BBA LLB SEM IX

DIRECT TAX
ASSIGNMENT I

Instructions for Assignment

 Assignment is for 5 Marks

 Assignment must be hand written.
 Assignments will be accepted in class only. NO ONLINE SUBIMMISIONS WILL
BE ACCEPTED.
 Assignments written on stationery of other colleges will not be accepted.
 Each Roll no. is required to solve the problem allotted in the following table.
Interchanging of problems will not be accepted and assignment will be marked
‘Zero’
 SUBMISSION DATE – 25 August 2023

Problem Div A Div B Div C

1 1 - 15 1 - 15 1 - 15
2 16 - 30 16 - 30 16 - 30
3 31 - 45 31 - 45 31 - 45
4 46 - 60 46 - 60 46 - 60
5 60 - 72 60 - 72 60 - 72

Problems

1. Mr. Ramesh an engineer, starts his own business. He commenced his business in the year
2021 – 22 on the 23rd Feb 2022. He earned an income of Rs 20 lacs till 31 March 2022. He
closed his first set of books of accounts on 31 March 2023 with an income of Rs 35 lacs. He
claims that snice inception till closing of his books, income earned by him i.e., Rs 55 lacs shall
be chargeable to tax in the AY 2023-24. Is his claim made by him correct as per the provisions
of Income Tax Act, 1961?

2. Ms. Shama a USA citizen was born in Pune in 1978. Her grandparents were born in India;
however, her parents were born in USA. She came to India for a visit on 20 th January 2023
and stayed in India for 190 days. Find the residential status of Ms. Shama for AY 2023-24
assuming she stayed in India for 200 days every year starting from PY 2020-21.

3. Mr. Rahul (45 years) an Indian citizen, leaves India for employment in a MNC in London on
12th Sept 2020. Since then, Rahul has visited India for 20 days in 2021-22, 110 days in 2022-
23. He has given us the following details of his income for the PY 2022-23. You are required
to find out his taxable income in India as per the provisions of Indian Income Tax Act,1961 for
AY 2023-24. Give detailed explanations.
a. Salary Income from MNC for services rendered in London Rs 51,00,000.
b. Salary Income from MNC for services rendered in India Rs 1,90,000.
c. Dividend from Indian Company Rs 45,000.
d. Dividend from a foreign company received in London Rs 32,000.
e. Rent from a property in Kanpur received in London Bank Rs 60,000.

4. From the following information, find out the tax liability of Mrs. Ashi for the AY 2023-24. You
are required to give detailed explanations.
BBA LLB SEM IX
DIRECT TAX
ASSIGNMENT I
a. Mrs. Ashi is a resident as per the provisions of Income Tax Act.
b. She is a partner in a Limited Liability Partnership. Her share in the profits for PY
2022-23 is Rs 2,65,000.
c. The firm pays her consultancy fees of Rs 3,65,000 every year.
d. As a member of the HUF, she earns Rs 69,000 as her share in profit for AY 2023-24.
e. She owns an agricultural land which he situated outside the limits of local
municipality. She uses the land to grow cashews and sells 60% of the produce in the
market. Further, 40% of the produce she uses to prepare salted cashews, cashews
sweets etc. Her total income from the above two activities is Rs 75 Lacs. Of this
income, 45% is related to sale of cashews and the balance income is from the sale of
further processed cashews.

5. Mr. Rajesh has given us the following information regarding his income earned during PY
2022-23.
a. Income from Other Sources – Rs 75,00,000
b. Income from Special sources – Rs 12,00,000 @ 20%.
Mr. Rajesh is born on 1 April 1962. Calculate his income chargeable to tax for AY 2023-24.
Give required explanations.