THE YENEPOYA INSTITUTE OF ARTS, SCIENCE, COMMERCE AND

MANAGEMENT

(A Constituent Unit of Yenepoya Deemed To Be University)

IV SEMESTER BBA (AVIATION , TRAVEL & TOURISM))

TAXATION, LAW AND PRACTICE – BBT405A

MULTIPLE CHOICE QUESTIONS

1. Which of the following is correct PAN of Mr.Sandip Prajapati ?

(A) ABCSP1234K 
(B) ABCPP1234K 
(C) ABCPS1234H 
(D) ABC12P34HK
2. If the recipient does not furnish his PAN to the deduct or, tax will be deducted at
the normal rate or at threat of, whichever is higher.
(A) 10% 
(B) 20% 
(C) 30% 
(D) 2%

3. Mr.Arvind has e-file his return and his income is less than five lakhs and he is not
claiming any refund, he can e-verify his return by
(A) Net Banking 
(B) Aadhaar Card 
(C) Email ID & Mobile Number 
(D) All of the above
4. Income tax act 1961 came in to force on
A) 1st April 1960
B) 31st march 1972
C) 1st April 1962
D) None of the above 
5. Who has the statutory power to issued notification under income tax act1961
A) Central board of direct taxes
B) Central board of film certification
C) Finance department of state
D) None of the above 
6. Income tax is imposed on
A) Half yearly
B) Annually
C) Monthly
D) Daily 
7. Assessment year start on
A) 1st April
B) 31st march 
C) 1st July
D) None of the Above 
8. Previous year ends With
A) 1st April
B) 31st march
C) 1st July
D) None of the Above 
9. How many head of income are there
A) 6
B) 3
C) 4
D) 5 
10. Residential status is determined on
A) Assessment year
B) Calendar year
 C) Previous year
D) Accounting year 
11. Taxable income is determined on the basic of
A) Residential status in India 
B) Citizenship of India
C) BPL card holder
D) Govt. job holder 
12. Income tax is a
A) Direct tax
B) Indirect tax
C) Total tax
D) Danger tax                                                        
13. Sambalpur university is a
A) Local authority
B) Association of person
C) Individual
D) Artificial juridical person 
14. Education cess is levid in case of
A) Individual
B) Hindu undivided family
C) All assesse
D) Company assesse 
15. Income tax act 1961 imposed on
A) Legal income
B) Illegal income
C) Both legal and illegal income
D) None of this 
16. Income tax act 1961 applicable to
A) Jammu and Kashmir only
B) All state in India
C) All metro city
D) All India except Jammu and Kashmir 
17. Assesse includes
A) Individual
B) Company
C) HUF, AOP/BOI
D) All of the above 
18. AOP consist of                                                                          
 A) Individual only
B) Other than individual
C) Both
D) None of Above 
19. Section of residential status is
A) 7
B) 6
C) 5
D) 4 

20. Salary to MP/MLA is

A) Exempted
B) Free
C) Taxable
D) illegal 
21. Computation of income from salary section is
A) Sec 11-12
B) Sec 15-17
C) Sec 6-10
D) Sec 16-20 
22. Deduction allowed against gross salary
A) Income tax
B) Entertainment tax
C) Professional tax
D) education tax 
23. RPF full form in income tax
A) Reserve police force
B) Railway police force
C) Recognized provident fund
D) None of the above 
24. Exemption limit of interest credit to RPF is
A) 6.5%
B) 9.5%
C) 7.5%
D) None of this 
25. Employer contribution to RPF is Exempted up
A) 12%
B) 9.5%
 C) 19%
D) 10% 
26. Taxable amount of perquisite in respect of small car for offial and personal purpose
A) 1500 p.m.
B) 1800 p.m.
C) 2400 p.m.
D) None of the Above 
27. Taxable amount of perquisite in respect of Big car for offial and personal purpose
A) 1800 p.m.
B) 2000 p.m.
C) 1500 p.m.
D) 2400 p.m. 
28. Deduction from salary is allowed u/s
A) Sec 15
B) Sec 16
C) Sec 25
D) None of Above 
29. Education allowancw is exempted
A) Rs. 200 per month up to 4 child
B) Rs. 200 per month up to 3 child
C) Rs. 100per month up to 2 child
D) Rs. 100 per month up to 10 child 
30. Medical bil reimbursed in respect of treatment in private hospital
A) Up to 15,000 
B) Up to 12,000
C) Up to 25,000
D) None of the above 
31. HRA exempted u/s
A) 15(13B)
B) 12(13C)
C) 10(13A)
D) None of the above 
32. Perquisite Comes U/S
A) 19(3)
B) 17(2)
C) 2(17)
D) None of the above 
33. Allowance from U.N.O is
 A) partly taxable
B) fully taxable
C) fully exempted
D) None of the above 
134. Entertainment allowance is
A) Partly exempted
B) Exempted
C) fully taxable
D) None of the Above 
35. HRA exempted u/s 10(13A) includes
A) 40% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
B) 60% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
C) 50% of salary if accommodation is situated at Delhi, Mumbai,
Chennai, Kolkata 
D) None of the Above 
36. Free food during working hours at office/ business premises exemopted up to
A) Rs. 50 per meal
B) Rs. 60 per meal
C) Rs. 90 per meal
D) None of the above 
37. Agricultural income is
A) Taxable
B) Fully taxable
C) Exempted
D) Partly taxable 
38. Exempted Income comes under section
A) Sec 12
B) Sec 10
C) Sec 24
D) Sec 13 
49. Sec 10AA deduction implies
A) Buffer zone
B) Special economic zone
C) POK zone
D) None of the above 
40. Allowance of MP/MLA is
A) Exempted
B) Free
 C) Taxable
D) illegal 
 41.The basis of charge Under the head Income from House Property is
A) Rent Received
B) Gross Annual Value
C) Annual Value
D) None of the above
42. Annual value is defined u/s
A) 23(1)
B) 22(1)
C) 21(1)
D) None of the above
43. Mr. A owns a house property. He lent it to Mr.B at 20,000 p.m. Mr.B sublet it to Mr.
C on monthly rent of ` 30,000 p.m. Rental income of A is taxable under the head ….
A) Income from Other Sources
B) Income from House Property
C) Income from Salary
D) None of this
44.   Deduction from capital gains under section 54B is for capital gains arising from
transfer of….
a.      Agricultural land
b.      Salary
c.      House property
d.      None of the above
 
