,000 Q.52 Mrs. X whose date of birth is 30th March 1958 has a total salary income of Rs.9,78,000 for PY 2017-18. She has income from others sources Rs.18,142 from her saving account. Her only investments are contribution to EPF which are 12% of her basic pay of Rs.40,000 pm. Find her tax liability for AY 2018-19. a) Rs.1,10,705 b) Rs.98,580 c) Rs.1,14,030 d) Rs.1,05,708 Q.53 X reports following income/losses during the PY 2017-18. Income from growing a crop in Nepal Rs.80,000, income from growing a crop in Sikkim Rs.1,30,000. Loss from growing manufacturing of Tea in Assam Rs.1,00,000. He received interest on capital and remuneration of Rs.60,000 and Rs.90,000 from a partnership firm which is doing agriculture in India. Compute his tax liability. a) 1030 b) 4120 c) Nil d) 40000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 54
Q.54 XY a partnership firm recorded a total sale of Rs.75 lakh during the PY Expenses on goods purchased Rs.30 lakh, deprecation charge Rs.3 lakh. It also earned LTCG of Rs.90,000 and paid Rs.20,000 as donation to PM NRF for deduction u/s 80G. The firm also has brought forward loss of Rs.70,000 and unabsorbed depreciation Rs.60,000 of last PY. Assuming firm goes for presumptive scheme under section 44AD. Calculate net income. a) Rs.6,00,000 b) Rs.6,70,00 c) Rs.6,90,000 d) Rs.5,40,000 Q.55 X sold agricultural land in Urban area for Rs.80 lakh which he purchased 6 years ago. Indexed cost of this land is Rs.35 lakh and he incurred Rs.50,000 on brokerage at the time of sale. He acquired a coffee farm 20km away from urban area limits for Rs.45 lakh and transferred the same during the PY of Rs.60 lakh. Compute capital gain from these transactions for the AY 2018-19. a) Rs.15 lakh b) Rs.60 lakh c) NIL d) Rs.44.5 lakh Q.56 X invested Rs.40,000 each in equity and debt mutual funds 18 months ago. He sold both the portfolios for Rs.55,000 and Rs.60,000 respectively. Calculate tax assuming his other income are Rs.10,81,670. a) Rs.10,60,000 b) Rs.10,75,000 c) Rs.1,43,000 d) Rs.1,47,290 Q.57 X rented a property to a company for a rent of Rs.5,00,000. He also earned a lottery winning of Rs.1,00,000 during the PY. How much TDS shall be done on Mr. X a) Rs.80,000 b) Rs.82,400 c) Rs.30,000 d) Rs.30,900 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 55
Q.59 How would the LTCG from gold ETF be taxed? a) Exempt 10(38) b) 20% after benefit of indexation c) 10% without benefit of indexation d) (b) or (c) as the tax payer wishes Q.60 A defect pointed out by assessing officer in return should be rectified within a) 15 days b) 30 days c) 45 days d) 7 days Q.61 Long term capital gain on listed bonds / debentures shall be taxed at a) 10% without indexation b) 20% with indexation c) (a) or (b) at the option tax payer d) 20% without indexation Q.62 Long term capital gain on unlisted bonds / debentures shall be taxed at a) 10% without indexation b) 20% with indexation c) (a) or (b) at the option tax payer d) 20% without indexation Q.63 LTCG on zero coupon bonds shall be taxed at a) 10% without indexation b) 20% with indexation c) (a) or (b) at the option tax payer d) 20% without indexation Q.64 X rented a property to a company for a rent of Rs.5,00,000. He paid interest on borrowed capital for construction of property Rs.50,000 and municipal tax Rs.10,000. What shall be taxable income from house property? a) Rs.4,90,000 b) Rs.4,50,000 c) Rs.4,40,000 d) Rs.2,93,000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 56
Q.65 X received a cheque of Rs.80,000 as token of appreciation from the employer. He also received a gift of Rs.50,000 from a friend. His salary income excluding Rs.80,000 cheque is Rs.8,86,000 what shall be taxable income. a) Rs.1,30,000 b) Rs.9,36,000 c) Rs.9,66,000 d) Rs.10,16,000 Q.66 A acquired 1,400 shares of an unlisted company @Rs.200 per share on 15/9/15 and was given 350 right shares @Rs.220 per share on 15/1/17. He sold all the shares @Rs.850 per share on 30/12/17. Compute his tax liability. If he has no other income for AY 2018-19. [CII 2017-18:272, 2015-16:254, 2016-17:264] a) Rs.1,75,693 b) Rs.1,76,480 c) Rs.1,77,300 d) Rs.1,81,770 Q.67 XYZ a partnership firm has earned profits from business to the tune of Rs.9,80,000 before deducting remuneration paid to partners. It also earned LTCG on equity Rs.3,00,000 