Q1) from the following details calculate taxable income from house property of Ms.

Saakshi for PY
2022/2023.

Particulars Hp1 Hp2

Rent received 40000 PM -
Reasonable letting value 500000 515500
Municipal value 485000 438000
Municipal tax 10% 15%
Interest in loan 245000 -

House number 2 was purchased out of funds borrowed by mortgaging house number 1, housing loan
was taken on 01-08-2020.

Solution:

Statement of income from house property-

Particulars Hp1 (LOP) Hp2 (SOP)
1) Municipal value 485000 -
2) Fair rent 500000 -
3) Whichever of above is 500000
higher
4) Standard rent - -
5) Expected rent 500000 -
6) Actual rent received 480000 -
Gross annual value 500000 -
Less- municipal tax paid by the (48500) -
landlord
Net annual value 451500 -
Less- deduction under section
24-
A) Standard deduction (30% (135450) -
of NAV)
B) Interest in housing loan - (200000)
Taxable income from house 316050 200000
property

Total taxable income from house property –

Hp1 316050
Hp2 200000
Total 516050

2) MR Dsa is employed with Om LTD. Provides following details of his salary income for PY 2022-
2023.

A) basic salary of rupees 38000 PM.

B) dearness allowance of rupees 18000 PM.

C) travelling allowance of rupees 7000 PM. (Amount spent 22000)

D) expenses on lunch reimbursement of rupees 1600 PM in cash.

E) uniform allowance of rupees 1300 PM. (Amount spent 5700)

F) project allowance of rupees 10000 PM.

G) overtime allowance of rupees 2000 PM.

H) servant allowance of rupees 85500. (Amount spent 47000)

I) medical allowance of rupees 42000. (Amount spent 11500)

J) children education allowance of rupees 500 PM per child. (MR Dsa has 3 children)

K) helper allowance of rupees 200 PM.

L) professional tax paid during the year of rupees 2000.

M) other expenses incidental to employment of rupees 100000.

Calculate taxable salary.

Solution:

Statement of income from salary –

Particulars Amount Amount
Basic salary 456000
Dearness allowance 216000
Travelling allowance 84000
Less- exempt (22000) 62000
Lunch allowance 19200
Uniform allowance 15600
Less- exempt (5700) 9900
Project allowance 120000
Overtime allowance 24000
Servant allowance 85500
Medical allowance 40000
Children education allowance 18000
Less- exempt (2400) 15600
Helper allowance 9600
Less- exempt (9600) Nil
Gross taxable salary 951800
Less- standard deduction (50000)
Less entertainment allowance -
Less- professional tax (2000)
Net taxable salary 1948000
3) MR Dharmik provides you with the following

information.

A) basic salary of rupees 70000 PM.

B) dearness allowance of rupees 28000 PM.

C) turnover commission 2%. (Turnover being 4500000)

D) MR Dharmik contribution to provident fund. (12000 PM)

E) employer’s contribution to provident fund. (12000 PM)

F) interest credited to provident fund at 11% of rupees 59000.

G) he has paid professional tax of rupees 300 PM.

Calculate his income from salary for AY 2023-2024, If PF is SPF and RPF.

Solution:

Statement of income from salary SPF

Particulars Amount Amount
Basic salary 840000
Dearness allowance 336000
Bonus 230000
Turnover commission 90000
Employer’s contribution to SPF 144000
Less- exempt (144000) Nil
Employer’s interest 59000
Less- exempt (59000) Nil
Gross taxable salary 1496000
Less – standard deduction (50000)
Less – professional tax (3600)
Net taxable salary 1442400

Statement of income from salary RPF

Particulars Amount Amount

Basic salary 840000
Dearness allowance 336000
Bonus 230000
Turnover commission 90000
Employer’s contribution to 144000
RPF
Less- exempt (132000) 12000
Employer’s interest 59000
 Less- exempt (50955) 8045
Gross taxable salary 1516045
Less- standard deduction (50000)
Less – professional tax (3000)
Net taxable salary 1463045

4) SHRI Shubham, an Indian citizen left India for the first time on 21/08/2022 for employment in
New York City and did not return till 31st March 2023. Determine his residential status for AY 2023-
2024.
Solution:
Conditions No. of days Satisfied or not Reason
satisfied
Basic condition-
1) Stay of 182 days 143 days Not satisfied
or more in India in
previous year. OR 2)
a) stay of 60 days or NA
more in India in
previous year. And
b) stay of 365 days NA
or more in India in
last 4 previous years
Additional
conditions - NA
1) resident in India
in at least 2 out of
10 previous years
AND 2) stay of 730 NA
days or more in India
in last 7 previous
years

Space for working

Conclusion – SHRI Shubham failed

to satisfy the first condition and
second basic condition is not
Year Days applicable for him because he is
covered under the exception.
2021-2022
Therefore, Shubham is NR in
2022-2023 143 PY 2022-2023 and AY 2023-2024.
2023-2024
2024-2025
2025-2026
Months April May June

Days 30 31 30

Months July August September

Days 31 21

Months October November December

Days

Months January February March

Days

Total 143

5) From the following information MS Rashmi for the previous year 2021-2022, Compute the gross
total income for the assessment year 2022. If she is a) ROR, b) RNOR, c) NR.

