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 MATHUR SIR - 8777249775

Taxation – I
Paper: CC 4.1 Cg (2019-20)
General
Full marks: 80
Group – A
1. Write short notes on the following: (2 ½ X 2)
a) Person
b) Assessment year
Or,
a) What is agricultural income?
b) Give two examples of agricultural income. (3 + 2)

2. Mr. X came in India for the first time on April 16, 2020 and left India on December 13,
2020. During his stay in India, he was in Delhi up to 30.06.2020 and thereafter in Mumbai.
Determine his residential status for the assessment year 2021-21. (5)
[Ans. Total = 242 Days; Mr. X is Resident but not Ordinarily Resident]

3. From the particulars given below by Amit, compute the amount of deduction U/S 80C for
the assessment year 2021-21: (5)
Particulars Amount (Rs.)
Deposit in PPF account 45,000
Life insurance premium paid on the life of minor son 25,000
(Policy value Rs.2,00,000 taken on 01.07.2018)
Life insurance premium paid on the life of mother (aged 62 years) 27,000
Repayment of house building loan from SBI 77,000
(including interest of Rs.10,000)
Purchase of NSC (VIII issue) 24,000
[Ans. deduction U/S 80C = 1,56,000; Amount of Deduction is restricted to Rs. 1,50,000]

4. Mr Z is a private sector employee covered by the Payment of Gratuity Act 1973, retired
on Nov. 30, 2021 after a continuous service of 22 years and 10 months in the concern and
received Gratuity of Rs.35,000 on December 15, 2021. His basic pay and dearness allowance
for the last month was Rs.2,800.
Compute the amount of gratuity taxable in hands of Mr. Z. (5)
Or,
Sudipta an employee of PQR Ltd. receives basic salary Rs.38,000 per month, dearness
allowance Rs.27,000 per month and house rent allowance (HRA) Rs.8,000 per month. He
gets a commission @ 5% on the annual turnover of Rs.7,00,000 achieved by him. He resides
in a rented house in Kolkata and pays Rs.5,000 per month as rent.
Compute his taxable HRA for the assessment year 2021-21. (5)
[Ans. Taxable Amount of Gratuity = Nil; Or, Taxable Amount of H. R A = 96,000; Salary =
8,15,000]

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Group-B
5. (a) Discuss the provisions relating to clubbing of income of minor.
(b) From the following information of Mr. Ratan, compute deduction under section 80G for
the assessment year 2021-21:

Donation to Amount (Rs.)

National Defence Fund 10,000
Prime Minister’s Drought Relief Fund 25,000
Jawaharlal Nehru Memorial Fund 12,000
Prime Minister’s National Relief Fund 20,000
Notified Temple for renovation 22,000
Mr. Ratan has gross total income of Rs.4,30,000 and allowed deduction of Rs.50,000 under
section 80C. (5 + 5)
Or,
Mr. S. K. Roy, a businessman, furnishes the following particulars of his income and loss for
the previous year 2020-20:
Rs.
Income from house property in Dinajpur 30,000
Loss from self-occupied house property 10,000
Profits from speculation business in jute 20,000
Loss from speculation business in grains 10,000
Profits from retail business in cloth 20,000
Loss from stationery business 10,000
Long-term capital on transfer of house property 35,000
Long-term capital loss on sale of land 20,000
Short-term capital loss on sale of gold 20,000
Compute his total income for the assessment year 2021-22 (10)
[Ans. Amount of Deduction = 59,500; AGTI = 3,80,000; 10% of AGTI 38,000 (Maximum
Qualified Amount for Notified Temper); Or, Total Income = 35,000]

6. (a) What do you mean by short-term and long-term capital assets?

(b) Mr. R purchased a house on12.02.1998 for Rs.3,40,000 (Fair market value on 01.04.2002
Rs.5,00,000). On 05.02.2021 he sold the house for Rs.20,00,000 and paid brokerage @ 2%.
Compute his capital gain for the assessment year 2021-21.
(CII for 2002-03: 100; 2020-20: 280) (5 + 5)
Or,
Mr. E submits the following particulars for the previous year 2020-20:
a) Dividend received from X Co. Ltd. an Indian company Rs.4,160.
b) Family pension received Rs.36,000.
c) Winnings from horse races Rs.13,2000; expenses incurred for the same Rs.2,000.
d) Dividend received from a foreign company Rs.12,000.
e) Winnings from lottery (after deduction of tax @ 30%) Rs.8,400.