 45. For claiming the deduction for unrealised rent, the assessee must satisfy Which of the
following rules
A) Rule 4A
B) Rule 4
C) Section 4 A
D) None of this
46. The tax paid by the tenant is ?
A) Added to rent received
B) No adjustment
C) Added to Annual value
D) All of the above
47. What % is allowed as deduction from the annual value.
A) 20%
B) 25%
C) 30%
D) None of Above
48. which purposes are deductible from annual value for Interest on loan taken?
A) Construction
B) Purchase
C) Repair
D) All of the Above
49. Which of the following is not deductible from annual value?
A) Interest on loan taken for repairs
B) Interest on loan taken for reconstruction
C) Interest on unpaid interest
D) 3%
50. Annual value of self-occupied house is….
A) Nil
B) Equal to Municipal Value
C) Equal to Fair rent
D) None of the above
51. Foreign house property’s income is taxable in the case of
A) Non Resident
B) Not Ordinarily Resident
C) Ordinarily Resident
D) None of the above
52. Which of the following is deductible from the annual value of House Property?
A) Municipal taxes paid by the owner during the previous year
B) Municipal taxes paid by the owner for the previous year
C) Municipal taxes paid by the owner
D) None of the above
53. Which of the following conditions must be satisfied to charge the rental income under
the head Income of House Property:
A) The asssessee should be one of the property
B) The property should consist of any buildings or lands
C) The property should not be used by the owner for the purpose of business or
professional purpose
D) All of the above
54. Mr. A owns a house property. He lent it to Mr. B at ` 10,000 p.m. Mr. B sublet it to
Mr. C on monthly rent of ` 20,000 p.m. Rental income of Mr. B is taxable under the head
 A) Income from Other Sources
B) Income from House Property
C) Income from Salary
D) None of the Above
55. Rule 4 includes
A) All of the Below
B) The defaulting tenant has vacated or steps have been taken to vacate the house
C) Tenancy must be bonafide
D) Tenancy must be bonafide
56. If the house remains vacant for the whole year, Then annual value will be
A) Equal to Fair rent
B) Equal to Municipal Value
C) Nil
D) None of the above
57. In incomre House Property, A sum equal to 30% is allowed as deduction from the
annual value as
A) Basic Deduction
B) Standard Deduction
C) Deduction
D) All of the above
58. Deductions from annual value is comes under section….
A) 24
B) 24A
C) 24AA
D) All of the above
59. Interest for pre-acquisition period is deductible in ………………. instalments
A) 7
B) 6
C) 5
D) 4
60. From the amount of arrears of rent received, ….. % Is allowed as deduction
A) 30%
B) 20%
C) 40%
D) 10%

61. Sec 45 related to

 a.      Capital assets
b.     capitals gains                                                        
c.      Assets                         
d.      d. none of the above
62.Where total block of depreciable assets is transferred after 36 months, there will
a.      Short term capital gains or loss
b.      short term capital gains
c.      long term capital gains
d.      long term capital gains  or losses
63.capital assets includes
a.                deposit bonds
b.                stock in trade
c.                shares
d.                none of the above
64.indexation will be allowed in case of
a.      LTCG
b.      STCG
c.      Both
d.      None of the above
65.How many types of capital gains are there
a.      3
b.     2
c.      4
d.      None of the above
66.      Indexation will be done
a.      Shares
 b.      Debenture
c.      Other security
d.      All of the above
  67. Cost inflation index before 31stmarch, 2001 …
a.      150
b.      200
c.      100
d.      None of the above
68.  Exemption is not allowed u/s
a.      54B
b.     54E
c.      54
d.      None of the above
69.Short term capital gains is taxed at……. Price
a.      Normal tax rates
b.      Fixed tax rates
c.      Market rates
d.      None of the above
70.Exemption under section 54 is available to which persons
a.      Company
b.     Individual and HUF
c.      AOP/BOI
d.      None of the above
71.For deduction u/s 54EC , the individual should invest the whole or part of the
capital gains in the specified asserts …….
a.      Within 6 months from the date of long term capital assets transfer
 b.      Within 3 months from the date of long term capital assets transfer
c.      Within 12 months from the date of long term capital assets transfer
d.      None of the above
72.Long term capital gain is taxed ……..
a.      30%
b.      25%
c.      20%
d.      None of the above
73.   If the goodwill of profession which is self-generated is transferred , then there
will  be
a.      Long term capital gains
b.      Short term capital gins
c.      No capital gains
d.      None of the above
74.   The rate of tax that is imposed on STCG arising from transfer of equity shares of a
company , concern, units of an equity oriented fund is…..
a.      25%
b.     15%
c.      30%
d.      None of the above
75.Short term capital assets has been defined
a.      Sec 4(24A)
b.      Sec 4(22A)
c.      Sec 2(42A)
d.      None of the above
76.      Long term capital assets
 a.      Sec 2(29A)
b.      Sec 2 (92A)
c.      Sec 9(22A)
d.      None of the above
76.Transfer of capitals assets has been defined u/s
a.      Sec 7(42)
b.     Sec 2(47)
c.      Sec 2(74)
d.      None of the above
77.The computation of capital gains is u/s
a.      48
b.      49
c.      47
d.      None of the above
78.Full form of STCG
a.      Short term capital gains
b.      Short term capital gold
c.      Short time capital gain
d.      None of the above
79.Computation of capital gains in case of slump sale has been defined u/s
a.      50C
b.      50D
c.      50B
d.      None of the above
80.Transfer of security by depository u/s
a.      45(2B)
 b.     45(2A)
c.      45(A2)
d.      None of the above
81.      Transfer of depreciable assets u/s
a.      50
b.      51
c.      52
d.      None of the above
82. Transfer of capital assets being the units of UTI or other mutual funds comes u/s
a.      Sec 45(8)
b.      Sec 45(7)
c.      Sec 45(6)
d.      None of the above
83.   Full form of LTCG
a.      Long term capital gains
b.      Long term capital gold
c.      Long time capital gain
d.      None of the above
84.What is the maximum amount of deduction from family pension is…
a.      20,000
b.     15,000
c.      25,000
d.      None of the above
85.The aggregate value of monetary gift received during the previous year is exempted
, if it
 a.      Doesn’t exceed 50,000
b.      Exceed 50,000
c.      Exceed 45,000
d.      None of the above
86.T.D.S. is not deducted on lottery income up to…. Amount
a.      10,000
b.      15,000
c.      5,000
d.      None of the above
87.Income from others sources may be includes
a.      Indian company dividend
b.      Dividend from units
c.      Foreign company dividend
d.     All of the above
88. If I win from crossword puzzles, horse races, card games and lotteries . then rate
of  TDS……?
a.      25%
b.      15%
c.      30%
d.      None of the above
89.The amount of dividend received from cooperative society is….
a.      Partly taxable
b.      Exempted
c.      Taxable
d.      None of the above
90.Gift received from my wife is
 a.      Exempted
b.      Partly taxable
c.      Taxable
d.      None of the above
91.Income from others sources is known as
a.      films head of income
b.     Residuary head of income
c.      marriage heads of income
d.      none of the above
92. Income from others sources is u/s ……
a.      56
b.      57
c.      55
d.      None of the above