and LTCG on gold Rs.80,000. Compute the taxable income of firm assuming it paid maximum remuneration permissible under section 40(b) to the partners. a) Rs.6,78,000 b) Rs.3,02,000 c) Rs.3,82,000 d) Rs.6,82,000 Q.68 Revised tax return can be submitted within: a) On year from the due date of filling return b) On year from end of relevant assessment year c) One year from and end of relevant previous year d) Six months from the due date of filling of return Q.69 Your client is running a business of manufacturing taps. He recorded a turnover of Rs.90 lakh and opted for presumptive scheme under sections 44AD. He also earns rental income from a let-out house and interest on bank deposits x. Which income tax return and by which date can be filled by him. CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 57
a) ITR 2 by 31/07/AY b) ITR 3 by 30/09AY c) ITR 4 by 31/07/AY d) Both (2) or (3) as per his choice. Q.70 Sunder Nath earned salary Income of Rs.4,90,000 and LTCG on unlisted shares Rs.90,000. He has invested Rs.80,000 in NPS and paid mediclaim of Rs.26,000 for himself and his wife. Compute his tax liability. a) Rs.32,450 b) Rs.27,295 c) Rs.27,300 d) Rs.18,030 Q.71 Rohit is an India citizen. He left India for the First time on 05/09/17 for exploring US markets for exports of goods manufactured in India by him. He returned on 5th April 2018. Determine his residential status for Ay 2018-19. a) Citizen of India b) Resident and ordinary Resident c) Resident but not ordinary resident d) Non resident Q.72 Mr. Sanjiv Roy, CEO of a company had to take foreign tours so often that he remained out of India for as many as 300 days during 2017-18. He was also out of India for 1052 days during last four years. For PY 2017-18 he shall be: a) Foreigner b) ROR c) Resident but NOR d) Non resident Q.73 What is amount of penalty for misreporting of income resulting in under reporting income? a) 100% of tax on under reported income b) 200% of tax on under reported income c) 300% of tax on under reported income d) 100% of tax on under reported income CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 58
Q.74 X Doctor recorded total receipts of Rs.48 lakh from his medical profession. The total expenses incurred by him in connection with his profession were Rs.19,40,000 and depreciation as assets Rs.2,00,000. He also earned LTCG on equity Rs.90,000, LTCG on gold Rs.85,000 and ST capital loss on equity Rs.30,000. What shall be taxable income if he adopts section 44ADA? a) Rs.25,45,000 b) Rs.24,00,000 c) Rs.24,55,000 d) Rs.24,85,000 Q.75 Your client a non -resident Indian has earned Long term capital gains from sale of a property in India to the tune of 9,50,000 during the relevant previous year. He has also earned Interest of 48,000 from NRE account held with SBI in India and 93,000 from NRO account held with same bank. Compute his tax liability for relevant assessment year. a) 163360 b) 195700 c) 163358 d) 190000 Q.76 Your client a person of Indian origin settled in US came to visit India for 180 days during the PY. During 4 proceeding previous year he was in India for 725 days and 3 year preceding these 4 years he was in India for 1000 days. Determine residential status for relevant PY. a) ROR b) RNOR c) Non Resident Q.77 Your client a person of Indian origin settled in Canada came to visit India for 184 days during the PY. During 4 preceding previous years he never came to India but in 3 year prior to these 4 year he was in India for 270, 280, and 180 days respectively. What shall be his residential status? a) ROR b) RNOR c) NR CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 59
Q.78 Somu Mukherjee a citizen of India is employed with a US company since 1994. He decides to resign from his job and wishes to settle in India finally. He came to India on 29th December 2017 to actualize his plans. His stay out of India during preceding in 4 years was 1080 days and during 3 year preceding these 4 he was India for 105,107 and 98 days respectively. What shall be his residential status for AY 2018- 19. a) ROR b) RNOR c) NR Q.79 X a non-resident Indian settled in Dubai had given a loan of 50,00,000 to Y a resident of India who used it for a business carried out in India. Y paid an Interest of 9,00,000 to X directly in X’S bank account at Dubai. X also earned business