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 MATHUR SIR - 8777249775

f) Rent by way of letting plant and machinery along with a building (rent of building is not
separable) Rs.18,000.
g) Rent collection charge Rs.250; Insurance premium Rs.1,200; Depreciation of building,
plant and machinery Rs.4,500.
Compute his income from other sources for the assessment year 2021-21. (10)
[Ans. Capital Gain = 5,60,000; Or, Income from Other Sources = 73,250]

7. Mr. Sen is the owner of 3 houses. Following are the particulars of these houses for the
previous year 2020-20:

House No. 1 House No. 2 House No. 3

Used for Owner’s Tenant’s Tenant’s
residence business residence
Municipal value (Rs.) 24,000 30,000 20,000
Rent received (Rs.) ---- 36,000 24,000
Municipal tax paid by owner (Rs.) 2,400 3,000 2,000
Repair charges paid by owner (Rs.) 2,000 4,000 3,000
Insurance premium paid (Rs.) 250 300 200
Interest on taken:
(i) For construction of the house (Rs.) ---- 3,000 ----
(ii) For relative’s marriage (Rs.) ---- ---- 1,500
Compute income from house property of Mr. Sen for the assessment year 2021-21. (10)
[Ans. Income from House – 1 = Nil; Income from House – 2 = 20,100; Income from House –
3 = 15,400; Income from House Property = 35,500]

Group- C
8. Miss Roy joined A.M.C. Ltd. on 01.08.2016 and furnished the following information for
the year ended 31st March, 2021:
a) Basic salary Rs.15,000 p.m.
b) Dearness allowance Rs.4,000 p.m.
c) Medical allowance Rs.2,000 p.m.
d) Children education allowance Rs.500 p.m. (she has one child)
e) House rent allowance Rs.2,000 p.m. She paid rent Rs.3,000 p.m. She paid rent Rs.3,000
p.m. for a house in Kolkata.
f) Her employer contributes 13% of basic salary and dearness allowance to a recognised
provident fund. Interest credited @ 16% to the said fund Rs.4,800.
g) She is provided with a motor car of 1.6 litres owned by the employer along with a driver.
The facility is used both for official and private purpose. Entire expenses are borne by the
employer.
h) She is provided with sweeper and a domestic servant at a salary of Rs.300 p.m. and
Rs.600 p.m. respectively (the payment for which is made by employer).
i) Income tax of Rs.3,000 and professional tax of Rs.1,200 are deducted from her salary.
j) Her personal electricity bill of Rs.5,000 paid by employer.

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Compute income from salary of Miss Roy for the assessment year 2021-21. (15)
[Ans. Income from salary = 2,78,830]

9. The profit & loss account and other information in relation to the business of Mr. Das are
given below:
Profit & loss account for the year ended 31st March, 2021
Particulars Rs. Particulars Rs.
To business expenses 48,000 By gross profit b/d 1,50,000
To interest on bank loan 5,000 By dividend from Indian 10,000
To repairs to furniture 3,000 company
To purchase of furniture 5,000
To bad debts 1,400
To provision of bad debts 3,200
To car expenses 4,800
To income tax 3,600
To donation to approved 4,000
institution [u/s 80G (5)]
To donation to Prime 6,000
Minister’s National Relief
Fund
To fines 5,000
To Interest on capital 9,000
To depreciation 3,000
To net profit c/d 59,000
1,60,000 1,60,000
Other information:
(i) Depreciation as per income tax rules works out to Rs.2,500.
(ii) 1/4th of car expenses incurred for business purpose.
(iii) In arriving at gross profit, the opening stock and closing stock have been valued at
Rs.72,000 and Rs.90,000 respectively both being 10% below cost.
(iv) Business expenses included wages of domestic servant @ Rs.350 p.m.
You are required to compute his business income for the assessment year 2021-21. (15)
Or,
(a) Mr. P provides the following information relating to its assets for the previous year 2020-
20:
Particulars Rs.
st
WDV of the block of plants (15% rate of depreciation) on 1 April, 2018
(consisting of X and plant Y) 15,00,000
st
WDV of the block of buildings (10% rate of depreciation) on 1 April, 2018
(consisting of only one building) 10,00,000
During the year machine Z (15% rate of depreciation) costing Rs.5,00,000 and one building
(10% rate of depreciation) costing Rs.6,00,000 have been purchased. Plant Y (costing
Rs.8,00,000) has been sold during the year for Rs.6,00,000.
Calculate allowable depreciation for the assessment year 2021-2022 (5)

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(b) From the following information, compute the admissible deduction under section 35 in
hands of Mr. B for the assessment year 2021-2022:
(i) Purchased a machine of Rs.2,50,000 for in house scientific research.
(ii) Purchased land of Rs.5,00,000 for in house scientific research.
(iii) Constructed building of Rs.7,50,000 fir in house scientific research.
(iv) Contributed to IIT Delhi for scientific research Rs.64,000.
(v) Contributed to Indian Statistical Institute for statistical research Rs.45,000 (5)

