1. Mr A purchased a residential house for Rs 3 lakhs on 1-4-1972.

The market value of the house 1-4-

1981 was Rs 10 lakh. He sells the house during the financial year 2011-12 for 80 lakh. What is is taxable
capital gain.

2. Mr C has received a house under a will on the death of his uncle in the financial year 1985-86. His
uncle purchased the house on 1-4-1968 for Rs 7 lakh. Mr C has sold this house during the financial year
2011-12 for 80 lakh. The fair market value of the property was Rs. 20,00,000. The brokerage paid
towards the sale was Rs 80,000. What is the taxable long term capital gain.

3. The following are the details of property of Mr XYZ which is situated in Ajmer.

Date of sale of the house 28-2-2012

Net Amount of sale consideration 88,00,000
Cost of acquisition of the house 1,00,000
on 28-4-1972
Market value of the house as on 10,00,000
1-4-1981
Amount given as advance 4,00,000
towards purchase of a flat in New
Delhi on 9-5-2012

Mr XYZ wants to avail of the capital gains tax exemption under S. 54, what is he required to do.

4. Mr Z owned a plot of land since 1-4-1971 for Rs 4 lakhs. He has sold this plot of land on 29-3-2012 for
One crore. The fair market value of the plot on 1-4-1981 is Rs 20,00,000. Calculate how much exemption
will Mr Z get under S.54 or 54F

5. Mr Z has converted some shares he had purchased for Rs 3 lakh into stock-in-trade on 1-4-1994. The
fair market value of the stocks on that date was Rs 5 lakh. He sold these shares on 29-3-2012 what is the
deemed capital gain on the stock if his brokerage was Rs 20,000.

6. Mr C sells some jewellery acquired by him 20 years ago. He sells the jewellery on 26-3-2012 for a sum
of Rs 30 lakh. He has made a taxable long term capital gain of Rs 12 lakh on the sale of the jewellery.
What are the conditions he requires to fulfill if he wants to claim an exemption under S. 54F

7. A is employed at a yearly salary of Rs 6,00,000 per annum at New Delhi. He is provided with rent-free
unfurnished residential accommodation by the employer for his stay, the rental value of which is Rs
8,000 per month i.e 96,000 per annum. How much of the rent paid by the employer be taxed in the
hands of Mr A as a perquisite

8. Mrs X is employed in Mumbai and her employer has agreed to give her a House rent allowance of Rs
4,000. Mrs X draws a salary of Rs 6,000 per month. Mrs X pays an actual rent of Rs 4,200 for her stay in
Mumbai. Calculate the amount taxable in her hands due to the HRA that she is getting from the
employer
9. Mr X purchased certain shares of a private limited company during the financial year 1988-89 for a
sum of Rs 150,000. The index for the year 1988-89 is 150 while the index for the year in which he sold
the shares is 785 (F.Y. 2011-12). He sold the shares for Rs. 800,000. Calculate the long term capital gains.

10. Mr ABC is working in Mumbai and gets a salary of Rs 10,000. His wife owns an apartment in Mumbai.
Mr ABC pays a rent check of Rs 6,000 to his wife. The company that employs Mr ABC gives him Rs 5,000
as a house rent allowance. What is the perquisite that will taxed in the hands of Mr ABC

11. Ms. Z lives in Ajmer, she gets a salary of Rs 70,000. Ms Z has rented out a house that is owned by her
father and pays him a rent of Rs 30,000 per month. Her employer gives her a House Rent Allowance of
Rs 30,000. What is the amount of perquisite taxed in her hands?

12. Kindly indicate which of the following would be taxed in the hands assessees

Resident or Resident but Non-resident

resident or not ordinarily
ordinarily resident
resident
1. Rental Income received in India
2. Interest income that has accrued in India
3. Business Income/Professional income is
received and has accrued out of India
4. Business Income/Professional income is
received outside india but accrued in india
5. Rent received and accrued outside India
6. Interest received on Indian Government
Bonds

13. Mr X is a foreign citizen but has been and stayed in India as follows:

A.Y. Previous Year No. of Days Stay in India

2012-13 2011-12 86
2011-12 2010-11 280
2010-11 2009-10 85
2009-10 2008-09 182
2008-09 2007-08 100

Kindly determine the residential status of Mr X for Income Tax purposes for the A.Y. 2012-13
14. Explain in your own words the following principles of the Insurance Industry:

1. Principal of Insurable interest

2. Principal of utmost good faith

15. Calculate the following from the information given to you:

Cash on Hand 56,000 Car Loan outstanding 125,000

Checking Account 72,000 House Loan 435,000
outstanding
Fixed Deposits in Banks 32,000 LIC policy for primary 10,00,000
earner
Equity Assets 235,000
Mutual Funds 400,000 Monthly Salary Income 65,000
Real Estate 12,00,000
Auto 450,000 Monthly Expense 25,000
Income Tax liability 35,000

Calculate the Liquid Asset Coverage Ratio (Liquid Assets/ Total Debt)

Calculate the Risk Exposure (Net worth + Death Benefit from primary earner)/Salary of the principal
earner

Basic Liquidity Ratio (Liquid Assets/Monthly Expenses)

Expanded Liquidity Ratio (Liquid Assets + other Financial Assets)/ Monthly Expense

16. Explain the fundamental difference in an Endowment Plan and Pure Term Assurance Plan

17. Mr A is employed by ABC & Co. is getting a basic salary (exclusive of any perquisites) of Rs 3,60,000
per annum. He pays a rent of Rs 15,600 per month while his employer gives him a HRA of Rs 14,400 per
month. How much of this HRA will be added to his salary income.

Give your computation if Mr A was living in Delhi AND if Mr A was living in Nasik

18. X owns a residential house property. Municipal value of the property is Rs 130,000. The standard
rent is Rs 125,000 and the fair rent is Rs 140,000. The Municipal Taxes are 12% which are paid by Mr X.
Other expenses for the previous year 2012-13 being repairs -250, insurance – 600 and interest on capital
for constructing the property Rs 6,300. Determine the income from the rented property.
19. Calculate the Insurance that Mr X (sole earner in the family) should have based on the following
data:

Earnings per year Rs 500,000

Expenses per year Rs 425,000

Expected life span 35 years

Average Interest rate: 8%

20. Mr X owns a property in Delhi

Municipal value: Rs 1,64,000

Fair Rent: 2,16,000

Standard Rent: 1,80,000

The property is let out for a monthly rental of Rs 14,000

The house has been let out from April 1, 2011 to Jan 31, 2012. From Feb 1, 2012 the property is self-
occupied.

The expenses that he has bourne are as follows:

Municipal Tax Rs 6,000

Repairs Rs. 2,100

Insurance Rs 1,100

Interest on borrowed capital Rs 123,000

21. List out the six important steps in the Financial Planning process. In the step “identification of
Financial problems” describe the function of the Financial Planner.