Income Amount
1)Income from business in Dubai controlled 60000
from England.
2)rent from house in UK received in Spain. 100000
3) income earned in Spain in past, but 50000
brought to India during current previous
year.
4) dividend from German company 60000
received in England.
5) income from agriculture in Japan 200000
received in India.
6)royalty from company in England 150000
received in Russia.
7)Interest credited to HSBC Bank, New York 81500
branch.
8)Income from profession in Bhutan 185000
received n Bhutan.( Profession was setup in
India)

Solution:

Particulars ROR RNOR NR

 1)Income received in 60000 - -
England
2)rent received in Spain 100000 - -
3) income earned in Exempt Exempt Exempt
past brought in India in
current PY
4) dividend received in 60000 - -
England
5) income received in 200000 200000 200000
India
6)Royalty received in 150000 - -
Russia
7)Interest credited in 81500 - -
bank in England
8)income from 185000 185000 -
profession
Total 836500 385000 200000

6) Mrs. Prajakta purchased a Flat as on 1st June 2010 for ₹25,00,000. She also paid Stamp Duty and
Registration charges of ₹30,000 and paid a brokerage of ₹8,800. She renovated her flat on 1st July
2014 and spent ₹1,00,000. She again renovated her Flat again on 5th November 2018 and Spent
₹2,30,000.

On 31st October 2022, She sold her flat for ₹2,00,00,000. She had to pay ₹2,00,000 as brokerage for
selling her flat. You are required to Calculate the Taxable income from Long Capital Gains of Mrs.
Prajakta for P.Y. 2022 – 2023.

Solution:

ICOA=COA X Index of the ½ of trf

Index of the ½ of Acq

ICOA=2538800 X 331 = 5031993

167

ICOI=COI X Index of the ½ of trf

Index of the ½ of Imp

ICOI=100000 X 331 = 137917

240

ICOI=230000 X 331 = 271893

280

STATEMENT OF INCOME FROM CAPITAL GAINS

 Particulars Amount (₹) Amount (₹)
Full value of consideration 2,00,00,000
Less : cost of transfer (2,00,000) 1,98,00,000

Less : Index cost of Acquisition (50,31,993)

Less : Index cost of

Improvement (1) (1,37,917)
(2) (2,71,893) (54,41,803)
Long term capital gains 1,43,58,197

7) From the following Information given by Ms. Sharon, Calculate her taxable Income from other
sources for previous year 2022 – 2023.

1. Dividend from Indian Company ₹15,000 [Dividend collection Charges ₹3000].

2. Dividend from a Foreign Company ₹30,000. Bank Charges ₹5,000 as collection charges. Interest on

Loan borrowed for purchasing shares ₹1,000.

3. Winnings from Lotteries ₹12,000 [Lottery Tickets purchased ₹1,000]

4. Interest on Debentures ₹2,500 from Indian Company.

5. Income of a Minor Child ₹1,000.

6. Rent from Plant & Machinery ₹3,500 p.m. Expense incurred ₹3,000 for repairs ₹2,000 as

depreciation and other expenses ₹1,000.

7. Gross Salary ₹5000 from XYZ Ltd.

8. Agricultural Income from India ₹8,000.

9. Income Tax Refund [including interest ₹25,000] ₹35,000.

Solution:

STATEMENT OF INCOME FROM OTHER SOURCES

Particulars Amount (₹) Amount (₹)

Dividend from Indian Co. 15,000
(-) Deduction (3,000) 12,000
Dividend from Foreign Co. 30,000
(-) Deduction
1) Bank charges (5,000)
2) Interest (1,000) 24,000
Winnings 12,000
Interest on Debenture 2,500
Income of a Minor 1,000
(-) Exempt (1,500) Nil
Rent from P&M 42,000
(-) Deduction
1) Depreciation (2,000)
2) Repairs (3,000)
3) Other Expense (1,000) 36,000
Agriculture Income Nil
Interest on Refund 25,000
Taxable Income From Other 82,500
Sources