93.  Interest on saving bank account is exempted up to……

a.      15,000
b.      12,000
c.      10,000
d.      None of the above

94. Business has been defined

a.      u/s 2(13)
b.      u/s 13(2)
c.      u/s 10(2)
d.      None of the above

95. Chartered accountant is a …..

 a.      Profession
b.      Vocation
c.      Business
d.      None of the above

96. Singer is a ….
a.      Profession
b.     Vocation
c.      Business
d.      None of the above

97. Example of Profession

a.      Dancer
b.      Singer
c.      Lawyer
d.      None of the above

98. Expenses allowed as a deduction u/s …. Under the head of profit and gain of
business and profession
a.      Sec 20 to 25
b.      Sec 15 to 27
c.      Sec 30 to 37
d.      None of the above

99. Depreciation comes u/s…. under the head of business profession

a.      Sec 32
b.      Sec 42
c.      Sec 22
d.      None of the above
100.       Repairs & maintenance of machinery , plant & furniture
 a.      Sec 34
b.      Sec 33
c.      Sec 31
d.      None of the above
101. Rent rates and taxes, repair & insurance for building come under section
a.      Sec 40
b.     Sec 30
c.      Sec 20
d.      None of the above
102. Speculative business are
a.      Partly taxable
b.     Fully taxable
c.      Exempted
d.      None of the above
103. Recovered against bad debts comes under section
a.      Sec 41(4)
b.      Sec 31(4)
c.      Sec 21(4)
d.      None of the above
104. Choose the form to be filled in for allotment of PAN card by Mr.Jatayu who is
a resident Indian citizen of 65 years.

(A) Form 49A 

(B) Form 49AA 
(C) Form 15G 
(D) Form 15H

105.Choose correct category of assesses with PAN AFZFK7109K

(A) Proprietorship 
(B) Company 
(C) Individual 
(D) Partnership Firm

106. Deduction of Interest on borrowed capital in case of a self occupied house

property is Example of
(A) Relief under section 90 
(B) Set off and carry forward of current year losses
(C) Taxation at lower rates 
(D) Deduction under section 80C

107. Same PAN cannot be allotted to more than

(A) 1 person
(B) 5 persons 
(C) 3 persons 
(D) 2 persons

108. Which of the following transactions are linked with the help of permanent
account numer ?
(A) Tax payment 
(B) Availing TDS credit 
(C) Filling of return
(D) All of the above

109. Which of the following is not a proof of address ?

(A) Passport 
(B) Electricity bill
(C) Telephone bill 
(D) School leaving certificate

110. The provisions of Section 139A shall not apply to the person who is in receipt of
only Agricultural Income, if they furnish declaration in
(A) Form No.61 
(B) Form No.15H 
(C) Form No.15G 
(D) Form No.60

111. For filing online return, person required to upload XML file, which the
(A) Word utility 
B) PPT Utility 
(C) Excel Utility 
(D) Access Utility

112. Loss from the lottery ticket and crossword puzzles can be set off against
the ......... income.
(A) Salary 
(B) House property 
(C) Capital gain 
(D) None of these

113. PAN is required to be quoted in the documents pertaining to deposit of cash

with bank, if the aggregate amount of cash to be deposited in bank is Rs.......... or
more.
(A) Rs.10,000 
(B) Rs.15,000 
(C) Rs.50,000 
(D) Rs.60,000

114. A person, who has not been allotted PAN, shall make declaration in Form
No....... while opening a bank account.
(A) Form No. 61 
(B) Form No. 15H 
(C) Form No. 15G 
(D) Form No. 60

115. The last character of PAN indicates .......

(A) Surname 
(B) First name 
(C) Middle Name 
(D) Alphabetic Check Digit
116. Mrs. Deepali Patel, Indian citizen, 62 years of age can apply for PAN in form
(A) From 15H 
(B) Form 15G 
(C) Form 49A 
(D) Form 60

117. Which of the following is a proof of Identify for applying PAN ?

(A) Passport 
(B) Voter Card 
(C) Driving License 
(d) All of the above

118. BOI consist of

A) Individual only
B) Other than individual
C) Both
D) None of Above 

119. Health & Education cess is

A) 6%
B) 2%
C) 4%
D) 3% 

120. The term income is defined u/s

A) 2(24)
B) 3(24)
C) 24(2)
D) None of the above 
121. Among which of the following is not a benefit of e-filling ?

(A) Accuracy is ensured 

(B) Paper work is required
(C) Procession of return can be monitors 
(D) All of the above

122. From under mentioned PAN, which one constitutes a valid Permanent Account
Number ?
(A) ABCHP1234K 
(B) ABC1234PHK 
(C) ABCP1234HK 
(D) ABC12P34HK

123. For Filing online return, person required to upload XML file, the same can
generate by using which of the utility provided by income tax department.
(A) JAVA Utility 
(B) PPT Utility 
(C) Excel Utility 
(D) Both A or C

125. Loss from the lottery ticket and crossword puzzles can be set off against
the ......... income.
(A) Salary 
(B) House Property 
(C) Capital Gain 
(D) None of these

124. In which of the following transaction, every person shall quote his PAN
specified in rule 114B.
(A) Demate Account 
(B) Opening an account with a bank
(C) Sale of motor vehicle (other than two wheeler) 
(D) All of the above

125. Which loss can’t be carried forward to next subsequent year ?

(A) Capital Loss 
(B) Loss of Other Source 
(C) Business Loss 
(D) None of the above

126. Loss from the activity of owning and maintaining race horses can be carried
forward for how many years?
(A) 5 years 
(B) 6 years 
(C) 8 years 
(D) None of the above
127. Long term capital loss can be adjusted only against ........... u/s 70.
(A) Short term capital gain 
(B) Long term capital gain
(C) Salary Income 
(D) None of the above

128. Which of the following statement is not true ?

(A) Due to e-filing assesses can view the current status of the return.
(B) E-filing return is mandatory for resident individual in India whose income
exceeds Rs.5 lacs.
(C) E-filing return is not mandatory for Companies.
(D) To browse and select the XML file is one of the step of e-filing procedure.