(c) Discuss the admissibility of the following payments or expenses debited to profit & loss
account for computation of business income for the assessment year 2021-2022:
(i) Provision for bad doubtful debts of Rs.10,000
(ii) Bad debt of Rs.8,000
(iii) Payment of Rs.15,000 in cash to a creditor
(iv) Payment of interest of Rs.45,000 on term loan taken from bank after the due date of
submission of return.
(v) Penalty of Rs.10,000 paid to customs authority. (5)
[Ans. Income from Business = 95,100; Or, a) Depreciation 2020 – 20 (Rate of Depreciation
15% and 10%) = 1,78,500 and 1,44,000; b) Deduction U/S 35 = 4,13,500; c) (i) Disallowed;
(ii) Allowed; (iii) Disallowed; (iv) Allowed; (v) Disallowed]

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Taxation – I (2019-20)
Paper: CC 4.1 Ch
Honours
Full marks: 80
Group – A
1. Mr. Paul a foreign national (not being a person of India origin), came to India for the first
time on April, 17, 2015. During the financial years 2015-16, 2016-17, 2017-18, 2018-19 and
2020-20, he was in India for 150 days, 75 days, 21 days, 190 days and 72 days respectively.
Determine residential status of Mr. Paul for the assessment year 2021-2022. (5)
Or,
(a) On 10th May, 2020 the assessing officer comes to know that Mr. Subham Das will leave
India on 30th May, 2020 with no intention of returning. The assessing officer wants to tax his
income earned up to 30th May, 2020 along with the current assessment, which is objected
by Mr. Das. Discuss.
(b) Mention any two fully exempted income.
(c) State the status of ‘Calcutta University’ as per Sec. 2(31) of Income tax Act, 1961.
(2 + 2 + 1) [Ans. Total = 436 Days; Mr. Paul is a Resident But not Ordinarily Resident of
India.
Or, (a) As the Assessing Officer Mr. Shubham Das leaving India with no intension of
returning on 30th, May, 2020 he will be assessed on the income earned in the P. Y 2020 –
20; (b) (i) Agricultural Income U/S 10 (1); (ii) Dividend from an Indian Company U/S 10
(34); (c) Artificial Judiciary Person.]

2. State whether the following incomes are treated as agricultural income for the purpose of
Income tax:
(a) Compensation received from the government for the requisition of land which has been
used for agricultural purposes.
(b) Dividend received from a company whose major income constitutes agricultural income.
(c) Profit earned from the sale of wild grass of spontaneous growth.
(d) Income earned from the sale of tea grown and manufactured by the assessee.
(e) Income by way of selling rice produced from the paddy purchased by the assessee. (5)
[Ans. (a) Not agricultural income. However, under sec 10 (37) such compensation is
exempt from tax; (b) Not agricultural income; (c) Not agricultural income; (d) Partly
agriculture and partly business income. Under sec Role 8, 40% of the income is taxable as
business income and balance 60% is agricultural income which is exempt from tax; (e) Not
agricultural income.]

3. Imtiaz submits the following particulars of the incomes and outgoings for the year 2020-
20:
(a) Income from lottery (net after deduction of tax @ 30%) Rs.84,000.
(b) Rent from sub-letting of house Rs.1,08,000; rent collection charge Rs.1,800; insurance
premium Rs.4,800; rent paid Rs.84,000.
(c) Dividend from APBL Ltd., an Indian company Rs.24,000.

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(d) Dividend from Johnson Ltd., a foreign company Rs.72,000

Compute his income from other sources for the assessment year 2021-2022. (1 + 2 + 1 + 1)
[Ans. Total = 2,09,400]

4. State the provisions of the Income Tax Act regarding clubbing of income of minor with the
income of parents. (5)
Or,
Compute amount of deductions available to assess see U/S 80 in the following cases:
(a) Shubharaj incurred medical expenditure of Rs.75,000 for treatment of his dependent
farther who is 66 years old and suffering from cancer (certified by an approved doctor). He
recovered Rs.50,000 from the insurance company.
(b) Suvankar has deposited Rs.50,000 under a scheme farmed by LIC for maintenance of his
dependent brother with severe disability (90%). The disability is certified by the competent
medical authority.
(c) Saswata had taken a loan bank for doing MBA. During the previous year he repaid
Rs.50,000 including interest Rs.10,000. (2 + 2 + 1)
[Ans. In computing the total income of any individual, all such income as arises or accrues
to a minor child shall be included in the total income of such individual.
When clubbing is not applicable:
(i) The minor child is suffering from nay of the disabilities specified in section 80U (e. g.,
permanent physical disability including blinding blindness, mental retardation etc.); or,
(ii) The income arises to such minor on account of any manual work done by him; or,
(iii) The income arises to the minor from activity involving application of his skill, talent or
specialised knowledge and experience.
Further Consideration:
(a) If minor is disabled; (b) Exemption of Rs.1,500 allowed on income of minor; (c) If the
income earned by the minor through any manual work or firm his own talent or skill.
Or, a) Deduction U/S 80DD = 25,000; b) Deduction U/S 80DD = 1,25,000; c) Deduction U/S
80E = 10,000]

