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Assignment Questions

The document presents three assignment questions related to taxation and income computation. The first question involves Mr. K Acharya's salary and housing options, requiring a comparison of tax benefits. The second question focuses on Shri Chandan Mitra's income from salary, pension, and gratuity, while the third question details the taxable income of an individual owning multiple properties, including various financial details for calculation.

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41 views1 page

Assignment Questions

The document presents three assignment questions related to taxation and income computation. The first question involves Mr. K Acharya's salary and housing options, requiring a comparison of tax benefits. The second question focuses on Shri Chandan Mitra's income from salary, pension, and gratuity, while the third question details the taxable income of an individual owning multiple properties, including various financial details for calculation.

Uploaded by

umang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ASSIGNMENT QUESTIONS (3 marks)

Q.1 Mr. K Acharya is employed as an executive in Sunlight Ltd. at a basic salary of Rs.10, 000 per
month. His dearness allowance (not forming part of salary) is Rs.2,000 per month, car allowance
@ Rs.1,000 per month and medical allowance of Rs.500 per month. His employer transferred him to
Mumbai office from April 1, 2024. Due to housing problem at the new service center, his employer
offered him to choose one of the two following alternatives:
(i) A rent-free unfurnished house in Mumbai (Rent of Rs.2, 000 per month to be paid by the
company).
(ii) A house rent allowance of Rs.2,000 per month from the company (to take the same residential
house by him at the same rent of Rs.2, 000).
Ascertain which option is more beneficial to Mr. Acharya from the taxation point of view.

Q.2 Shri Chandan Mitra was an employee of private sector organization. The following particulars
are available regarding his income for the year ended on 31st March,2025:
Salary @ Rs.16, 000p.m.
Dearness allowance @ Rs.4,000 p.m.
He retired from service on 01.01.25 after 24 years of completed service and received a pension of
Rs.8,000 p.m. and gratuity of Rs.3,00,000 (He is covered under the payment of Gratuity Act).
He also received Rs.2,00,000 from the unrecognized provident fund (50% of this represents
employer’s contribution and interest).
You are required to compute Shri Mitra’s income under the head Salaries for the assessment year
2025-26.

3. X (age: 55 years) owns four houses in Ranchi, particulars of which are as follows:
I II III IV
Rs. Rs. Rs. Rs.
Municipal valuation (MV) 30,000 5,000 68,000 95,000
Fair rent (FR) 39,000 18,000 77,000 95,000
Standard Rent (SR) 36,200 12,000 75,000 90,000
Rent ( if property is let out 42,000 - - -
throughout the year)
Unrealized rent 3,500 - - -
Municipal taxes paid by X - 500 7,000 9,000
Municipal taxes paid by tenant 3,000 - - -
Date of completion of May 31, May 31, March 31, April 1,
construction 2021 2021 2021 2020
Repairs Nil 2,000 1,000 3,000
Nature of occupation Let out for Self- Self- Self-
residence occupied for occupied for occupied for
residence business residence

Property I remains vacant for 2 months (1st March, 2024 to 31st May, 2024). X borrows Rs.30,000,
Rs.40,000 and Rs.65,000 for construction of house I, house II and house IV respectively (date of
borrowing: June 15, 2017, date of repayment of loan along with interest: December 31, 2021, rate
of interest: 15% per annum).
Determine the taxable income of X for the assessment year 2025-26

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