SYBAF – DIRECT TAX 1 (ASSIGNMENT) (10 Marks)
Use Both Side Ruled A4 Paper.
Workings should form a part of your answer.
Q. 1 Mr. Arshad, a resident individual gives the following particulars of his income earned
during the year ended 31st March, 2024. ₹
1) Net Salary received 89,000
2) Deduction for Contribution to recognized provident fund 10,000
3) Tax Deducted at source @10% of Salary
4) Taxable conveyance allowance 2,000
5) Education allowance for 2 children at ₹130 p.m. each
6) Employer’s contribution to Statutory Provident Fund ₹15,000. Interest credited to the
PF is ₹16,250.
7) Bonus ₹4,500.
8) Residential house made available to him free of rent. This perquisites is valued at 10%
of the basic salary.
9) Life Insurance Premium of ₹2000 was paid by Employer.
Compute his income under the head “Salaries” for the assessment year 2024-25.
Q. 2 Mrs. Neha Acharya was working with BCCI Ltd. till August 31st 2023. During this period
she received;
1. Salary @ 20,000 p.m.
2. ₹3,08,000 from an unrecognised Provident fund on the termination of services made
up of
(a) Employers contribution ₹1,60,000; & Interest on employees contribution ₹16,000.
(b) Employers contribution ₹1,20,000; & Interest on employers contribution ₹15,000.
3. Re-imbursement of air-fare for herself and her Husband for going to Madras after
retirement on 5th September, 2023 ₹20,000 each.
On October 1, 2023 she was absorbed by MCC Ltd. on the following terms & conditions.
1. Remuneration of ₹25,000 p.m. with a promise to increase it by ₹2,500 p.a.
2. Leave Travel concession for going to West Indies for self and family in March 2024
₹1,50,000.
You are requested to compute his income from salaries for A.Y. 2024-25.
Q. 3 Mr. Gharwala owns the following houses that are used for residential purposes. The
details of his houses are given below. Compute his income from house property for the
Assessment year 2024-25.
Particulars I II III
(Self-Occupied) (Let-Out) (Let-Out)
Standard Rent (p.a.) 1,80,000 2,40,000 2,88,000
Fair Rent 20,000 p.m. 16,000 p.m. 26,000 p.m.
Actual Rent --- 2,16,000 p.a. 23,000 p.m.
Municipal Valuation (p.a.) 1,68,000 2,15,000 2,50,000
Municipal taxes paid 8,400 5% Gross 5% Gross
Annual Value Annual value
Interest on loan Borrowed 2,20,000 1,00,000 1,66,000
Loan taken on Loan taken on Loan Taken on
01.04.2010 01.04.2010 01.04.2010
Municipal Tax on House-II is Paid by Tenants.
Q. 4 Mr. Kartik Aryan purchased a house property on 20th June 1998 for ₹19,50,000. He made
the following additions / alteration to the house property.
Cost of construction 1st Floor in the Financial Year 2011-12 is ₹10,00,000.
Cost of construction 2nd Floor in the Financial Year 2017-18 is ₹14,50,000.
He sold the property on 21st January 2024 fro 2,85,50,000 paying Brokerage of ₹2,00,000
He invested ₹1,55,00,000 in New Residential property on 18-03-2024.
He Invested ₹50,00,000 in Bonds of Power Finance Corporation Limited (Eligible) on 30 th
March 2024.
The fair Market value of the property as on 1st April 2001 was ₹25,75,000.
Relevant Cost Inflation Index are as follows;
Previous Year Cost Inflation Index
2001-02 100
2011-12 184
2017-18 272
2023-24 348
Compute his Capital Gain for the Assessment Year 2024-25.
Q. 5 Following is the Profit and Loss Account of Mr. Amitabh for the year Ended 31st March,
2024. You are required to ascertain his Income from Business & Profession chargeable to tax
for the assessment year 2024-25.
Profit & Loss A/c
For the year ended 31st March, 2024
Particulars Amount Particulars Amount
To Salaries 62,000 By Gross Profit 3,19,000
To Conveyance & Travelling 12,355 By Rent from House Property 1,20,000
To Guest House Expenses 14,645 By Dividend From Indian 28,000
To Entertainment Expenses 13,000 Companies
To Reserve for Bad Debts 12,500
To Interest on Capital 23,000
To Provision for Depreciation 35,500
To Life Insurance Premium 17,000
To Repairs to House Property 25,000
To Municipal Tax (House) 30,000
To Gifts to Staff 14,000
To Net Profit 2,08,000
4,67,000 4,67,000
Inadvertently following expenses were not recorded:
a) Telephone Expenses ₹24,500
b) Electricity expenses ₹32,500.
It has been mentioned that salary of ₹14,000 has been paid to Mr. Abhishek, son of Mr.
Amitabh. He served as a clerk. Salary has been consider reasonable.