income of 80,00,000 from his Dubai business Compute X’S taxable income in India. a) 50,00,000 b) 9,00,000 c) 89,00,000 d) 71,00,000 Q.80 X an non-resident gave a loan of 50 lakh to Y another non- resident in Singapore. Y used these funds for his business in India and paid interest of 6,00,000 to X in Singapore. The interest income of 6,00,000 for Mr. X shall be. a) Exempt from Tax in India b) Shall not be included as it is foreign income. c) Shall be taxable as it is Indian income d) Shall be exempt as it is received outside India. Q.81 Your client a RNOR reported LTCG from sale of land in India to the tune of 9,00,000. He also earned business income of 25,00,000 in Dubai. He remitted 60% of business income in Dubai to India to start a new business in India. His taxable income for the PY shall be a) 34,00,000 b) 24,00,000 c) 9,00,000 d) 19,00,000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 60
Q.82 What shall be tax liability of your client in Q81 if he invested 150000 in PPF during the PY. a) 133900 b) 185400 c) 154500 d) 103000 Q.83 Loss under the Head house property can be set off against “ salary income” to the extent of a) 1,50,000 b) 2,00,000 c) 2,50,000 d) No limit Q.84 Loss under the Head” house property” during the current previous year cannot be set off against. a) Income from Salary b) Capital gains c) Business Income d) Winning from lotteries Q.85 Loss under the Head “ house property” of the current year. a) Can be set off against any income up to a limit of 2,00,000 b) Can be set of against any income except Long Term capital gains up to a limit of 2,00,000 c) Can be set off against any income except” Winnings” up to a limit of 2,00,000 d) Can be set off against any income except” Winnings” without any limit. Q.86 X owns a big house half of which is let out on a monthly rent of 12000 pm. Remaining half is self-occupied by X for his own residence. X has paid municipal taxes of 8000 for the entire house and has also repaid EMIs aggregating 592500 in respect of loan taken from SBI housing Finance. EMIs include principal repayment of 112000 and interest a mounting 480500. X has also earned income from business amounting 630000 and has invested 145000 in NPS Compute his taxable income for the AY. CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 61
a) 287500 b) 39500 c) 182000 d) 230000 Q.87 Your client provides following detail for previous year. Loss from house property: 360000, Short Term capital loss equity 98,000, Long Term loss on Equity 3,00,000 (STT paid on all equity transitions) and LTCG on gold 9,00,000. Investment in PPF 1,50,000. Compute his tax liability. a) 72512 b) 72510 c) 41610 d) 39550 Q.88 Your client a business man has not followed section 44 AD and has computed business income of 9,85,000 after deducting all expenses. These expenses included three bills of 17,000, 19000 and 9500 respectively which were paid by bearer cheques. What shall be his taxable income? a) 985000 b) 1002000 c) 1021000 d) 1030500 Q.89 Ajay Singh Chauhan is employed with MNC on monthly salary of 6,00,000. He was also offered 500 ESoPs. By his employer company @800 per ESoP. Ajay applied for 300 ESoPs. When the market price was 2100/ per share. Other income of Ajay include dividends from Indian companies 7,50,000, dividend from foreign company 85000 and dividend from MFs 1790000. He invested maximum under section80CCD(1), 80CCD(1B) and donated 20000 in cash to Chari table trust. Compute his tax liability. a) 2328320 b) 2328315 c) 2116650 d) 2260500 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 62
Q.90 In an unfortunate incident, Keshav’s plant catches fire and machine gets destroyed. Keshav had insured the factory. Written down value of machine was 38200 and replacement cost 600000. The insurance company has paid compensation of 450000. Assuming Keshav has replaced the machine, the tax implication shall be. [ignore add depreciation] a) Short Term Loss 150000 b) Loss from business 150000 c) STCG 411800 d) Depreciation u/s 32: 28230 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 63
Solutions of Additional Practice Questions 1A 46 C 2A 47 A 3D 48 C 4D 49 D 5B 50 A 6D 50 D 7D 52 B 8C 53 C 9B 54 D 10 D 55 C 11 C 56 D 12 D 57 A 13 A 58 C 14 B 59 B 15 B 60 A 16 D 61 A 17 D 62 D 18 B 63 C 19 A 64 D 20 C 65 C 21 A 66 C 22 A 67 C 23 A 68 C CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 64