Group – B
5. The following is the profit and loss account of Shri Vivek Kr. Shaw for the year ended
31.03.2021:
Dr. Cr.
Particulars Rs. Particulars Rs.
To opening stock 90,000 By sales 5,35,000
To purchases 3,85,000 By closing stock 1,44,000
To wages 34,050 By bad debt recovered 2,000
To rent 12,000 (disallowed in earlier year)
To general charges 16,500 By bank interest 8,500
To donation to National 2,500 By dividend from UTI 3,500
Defence Fund By interest on NSC 1,050
To Salaries 64,600 By profit on sale of machinery 4,000

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To bad debt 3,000

To provision for doubtful debts 6,200
To depreciation 10,500
To income tax 3,900
To legal expenses 6,200
To interest on capital 8,000
To net profit 55,100
6,98,050 6,98,050
Other information:
(a) Both opening and closing stock were valued at 10% below cost.
(b) Legal expenses include Rs.3,000 paid as penalty for infringement of customs regulations.
(c) Purchases include Rs.15,000 paid in cash.
(d) Depreciation as per IT rules Rs.12,000.
Compute income from business of Mr. Shaw for the assessment year 2021-21. (10)
Or,
(a) Chemc Ltd. engaged in manufacture of chemicals and furnishes the following particulars
relating to manufacturing unit at Haldia for the year ended on 31.03.2021:
Rs.
WDV of machinery on 01.04.2020 10,00,000
New machinery purchased on 01.08.2020 10,00,000
New machinery purchased on 01.01.2021 4,00,000
Machinery sold on 15.01.2021 1,00,000
All assets were put to use immediately. Rate of depreciation on machinery is 15%. Rate of
additional depreciation is 20%.
Compute the depreciation allowable to Chemco Ltd. and the WDV of block of assets as on
31.03.2021.
(b) Ms. Ritu Bala Khan engaged in the business of manufacture of jute bags furnishes the
following particulars for the previous year 2020-20. Compute the deduction available U/S 35
while computing the income under the head profits and gains for business or profession.
Amount paid to IIT, Kharagpur for an approved scientific research Rs.2,00,000
programme Rs.20,000
Amount paid to ISI, Kolkata for statistical research not related to Rs.3,00,000
business Rs.10,00,000
Amount paid to IIEST, Shibpur for scientific research Rs.50,000
Purchased a piece of land in Aachipur for in- house research
Revenue expenditure incurred for in – house research
(4 + 1 + 5)
[Ans. Income from Business = 79,150; Or, (a) total Depreciation = 5,55,000; (b) Total =
6,70,000]

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6. Smt. Samprity Karak furnishes the following information for the previous year 2020-20:

Rs.
A. Income from business
Toy business +20,000
Cloth business +46,000
Ready-made garments business -12,000
Speculative business +18,000
B. Income from house property +38,000
C. Income from capital gain
Long-term on sale of land +44,000
Short-term on sale of gold -21,000
D. Income from other sources
Interest on bank deposit +12,000
Winning from lottery (gross) +12,000
E. Brought forward losses
Speculation loss for 2018-19 20,000
Loss from cloth business 8,000
Unabsorbed depreciation of cosmetics business (discontinued from 2011- 5,000
12) for the P.Y. 2002-03
Compute total income of Smt. Karak for the A.Y. 2021-22 (10)
Or,
Mr. Manik Das (aged 32 years) submit the following particulars for the assessment year
2021-2022:
Rs.
Income from house property 50,000
Income from business 72,600
Long-term, capital gains on sale of building 21,840
Interest from fixed deposit with a bank 18,000
Donations made to:
Approved university of national eminence 3,600
Prime Minister’s Drought Relief Fund (in kind) 1,800
Prime Minister’s National Relief Fund 4,500
J.L. Nehru Memorial Fund 2,500
Approved charitable institution (paid by cheque) 16,200
Approved political party 10,000
Payment of medical insurance premium on his own health to GICI by 31,600
cheque
Compute the amount of allowable deduction under section 80G. (10)
[Ans. Total Income = 1,26,000; Or, 10% of Adjusted GTI = 13,600; Total Deduction U/S 80G
= 15,900]

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7. During the previous year 2020-20, Mr. Madhusudhan sold the following capital assets:
Asset Sale proceeds (Rs.) Cost of acquisition Date of acquisition
(Rs.)
Debentures 2,48,000 1,68,000 30.06.1997
Gold 18,22,000 8,42,400 25.08.2005
Building 22,11,900 9,00,000 10.05.2008
Assuming that his business income is Rs.3,47,500, determine his income for the assessment
year 2021-2022:
(CII for the financial year 2002-03: 100; 2006-07:117; 2009-10:137; and 2020-20:280) (10)
[Ans. Long-term Capital Gain (Debenture, Gold and Building) = 63,000, (1,94,000) and
3,72,484; Total Income = 5,88,9894]

