(b) Income of ` 20,13,000 shall be taxable in the hands of Piya’s father.
(c) Income of ` 20,11,500 shall be taxable in the hands of Piya’s father or
mother, whose income before this clubbing is higher.
(d) Income of ` 20,13,000 shall be taxable in the hands of Piya’s father or
mother, whose income before this clubbing is higher. (2 Marks)
4. Rohit, a resident Indian, has incurred ` 15,000 for medical treatment of his
dependent brother, who is a person with severe disability and has deposited
` 20,000 with LIC for his maintenance. Rohit shifts out of the default tax
regime for A.Y. 2024-25. Rohit would be eligible for deduction under section
80DD of an amount equal to –
(a) ` 15,000
(b) ` 35,000
(c) ` 75,000
(d) ` 1,25,000 (1 Mark)
Division B – Descriptive Questions
Question No. 1 is compulsory.
Attempt any two questions from the remaining three questions.
1. Mr. Amit, aged 45 years, a resident Indian has provided you the following
information for the previous year ended 31.03.2024
(i) He received royalty of ` 2,88,000 from abroad for a book authored by
him in the nature of artistic. The rate of royalty as 18% of value of
books and expenditure made for earning this royalty was ` 40,000. The
amount remitted to India till 30th September, 2024 is ` 2,30,000.
(ii) He owns an industrial undertaking established in a SEZ and which had
commenced operation during the financial year 2021-22. Total turnover
of the undertaking was ` 200 lakhs, which includes `140 lakhs from
export turnover which have been received in India in convertible foreign
exchange on or before 30.9.2024. Profit from this industry is ` 20 lakhs.
(iii) He was holding 30% equity shares in TSP (P) Ltd., an Indian company.
Company allotted shares to shareholders on 1st October, 2020. The
paid up share capital of company is ` 20 lakh divided into 2 lakh shares
of ` 10 each which were issued at a premium of ` 30 each.
He sold all these shares on 30th April, 2023 for ` 60 per share. Equity
shares of TSP (P) Ltd. are listed on National Stock Exchange and
Mr. Amit has paid STT both at the time of acquisition and transfer of
such shares. FMV on 31.1.2018 was ` 50 per share.
(iv) Received ` 30,000 as savings bank deposits.
(v) He occupies ground floor of his residential building and has let out first
floor for residential use at an annual rent of ` 2,28,000. He has paid
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municipal taxes of ` 60,000 for the current financial year. Both floor are
of equal size.
(vi) He paid insurance premium of ` 39,000 on life insurance policy of son,
who is not dependent on him and ` 48,000 on life insurance policy of
his dependent father.
(vii) He paid tuition fees of ` 42,000 for his three children to a school. The
fees being ` 14,000 p.a. per child.
You are required to compute the total income and tax liability of Mr. Amit
under normal provisions for the A.Y. 2024-25. (15 Marks)
2. (a) Mrs. Riya, aged 62 years, was born and brought up in New Delhi. She
got married in Russia in 1996 and settled there since then. Since her
marriage, she visits India for 60 days each year during her summer
break. The following are the details of her income for the previous year
ended 31.03.2024:
S. Particulars Amount
No. (in `)
1. Pension received from Russian Government 65,000
2. Long-term capital gain on sale of land at New Delhi 3,00,000
(computed)
3. Short-term capital gain on sale of shares of Indian 60,000
listed companies in respect of which STT was paid
both at the time of acquisition as well as at the
time of sale (computed)
4. Premium paid for self to Russian Life Insurance 75,000
Corporation at Russia
5. Rent received (equivalent to Annual Value) in 90,000
respect of house property in New Delhi
You are required to ascertain the residential status of Mrs. Riya and
compute her total income in India for Assessment Year 2024-25 under
default tax regime. (6 Marks)
(b) Mr. Sameer, aged 52 years, provides you the following information and
requests you to determine his advance tax liability with due dates for
the financial year 2023-24.
Estimated tax liability for the financial year 2023-24 ` 80,000
Tax deducted at source for this year ` 12,000
(4 Marks)
3. (a) Mr. Piyush runs a sole proprietorship firm and owns four machines
which was put in use for business in March, 2022. The depreciation on
these machines is charged @ 15%. The written down value of these
machines as on 1st April, 2023 was ` 7,70,000. Two of the old
machines were sold on 15th July, 2023 for ` 10,00,000. A second hand
plant was bought for ` 6,10,000 on 30th December, 2023.
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