24 C 69 D 25 C 70 C 26 B 71 B 27 D 72 B 28 C 73 B 29 B 74 C 30 A 75 B 31 C 76 C 32 A 77 A 33 A 78 B 34 A 79 B 35 C 80 C 36 A 81 C 37 B 82 A 38 D 83 B 39 C 84 D 40 B 85 C 41 B 86 D 42 D 87 B 43 D 88 C 44 C 89 A 45 A 90 D CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 65
Solutions Additional Questions Q1. Long term capital gain Rs.4,00,000 Less: STCL (E) Rs.80,000 STCL(L) Rs.2,00,000 Net LTCG Rs.1,20,000 Add: Income “OS” Rs.2,10,000 Total Income Rs.3,30,000 Tax on LTCG (Rs.1,20,000 – Rs.40,000 shifted to make up for exemption of 250000) 80000 x 20% = 16000 – (Rebate 87A) 2500 = 13500 + 405 (Cess) = 13900 Q2. A Mother’s Income Rs.3,00,000 B. mother Share of Rs.2,00,000 x 5% = Rs.10000 Rs.4,00,000/- Rs.2,00,000 x 20% = Rs.40,000 Father Income Rs.4,80,000 Share of father – 4,00,000 Rs.20,000 x 5% = Rs.1000 Rs.3,80,000 x 20% = Rs.76000 C. Sister’s Income Rs.6,00,000/- Share of sister Rs.4,00,000 x 20% Rs.80,000 Add: EC 3% Rs.207000 Rs.6210 Rs.213210 Q3. Mother’s shares Rs.2,00,000 x 5% Rs.10,000 Father’s Share Rs.2,00,000 x 20% Rs.40,000 Sister’s share Rs.2,00,000 x 30% Rs.60,000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 66
Rs.110000 Add: 3% EC Rs.3300 Rs.113300 Q4. Rs.6,00,000 x 35.353% = 213210 = 213210 (Round off) Q5. 1. Income from HP NAV – nil 24(b) Rs. 2,00,000 (max) (233200) Loss Rs.200000 2. Total Income Salary income Rs.1060000 Rs.150000 Less: H.Property Rs.200000 Rs.50000 GTI Rs.860000 Less: 80C (101000 + 40000) Ravi’scountribu 80CCD (1) 20000 tion to NPS 80CCD(1B)50000 (Extra) Employer’s contribution 80CCD(2) Rs.70000 Rs.70000 to NPS Rs.590000 Total Income = Q.6 Income from other sources Rs.550000 (Gift from nephew) (Interest on PQSB, (14500-3500) Rs.11000 GTI Rs.561000 Less: 80C (120000+40000) Rs.150000 80CCD(1)(11B) Rs.50000 Rs. 50000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 67
80TTA Rs.10000 Total Income Rs.351000 Q.7 Advance money forfeited “other sources” Rs.2,00,000 +LTCG Rs.7,60,000 (840000 – STC Loss) GTI Rs.960000 Less 80C – Rs.150000 Rs.200000 (Limited to Rs.2,00,000 as LTCG cannot be used for 80D Rs.55000 (25000+30000) deduction U/s 80) TI Rs.7,60,000 Tax Liability Tax LTCG (760000 – 250000)x 20% = Rs.102000 Add EC = Rs.3060 Rs. 105060 Q.8 X’s Income Minor’s Child Income Dance Performance Personal Income Rs.9,00,000 Rs.5,00,000 Add: Minor child’s income Rs.70500 (12000 + 60000 – 1500) Rs.970500 Q.10 Salary for calculation of HRA = Basic salary + DA S = 25000 + 5000 = 30000 HRA Exemption 1) 50% of salary (15000) 2) Rs.7000/- 3) [6000 – 10% of Salary] Rs.3000 BS 25000 x 12 = Rs.300000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 68
DA 5000 x 12 = Rs.60000 HRA 84000 – 36000 = Rs.48000 Rs.408000 Q.11 For self/spouse and children (19000 + 5000) 24000 Add: For parents Rs.30000 Total Rs.54000 Q.12 Salary Rs.1010500 Other source Rs.96000 TI Rs.1106500 Less: 80C – Rs.97000 Rs.132000 80D – Rs.25000 80TTA – Rs.10000 Total Income Rs.974500 Tax Rs.107400 + Rs.3222 Rs.110622 (R/o 110620) Q.13 Interest @ 8% on 20 lakh from 19th April 2017 to 31st March 2018 for 348 days comes to Rs.152548. This investment will have no income till 31st March 2018, so entire interest becomes expenditure which can be set off other interest income of Rs.600000/-Therefore GTI Rs.6,00,000– Rs.152548/- = Rs.447452 less deduction u/s 80C50,000 80D-30000 = 367452 (Rs.367450/-). Tax on this income 5872.5 EC 3% (176.17) = 6048 (6050). CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 69
Q.16 Taxable Income = (Rs.860000 + 40% of 6,00,000) = Rs.11,00,000 Agri Income (60% of Rs.600000) = Rs.360000 Calculation of Tax 1. Tax on 1460000 = Rs.250500 2. Tax on (360000 + 250000) 610000 = Rs.34500 3. Tax at (1) – Tax at (2) = Rs.216000 4. Tax payable = 216000 + 3% of EC 6480 = Rs.222480 Q.17 A. Let out house (1/4) MV Rs.60000 FRV Rs.75000 SR Rs.90000 AR Rs.13000 PM Rs.1,56,00 GAV 0 Less: Rs.3000 M. Tax (1/4) Less: NAV Rs.153000 24(a) 30% of NAV Rs.45900 24 (b) Interest Rs.50000 Net Income Rs.57100 B. Self occupied (1/4) NAV Nil Rs.30000 Less: 24(b) – Rs.30000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 70