Group - C
8. Mrs. Bindhani is working with T Ltd. receives the following emoluments during the
previous year 2020-20:
(a) Basic pay on 01.04.2020 Rs.24,000 (increment of Rs.1,000 p.m. falls due on 1st July each
year).
(b) Dearness allowance (forming part of salary) @ 100% of basic pay.
(c) Children education allowance Rs.600 p.m. (she has one child)
(d) Remuneration from Calcutta University as examiner Rs.1,400.
(e) Medical Allowance Rs.1,000 p.m. and bonus Rs.15,000 p.a.
(f) The employer provided a free furnished accommodation in Kolkata. Fair rental value of
the House was Rs.4,500 p.m. and furnished with furniture costing Rs.50,000. She was
provided with a sweeper and a watchman whose monthly salaries were Rs.3,000 and
Rs.4,500 respectively. A free telephone was also provided by employer at her residence,
which was used by her both for personal and official purposes.
(g) She is a member of a recognized provident fund and contributed 14% of her salary. Her
employer also contributed 14% of her salary to the provident fund.
(h) Interest credited at 13 % p.a. on credit balance of provident fund Rs.6,500.
(i) She had taken a life policy for Rs.5,00,000 on her own life for which she paid a premium
of Rs.15,000 during the previous year. (Policy was taken on 01.08.18.)
(j) Employer paid her professional tax of Rs.1,000 p.m.
(k) She is provided with a 14 H.P. car owned by employer and has been used both for the
purpose of her employment and personal use. Entire expenses is borne by the employer.
Compute income from salary of Mrs. Bindhani for the assessment year 2021 - 2022. (15)
Or,
(a) Mr. D. Podder, an employee of a private company in Kolkata (not covered under
payment of Gratuity Act.) retired from service on December 31, 2020 after 32 years and 8
months of service. He received Gratuity of Rs.9,80,000. His salary at the time of retirement
was Rs.32,000 p.m. and dearness allowance was Rs.6,400 p.m. (not forms part of salary). His
increment of Rs.900 p.m. fell due on 1st July every year.
Calculate the amount of taxable Gratuity of Mr. Podder for the assessment year 2021 -2022.

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(b) Mr. Rahul Kumar Thakur retired on 08.02.2021 from a private company after completion
30 years and 9 months of service. He is entitled to 1 month leave for each completed year of
service. He took 8 months leave during his service life. At the time of retirement his basic
pay was Rs.16,000 p.m, and D.A. @50 % of basic pay. However, he got an increment of basic
pay @ Rs.1,000 p.m. from 01.01.2021. He received Rs.4,00,000 as leave encashment.
Compute taxable amount of leave salary of Mr. Thakur for the A.Y. 2021 - 2022 [Assume
D.A. forms part of salary].
(c) Mr. Sourav Sikdar was working with a company at a salary of 20,000 p.m. on 31.12.2020,
he left the Job and received Rs.2,50,000 as refund from Unrecognized Provident Fund
(URPF). The amount of Rs.2,50,000 includes Rs.50,000 as accumulated interest. Both Sourav
and his employer contributed equal amount to the provident fund. How the amount
received by Mr. Sikdar will be treated for income tax purpose during the A. Y. 2021 – 2022.
(5+6+4) [Ans. Income from salary = 8,11,426; Salary (RPF and Free Finished
Accommodation) = 5,94,000 and 6,27,000; Or, a) Taxable Gratuity = 4,75,200; Average
salary = 31,550; b) Taxable leave salary = 1,72,750; Average salary = 22,725; c) Employee’s
and own contribution = 2,00,000; Interest on Employer contribution = 25,000; Interest on
own contribution = 25,000]

9. Sarju Middey is the owner of 2 houses in Kolkata. From the following particulars of the
houses, compute his income from house property for the assessment year 2021 - 2022:
House A:
Let - out to an employee of the business of Sarju @ Rs.5,000 p.m. which is necessary for the
purpose of business. Municipal tax paid Rs.3,000 and interest on loan taken for purchasing
the house amounted to Rs.9,000.
House B:
The House consists of 3 identical flats. First flat is used by him for his own business. Second
flat is used by him for his own residence. The third flat is let out at a monthly rent of
Rs.15,000. Municipal Taxes paid @ 5% amounted to Rs.20,250.