129. Which of the following is pre-requisite of e-payment ?

(A) Internet banking account 
(B) Good internet connection
(C) Valid TAN or PAN 
(D) All of the above

130. What is the full form of GST?

A) Goods and Supply Tax
B) Goods and Services Tax
C) General Sales Tax
D) Government Sales Tax
131. GST was implemented in India from
A) 1st January 2017
B) 1st April 2017
C) 1st March 2017
106. 1st July 2017

132. In India, the GST is based on the dual model GST adopted in:
A) UK
B) Canada
C) USA
D) Japan

133. GST is a consumption of goods and service tax based on

A) Development
B) Dividend
C) Destiny
D) Destination

134. The number of structures in India’s GST model is?

A) 6
B) 4
C) 3
D) 5
135. The maximum rate for CGST is?
A) 28
B) 12
C) 18
D) 20

136. The maximum rate applicable for SGST/UTGST is?

A) 28
B) 14
C) 20
D) 30

137. GST rates applicable on goods and services are:

A) 0% 5% 12% 18% 26%
B) 0% 6% 12% 18% 28%
C) 0% 5% 12% 18% 28%
D) 0% 5% 12% 16% 28%

138. Taxes that are levied on any Intra-State purchase are?

A. IGST
B. CGST and SGST
C. SGST
D. SGST

139. What does “I” in IGST stands stand for?

A) Internal
B) Integrated
C) Internal
D) Intra
140. Following additional conditions are to be satisfied by a person to be resident and
ordinarily resident in India:
(A) He is a resident in India at least any two out of the ten previous years immediately
preceding the relevant previous year
(B) He has been in India for 730 days or more during the seven previous years
immediately preceding the relevant previous year
(C) Both (A) and (B) or above
(D) None of the above.
141. Agriculture income from agricultural land located in a foreign country is taxable in
the case of:
(A) Non-resident
(B) Not ordinarily resident
(C) ROR
(D) In all cases stated in A, B & C
142. . Income Tax is imposed by .
(a) State Government
(b) Central Government
(c) Both of the above
(d) Constitution of India
143. A person includes .
(a) Individual & HUF
(b) Firm & Company
(c) AOP/BOI, LA, Every AJP
(d) All of the above.
144. . Income which accrue or arise outside India & also received outside India is taxable
in case of .
(a) ROR
(b) RNOR
(c) NR
(d) ROR &RNOR
145. Indian Income means –
(a) Income accrued.deemed to be accrued in India
(b) Income received.deemed to be received in India
(c) Both (a) & (b)
(d) None of the above.
146. Foreign Income means .
(a) Income accrued.deemed to be accrued in India
(b) Income received.deemed to be received in India
(c) Both (a) & (b)
(d) None of the above.
147. Which Income is taxable in India to ROR Individual?
(a) Any Income accrued or Received in India
(b) Any Income accrued outside India
(c) Any Income received outside India
(d) All Incomes are Taxable
148. Mr. P. maintains his accounts of the basis of calendar year. For PY 2018-19, his AY
shall be.
(a) 2018-19
(b) 2018
(c) 2019-20
(d) 2019
149. Highest Administrative Authority for Income Tax in India is .

(a) Finance Minister

(b) CBDT
(c) President of India

(d) Director of Income Tax

150. Income-tax Act, 1961 applies to .

(a) Whole of India

(b) Whole of India excluding J&K

(c) Maharashtra

(d) All of the above

Descriptive Questions: 10M * 25Q

1. Y submits the following particulars of his income & outgoing for the year 2019-20.
a. Dividend received from X co. Ltd. an Indian Company Rs. 4,160
b.Interest on American Government Bond Rs. 15,700
c. Winning from horse races Rs. 13,200, expenses incurred for the same Rs.
2,000
d.Income by the way of owning & maintaining race horses Rs. 8,900,
Expenses incurred for maintaining such horses Rs. 1,200
e. Winning from Lottery ( net after deduction of tax
@ 30%) Rs. 8,400 Compute his income from
other sources.
2. Mr. E, who was born in Kolkata, visits India during the P.Y.2017-18 after 15 years.
He comes to India on 1.4.2017 and leaves for Australia on 1.12.2017. Determine
the residential Status of Mr. E and the HUF for A.Y. 2018-19.
 3. Mr. Anand is an Indian citizen and a member of the crew of a Singapore
bound Indian ship engaged in carriage of passengers in international
traffic departing from Chennai port on 6thJune, 2019. From the following
details for the P.Y. 2019-20, determine the residential status of Mr.
Anand for A.Y. 2020-21, assuming that his stay in India in the last 4
previous years (preceding P.Y.2019-20) is 400 days and last seven
previous years (preceding P.Y.2019-20) is 750 days:

Particulars Date
Date entered into the Continuous Discharge Certificate in respect of 6th June, 2019
joining the ship by Mr. Anand
Date entered into the Continuous Discharge Certificate in respect of 9th December,
signing off the ship by Mr. Anand 2019
4. From the following particulars of income furnished by Mr. Anirudh
pertaining to the year ended 31.3.2020, compute the total income for the
assessment year 2020-21, if he is:
(i) Resident and ordinaryresident;
(ii) Resident but not ordinarilyresident;
(iii) Non-resident

PARTICULARS `
(a) Short term capital gains on sale of shares of an Indian 15,000
Company received in Germany
(b) Dividend from a Japanese Company received in Japan 10,000
(c) Rent from property in London deposited in a bank in 75,000
London, later on remitted to India through approved
banking channels
(d) Dividend from RP Ltd., an Indian Company 6,000
(e) Agricultural income from land in Gujarat 25,000
5. Mr. David, aged 40 years, a Government employee serving in the Ministry of
External Affairs, left India for the first time on 31.03.2019 due to his transfer to
High Commission of Canada. He did not visit India any time during the
 previous year 2019-20. He has received the following income for the Financial
Year 2019-20:

S. Particula `
No rs
.
(i) Salary (Computed) 5,00,000
(ii) Foreign Allowance 4,00,000
(iii Interest on fixed deposit from bank in India 1,00,000
)
(iv Income from agriculture in Pakistan 2,00,000
)
(v) Income from house property in Pakistan 2,50,000
Compute his Gross Total Income for Assessment Year 2020-21.
6. The Following are the particulars of Mr.Priyan who is employed in Chennai.
i. Basic Salary Rs.4000 p.m
ii. DA (60% of Basic Salary)
iii. CCA Rs.250 p.m
iv. House Rent Allowance Rs.450 p.m (Rent paid Rs.500 p.m)
v. During the year he paid professional tax Rs.550
vi. Education allowances Rs.150 p.m (Per Child) Calculate Salary Income.
7. X is a foreign citizen (not being a person of Indian origin). Since 1981, he visits
India every year in the month of April for 100 days. Find out the residential status
of X for the assessment year 2021-22.
8. Jayashree owns five houses in Chennai, all of which are let-out. Compute the
GAV of each house from the information given below–

Particulars House House House House House

I II III IV V
₹ ₹ ₹ ₹ ₹
Municipal Value 80,000 55,000 65,000 24,000 80,000
Fair Rent 90,000 60,000 65,000 25,000 75,000
Standard Rent N.A. 75,000 58,000 N.A. 78,000
Actual rent received / 72,000 72,000 60,000 30,000 72,000
 receivable
9. Anirudh has a property whose municipal valuation is ₹1,30,000p.a. The fair rent is
₹1,10,000 p.a. and the standard rent fixed by the Rent Control Act is ₹ 1,20,000
p.a. The property was let out for a rent of ₹ 11,000 p.m. throughout the previous
year. Unrealised rentwas ₹11,000 and all conditions prescribed by Rule 4 are
satisfied. He paid municipal taxes @10% of municipal valuation. Interest on
borrowed capitalwas ₹ 40,000 for the year. Compute the income from house
property of Anirudh forA.Y.2020-21.
10.Ganesh has a property whose municipal valuation is ₹2,50,000p.a. Thefair rent is
₹2,00,000 p.a. and the standard rent fixed by the Rent Control Act is ₹2,10,000 p.a.
The property was let out for a rent of `20,000 p.m. However, the tenant vacated the
property on 31.1.2020. Unrealised rent was ₹20,000 and all conditions prescribed
by Rule 4 are satisfied. He paid municipal taxes @8% of municipal valuation.
Interest on borrowed capital was ₹65,000 for the year. Compute the income from
house property of Ganesh for A.Y.2020-21.

