CA Jasmeet Singh Arora 1

Computation Of Total Income

Question : 1 Mr. Lalit, a dealer in shares and securities, has entered into following
transactions during the previous year 2023-24:

(i) Received a motor car of ` 5,00,000 as gift from his friend Sunil on the occasion
of his marriage anniversary.
(ii) Cash gift of ` 21,000 each from his four friends.
(iii) Land at Jaipur on 1st July,2023 as a gift from his friend Kabra, the stamp duty
value of the land is ` 6 lakhs as on the date. The land was acquired by Mr. Kabra
in the previous year 2001-02 for ` 2 lakhs.
Mr. Lalit purchased from his friend Mr. Abhishek, who is also a dealer in
shares, 1000 shares of ABC Ltd. @400 each on 19th June,2023 the fair market
value of which was 600 each on that date. Mr. Lalit sold these shares in the
course of his business on 23rd June,2023.
Further, on 1st November, 2023, Mr. Lalit took possession of his residential
house booked by him two years back at ` 20 lakh. The stamp duty value of the
property as on 1st November, 2023 was ` 32 lakh and on the date of booking
was ` 24 lakh. He had paid` 1 lakh by account payee cheque as down payment
on the date of booking.
He received a shop (building) of the fair market value ` 1,50,000 and cash `
50,000 in distribution from the ABC (P) Ltd at the time of liquidation process
of the company in proportion of his share capital. The balance in general
reserve of the company attributable to his share capital is ` 1,25,000.
On 1st March,2024, he sold the plot of land at Jaipur for ` 8 lakh.
The value of the cost inflation index is 100 and 317 for the previous year 2001 -
02 and 2021-22 respectively.
Compute the income of Mr. Lalit chargeable under the head "Income from
other sources" and "Capital Gains" for A.Y. 2024-25. (PYP MAY 2022)

Solution : 1 Computation of “Income from Other Sources” of Mr. Lalit for the A.Y.
2024-25

Particulars `
(i) Motor car is not included in the definition of “property” for -
the purpose of section 56(2)(x), hence, value of the same is
not taxable, even though it is received without any
consideration.
(ii) Cash gift is taxable under section 56(2)(x) 84,000
[since the aggregate of ` 84,000 (` 21,000 x 4) exceeds `
50,000]
(iii) Stamp value of plot of land at Jaipur, received without 6,00,000
consideration, is taxable under section 56(2)(x), since the
same exceeds ` 50,000
 CA Jasmeet Singh Arora 2

(iv) Difference of ` 2 lakh [1000 shares x ` 200] in the value of -

shares of ABC Ltd. purchased from Mr. Abhishek, a dealer
in shares, is not taxable as it represents the stock-in-trade
of Mr. Lalit (since he is a dealer in shares) and not capital
asset.1
(v) Difference between the stamp duty value of ` 24 lakh on 4,00,000
the date of booking (since advance was paid by account
payee cheque on that date) and the actual consideration
of ` 20 lakh paid is taxable under section 56(2)(x) since the
difference exceeds ` 2,00,000, being the higher of ` 50,000
and 10% of consideration
(vi) Distribution of assets by ABC (P) Ltd. on liquidation 1,25,000
attributable to the accumulated profits (general reserve)
of the company is taxable as dividend under section
2(22)(c).
Income taxable under the head “Income from other sources” 12,09,000

Computation of “Capital Gains” of Mr. Lalit for the A.Y.2024-25

Particulars `
Capital gains on sale of land at Jaipur
Sale Consideration 8,00,000
Less: Cost of acquisition [deemed to be the stamp value
charged to tax under section 56(2)(x)] 6,00,000
Short-term capital gains (since held for a period of not more 2,00,000
than 24 months. Period of holding of previous owner, Mr.
Kabra, not to be considered)
Capital gains on distribution of assets on liquidation of ABC (P)
Ltd.
Full value of consideration for capital gains on distribution of
assets on liquidation of ABC (P) Ltd.
FMV of assets distributed 1,50,000
Cash 50,000
2,00,000
Less: Deemed dividend under section 2(22)(c) 1,25,000
Full value of consideration for computing capital gains 75,000
Note -
(i) As cost of acquisition of shares in ABC(P) Ltd. is not given in the question,
capital gains on distribution of assets on liquidation of ABC(P) Ltd. in the hands
of Mr. Lalit has not been computed.
(ii) As per section 56(1)(i), dividend income is chargeable under the head “Income
from Other Sources”. Hence, deemed dividend u/s 2(22)(c) would be taxable
under the head “Income from Other Sources” in the hands of Mr. Lalit, who is
 CA Jasmeet Singh Arora 3

a dealer in shares.

