Avinash College of Commerce

Kukatpally

Income Tax
Question Bank
2023-24
Prepared By: Mr Nanduri Anil Kumar
 UNIT I
INTRODUCTION

I. SHORT QUESTIONS
1. Direct tax and indirect tax. (Model Paper-I)
2. Canon of equality. (Sept/Oct-21)
3. Person (Sept/Oct-21| Nov/Dec-18)
4. Previous year and its exceptions. (June/July-19| Oct/nov-13)
5. State the terms gross total income and total income.
(March/April-14| Sept/Dec-15)
6. Non-Resident. (March/April-15)
7. Incidence of tax. (Model paper III)
8. Previous year Vs Assessment year? (Nov/Dec-17)
9. Person Vs Assessee (May/June-18)
10. Types of income? (May/June-18)
11. Agricultural income? (March/April-12)
12. Partly agricultural income (March/april-14)
13. Integration of income. (June/July-22)

II. LONG QUESTIONS

1. Discuss in detail the various form of taxes. (March/April-13)
2. What are direct and indirect taxes? (Oct/Nov-12)
3. Differentiate between direct tax and indirect tax. (July/Aug-21)
4. Explain general rules of income tax with exceptions? (May/June-18)
5. “Income tax is an income,but all incomes are not taxable”. Explain. (Oct/Nov-13)
6. Explain exempted incomes from tax u/s 10 of Income Tax Act. (Nov/Dec-17 | Sept/Oct-
15 | March/April-13)
7. How do you determine the Residential status of an individual? (July/Aug-21 | Nov/Dec-
18)
8. Define agricultural incomes and explain its features? (Sept/Oct-15)
9. What is agricultural income and explain conditions to be satisfied for and income to be
treated as agricultural income. (May/June-18)
10. What is agricultural income? Explain partly agricultural income and partly non-
agricultural income. What are the provisions of agricultural income? (Nov/Dec-18)
11. What is agricultural income? How is it treated for tax purpose? (June/July-19)
 UNIT-2 INCOME FROM SALARIES
I. Short Questions

1.Define Perquisite (Nov-18, Sep-21, Jun-22)

2. Mr. Ragava is working as a lecturer in a government college, New Delhi. His salary particular are
as under:
Basic pay 5.000 pm, DA 2000 p.m. CCA 1000 p.m. and HRA received 3000 pm. and rent paid 1,500
pm. Compute exempted HRA U/s 10 (13 A.) (Jun-18)
3. Sri Hari Gopal, senior accounts officer in Indian Railways retired from the service after serving lor
28 years. He received 7,50,000 as gratuity, on the date of his retirement his monthly salary was Basic
pay 35,000. DA 4,000 and HRA 750. Calculate the taxable amount of gratuity. (Nov-17)
4. Recognized Provident Fund (Apri-17)
5. Statutory Provident Fund (April-16)
6.Gross income from salary is Rs.6,00,000 professional tax paid per month is Rs. 200.Calculate
income from salary and tax liability. (Jun-22)
7. Deductions US/ 16 (Jun-19, Sep-21)
8. Satya Krishna Prabhave is working as a lecturer in Govt. College, Delhi. His salary particulars per
annum are as under - Basic Pay 82,000; DA *38,000; CCA 16,000 and HRA 24,000 (Rent paid by
him is 19,000). Calculate the exempted amount of HRA. (June/July-19)
9. Compute Taxable House Rent Allowance exempted, from the following information:
(a) Bask Pay 60,000 p.m.
(b) Dearness Allowance 80% of Basic Pay
(c) House Rent Allowance 30% of Basic Pay and rent paid to accommodation in Delhi is 30.000 p.m.
(Jun-19)

II. Long Questions

1.Define allowances. What type of allowances are received by an employee? (Jun-22)