11.Mr. Vivek is a Govt. Employee with an annual basic salary of

.6,00,000, .2,00,000 as DA and .120000 as taxable allowances. His other
incomes are .100000. the Govt contributes 10% of his basic towards
National Pension Fund while he contributes 10%. He paid . 25000 as LIC
premium, 55,000 as principal amount of Housing loan and deposits . 60,000
in PPF. Compute his total income.
12.Mr. Dev is resident and ordinarily resident in India for the AY 2020-21. He
gives the following information in respect of his income for the previous year
2019-20:
1. Capital gain on sale of a house situated in Pune
(sale consideration is received in Nepal) Rs. 10,00,000
2. Salary received in Sri Lanka for rendering service
in TamilNadu Rs. 1,60,000
3. Interest received from Government of India (it is paid to
him in Sri Lanka, the money is utilized by the Government
outside India) Rs. 2,56,000
4. Royalty received from A Ltd. (a foreign company which is
non-resident in India) outside India (royalty is paid for
a manufacturing business situated outside India) Rs. 92,00,000
Find out the taxable income of Mr. Dev for the AY 2020-21
 13.Mr. Viren (resident and age 62 years) is a businessman. His taxable income for
the year 2020-21 is Rs. 2,25,200. He does not have any other income. What
will be his tax liability for the year 2020-21
14.Ganesh has three houses, all of which are self-occupied. The particulars of the
houses for the P.Y.2019-20 are asunder:

Particula HouseI HouseII HouseIII

rs (₹) (₹) (₹)
Municipal valuation p.a. 3,00,000 3,60,000 3,30,000
Fair rent p.a. 3,75,000 2,75,000 3,80,000
Standard rent p.a. 3,50,000 3,70,000 3,75,000
Date of completion/purchase 31.3.1999 31.3.2001 01.4.2014
Municipal taxes paid during the year 12% 8% 6%
Interest on money borrowed for repair - 55,000
of property during the current year
Interest for current year on money 1,75,000
borrowed in July 2013 for purchase of
property
Compute Ganesh’s income from house property for A.Y.2020-21 and suggest which
houses should be opted by Ganesh to be assessed as self-occupied so that his tax
liability is minimum.

15.From the following calculate Gross Annual Value, assuming that there is no vacant
period.
particular House 1 House 2
s
MRV 1,05,000 1,05,000
FRV 1,07,000 1,07,000
SR under rent control act 1,35,000 1,35,000
Actual Rent (AR) 1,12,000 98,000
Period in the previous year 12 months 12 months
 16.Mohan owns a house property(SOHP) , municipal value of which is INR 2,50,000
and municipal tax paid by him is INR 53,000. Interest on home loan paid by Mohan
is INR 2,88,000. Compute income of Mohan.

17.Mr. Kumar (a non resident) purchased equity shares (listed) of Shyamal Ltd. in
December 1995 for ₹. 28,100. These shares are sold (outside recognised stock
exchange) in April, 2020 for ₹. 5,00,000. He does not have any other taxable
income in India. What will be his tax liability.
18.Mr. Soham, an Indian Citizen, left India on 20-04-2017 for the first time to
setup a software firm in Singapore. On 10-04-2019, he entered into an
agreement with LK Limited, an Indian Company, for the transfer of technical
documents and designs to setup an automobile factory in Faridabad. He reached
India along with his team to render the requisite services on 15-05-2019 and
was able to complete his assignment on 20-08-2019. He left for Singapore on
21-08-2019. He charged ₹50 lakhs for his services from LK Limited.
Determine the residential status of Mr. Soham for the Assessment Year 2020-21
and examine whether the fees charged from LK Limited would be chargeable to
tax in his hands under the Income-tax Act, 1961.

19. Dhruv, a person of Indian origin and citizen of USA, got married to Deepa, an
Indian citizen residing in USA, on 4th February, 2020 and came to India for the first
time on 20th February, 2020. He stayed in India for 164 days during FY 2020-21.
Case 1: During FY 2020-21, Dhruv received gifts in India amounting to Rs.
2,82,000 from friends of his wife in India. Determine his residential status and
compute the total income chargeable to tax along with the amount of tax payable on
such income for the Assessment Year 2021-22.
Case 2: If he had received Rs. 16,00,000 instead of Rs. 2,82,000 as gifts during the
previous year 2020-21 and he stayed in India for 400 days during the 4 years
preceding the previous year 2020-21, what will be his residential status and tax
liability?
20. Examine with reasons whether the following transactions attract income-tax in India
in the hands of recipients (Total Income)

Salary paid by Central Government to Mr. John, a citizen of India ₹7,00,000 for
the services rendered outside India.
 Interest on moneys borrowed from outside India ₹5,00,000 by a non-resident
for the purpose of business within India say, at Mumbai.
Post office savings bank interest of ₹19,000 received by a resident assessee,
Mr. Ram, aged 46 years.
Royalty paid by a resident to a non-resident in respect of a business carried on
outside India.
Legal charges of ₹5,00,000 paid in Delhi to a lawyer of United Kingdom who
visited India to represent a case at the Delhi High Court.
21. Rituparna, a resident individual aged about 61 years, has earned business income

(computed) of Rs. 1,35,000, lottery income of Rs. 1,20,000 (gross) during the P.Y.
2019-
20. He also has interest on Fixed Deposit of Rs. 30,000 with banks. He
invested an amount of Rs.1,50,000 in Public Provident Fund account. What
is the total income of Rituparna for the A.Y.2020-21?