Other information:
(a) Unrealized rent for the P. Y. 2020 - 20 relating to third flat of House B amounted to
10,000.
(b) A loan of Rs.20,00,000 was taken on 01.07.2016 for construction of the House B.
Construction of House B was completed on 01.06.2018. Interest on loan is 12% p.a. No
repayment was made. (15)
[Ans. Income from (Flat – 2 and 3) = (1,08,000) and 6275; Taxable income (1,01,725);
Interest on loan = 1,08,000]

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Taxation – I (2021)
Paper: CC 4.1 Ch
General
Full marks: 80
Group – A
Answer any four questions:
1. (a) Rahul left India for the first time on 31st December 2016. He visited India during the P.
Y’s 17-18, 18-19 and 19-20 for 80 days, 75 days and 100 days respectively. He came to India
on 2nd July, 2020 and left India on 30th August, 2020. Determine the residential status of
Rahul for the Assessment Year 2021-22. 7

(b) Which HUF will be termed as Resident for the assessment year 2021-22? 3

2. Write short notes on: 5+5

(a) Previous Year
(b) Heads of Income

3. Write short notes on: 5+5

(a) Annual value
(b) Arrear rent

4. Mr. Ratan an employee of XYZ Ltd. receives basic salary of Rs.25,000 per month, dearness
allowance (forming part of salary) Rs.12,000 per month, house rent allowance of Rs.6,000
per month. He gets a commission @5% of the annual turnover of Rs.5,00,000. He resides in
a rented house in Mumbai and pays Rs.4,000 per month as rent.
Compute his taxable HRA for the assessment year 2021-22. 10

5. Mention any five incomes which are fully exempted from tax. 10

6. Mr. Kohli (aged 35 years) pays health insurance premium for the health of the following
persons during the previous year 2020-21:
Particulars Amount (Rs.)
Self 8,000
Dependent Brother 8,000
Spouse 8,000
Son 5,000
Father (65 years) 34,000
Mother (60 years) 26,000
Calculate the amount of deduction u/s 80D for the assessment year 2021-22. 10

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7. Mr. Anthony, aged 51 years, submits the following information for the assessment year
2021-22:
Particulars Amount (Rs.)
Gross total income 4,46,000
Payment of medical insurance premium for his entire family by 14,000
cheque
Life insurance premium paid for his own life 11,000
Donations made to:
National Defence Fund 5,000
Jawaharlal Nehru Memorial Fund 4,000
Notified Church for renovation 30,000
Compute total income of Mr. Anthony for the assessment year 2021-22. 10

8. (a) Discuss the provisions of clubbing of income of a minor. 6

(b) Write a short note on rebate u/s 87A. 4

Group – B
Answer any two questions:

9. Proloy is appointed in G.M. Pvt. Ltd. in Kolkata. From the following particulars compute
his income from salary for the assessment year 2021-22: 20
(a) Basic salary Rs.50,000 per month
(b) Dearness allowance (forming part of salary) Rs.30,000 per month
(c) Entertainment allowance Rs.8,000 per month
(d) Medical allowance Rs.3,000 per month
(e) Bonus Rs.12,000 paid as per contract
(f) He is provided with an accommodation in Kolkata for which the employer pays rent of
Rs.2,500 per month.
(g) Personal electricity expenses of Rs.2,500 and profession tax of Rs.1,500 are reimbursed
by the employer.
(h) The employer contributes Rs.10,000 per month to the recognized provident fund.
(i) Interest @13% per annum amounting Rs.7,800 was credited to this recognized provident
fund on March 31, 2021.

10. Sri Saha is the owner of three houses situated in Durgapur, the particulars of which for
the previous year 2020-21 are as follows:
Particulars House No. 1 House No. 2 House No. 3
Construction completed on 31.3.2002 30.9.2004 31.8.2001
How used Let out for For own Let out for
residence residence residence
Rs. Rs. Rs.
Municipal value 1,00,000 15,000 1,80,000
Rent received 1,00,000 --- 1,56,000

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Fair rent 1,10,400 14,400 1,60,000

Interest on loan 12,000 12,500 10,000
Municipal tax (on municipal value) 10% 10% 10%
Vacancy period 2 months --- ---
Compute his income from House Property for the assessment year 2021-22. 20

11. From the following information, compute the income from Business of Sri Dasgupta
for the assessment year 2021-22: 20

Profit & Loss Account for the year ended 31st March, 2021
Particulars Amount Particulars Amount
(Rs.) (Rs.)
To Salaries 72,000 By Gross Profit b/ f 5,70,000
“ Insurance 10,000 “ Bad debt recovery
(previously allowed as
deduction) 10,000
“ Advertisement 12,000 “ Dividend from Indian
company 41,500
“ Travelling expenses 4,000 “ Winnings from horse race
(gross) 10,500
“Miscellaneous expenses 10,000
“Entertainment expenses 7,000
“Medical expenses 15,000
“Car expenses 15,000
“Depreciation 28,000
“General Reserve 6,000
“Net profit 4,53,000
6,32,000 6,32,000
Additional information:
(a) Included in salary Rs.7,000 paid to Sri Dasgupta’s son who never attended the business.
(b) Insurance includes 30% paid for fire insurance of business assets and the balance paid a
life insurance premium of Sri Dasgupta’s life.
(c) Rs.32,000 was paid in cash to a supplier who refuses to accept cheque.
(d) The car was used for both business and personal purposes. 2/3rd of the car expenses was
for business purpose.
(e) Depreciation as per Income tax rules amounted to Rs.31,000.