2.Explain different types of perquisites that are part of income from salary. (Sep-21)
3. Mr Pratap an employee of Public Sector Company, furnishes the following information
(a) Basic pay 11,60,000
(b) Arrears of Salary 54,000
(c) Advance Salary 10,000
(d) Small Car was provided by the Employer, which he has used both for official and business
purposes
(e) Professional Tax paid 3,200 per annum
(f) House Rent Allowance received 25,720, Exempted Allowance is 12,500
(9) Employee spent 15,000 as medical expenses towards treatment ni recognized hospital and the
same amount has been reimbursed
(h) Entertainment Allowance is 42,620 and Deduction is 5,000
(j) Employer paid Club Bills 5,000, Electricity 7,200
Compute his Taxable Salary. (Sep-21)

4. Mr. Vallabai Patel is working as a Govt employee in Telangana State and he is getting' Basic Pay
24,000 p.m. Dearness Allowance 15,000 p.m. Children Hostel Allowances 2,000 pm. . towards
2children. He is provided rent free accommodation in Hyderabad and its rental value fixed by Govt.
As 5,000p.m. but its Fair Market Value 72000,pa . He is getting Entertaiment Allowance: 5.000 p.m.
He is also provided a Small Motor car for office and personal use and its expenses are paid by
employer. He is given medical reimbursement of 50,000 spent in an unrecognized hospital by
employer. He paid Professional Tax of 200 p.m. Compute Income from Salary. (Nov-18)

5. Veer Savarkar, a Govt. employee furnishes the following Information:

Basic Pay 15,000 p.m.
(il) DearnesAlowance24,000p.m.(Enters into retirement benefits)
(iii) Arrears of Salary &15,000
(iv) Rent free accommodations owned by employer having a fair rental value of 70.000 per annum,
cost of Furniture 90,000 rent fixed by Govt. 25,000 per annum.
(v) Deputation Allowance 6000 p.a.
(vi) Own contribution to SPF 20,000.
(vii) Employer's contribution to provident fund 20,000.
(viii) Interest on Provident Fund @14% is 7,200.
(ix) Reimbursement of medical expenses 25,000 (Recognized hospitals)
Compute his Taxable Salary. (Jun-19)
6. Mr. Sridhar an employee of Private Limited Company, furnishes the following information
(a) Basic Pay 15,000 p.m
(b) Dearness Allowance 75,000 p.m. (enters retirement benefits)
(c) Bonus 10,000
(d) Employer provided HDFC credit card, paid membership fee 1000 and bill of 9000
(e) Rent-free Furnished Accommodation owned by employer having a Fair Rental Value of 60,000
p.a; Cost of Furniture 88,000; Rent fixed by Govt. 24,000 p.a
(f) Entertainment allowance * 800 p.m.
(9) House Rent Allowance 6,000 p.m
(h) Owners' contribution to Recognized Provident Fund 20,000.
(i)Life Insurance Premium paid by the employer 5,200
(j) Professional Tax paid by Sridhar 200 p.m.
(k)Employer paid Club Bill 5,000, Electricity *7,200 and Cell Phone Bill 15,000
(l) Children Education Allowance 6,000 (for two children)
Compute his Taxable Salary. (Jun-22)
7. Mr.Bharath is working as a Personal Assistant to a celebrity firm. He receives the following amount
and benefits from the firm for last year i.e, 2021-22. From the given information. compute his taxable
income from salary.
Particulars of income: Salary-12,800, DA. -35 00, HRA-4 ,200. Entertainment allowance-3600. Car
(1.6 liters) big car, contribution to RPF -15%, Pays a rent of 3,500 pm. Professional tax 3200 Arrears
of salary 300000. Employer contribution to unrecognized Super annuation fund 7500 pm. Loan of
250000 @ 8.5% SBI rate ie 12.05%. Gift articles of 50000.