22. X, a foreign national (not being a person of Indian origin), came to India for the first
time from USA on July 11, 2014. He stayed here for a stretch of 3 years and left for Japan
on July 11, 2017. He returned to India on April 10, 2018 and remained here till August 17,
2018, when he went back to USA. He again came back to India on January 30, 2021 at
11.59 p.m. and continued to stay in India thereafter. Determine his residential status for
the assessment year 2021-22.
23. X, an Indian citizen, who is appointed as Senior Taxation Officer by the Government
of Iran, leaves India, for the first time on September 10, 2019 for joining his duties in Iran.
During the previous year 2020-21, he comes to India on a visit for 119 days. Determine
the residential status of X for the assessment years 2020-21 and 2021-22.
24. Sita owns a house property which is let out throughout the year. Municipal Value is
INR 1,45,000, Fair rent INR 1,36,000, standard rent INR 1,24,000 and actual rent received
INR 1,15,000.Municipal taxes paid by the tenant INR 5,400. Interest on home loan paid
INR 3,50,000. SIta also has income from Business of INR 7,12,000.
25. Compute the total income in the hands of an individual aged 45 years, being a
resident and ordinarily resident, resident but not ordinarily resident, and non-resident
for the A.Y. 2020-21 –
Particulars Amount ₹
Income earned from business in Germany which is 70,000
controlled from Delhi
Profits from a business in Delhi but managed entirely from 15,000
London
Income from house property in London deposited in a Bank at 50,000
London, brought to India (Computed)
Interest on debentures in an Indian company received in 12,000
London
Fees for technical services rendered in India but received in 8,000
London
Profits from a business in Mumbai managed from London 26,000
Income from property situated in Pakistan received there 16,000
(Computed)
Past foreign untaxed income brought to India during the 5,000
previous year
Income from agricultural land in Nepal, received there 18,000
and then brought to India
Income from profession in Kenya which was set up in India, 5,000
received there but spent in India
Descriptive Questions: 15M * 15Q

1. Compute the total income in the hands of an individual aged 45 years, being a
resident and ordinarily resident, resident but not ordinarily resident, and non-
resident for the A.Y. 2020-21 –
Particulars Amount ₹
Interest on UK Development Bonds, 50% of interest received 10,000
in India
Income from a business in Chennai (50% is received in India) 20,000
Short term capital gains on sale of shares of an Indian 20,000
company received in London
Dividend from British company received in London 5,000
Long term capital gains on sale of plant at Germany, 50% of 40,000
profits are received in India
Income earned from business in Germany which is 70,000
controlled from Delhi (₹ 40,000 is received in India)
Profits from a business in Delhi but managed entirely from 15,000
London
Income from house property in London deposited in a Bank at 50,000
London, brought to India (Computed)
Interest on debentures in an Indian company received in 12,000
London
Fees for technical services rendered in India but received in 8,000
London
Profits from a business in Mumbai managed from London 26,000
Income from property situated in Pakistan received there 16,000
(Computed)
Past foreign untaxed income brought to India during the 5,000
previous year
Income from agricultural land in Nepal, received there 18,000
and then brought to India
Income from profession in Kenya which was set up in India, 5,000
received there but spent in India
Gift received on the occasion of his wedding 20,000
Interest on savings bank deposit in State Bank of India 12,000

Income from a business in Russia, controlled from Russia 20,000

Dividend from Reliance Petroleum Limited, an Indian 5,000

Company
Agricultural income from a land in Rajasthan 15,000

2. Mr. Ramesh & Mr. Suresh are brothers and they earned the following incomes
during the financial year 2019-20. Mr. Ramesh settled in Canada in the year
1996 and Mr. Suresh settled in Delhi. Compute the total income for the A.Y.
2020-21.

Sr. Particulars Mr. Mr.

No. Rames Sures
h h
₹ ₹
1. Interest on Canada Development Bonds (only 35,000 40,000
50% of interest received in India)
2. Dividend from British company received in 28,000 20,000
London
3. Profits from a business in Nagpur, but 1,00,000 1,40,000
managed directly from London
4. Short term capital gain on sale of shares of an 60,000 90,000
Indian company received in India
5. Income from a business in Chennai 80,000 70,000
6. Fees for technical services rendered in India, 1,00,000 ----
but received in Canada
7. Interest on savings bank deposit in UCO 7,000 12,000
Bank, Delhi
8. Agricultural income from a land situated in 55,000 45,000
Andhra Pradesh
9. Rent received in respect of house property at 1,00,000 60,000
Bhopal
10. Life insurance premium paid --- 30,000
3. Mr. X owns one residential house in Mumbai. The house is having two identical
units. First unit of the house is self-occupied by Mr. X and another unit is rented
for
₹8,000 p.m. The rented unit was vacant for 2 months during the year. The
particulars of the house for the previous year 2019-20 are as under:
Standard rent ₹1,62,000 p.a.
Municipal valuation ₹ 1,90,000 p.a.
Fair rent ₹1,85,000 p. a
Municipal tax (Paid by Mr. X) 15% of municipal valuation
Light and water charges ₹500 p.m.
Interest on borrowed capital ₹ 1,500 p.m.
Lease money ₹1,200 p.a.
Insurance charges ₹ 3,000 p.a.
Repairs ₹12,000 p.a.
Compute income from house property of Mr. X for the A.Y. 2020-21.

4. Mr. Amitabh prepared the following profit and loss account of his cloth shop

for the year ended 31st March, 2019. Find out his income from business for the
AY 2019-20.
Profit and Loss Account
(For the year ended 31st March, 2019)
Particulars Rs Particulars Rs
. .
Salaries and wages 33,000 Gross Profit 3,34,725
Rent, etc. 1,600 Gifts received from 275
relatives
Household 82,000
expenses
Income Tax 900
Advertisement 800
Postage expenses 600
Gifts to relatives 900
Fire Insurance 400
Premium
Life Insurance 2,100
Premium
Bad Debts Reserve 800
 Audit Fees 400
Net profit 2,11,500
Total 3,35,000 Total 3,35,000

5. X receives the following gifts from Mr. A, One of his friends, during the
previous year 2019-20. Discuss the tax treatment of such gift.
(a) Cash gift of Rs. 44,500 on April 2, 2019
(b) Cash gift of Rs. 59200 on June 12,2019
(c) Cash gift of Rs. 43,700 on July 5,2019
(d) Cash gift of Rs. 25,000 on the occasion of his daughter’s marriage on
August 5,2019
Gift of Motor Cycle (Fair Market Value Rs. 57,200) without consideration on

6. The following is the Profit and Loss Account of Mr. X for the year ended on
31st March, 2019. Compute his taxable income from business for that year:

Profit and Loss Account

(For the year ended 31st March, 2019)

Particulars Rs Particulars Rs

Opening Stock 15,000 Sales 2,80,000

Purchases 1,40,000 Closing Stock 20,000

Wages 20,000 Gift from Father 10,000

Rent 46,000 Sale of Car 17,000

Repairs of Car 3,000 Income tax 3,000

Refund

Medical Expenses 3,000

General Expenses 10,000

Depreciation of Car 4,000

Profit for the year 89,000

 Total 3,30,000 Total 3,30,000

Following further information is given:

(1) Mr. X carries on his business from rented premises half of which is used as his
residence.