12. A Ghosh submits the following incomes and losses for the assessment year 2021-22:
Particulars Amount (Rs.)
Income from house property 12,800 12,800
Income from textile business 35,700 35,700
Loss from stationary business 10,000 10,000
Speculation loss 2,000 2,000

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Long term Capital gain 25,000 25,000

Short term Capital loss 10,000 10,000
Winning from lottery (Gross) 12,000 12,000
Brought forward losses from the assessment year 2020-21:
Loss from house property 8,000 8,000
Loss from stationary business 7,000 7,000
Loss under the head long term capital gains 4,300 4,300
All the above brought forward losses were first computed in the assessment year 2020-21.
Compute total income of Mr. Ghosh for the assessment year 2021-22. 20

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Taxation – I (2021)
Paper: CC 4.1 Ch
Honours
Full marks: 80
Group – A
Answer any four questions:
1. (a) What do you mean by the term “Assessment Year”?
(b) Mention any two circumstances where income of previous year is assessed in the same
year?
(c) Determine the status of the following persons:
(i) ABCD, an Alumni Association of Students.
(ii) Sonarpur Municipality.
(d) Mention any two fully exempted incomes? 2+3+3+2

2. Mr. Das has received the following amounts during the previous year ending on March
31, 2021:
(a) Income from House property in Sri Lanka received therein Rs.22,500.
(b) Income from salary in India Rs.1,20,000.
(c) Dividend from an Indian Company received in China Rs.25,000 (Gross).
(d) Income from Business controlled from Bangladesh Rs.37,500.
(e) Rs.10,000 earned in England during the previous year 2019 – 20 was bought to
India.
Compute the Gross Total Income of Mr. Das if he is:
(i) Ordinarily Resident
(ii) Non – Ordinarily Resident
(iii) Non – Resident 2x5

3. (a) Define Agriculture Income?

(b) Mr. Vishal retired from service on 31.10.2020 and received Rs.5,00,000 as gratuity. He
was entitled to a pension of Rs.10,000 per moth w. e. f. 01.11.2020. From 01.01.2020 he
commuted 50% of his pension and received Rs.3,00,000 as commuted pension.
Compute his taxable amount of pension for the Assessment year 2021 – 22. 3+7

4. Mrs. Mala Sen, furnishes the following information for the previous year 2020-21.
Compute her income from other sources for the assessment year 2021-22. 2×5
(a) Winning from lottery after deducting tax @31·2% Rs. 1,37,600 (expenses incurred
Rs.2,000).
(b) Rs.40,000 received as interest from Government securities, Rs.4,000 spent towards
collection charges.
(c) Dividend from Tata Steel Rs.30,000.
(d) Family pension received Rs.48,000.
(e) Income from agriculture land situated in Bangladesh Rs.24,000.

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5. From the following particulars, compute Gross Total Income and losses to be carried
forward by Sk. Rasidul Alam for the assessment year 2021-22: 10
Particulars Rs.
Income from salary (Taxable) 7,00,000
Income from House Property: (–) 7,37,500
House-I (Let out)
House-II (Self occupied, Interest on borrowed money) (–) 22,500
Income from speculation business 31,250
Short-term capital gain 30,000
Long-term capital loss 62,500
Speculation business loss of assessment year 2020-21 37,500
Short-term capital loss of assessment year 2020-21 20,000

6. (a) From the following details for the previous year 2020-21, compute depreciation
and/or capital gain (or loss) for the relevant assessment year:
Particulars Rs.
W.D.V. of the block of plant and machinery on 01.04.2020 2,00,000
(Consisting of plants X and Y-depreciation rate 15%)
Cost of plant Z acquired on 19.11.20 (depreciation 15%) 1,00,000
Case (i): All plants are sold for 2,80,000
Case (ii): Plant X and Z are sold for 2,80,000

(b) Discuss the admissibility of the following expenses in case of an individual businessman
Sandip Sarkar under the relevant provisions of the Income Tax Act.
(i) A cash payment of Rs.50,000 made to a creditor who refused to accept a cheque.
(ii) A sum of Rs.1,00,000 on account of interest on term loan was paid one month after
the due date of submission of return. 6+(2+2)
7. (a) Discuss in brief about the provision of clubbing of income of a minor.
(b) State the amount of deduction available for interest on loan u/s 24(b) in case of a self-
occupied property. 5+5

8. Nitisha has made the following investments/payments during the previous year 2021-
22:
Particulars Rs.
Contribution to Recognised Provident Fund 25,000
Deposit in Public Provident Fund 1,00,000
Life insurance premium paid on own life 25,000
(Sum assured Rs.1,00,000 taken on 10.10.2010)
Life insurance premium on daughter 15,000
(Policy value Rs.1,20,000 taken on 01.01.2015)
Life insurance premium paid on mother’s life 20,000
(Policy value Rs.2,00,000 taken on 15.12.2018)
Purchase of NSC (VIII issue) 10,000