8. Smt Umadevi Central Government employee received the following emoluments during the
previous year 2022-23. Compute income from salary for the a.y 2023-24.
(i)Basic pay35,000 p.m.
(ii)DA 15,800 p.m.
(iii)Entertainment allowance 6,000 p.a.
(iv)She received education allowance for her daughter 100 pm
(v)She provided the following for her personal and official purpose: Laptop costing 50,000 and small
motor car and employer pays all expenses including driver's salary 10,500 pm.
(vi)Her contribution to SPF is 12% of salary and 10% by the employer. Interest credited in PF @
8.5% is 3200
(vii)The employer presented gift worth 11000 silver articles
(viii) The employer paid membership fee 13800 for the benefit of assessee and her family members.
(x) Her payments: professional tax 3.200/-

9. Mr. X' ' furnishes the following details of his salary Income:
(A) Basic salary 1.80.000/-
(8) DA (part of salary) 56.000/-
(C) CCA 8.000/.
(D) Entertainment allowance 8.000/-
(E)Travel allowance (50% spent) 8.000/.
(F) Bonus 10,000/-
(G) Commission 12,000/-
(H) House Rent Allowance (Rent paid at Chennai 18.000) 12.000/-
(I) Free use of Chauffeur driven motor car of 1.8 liter cc expenses of which are met by employer
(J)Gift received in kind from employer 14.000/-
(K) Own/Own contribution to RPF 18,000/-
(L)Employer contribution to RPF 18.000/-
(M)Interest credited to RPF @12% Is 7200
Compute his faxable salary for the Assessment year 2023-24 (Nov-17)

10. Mr. Srinivas is working in Indian Railway at Mumbai. He furnishes the following particulars of
his Income for the previous year 2022-23
Basic Pay 25000 pm
Dearness Allowance 19500 pm
Travelling Allowance (65% spent) 45000 pa
Children Hostel Allowance (for 2 children) 16000 pa
Entertainment Allowance 8000 pm
Free lunch for 295 days, each meal costing 105/- per day.
He is provided with a 1.8 lite C.C Motor car with driver (Expenses met by employer): Rent free
accommodation provided at Mumbai. Municipal value 105,000; Rent fixed by Govt: 95.000 pa. Cost
of furniture 3,80,000
Professional Tax Pald 400 p.m
Compute salary Income for the Assessment Year 2023-24. (Apr-17)
11.From the following particulars, compute the income from salary and tax on total income of Smt.
Lakshmi (working in pvt company) for the assessment year 2023-24.
(i) Basic pay 2,10,000
(ii)Dearness Allowance 1,05,000
(iii)CCA : 36,000
(iv) Conveyance allowance 10.000 p.a. (85% spent)
(v) A big car is provided for official and personal use and employer paid all the expenses.
(vi) Gas, water and electricity bil paid by the employer : 10,000/-
(vi) Laptop given for personal use by the company 40,000
(viii) Employment fax paid 300 p.m.
(ix)Income from house property (taxable) 2,05,000/-
(x)Income from other sources (taxable) 1,05,000/-
(xi) Contribution to new pension scheme 10% equally by the company.
(xi) Qualified savings u/s 80C 75.000/- (May/June- 18)

12. Mr.Ramana Rao works for a govt company of New Delhi and submits the following particulars
for the financial year 2023-24
(i)Basic pay 190000
(ii)DA 25% of salary
(iii)Bonus 18000
(iv)Arrears of salary 20000
(v) Entertainment allowance 8000
(vl) Conveyance alowance75%( spent) 12000
(vii)Employer contribution to RPF @14% of salary
(viii) Interest credited to RPF @12% is 8000
(ix) He has been provided with RFA (owned by the employer) of Delhi
whose fair rental value is 80.000 p.a. and cost of furniture is 41000
(x) He is provided free supply of gas which costs to the employer is 2.400/-
Compute the income from salary for the year 2023-24. (May-18)
 Unit 3
INCOME FROM HOUSE PROPERTY

Short Questions

1.Net Annual Value? Model Paper-II, Q5 |

Sept./Oct.-21, Q5)

2.Determination of Gross Annual Value? Model Paper-III, Q5 |

June/July-19, Q4)

3.Mr. Subhash Chandra Bose owns a house property in Calcutta. Compute the Gross Annual
Value MRV-70,000; FRV-₹72,000; SRV-72,000; Actual Rent₹ 85,000.
June/July-19, Q5