Net income from HP (57100 – 30000) = Rs.27100 C. Business income 750000 Less: (a) M. Tax (1/2) 6000 (b) Land Rev. (1/2) (c) Ins. Prem (1/2) 4000 (d) Interest (1/2) Rs.3000 Rs.1000 00 (e) Depreciation (1/2) Rs.20000 Rs.617000 Total Income = 617000 + 27100 = Rs.644100 Q.18 Rs.12,100 500 Nos. (solution given below) 225 Rs. per share Number of shares 460 Rs. per share Purchase price Sales price 112,500 Rs.(500 x 225) 230,000 Rs.(500 x 460) Alternative-1 1,53,000Rs.(500 x 225) x 272 / 200 Cost of acquisition 77,000 Rs.(230000-153000) Sales consideration 15,400 Rs.(77,000 x 20%) Less: Indexed cost of acquisition 462Rs.(15400 x 3%) Long term Capital Gain 15,862 Tax @ 20% 15,860 Rs.(Round off) Add Education Cess @ 3% (2% + 1%) Tax liability from capital gain Tax liability rounded off CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 71
Alternative-2 Sales consideration 230,000 Rs.(500 x 430) Less: cost of acquisition (without indexation) 112,500 Rs.(500 x 225) Long term capital gain 117,500 Rs.(230000–112500) Tax @ 10% 11,750 Rs.117500 x 10% Add Education Cess @ 3% (2% +1%) 353 Rs.11750 x 3% Tax liability from capital gain 12,103 Rs.11750 + 353 Tax liability rounded off 12,100 Rs.(Round off) Note: An assessee can choose lower of the two alternatives for payment of capital gains tax liability. Q.19 A) Rs.57,600 (Solution given below) For 800 shares: Sale consideration (Date : 20th October 2017) 29,600 Rs.(800 x 37) Less: Cost of acquisition (Date : 10th May 2017) 44,800 Rs.(800 x 56) Short term capital loss (STCL) 15,200 Rs.(29,600–44,800) Dividend received 4,000 Rs.(0.50x10)x805 Whether Section 94(7) is applicable Yes For 200 shares: Sale consideration (Date 20th December 2017) 4,000 Rs.(200 x 20) Less: Cost of acquisition (Date : 10th May 2017) 11,200Rs.(200 x 56) Short term capital loss (STCL) (7,200)Rs.(4,000x11200) Dividend received 1,000 (0.50 x 10) x 805 Whether Section 94(7) is applicable No Computation of income from capital gain 76,000 Rs. LTCG on sale of gold (11,200) Rs.(-15200+4000) Less: STCL on sale of 800 shares (7,200) Rs. Less: STCL on sale of 200 shares CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 72
Net LTCG for AY 2017-18 57,600 (Rs.76000 – 11200 – 7200) Note: As per section 94(7), dividend stripping it applicable only if: 1) Shares of MF units are bought within 3 months of dividend record date 2) Shares are sold within 3 months of dividend record date/MF units are sold within 9 months of dividend record date 3) There is short term capital loss (STCL) on such sale 4) Dividend received is less than the STCL on sale If it is applicable, the amount of dividend received is deducted from the total STCL figure for shares/MF units sold. Balance will be either set-off against capital gains, if any, or carried forward to next assessment year. Q.20 Rs.3.81 lakh, by 30th September 2016 (Solution given below) Purchase cost Rs.290,000 Sale proceeds on 1st April 2015 Rs.1,012,000 Less :Expenses on transfer Rs.2,000 Net Sale proceeds Rs.1,010,000 (1012000–2000) Cll for 2007-08 129 Cll for 2017-18 272 Indexed cost of acquisition Rs.6,11,473 (290000 x 272/129) Long-term capital gain Rs.3,98,527 (1010000–611473) To be invested in bonds specified u/s 54EC by 30th September 2017 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 73
Q.21 Rs.7,45,270 (Solution given below) Income under the head salaries: Basic 2,500,000 Rs.25,00,000 HRA 500,000 Rs.5,00,000 Less: Exempt (See note) Rs.(170,000) Other allowances Rs.3,00,000 Total income under the head salaries – Rs.31,30,000 (25,00,000+5,00,000– 1,70,000+3,00,000) Income from other sources (saving account uptoRs.10000 exempt U/s 80TTA)–Rs. Income from other sources (fixed deposits) Gross Total Income Less: Deduction u/s 80C Insurance Premium PPF Less: Deduction u/s 80D (restricted to maximum limit of Rs.) Net Income Tax on net income UptoRs.2,50,000 Nil Rs.2,50,001 to Rs.5,00,000 @ 10% Rs.12,500 (5,00,000–2,50,000)x5% Rs.5,00,001 to Rs.10,00,000 @ 20% Rs.100,000 (10,00,000–5,00,000)x20% Rs.10,00,001 and above @ 30% Rs.598,560 (2995201–1000000)x30% Tax Payable Rs.711,060 (25,000+1,00,000+598560) Surcharge - Rs. Education cess and higher education cess (2% + 1%) Rs.21,331 (711060 x3%) CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 74