(2) Mr. X bought a car during the year for Rs 20,000. He charged 20% depreciation
on the value of the car. The car was sold during the year for Rs 17,000. The use
of the car was 3/4th for the business and 1/4th for personal use.

(3) Medical expenses were incurred during the sickness of Mr. X for his treatment.

(4) Wages include Rs 250 per month on account of Mr. X’s driver for 10 months.

7. Mr. Adam furnish the following income FY 31-3-2019, Compute taxable income
from other source for the Assessment year 2019-20 & also calculate gross total income

1. Winning from lottery Rs 70,000 (net) (purchases of lottery ticked Rs 100)

2. Interest on Fixed Deposit in a bank Rs 10,000

3. Horse race winnings (gross) Rs. 10000

4. Rent from house property Rs 60,000

5. Agricultural income Rs 20000

6. Dividend received from Reliance Industries Ltd., Rs 7,000

7. Short term capital gain Rs 12,000

8. Interest from saving bank account Rs 7,000

9. Interest on post office savings Rs 12.000

8. The Following are the particulars of income of Mr. John (an employee of an
Individual) for the previous year ended on 31 March2020.

i. Salary Rs.5500p.m
ii. Bonus equal to two month spay
iii. Dog allowance – Rs.85p.m
iv. Special Allowance – Rs.70 p.m
v. Employee’s contribution to a recognized provident fund @ 14% of salary
vi. Employer’s contribution to the fund @ 14% of the salary
vii. Interest credited to the provident fund @ 10.5% p.a. is Rs.5000
viii. He is provided with free lunch in office. The cost per meals Rs.30
Compute the income of Mr.John from salaries for the A.Y. 2020-2021.

9. Mr. Chiru, an Indian citizen, leaves India for the first time on September 20,
2017 for the purpose of employment. He comes to India for a visit of 146 days on
April 10, 2018. He finally comes back on May 16, 2019. Find out the residential
status of Mr. Chiru for the AY 2020-21.

10. The following is the Profit and Loss Account of the Raj Oil Mills for the
financial year 2018-19.

Compute its business income on the basis of additional information.

Profit and Loss Account

(For the year ended 31st March, 2019)

Particulars Rs Particulars Rs

Office Salaries 15,000 Gross Profits 80,000

General Expenses 7,000 Profit on Sale of car 15,000

Bad Debts 1,000 Recovery of bad 5,000

debts

Advertising 3,700 Interest on Govt. 3,500

 Expenses Securities

Insurance Premium 1,500 Dividends 3,500

(fire)

Depreciation 5,000 Gifts on the 5,000

occasion
Reserve for bad 3,000
debts of Gruhapravesam

Donation to a 2,500
school

Car Expenses 2,000

Net Profit 71,300

Total 1,12,00 Total 1,12,00

0 0

Additional information:

(a) General expenses include:

(i) Rs 2,500 as compensation paid to an accountant who had to be removed from

service in the interest of business, and

(ii) Rs 3,300 as contribution paid to the Govt. for laying electric cables for the
company’s plant.

(b) Depreciation as regards to the relevant blocks of assets under the Income Tax
Act was Rs 3,500.

(c) In the assessment year 2015-16 the Assessing Officer had refused to allow
deduction for the bad debts of Rs 5,000 now recovered.

(d) Car expenses include Rs 500 attributable to use of car for personal work.

11. Mr. Govan furnished the following investment FY 2018-19 compute income from
other sourses.

He holds the following investments

i. Rs 2,00,000 9% tax free commercial securities

 ii. Rs 1,00,000 8% listed debenture SRM Ltd

iii. Rs 81,000, 10% tax free debenture of NRM Ltd

iv. Rs 40,000, 10% BESCOM, bonds

v. Rs 1,10,000, 10% Central Govt. securities

vi. Rs 4, 00,000, 10% Commercial. securities

vii. Rs 8000 (Gross) received as interest on Public Ltd, co. securities listed

viii. Rs 7,200 received a interest on Karnataka Govt. securities

ix. Rs 3,600 received as interest on XYZ Ltd (listed)

x. Rs 3,00,000, 13.5% securities of X Co. Ltd (unlisted)

xi. Rs 3,50,000, 11% securities on a Paper Mill co. (listed)

xii. Interest on post office saving Rs 6,500

xiii. Dividend received from TATA ltd (gross) Rs 32,000

xiv. During the year got prize in Lottery. The net amount received by him was Rs 2,
80,000.

12. Profit and Loss Account

(For the year ended 31st March, 2019)
Expenditure Rs Income Rs
Household Expenses 12,000 Legal fees 1,26,000
Office Expenses 7,000 Special commission 1,400
Charity 500 appointment
fees
Telephone Expenses 500 Cash gifts received from 2,000
Clients
Income Tax 900 House Rent 15,000
Rent 4,000 Int. on Govt. Securities 3,000
Gift to daughter 2,000 Salary as part-time Lecturer 6,000
Electricity Charges 1,000 in Law
Donation to National Defense 1,000
 Fund
Contribution to Public Provident 2,400
Fund
Books for profession 3,000
(Annual publications)
Salaries 15,000
Purchase of Motor-car 60,000
Purchase of Furniture 2,000
Life Insurance Premium 5,000
Motor-car Expenses 6,000
Purchase of Typewriter 6,000
Excess of Income over 25,100
Expenditure
Total 1,53,400 Total 3,53,400
Following other particulars were received:
(a) Sri Pandey lives in one-half of the house and the other half is used for office.
Rent and Electricity charges are in respect of this house.
(b) One-half of car expenses are for personal use.
(c) Depreciate Motor-car @ 15%, Typewriter @ 15% and
Furniture @ 10%. Compute his taxable income from business
and profession for the A.Y. 2019-20.