4. Calculate Gross Annual value

MRV ₹ 1,20,000
FRV ₹ 1,10,000
SRV ₹ 90,000
Rent per month ₹8,000
Unrealized Rent ₹ 1,000
Vacancy period - one month
(Model Paper-II, Q6 |
Nov./Dec.-18, Q5)

5. Determine the gross annual value in the following situation: when house property is let out
and there is vacancy period of 2 months:
Municipal Rental Value (MRV) ₹1,20,000/-
Fair Rental Value (FRV) ₹1,44,000/-
Actual Rental Value (ARV) ₹2,16,000/-
Standard Rent₹ 1,80,000/-
(May/June-18,Q7)

6.Calculate Income from House Property from the following particulars

Gross Annual Value ₹6,00,000
Municipal Taxes paid ₹15,000
Municipal Taxes due₹2,500
Interest on House Loan₹2,20,000

June/July-22, Q5)

7. Fair rental value (Model Paper-I, Q5 |

Nov./Dec.-18, Q4

8.Co-ownership
(March/April-14,Q7)

9. From the following Information , Compute Gross Annual Value for the assessment year
2023-24
MRV: 3,86,000 FRV 3,94,000 SRV 3,25,000
ARV 4,50,000
Unrealized Rent: 2 Months

March/Apr 16 Q4

10. From the following information, compute gross annual value for the assessment year
2023-24 MRV 4,75,000, FRV 525000, SRV 4,75,000 A.R.V.6,00,000, Vacancy Period: 3
months

MARCH/APRIL 17 Q4

Essay Previous Year Questions

1. What do you mean by Annual Value? Explain different factors that are to be
considered in determining the Annual Value of House Property.
(Model Paper-1 Q11(a) June/July 22, Q11(b)
Sept/Oct-21, Q14 (i)

2. Explain the provisions relating to,

(i) Interest on loan u/s 24(b)
 (ii) Gross Annual value
(iii) Self Occupied House computation.

Nov/Dec-18,Q12(a)
3. Explain the provisions relating to:
(1) Deemed owner
(ii) Co owner
(iii) Unrealized rent
(iv) Standard Deduction

|
June/July-19, Q12(a))

4. Discuss deductions from annual value lor self-occupied and let-out house.
OR
Write about the deductions that can be claimed from Annual Value of House
Property.
(June/July-22, Q11(b)(ii) | Sept./Oct-21.
Q14 (ii)

5. Write a short notes on (i) Standard deduction u/s 24 (a) and (ii) Deduction u/s 24 (b)
(Refer only Topic: Deductions U/S 24 for Let Out House)
(Model Paper-III, Q11(a) | July/Aug.-
21. Q5(MGU)

6. Mr. Kumar holds a house property which he lets out to Sri Shoban for₹ 10,000 per
month, Municipal Rental Value of the property is 7,500, Fair Rental Value is 8,500.
During the previous year the tenant has not paid one month rent which is not
recoverable. Expenses that are incurred by him Municipal Taxes 4,000, Insurance
Premium paid is 10,200, Kumar took a loan of₹ 11,00,000 for construction of the
house and paid interest of 30,240, Calculate Income from House Property for the
current assessment year.
(Model Paper-1, Q11(b)
Sept./Oct.-21. Q13)

7. Compute income from house property from the following details furnished by Anjali
for
 the a.y. 2023-24.

Particulars House I House II

House III

Municipal value 30,000 40.000

70,000

Fair rent 40000 35000

70000

Standard rent 35000 40000

70000

Actual rent 40000 38000

70000

Unrealized rent (nil) nil

nil

Int on loan for construction 2500 3200

5000

Municipal taxes 10% 10%

10%
Model Paper-III, Q11(b) | July/Aug.-
21. Q6 (MGU))

8. Particulars House 1 House

2

Municipal Value 800000

1200000

Fair Rental Value 900000

1200000

Standard Rent 1000000

1000000

Actual Rent 1200000 self

occupied

Date of Construction 1/5/2001

1/10/2015

Interest on Loan taken

to construct the house 40000 48000
 Pre Construction Interest 60000 80000

Vacancy period 1 month nil

Municipal Taxes 10% 15%

Above are the particulars given by Birsa Munda, compute income from House
Property for the previous year 2023-24.