Total tax payable Rs.732,392 (711060+21331) Rounded off Rs.732,390 Note: House rent allowance exempted: Least of the following: Allowance received Rent paid 10% of salary 50% of salary Q.22 Original Units Year Units Amount Indexed CoA / CoA 13-14 4000 80000 98909 Nov. 14 8000 14-15 373.831 8000 (272/220 x80000) 21.40 Dividend 9067 2x4000 (272/240 x8000) Nov. 15 9622.42 9622.42 15-16 425.394 9622.42 (ST) Dividend 2.20x4373.831 22.62 Nov. 16 11518.141 16-17 490.551 11518.141 (ST) 11518.141 Dividend 23.48 10580.76 2.4x4799.225 10580.76 Nov. 17 17-18 439.035 10580.76 (ST) Dividend 24.10 2x5290.382 LTCG: Selling price 4373.831 x 25.80 = 112844.83 Less ICOA (98909 +9067) 107976 LT (Gain) 4868.83 STCG – Selling price 1354.98 x 25.80 = 34958.48 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 75
Less COA 31721.321 3237.159 STCG Q.28 Total stay of Rohit Sept. Oct. Nov. Dec. Jan. Feb. Mar. 182 in PY 2017-18 2 29 30 31 31 28 31 Days So resident. But during 7 years stay less than 730 days. So RNOR. Q.29 X shall be non-resident as he is India for 59 days and 13 Rs. during 15-16. Accordingly he will be taxable only for Indian income. Remittance of foreign income in India is not relevant. Q.36 Ans. (a) 123750 (i) Beneficiary A - Share 40% (340000) up to 250000 no tax, tax on remaining income 5% 4500. (ii) Beneficiary B – Share 25% (212,500)x20% = 42500. Since the Tax after including Trust Income exceeds the previous slab by 80000, the income of B is 9,00,000 including trust income, so entire 2,12,5200 falls in 20% bracket. (iii) Beneficiary C – Share 20% (17000)x20% = 34000 (iv) Beneficiary D – Share 15% (127500)x30% = 38,250 Total Tax (9000+42500+34000+38250) = 119250 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 76
Q.38 (a) A Share 40% 340000 – Tax (4500) (b) 100000x20% = 20000 B Share 25% 212500 =53750 112500x30% = 33750 (Because, The TI of B before Trust Income must be 900000/-. So 100000@20% and balance @30%) (c) Share 20% (70000x20%) = 34000 Share 15% (127500x30%) = 38250 (4500+53750+34000+38250) = 130500+3% 3915 = 134415 (134420) CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 77
Q.39 Retirement Fund 1.25 Cr, she must have commuted 1/3rdof that since this is maximum exempt (4166666). Un commuted Amount 8333334, used for buying annuity deferred by one year so total fund available 8958333 (8333334+7.5% of 8333334). 25 year [email protected]% Amount 747589. So gross Income = 747589 Less 80C =150000 =30000 80D =567589 (567590) TI =26018 Tax + Education Cess + 780.57 26798.54 = 26800 Q.40 Share–since the shares are listed at the time of sale–12 months shall make them long term. But shares are transferred off market so exemption of 10(38) shall not be available. But Assesse has the option of paying 10% tax without the benefit of indexation or 20% with indexation. Shares sold on 1 Feb 18 Option A – 20@Indexation Right Shares Original shares long term = 1000 FVC 1975*1000 = 1975000 = 1975*40 = 790000 = 98000*272/220 = 121164 = 983000*272/184 = 1453130 = 1975000 - 1453130 = 521870 = Less = 668836 = *20%*668836 = 133767 = 521870*20% = 104374 Option-B = 790000 – 98000 = 692000*10% 1975000 - 983000 = 99200 = 69200 992000*10% = 99200 Option B better Option B is better CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 78
Q.41 Total units purchased on 4thDecember 2014 = 3500 Dividend Received in November 2015 = 20% i.e. 35000*20% = 7000 Unit as purchased and reinvestment by dividend received = 7000/19.43 = 360.26 Total units as on November 2015 = 3500 + 360.26 = 3860.26 Dividend received in Nov 16 = 18% i.e. 3860.26*18% = Rs.6948.46 Unit as purchased and reinvestment by dividend received = 6948.46/20.91 = 332.30 Total units as on November 2016 = 3860.26+332.3 = 4192.56 Dividend received on Nov 2017 = 17% i.e. 4192.56*17% = Rs.7127.35 Units as purchased and reinvestment by dividend received = 7127.35/22.61 = 315.23 Total units as on November 2017 = 4192.56 + 315.26 = 4507.8 STCG Calculation of STCG (Units sold in the last year) = Sale Price – Purchase Price Sale Price = (360.26 + 332.3 + 315.23)*22.16 = 22333 Cost of Acquisition = 7000 + 6948.46 + 7127.35 = 21076 STCG = 1257 Long Term Capital Gain (LTCG) Original Units 3500*22.16 = 77560 272/240*61145 = 69298 LTCG = 8262 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 79