13. Dr. Surendra is a renowned medical practitioner who maintains books of

account on cash basis, furnishes his Receipts and Payments Account for the
financial year 2018-19. [Problem 20, Page 152]
Income and Expenditure Account
(For the year ended 31st March, 2019)

Receipts Rs Payments Rs
Balance b/d 14,000 Electricity and Water Bills 2,000
Consultation Fees: Rent of Clinic:
2013-14 3,000 2013-14 600
2014-15 15,000 2014-15 4,800
2015-16 2,000 2015-16 600
Visiting Fees 30,000 Purchase of medicines 40,000
Loan from bank for 25,000 Purchases of Professional Books 4,000
professional purposes
Sale of Medicines 60,000 Household expenses 7,800
Gifts and Presents 5,000 Collection charges on Dividend 100
Income
Remuneration from Articles 6,000 Motor-car purchased 30,000
Published in Professional Surgical Equipments 4,800
Journals Income Tax 10,000
Dividend 10,000 Salary to Staff 15,000
Interest on Post Office 7,000 Life Insurance Premium 15,000
Savings Bank A/c Gift to Wife 5,000
Interest on Loan 2,000
Car expenses 15,000
Balance c/d 20,300
Total 1,77,000 Total 1,77,000
Compute his Taxable Professional Income for the assessment year 2019-20, after
taking into account the following additional information:
(a) 1/3 of the use of Motor-car relates to his personal use.
(b) Depreciation on Motor-car allowable is 15%, on books it is @ 100% and on
Surgical Equipments it is @ 15%.
(c) Gifts and presents include Rs. 3,000 from patients in appreciation of his
medical service and Rs 2,000 received as Birthday Gifts from relatives.
(d) Closing stock of medicine amounted to Rs. 5,500.
14. The following is the Receipts and Payments Account of Mr.
Nagaraja Rao, a practicing Chartered Accountant for the year ended
31.3.2019:
Receipts Rs.
Audit Fees 19,210
Consultation 10,000
Appellate Tribunal appearance 15,000
Miscellaneous 20,000
Interest on Government Securities 10,000
Rent received 10,000
Presents from clients 10,000
Payments Rs.
Office expenses 10,000
Office rent 5,000
Salaries and Wages 12,050
Printing and Stationery 1,000
Subscription to C.A. Institute 3,000
Purchase of books for professional purposes (Annual 1,300
publications)
Travelling expenses 5,800
Interest on bank loan 3,000
Donation to National Defense Fund 5,000
Loan from bank was taken for the construction of the house in which
he lives. Municipal value of this house is Rs 8,000 and the local taxes Rs

800 p.a. 1/4th of travelling expenses are not allowable.

Compute professional income and income from house property for
the previous year 2018-19.

15. From the following P&L A/c calculate Income from Business
 Particulars Amount Particulars Amount
To Rent 40,000 By gross profit 2,50,000
To Salary to employees 25,000 By house property income
To Depreciation 10,000 By income from other 1,50,000
To Donation 8,000 sources
To Net profit 5,17,000 2,00,000
6,00,000 6,00,000

Adjustments:
 Depreciation to be allowed as per income tax provision Rs. 8,000.
 Business income of Rs. 12,000 is not shown in the P&L A/c.
 Rs. 8,000 of the rent is of personal nature.

16. From the following receipts and payments A/c of Mr.Vasanth, a

tax consultant, calculate income from profession.
Receip Amount Paymen Amount
ts ts
To balance 3,50,000 By office and admin 60,000
To fees from clients expenses By salary to
2019-20 1,00,000 staff:
2018-19 50,000 1,50,000 2019-20 40,000
2018-19 30,000 70,000
To presents from clients 40,000 By repairs 8,000
To winning from lotteries 28,000 By interest on loan for
To rent from let out property 75,000 12,000
To share of income from 12,500 business By income tax 6,000
firm By purchase of
car(purchased during
January 2019) 1,50,000
3,49,500
By balance
6,55,500 6,55,500

17. From the following income and expenditure A/c of Ramana&

Co, charted accountants, calculate income from profession from
the details below.
 Expenditure Amount Incomes Amount
To charity and donation 1,00,000 By audit fee 3,00,000
To subscription to journals 2,000 By examiner fee 25,000
To institute fee 4,000 By fee for other accounts 40,000
work
To office rent 5,000 By dividend from UTI
To drawings 50,000 35,000
To electricity bill 9,000
To salary to trainee 20,000
To net income 2,10,000

4,00,000 4,00,000

18. Mr.Senthil is the owner following house Property particulars in

respectof which for the year ended31/03/2019.
Particulars House House House
A B C
Actual Rent 12,000 2,000 Twillingof
the House
Standard rent 8,000 2,400 Nil
Municipal Tax 900 200 3,800
Municipal Value 900 2,000 40,000
Municipal Tax paid by Senthil 900 100 Nil
Municipal Tax paid by Tenant Nil 100 Nil
Repairs 600 2,000 3,000
Vacancy Period 1 Nil Nil
Month
Interest on Loan for repairs loans 600 900 16,000

House A
Unrealized rent allowed in assessment year 2015-16 received during
the year for the House in Rs.5, 000

19. Ganesh has three houses, all of which are self-occupied. The
particulars of the houses for the P.Y. 2019-20 are as under:
 Particula House I House House
rs II III
Municipal valuation p.a. ` 3,00,000 ` 3,60,000 ` 3,30,000
Fair rent p.a. ` 3,75,000 ` 2,75,000 ` 3,80,000
Standard rent p.a. ` 3,50,000 ` 3,70,000 ` 3,75,000
Date of completion/purchase 31.3.1999 31.3.2001 01.4.2014
Municipal taxes paid during the year 12% 8% 6%
Interest on money borrowed for repair - 55,000
of property during the current year
Interest for current year on 1,75,000
money borrowed in July
2013 for purchase of
property

20. From the following particulars, compute the gross total income and tax
liability
Salary income 100000
Income from house A(computed) 200000
Business Loss 150000
LTCG 20000
STCG 15000
Winnings from horse race 300000

21. Mr. X has the following expenses:

Expenses For Amount

Life Insurance Premium (Self) 20,000

Health insurance premium 50000

Life Insurance Premium (Spouse) 20,000

Repayment of housing loan(principal) 50,000

How much deduction is he liable for?

22. Mr. Surender left India for the first time on May 20, 2017. During the
financial year 2019-20, he came to India once on May 27th for a period of 53
days. Determine his residential status for the assessment year 2020-21.

23. Following are the taxable incomes of Sri Raj Kumar for the previous year
2019-20
a) Salary accrued and received in India Rs. 20,000
b) Profit of a whole business at Melbourne Rs. 30,000
c) Dividend declared in Perth but received in India Rs. 4,000
d) Income from transfer of a long term capital asset situated in India Rs.
20,000
e) Interest on debentures of a company at Manchester, which was
received in India Rs. 6,000
f) Interest received from Sri Darshan, on the loan provided to him
for a business carried on in India. Rs. 5,000
g) Royalty received in Germany from Sri Lohith a resident in India for
technical services provided for a business carried on in Germany. Rs. 20,000
h) Fees from an Indian company carrying on business at London from
technical services rendered at London having been directly deposited
by the company in his bank account in India. Rs. 30,000
Compute Sri Raj Kumar’s total Income for the A.Y. 2020-21,
if he is (i) Resident, (ii) Not ordinarily resident, (iii) Non Resident.

24. Write a note on

a. Assessment year
b. Previous year

25. Explain the term ‘Person’ u/s 2(31).

26. Write a note on Goods and Service Tax.

26. How to determine the residential status of an individual assesse?

27. Write a note on exempted income u/s 10.