Nov/Dec-18,Q12(b)

9. Mr. Rana Pratap owns a property in Hyderabad

MRV-1,60,000; FRV-₹2,10,000: SRV 1,80,000
The house is let out upto January 31st, 2018 (114,000 p.m.) From February 1st 2018
the house is self occupied by him. Municipal tax paid 16,000. Interest on loan for
constructing the property 1,20,000. Compute his Income from House Property for AY
2023-2

June/July 19,Q12(b)

10. Mr. Praveen holds house property and lets it out to Sri Shashi for t 18,000 per month,
Municipal Rental Value of the property is ₹ 1,45,000, Rent of similar Building is
1,75,000. Standard Rent is 1,50,000. Expenses incurred by him are Municipal Taxes
1000, Fire insurance Premium paid is 1200. Praveen took a loan for construction of
house and paid Interest of 70,000. Calculate income from House Property for the
current assessment year.

June/July-22. Q11(a)

11. Mr. Anil has furnished the following information. Compute his taxable income from
house property for A.Υ. 2023-24.
MRV-24,000, ARV-30,000, FRV-18,000
Municipal taxes 2,400, house was completed on 31.3.2018 and let out from 1.4.2018,
he paid insurance premium of rs400 and ground rent rs600 interest on loan taken
rs15,000 p.a. (2015-16 to 2020-21] pre construction period for current previous year
interest paid 10,000 penal interest₹ 1,000.
Model
Paper-II, Q11(b)

12. Mr. Ankit is the owner of two houses. From the following particulars compute the
Income from houses property for the A.Y 2023-2024
 Particulars House I
House II

Date of purchase 15.01.2008

06.05.2005

Municipal rental value 220000

236000

Fair rental value 352000

300000

Standard rental value. 270000

310000

Actual rent received 340000

265000

Interest on loan pald to

repair the house 38000
26000

Municipal taxes 15%

12%

Unrealized Rent NIL

12000

The second house was purchased for a price of 14 lakhs and part payment is made to
the vendor and interest paid 40,000.

March/April-12,Q10(b)

13. Mr. Samuel owns a property at Hyderabad. Its MRV 1,60,000 FRV is 2.10,000,
Standard rent 1,80,000. The house is let out up to January 31st 2011 ( 14,000 p.m)
From February 1st 2011, the house is self occupied by him. Municipal faxes paid
rs16,000. Interest on loan for constructing the property 1,20,000. Compute his income
from house property
(Oct/Nov-
12. Q10(α)

14. Mrs. Mani is the owner of a big house whose Municipal value is t 1,00,000 pa. Fair
rental value 1,20.000/-standard rent 1,10,000/- 3/4 of the house is left out at a
monthly rent of 10,000: 1/4 of the house is self occupied through out the year.
 Other particulars are as under Municipal taxes 10,000, Education cess 1.000 interest
on loan 12,000 and land revenue 5,000 pre construction interest 20,000. Date of
completion of construction 1-6-2010. Compute Income from house property assuming
that both the units are Indendent.
(
Oct-14, Q10(b)

15. Ms Sundari is the owner of a property constructed at Mahaboob nagar on 31-08-2012

Particulars are furnished here under

Municipal Rental Valve

360000

Fair Rental Value

3.90.000

Standard Rental Value

3.75.000

Actual Rental Value

4.80.000

Unrealized Rent
80.000

Municipal Taxes
12%

Interest on Loan
68,000

Preconstruction interest
90.000

Actual Repairs
16000

Sewerage Tax (due)

9,000

Education Cess
2500

Fire Insurance Premium 4000

50% Municipal Taxes paid by tenant

Compute income from house property for the assessment year 2023-24.
 March/Apr-17, Q10(b)

16. Mr. 'X' owns the following house properties for the assessment year 2023-24,

Particulars House I House Il

Municipal value 60000 40000

Fair Rental value 75000 60000

Rent received 80000 NA

How used let out own residence

Standard rent 50000 40000

Municipal taxes 10% 12%

Sewerage lax 2000 3000

Interest on loan 8000 10000

Ground rent 8000 6000

Land Revenue 4000 3000

Collection Charges 3000 6000

Compute income from house property for the A.Y. 2023-24.