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Accrued interest on NSC (including last year’s interest of Rs.1,000 6,000

Repayment of home loan to SBI (including principal Rs.10,000) 50,000
Calculate the amount of deduction under section 80C. 10

Group – B
Answer any two questions:

9. Mr. Surajit Roy is the Managing Director of ABC Ltd. (a private limited company) in
Kolkata. He furnishes the following particulars of his income for the financial year 2020-
21:
(a) Basic salary @ Rs.40,000 per month.
(b) Dearness allowance @50% of basic salary (forming part of salary for computation of
retirement benefits)
(c) House rent allowance Rs.2,500 p.m. During the year 2020-21, he stayed in a rented
house in Kolkata paying monthly rent of Rs.3,000.
(d) Children education allowance received @ Rs.200 p.m. per child for his three children.
(e) Medical allowance received @ Rs.600 p.m. (Actual medical expenses incurred by him
during the year amounted to Rs.5,000).
(f) He contributes 15% of salary to recognised Provident Fund. His employer also makes a
matching contribution.
(g) Interest credited to Recognised Provident Fund @12% p.a. amounted to Rs.9,600.
(h) His employer provided a 1200 c.c. car. He used the car both for official and private
purposes. All expenses are borne by his employer.
(i) He was provided with a servant for his domestic work. His employer paid Rs.1,500 per
month to the servant.
(j) Professional tax of Mr. Roy @ Rs.200 p.m. was also paid by his employer.
Compute the income from salary of Mr. Surajit Roy for the assessment year 2021-22. 20

10. Mrs. Sayani Mallick furnished the following information for the previous year 2020-21:
Particulars House – I House – II
Where situated Kolkata Midnapur
Purpose of use Let out Self-occupied
Construction completed on 20.03.2014 25.08.2016
Gross Municipal Value (Rs.) 3,75,000 3,12,500
Fair rent (Rs.) 7,50,000 5,00,000
Annual rent (Rs.) 9,00,000 ---
Standard rent (Rs.) 6,87,500 ---
Vacancy period 3 months ---
Municipal tax (Rs.) 40,000 15,000
Interest on loan (Rs.) 31,250 ---
Loan taken for construction @8% p.a. (Rs.) --- 25,00,000
(Date of taking the loan) (30.09.12)
Other information:

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In case of House – I, municipal tax for the last quarter remains unpaid.
Compute ‘Income from house property’ for Mrs. Mallick for the Assessment Year 2021-22.
11+7+2

11. Mr. Suraj Soren submits the following profit and loss account of his business for the
year ended 31.03.2021:
Particulars Amount Particulars Amount
(Rs.) (Rs.)
To Opening Stock 67,500 By Sales 7,35,000
To Purchases 5,25,000 By Interest on Fixed Deposit 15,000
To Interest on capital 3,000 By Bad Debt Recovery 4,500
(Disallowed earlier year)
To Legal expenses 9,000 By Closing Stock 75,000
To Salaries 31,500
To Payment to IIT, Delhi for 9,000
Scientific research
To Depreciation 33,000
To Life Insurance Premium 7,500
To Bad Debt 7,500
To Advertisement 45,000
To Provision for Bad Debts 1,500
To Provision for Income Tax 15,000
To Net Profit 75,000 75,000
8,29,500 8,29,500
Other information:
(a) Salary include Rs.9,000 paid to Mr. Soren.
(b) Depreciation as per IT rules Rs.37,500.
(c) Legal Charges include Rs.3,000 paid as penalty for infringement of Customs Law.
(d) Sales include Rs.30,000 being the value of goods withdrawn by the proprietor, cost of
which is Rs.27,000.
(e) Closing stock overvalued by Rs.7,500.
Compute income from business of Mr. Soren for the Assessment Year 2021-22. 20

12. (a) Subham furnishes the following information for the previous year 2020-21:
Particulars Gold Residential
House Property
at Kolkata
Date of purchase 05-10-2019 15-10-2012
Date of sale 15-03-2021 10-12-2020
Cost of acquisition (Rs.) 1,00,000 10,00,000
Sale proceeds (Rs.) 1,50,000 55,10,000
Expenses in connection with sales --- 5,00,000
Subham purchased a new flat in New Town on January 15, 2021 for Rs.15,00,000.

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Compute his taxable capital gain/loss for the assessment year 2021-22.
[Cost Inflation Index (CII): 2012-13: 200; 2019-20: 289, 2020-21: 301]
(b) From the following information, state the availability of rebate u/s 87A.
(i) Total Taxable Income Rs.4,75,000
(ii) Total Taxable income Rs.6,00,000
(c) Write a short note on exemption u/s 54EC. 10+(2+3)+5

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