Mini Test: 3 (Income Tax)
Do not Name: ……….…………Mail Id: ……………………………...
write Do not write
Maximum Time: 60 Minutes 80 Marks
anythin anything in
g in Q1. State the provision of law relating to carry forward and this margin
this set off of business losses?
margin 10 marks/Maximum 150 words & 2 pages
Answer:
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Mini Test: 3 (Income Tax)
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Mini Test: 3 (Income Tax)
Q.2 “An assessee not only pays tax on his own incomes but also
on others incomes”. Explain this Statement.
10 marks/Maximum 150 words & 2 pages
Answer:
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Q.3: Discuss how the residential status of an assessee is
determined for income tax purposes?
15 marks/3 pages/No word limit
Answer:
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Q.4: Define Capital asset. Also write major exemptions which
are allowed from long term capital gain.
15 marks/3 pages/No word limit
Answer:
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Mini Test: 3 (Income Tax)
Q.5: Mr. X is a Government employee at Ludhiana and is getting following
emoluments:
a) Basic salary: Rs. 30,000 per month
b) Dearness Allowance (enters into retirement benefits): 60% of basic salary
c) Employer’s contribution in Notified Pension Scheme: Rs. 3,000 per month
d) Employee’s contribution in Notified Pension Scheme: Rs. 3,000 per month
e) Employee’s contribution (additional) in Notified Pension Scheme Tier-II Tax
Saver Scheme): Rs. 11,000
f) Transport Allowance for commuting between home and office: Rs. 2,800 p.m.
g) Deputation Allowance (for 2 months): Rs. 3,000 per month
h) Entertainment Allowance: Rs. 2,000 per month
(During the year, he spent Rs. 12,000 on entertainment of official guests)
i) He has been provided with a rent-free accommodation. The license fee for the
accommodation has been fixed at Rs. 2,000 per month. The government has also
provided him with furniture items costing Rs. 1, 00,000 (WDV: Rs. 75,000) for
his personal use.
j) He has been provided with the facility of a servant and watchman w.e.f. 1
October 2023 and the government pays Rs. 3,000 per month to each of these
servants.
k) A laptop costing Rs. 50,000 has been given to him for his official as well as
personal purposes.
l) On 1 October 2023, he took a loan of Rs. 2,00,000 from his employer to buy a
car at a concessional rate interest of 6.25%. The repayment of loan started w.e.f.
1 January 2024 @ Rs. 10,000 per month. SBI rate of interest as on 1 April 2023
was 9.25%.
m) During the year, savings made by Mr. X were:
(a) Life insurance premium:
(I) For Self: Rs. 10,500 (sum assured: Rs. 2,00,000)
(II) For Spouse: Rs. 12,000 (sum assured: Rs. 1,00,000)
(III) For Mother: Rs. 8,000 (sum assured: Rs. 1,00,000)
(IV) For Major Son: Rs. 8,000 (not dependent on him but is suffering from
disability) (sum assured: Rs. 50,000)
(V) All the above life insurance policies were taken in the previous year
2014-15.
(b) PPF Deposits: Rs. 5,000
(c) Tuition Fees of Second Son studying in a College: Rs. 6,000
(d) Repayment of Housing Loan from LIC (Principal Portion): Rs. 36,000.
Calculate the salary income as well as deduction under section 80C for the
assessment year 2024-25.
20 marks/3 pages/No word limit
Solution:
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Mini Test: 3 (Income Tax)
Q. 6: Mr. ‘A’ inherited a residential house from his father in
January 2018. His father had bought the said house in the year
1999 at a cost of Rs. 70,000. Mr. ‘A’ sold the house in June 2023
for a sale consideration of Rs. 17,00,000 and the registered valuer
has valued the said house at Rs. 1,00,000 as at 1.4.2001. The cost
Inflation index (CII) for financial year 2001-02, 2017-18 and
2023-24 is 100, 272 and 348 respectively.
You are required to compute the income from capital gains for the
Assessment Year 2024-25. Also suggest the actions, if any, that
may be taken by Mr. ‘A’ to avoid tax on capital gains.
10 Marks/3 pages/ No limit
Solution:
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