May/June-18 Q12(a)

17. Mr. Anil has furnished the following information. Compute his taxable income from
house property for AY 2023-24
MRV-24,000, ARV-30,000 , FRV - 18,000
Municiapl taxes 2,400, house was completed on 31.3.2018 and let out from 1.4.2018, he
insurance premium of 400 and ground rent 600 interest on loan taken ? 15,000 paid ρ.a. [
2015-16 to 2020-21] pre construction period for current previous year interest paid rs 10000
penal interest rs 1000.
 UNIT IV
Income from Business or Profession
I. Short Questions

1) What is Block of Assets?

2) Types of Capital Assets.
3) Unabsorbed Depreciation
4) How will you deal with the following computing profits and gains of business and
profession?
a) Salary paid to proprietor ₹20,000/-
b) Commission paid to Raman ₹5,000/- for securing business orders
c) Commission paid on raising to loan ₹14,000/-
d) Amount deposited in staff welfare fund ₹15,000/-
5) How will you deal with the following while computing the business income:
a. Bad debts ₹8,000
b. Staff welfare fund ₹22,000
c. Loss of stock by ants ₹8,000
d. Provision for bad debts ₹15,000/-
6) How will you deal with the following while computing the business income:
a. Donations 15,000/-
b. Registration expenses of business asset ₹48,000/-
c. Sales tax ₹12,000/-
d. Interest on wife’s loan ₹38,000/-
7) How will you deal with the following while computing income:
a. Advance income tax paid ₹25,000/-
b. Brokerage paid for raising loan for the purchase of business ₹50,000/-
c. Amount paid as commission to purchase machinery ₹15,000/-
d. Expenditure incurred on income tax proceedings ₹10,000/-

II. Essay Questions

1) What are the expenses expressly disallowed as deduction in computing the profits of
a business?
2) Explain the following item treatment, for Calculating profit from business.
a) Repairs on building
b) Scientific research
c) Loss arising from misappropriation by an employment
d) Revenue payments in cash
3) Define the term depreciation and Explain the conditions for claiming depreciation as
deduction
(Or)
Explain various points as per the Income Tax Act, that are to be considered to
calculate depreciation.

III. Problems
 UNIT 5
CAPITAL GAINS AND INCOME FROM OTHE SOURCES

I. SHORT QUESTIONS
1. What comes under capital assets? (May/June-18)
2. Indexed cost of acquisition. (June/July-22|Sept-Oct-21|March-April18)
3. Tax Free Securities. (June/July-22|Spt-Oct-21)
4. What is cost of acquisition and cost of improvement?
(May/June-19|May/June-18)
5. What is short term capital gain? (May/June-19)
6. From the following information, compute Mr Rao’s income from interest on securities.
(March-April-16)
(a) ₹97,000-12% Tax free debentures of M/s. Ramam & Company.
(b) ₹88,500-15% Mumbai Municipal Corporation bonds.
(c) ₹25,000-10% 12 Years National Defence Certificates.
(d) Collection charges- ₹15,000
7. Classification of securities. (May/June-19)
8. Compute income from other sources from the information given below:
(Oct/Nov-17)
i. Gift from friend ₹75,000
ii. Interest on bank deposits ₹18,500
iii. Winnings from lottery ₹70,000(Net)
iv. Dividends from Reliance Industries ₹38,000(Gross)
9. What are the provisions regarding gift received by an individual?
(March/April-18)
10. What is meant by casual income? (May/June-18)
11. Tax provisions regarding family pension. (May/June-18)
12. Calculate the interest from the following securities: (May/June-18)
15% tax free commercial securities ₹90,000 (Not listed)
10% tax free reliance debentures ₹40,000 (listed)
8% National Savings Certificates ₹75,000
Collection charges ₹1,200
II. LONG QUESTIONS