Q.43 GAV–NIL Less: MT paid 3800 NAV -3800 24(a) 30% NAV – Nil 24(b) Int on Loan -179000 -182800 Q.44 HRA received 5500*12 = 66000 Exempt April to July nil August to March 5500*8 44000 Taxable 22000 Lowest of the following (i) 8000 pm (40% of 20000) (ii) 5500 pm least (iii) 10000 – 2000 = 8000 Q.45 80000/15.21 = 5259.67 – LT Units allotted on 31/12/15 Units allotted on 31/12/16 5259.67*18% 9467.45/17.16 = 551.71 – ST Units allotted on 31/12/17 [5259.67+551.71]*20% = 11622.76/19.10 = 608.52–ST Sold on January 2018 (A) LTCG 22.15*5259.67 = 118716.69 Less Less: Indexed Cost 80000*272/240 = 90667 LT = 28050 Sold on January 2018 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 80
(B) LTCG 22.15*5259.67 = 118716.69 Less Less: Indexed Cost 80000*272/240 = 90667 LT = 28050 (B) STCG 1160.23*22.15 = 25699.09 (551.71+608.52) Less Less: Cost of Acquisition = 21090.21 (9467.45+11622.76) 4608.88 Q.46 (C) Total shares held (1000 original + 500 Right)( 1500 Shares sold 1200 [1000 original + 200 Right] FiFo Capital gains Original – LT Right Shares – ST FVC (2825x200) 565000 FVC (2825*1000) 2825000 CoA (680*200) 136000 Less 429000 I-CoA 963780 Taxable @15% u/s/ IIIA. 900000x272/245 Exampt u/s 10C38) = 18,61220 So, total income 429000, tax liability [429000-250000(BEL)] 179000*15%=26850 +3% Cess 8055 = 27655.50 (27660) Q.47 (a) If shares are unlisted they are long term if held for more than 24 months. Therefore original shares (1000) shall give a long term gain of Rs.18,61,220 which will not be exempt u/s 10(38) as no STT is paid, but shall be taxable at 20%. Also STCG capital gains of Rs.4,29,000 shall not be taxable at special rate of 15% u/s 111A but at the normal rate. So, CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 81
STCG Rs.4,29,000 LTCG Rs.18,61,220 GTI Rs.22,90,220 Deduction NIL TI Rs.22,90,220 Tax Rs.18,61,220x20% =Rs.3,72,244 Rs.4,29,000 Slab Rate =Rs.8,950 EC (3%) Rs.3,81,194 =Rs.11,435 Rs.3,92,629.82 (392630) Q.48 (C) Since the money received as compensation is more than WDV, Excess shall be STCG. Q.49 (d) LTC loss on shares is to be ignored if STT is paid. Q.50 (a) 94(7) Not applicable, so entire loss Rs.48,000 (Rs.2,40,000 – Rs.1,92,000) can be set off. Q.51 (d) 94(7) applicable, so (Rs.48,000 – Rs.32,000) Rs.16,000 can be set off. Q.52 (b) Rs.9,78,000 Income from salary Rs.18,142 Income from OS Rs.9,96,142 GTI Rs.57,600 [EPF 12% OF Rs.4,80,000] 80c – Rs.57,600 Rs.10,000 80TTA Rs.10,000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 82
TI Rs.9,28,542 (Rs.9,28,540) Tax Rs.95,708 (Senior Citizen) EC 3% Rs.2871.24 Rs.98579.24 Rs.98,580 Q.53 (c) Agricultural Income Non Agricultural Income Crop in Sikkim Rs.1,30,000 Crop in Nepal Rs.80,000 –Loss from Tea (60% is Agriculture–Rs.60,000 –Loss from Tea (40%) Rs.40,000 Rs.70,000 TI Rs.40,000 + Remuneration +Interest Rs.1,50,000 from Firm Net Agricultural Income Rs.2,20,000 No Partial Integration tax liability Nil Q.54 (d) Business Income 8% of Rs.75 lakh =Rs.6,00,000 (44AD) =Rs.70,000 Less: BF – Loss =Rs.60,000 =Rs.4,70,000 Less: Unab Deb =Rs.90,000 =Rs.5,60,000 Business Income =Rs.20,000 +LTCG GTI 80G Net Income / TI =Rs.5,40,000 Q.55 (c) First Transaction – LTCG FVC Rs.80,00,000 Less: EOT Rs.50,000 I-CoA Rs.35,00,000 LTCG Rs.44,50,000 Less: Exempt Rs.44,50,000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 83
u/s 54B NIL Second Transaction: Not a capital asset – No Taxable gain Q.56 (d) Equity – LTCG– 10(38) [Rs.55,000 – Rs.40,000] Exempt Debt –STCG (Rs.60,000 – Rs.40,000) Rs.20,000 Taxable Normal rate So, Rs.10,81,670 Income OS Rs.20,000 STCG Rs.11,01,670 GTI/TI Rs.1,43,001 Tax Rs.4290 EC–3% Rs.1,47,290 (R/o) Q.57 (a) = Rs.50,000 TDS – Rend 194I – 10% of 5C = Rs.30,000 TDS – Winning – 30% of IL = Rs.80,000 Q.64 (d) Rs.5,00,000 GAV Rs.10,000 Less: MT Rs.4,90,000 NAV Rs.1,47,000 24(a) Rs.50,000 24(b) Rs.2,93,000 Q.65 (c) Gift from employer in fully taxable as salary income. Gift from friend uptoRs.50,000 exempt so, Rs.8,86,000 + Rs.80,00,000 = Rs.9,66,000 Q.66 (c) Unlisted shares – Long Term in 24 months, So 1400 shares shall be LT. FVC = Rs.11,90,000 (1400xRs.850) Less: Indexed CoA = Rs.2,99,843 – (Rs.2,80,000 x 272/254) CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 84
