INCOME TAX-II [AY: 2021-22, PY: 20-21] VI SEM BBA

7. Diwakar who is a resident of India furnishes the following particulars of his investments
for the previous year ended 31st March 2021
a) Rs. 10,000 units of Mutual Fund (Gross Income Rs. 1,200)
b) Rs. 10,000 in POSB A/C which earns interest @ 3.5% p.a.
c) Rs. 45,000 in Fixed deposit account with Allahabad Bank on which interest @9% is
payable
d) 12% Rs.40,000 Debentures (Listed) of Tea Company
e) Rs. 2,000 interest received on National Development Bonds
f) Rs. 1,000 interest received on the Debentures of a Co-operative Society
g) 10% U.P. State Electricity Board Bonds Rs.20,000
h) Rs. 10,000 in 7-year PONSC interest @ 7% p.a. is payable the same year
i) Rs. 36,000, 10% Tax-free Debentures of Agra Municipal Corporation. Interest is
payable on 31st December
j) Rs. 900 received by an A/C Payee cheque as interest on Debentures (Listed) of a
company in which public are substantially interested.
He collected the entire interest himself and claimed Rs. 200 as his own fees for
collection of interest.
k) Interest on PONSC VIII issue Rs. 5,000
Calculate the taxable income under the head Income from other sources for the assessment
year 2021-22

For Private Circulation Only, JU-CMS - Compiled by : Dr.Umakanth.S,Mr.Avinash Raj David, Dr.Supriya Rai & Vivek Gupta 13
INCOME TAX-II [AY: 2021-22, PY: 20-21] VI SEM BBA

For Private Circulation Only, JU-CMS - Compiled by : Dr.Umakanth.S,Mr.Avinash Raj David, Dr.Supriya Rai & Vivek Gupta 14
INCOME TAX-II [AY: 2021-22, PY: 20-21] VI SEM BBA

8. Compute income from another source from particulars given below.

 Interest on deposit with a company 10,000
 University remuneration for working as examiner 6,000
 Royalty for writing books 60,000
He claims to have spent Rs 20,000 on writing books
 Dividends declared receved on 1-5-20 Rs 6,000
 Interim dividends receved on 1-5-2020 Rs 3,000
 Stake money on racehorses 1,50,000, horses are maintained by him and expenses on
maintenance of these horses are 2,40,000
 Family pension received 36,000

For Private Circulation Only, JU-CMS - Compiled by : Dr.Umakanth.S,Mr.Avinash Raj David, Dr.Supriya Rai & Vivek Gupta 15
INCOME TAX-II [AY: 2021-22, PY: 20-21] VI SEM BBA

9. Sri Neera furnishes the following particulars of the incomes for the previous year 2020-
2021. Compute his total income
 Dividend on equity shares 600
 Dividends on preference share 3,200
 Income from letting on hire of building and machinery composite lease 17,000
 Interest on bank deposit 2,500
 Directors sitting fees 1,200
 ground rent 600
 Income from undisclosed sources 10,000
 Income from lotteries (gross) 10,000
The following are the deductions claimed by him
 Collection charges of dividend Rs 20
 Allowable charges of building and machinery 4,000
 Fire insurance on building and machinery 100

For Private Circulation Only, JU-CMS - Compiled by : Dr.Umakanth.S,Mr.Avinash Raj David, Dr.Supriya Rai & Vivek Gupta 16