1. Define Capital Gain. Write in detail about the procedure for computation of:
(i) Long –term capital gains
(ii) Short- term capital gains
(OR)
Define Capital gain and explain the method of computing the income under this head.
(May/June-19)

2. Explain the various exemptions available under the head ‘capital gains’
(OR)
What are the capital gains exempted u/s10? (May/June -18)

3. Mr. Vigneshwar sold his residential house for ₹32,50,000 on 15th August 2019-2020
(CII= 289) which he purchased on 10.08.1988 for ₹1,02,000. FMV on 1-04-2001 is
₹8,50,000 and selling expenses 2%. Compute the income from Capital Gain and tax
liability if income from other heads is nil. (Sept/Oct-21)
4. Mr. Tukaram purchased a plot on march 21st 1998 for ₹4,25,000 and during the year
2013-2014 he constructed a residential house for ₹5,00,000. Fair market value of the plot
on 01-4-2001 is ₹ 8,00,000. He sold the house for ₹52,50,000 on 4th December
2019. Selling expenses are 3% of consideration. (CII 2013-2014 IS 220 and 2019-2020 is
289). Calculate income from capital gain.
( June/July-22)

5. Mr. Chary sold his residential house for ₹26,50,000 on 20th august 2017 (CII=272) which
he purchased on 05.11.1998 for ₹1,02,000. FMV on 01.04.2001 is ₹8,00,000 selling
expenses are 2%. Compute the income from Capital gain and tax liability if income from
other heads is nil. (May/June-19)

6. Mr.Bhushan Kumar is an owner of factory which produces plastic bottles. He purchased

the building for ₹7,20,000 in year 2003-2004during the previous year because of an order
from government. The Govt. officials acquired the building and paid ₹38,25,000 on
compensation, immediately after this he purchased a new piece of land for ₹5,50,000 and
incurred ₹3,80,000 for construction and deposited ₹3,00,000 in bank under capital gain
scheme. Calculate the Capital Gain and also exemption u/s 54(D). Index for 2021-22
=317, 2003-2004= 109. (Model Paper-III)

7. Explain the different kinds of incomes chargeable to tax under the head “Income from
other sources”. (May-June-19)

8. Explain the provisions relating to (i) Family pension (ii) pensions received and (iii)
Dividends u/s (22).

9. Mrs Shyamala made the following investments during the previous year relevant to
current assessment year: (June/July-22)
 (i) ₹15,000; 12 years National Savings Certificates
(ii) ₹30,000; 8% Tax free debentures of ABC ltd ( listed)
(iii) ₹25,000; 14.5% Bombay port trust debentures
(iv) ₹40,000; 12% tax free government paper
(v) ₹25,000; 4% tax free AP government loan
(vi) ₹32,000; 12% less tax debentures of cement ltd company
(vii) ₹15,000; 7.5% Nagpur Municipal bonds
(viii) ₹50,000; 13% Convertible debentures of vandana ltd company
Banker charged ₹800 as charges on interest collected. Shyamala purchased
debentures of Vandana ltd by taking loan of ₹40,000 @ 5% interest on 01.10.2019
which is payable on 30th September and 31st march of every year. Compute the
Income from securities for the AY 2020-2021.

10. Mr. Ramraj received following incomes during the prev. year relevant to current AY:
(Sept/oct-21)
(i) ₹20,000; 10% Preference shares of Wipro ltd company
(ii) ₹30,000; 12.5% Gold deposit bonds
(iii) ₹25,000; 5% Govt. of India loan
(iv) ₹1,50,000; 6% tax free debentures of Birla company ltd.
(v) ₹75,000; 4% (less tax ) Telangana government bonds
(vi) ₹1,00,000; 2% tax free Kerala government securities
(vii) ₹15,000; 7.5% Nagpur municipal bonds
(viii) ₹40,000; 13% tax free debentures of Vandana ltd.
Collection charges are ₹450 and interest on loan taken to purchase birla company
debentures is ₹500. Compute income from securities for the AY 2020-2021