= Rs.8,90,158 LTCG Taxable @20% 350 shares – Short Term 350 x (Rs.850 – Rs.220) = Rs.2,20,500 – Normal Rate Tax LTCG (Rs.8,90,158-Rs.29,500 Deficiency) Rs.8,60,658 x 20.6% = Rs.1,72,131.60 + 5164 = Rs.1,77,295 (177300) Q.67 (c) Book profit Rs.9,80,000 (Profit business after all expenses except remuneration to partners) Less: Remuneration: Rs.6,78,000 On Rs.3,00,000 (90%) Rs.2,70,000 On Rs.6,80,000 (60%) Rs.4,08,000 =[Rs.6,78,000] Business Income Rs.3,02,000 LTCG (E) Exempt LTCG (Gold) Rs.80,000 TI Rs.3,82,000 Q.70 (c) Rs.5,25,000 Tax liability Salary Rs.90,000 Rs.90,000 x 20% = Rs.18,000 LTCG Rs.4,20,000(Slab Rs.6,15,000 ) = Rs.8,500 GTI Rs.58,000 ]=Rs.1,05,000 = Rs.26,500 Less Rs.22,000 80CCD (I) Rs.25,000 Rs.26,500 80CCD (IB) Rs.5,10,000 Rs.795 80D Rs.27,295 TI (27300) CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 85
Q.71 (b) Since is not going for business / employment afresh. Both the basic conductions shall be examined. During PY 2017-18 he is India for 158 days and more then 365 days during four preceding year. He is Resident Additionally; he is also fulfilling both the additional conditions so he is RoR. Q.72 (b) 60 days + 365 days – Resident also fulfills both additional conductions. Q.74 (c) Professional Income Rs.24,00,000 (50% of 48 lakh) – +LTG Equity Rs.55,000 +LTCG on Gold Rs.85,000 Rs.24,55,000 Less: STCL on Equity Rs.30,000 ] Q.75 (b) Computation of taxable income of NRI. 9,50,000 LTG - Exempt u/s10 (4) Interest NRE 93,000 Interest NRO 10,43,000 Gross Total Income Nil Deduction 10,43,000 Tax = 190000 LTCG 950000 x 20% = Nil Normal 190000 CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 86
Ecess = 5700 195700 Q.76 (c) PIO coming to visit for less than 182 days - non-resident. Q.77 (a) PIO coming to visit for more than 182 days – Resident also in last 7 years 730 days in India and resident in 2 years out of 10 years. So Resident and ordinarily resident. Q.78 (b) Somu, citizen of India coming to settle in India (Not visit) during the PY stay in India during 17-18. December January February March 3 31 28 31 = 93 days Stay in preceding 4 years = (1460 – 1080) 380 days So resident of India During last 7 years stay in India = (380 + 105 + 107 + 98) 690 days (Less than 730 days) Q.79 (b) So RNOR X a non resident liable to pay tax on India in income only. So interest received from Y is deemed to accrue in India as Y used the funds for a business in India. Q.80 (c) Interest of 6,00,000 shall be Indian Income. Q.81 (b) RNOR taxable for Indian income i.e. 9,00,000 only. Q.82 (a) RNOR – LTCG – 9,00,000; deduction u/s 80C cannot be given. So taxabl3e income = 9,00,000 Tax (9,00,000 – 2,50,000 B.E.L) 6,50,000 x 20.6% = 133900. CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 87
Q.86 (d) Income from house property A Let out house GAV 144000 4000 Less 140000 M tax 282500 NAV - 142500 (Loss) Less Nil 24 (a) 30% of NAV 42000 200000 (Maximum) - 200000 Loss 24 )b) Interest 240500 (342500) B Self Occupied 6,30,000 NAV (2,00,000) Less 24 (b) Interest 242500 So Loss from house property Compilation of Total Income Business Income Loss from ‘H P’ Gross Total Income 4,30,000 Less (Payment of Principal) → 80 C 112000 1,50,000 (Maximum) 80 CCD (1) 86000 [Maximum 20% of GTI] NPS 145000 80 CC D (1B) 50000 50000 Total Income 230000 * Loss up to 2,00,000 only can be set off in current year as per section 71 (B) [w.e.f. AY 18-19] Rest of Loss i.e. 142500 can be carried to subsequent years (8). ** NPS can contribution of 145000 can be taken u./s 80CCD (1B) up to 50000 and 80 CCCD (1) 86000 I e 20% of GTI ( Maximum). 80C and 80 CCD (1) cannot exceed 150000. CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 88
Q.87 (b) 802000 Long Term capital gain (Net) (9,00,000 – STCG (E) 200000 Loss from HP (360000) Maximum 602000 GTI Not Available 80C 602000 Taxable Income Tax @ 20.6 on (602000 – 250000 ) = 72512 R/o = 72510 Q.88 (b) = 1021000 (985000 + 17000 + 19000) Q.89 (b) 72,00,000 Basic salary ESOP’s 3,90,000 (2100 – 800) x 300 75,90,000 Income from salary 8,5000 Div. from for comp 7,67,5000 GTI 80CC D(1) 150000 2,00,000 80CC D (1B) 50000 80G Nil Total Income = 7,47,50,000 Tax on 7,47,5000 20,55,000 Add surcharge 10% 205500 (Tax on 747500 → 2055000) 2260500 Add EC 3% 67815 2328315 R/o 2328320 Q.90 (d) 38200 WDA of block on 01-04- PY 600000 Add actual cost of new medicine CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 89
Less 450000 “Money” received as Insurance Comp. 188200 WDA on 31/03 PY 28230 Depreciation @15% CFP Level 3 - Module 2 – Estate Planning – India - Workbook Page 90
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