Question : 2 From the following particulars furnished by Mr. Suresh, aged 53

years, a resident Indian for the previous year ended March 31, 2024, you are
requested to compute his total income and tax payable for the Assessment Year
2024-25. (Assuming he does not opt for the Section 115BAC):

(i) He sold his vacant land on 09.12.2023 for ` 15 lakhs. The Stamp Duty Value (SDV)
of land at the time of transfer was ` 20.55 lakhs. The fair market value of the
land as on 1st April, 2001 was ` 6 lakhs (SDV is ` 5,00,000). This land was acquired
by him on 05.08.1996 for ` 3.40 lakhs. He had incurred registration expenses of
` 15,000 at that time. The cost of inflation index for the year 2021-22 and 2001-
02 are 317 and 100, respectively.
(ii) He owns an industrial undertaking established in a Special Economic Zone
(SEZ) and which had commenced operation during the financial year 2021-22.
Total turnover of the undertaking was ` 300 lakhs, which includes ` 120 lakhs
from export turnover. This industrial undertaking fulfils all the conditions of
Section 10AA of the Income-tax Act, 1961. Profit from this industrial
undertaking is ` 30 lakhs.
(iii) He has income of ` 10,000 from crossword puzzles and ` 15,000 gross interest
from bank fixed deposit.
(iv) Tuition fees of ` 36,000 for his three children to a school. The fees being ` 12,000
p.a. per child. (PYP MAY 2022)
Solution : 2 Computation of Total Income and Tax Payable by Mr. Suresh for A.Y.
2024 -25

Particulars Amount Amount

(`) (`)
Profits and gains from business or profession
Profit from SEZ undertaking 30,00,000
Capital Gains
Long term capital gain on sale of vacant land [since land
held for a period of more than 24 months, it is long-term
capital asset]
As per section 50C, Full value of consideration would be 20,55,000
stamp duty value since it exceeds 110% of actual sale
consideration
Less: Indexed cost of acquisition [` 5,00,000 x 348/100] 17,40,000
Cost of acquisition, being higher of 3,15,000
- Actual cost (` 3,40,000 + ` 15,000) ` 3,55,000
- lower of FMV of ` 6,00,000 and stamp duty `
value of ` 5,00,000 as on 1.4.2001 5,00,000
Income from other sources
Income from crossword puzzles 10,000
Interest on fixed deposit 15,000
 CA Jasmeet Singh Arora 4

25,000
Gross Total Income 33,40,000
Less: Deductions under Chapter VI-A
Under section 80C – Tuition fees of two children 24,000
Less: Deduction under section 10AA 12,00,000
(` 30,00,000 x 120 lakhs/300 lakhs) x 100 %, being 3rd year
of operation
Total Income 21,16,000
Computation of Tax payable on total income under the
regular provisions of the Income-tax Act, 1961
Tax on LTCG @ 20% of ` 3,15,000 63,000
Tax on income from crossword puzzles @30% of ` 10,000 3,000
Tax on remaining amount of ` 17,91,000 [` 2,37,300 (30% of
` 7,91,000) + ` 1,12,500] 3,49,800
4,15,800
Add: Health and education cess @4% 16,632
Tax Payable under the regular provisions of the Act 4,32,432
Tax Payable under the regular provisions of the Act 4,32,430
(rounded off)
Computation of Adjusted Total Income and Alternate Minimum Tax (AMT) payable

Particulars Amount (`)

Total Income computed under the regular provisions of the Act 21,16,000
Add: Deduction u/s 10AA 12,00,000
Adjusted Total Income 33,16,000
Since Adjusted Total Income exceeds ` 20 lakhs, the provisions of
Alternate Minimum Tax (AMT) are attracted in this case
Alternate Minimum Tax@18.5% 6,13,460
Add: Health and Education cess@4% 24,538
AMT 6,37,998
AMT (rounded off) 6,38,000
Since the regular income-tax payable is less than the AMT payable, the adjusted
total income of ` 33,16,000 shall be deemed as the total income and tax is
leviable@18.5% thereof plus cess@4%. Therefore, his tax liability would be `
6,38,000.
However, he would be entitled to AMT credit of ` 2,05,570 (` 6,38,000 – `4,32,430)

Question :3 Mr. Mukesh born on 1 4.1964 furnished his original return for
Assessment Year 2024-25 on 30.07.2024. He has shown salary income of ` 7.30 lakhs
(computed) and interest from his savings bank of ` 12,700 and from his fixed
deposits of ` 43,000. He also claimed deduction under section 80C of ` 1.50 lakhs. He
had claimed deduction u/s 80D of ` 25,000. He also claimed deduction u/s 80TTA of `
10,000. His employer had deducted TDS of ` 33,950 from his salary, which he
adjusted fully against tax payable.
 CA Jasmeet Singh Arora 5

He paid health insurance premium of ` 38,000 by account payee cheque for self and
wife. He paid ` 1,500 in cash for his health check-up and ` 4,000 by cheque for
preventive health check-up of his parents. He also paid medical insurance premium
of ` 33,000 during the year to insure the health of his mother, aged 80 years, staying
with his younger brother. He further incurred medical expenditure of ` 25,000 on his
father, aged 81 years, who is staying with him. His father is not covered under any
mediclaim policy.

He seeks your advice about possibility of revising his return and if possible file his
revised return. Analyse the above narrated facts as per applicable provisions of
the Income-tax Act, 1961. Does he need to revise his return and for what reasons?
Please advise him suitably and if needed, re-compute his income and tax payable
or refund due for the Assessment Year 2024-25. (PYP NOV 20)

Solution : 3 Computation of total income of Mr. Mukesh for A.Y.2024-25 [As per
the original return filed by him]
Particulars ` `
(i) Salaries (Computed) 7,30,000
(ii) Income from Other Sources
Interest on savings bank account 12,700
Interest on fixed deposits 43,000 55,700
7,85,700
Less: Deductions under Chapter VI-A
(i) Deduction u/s 80C 1,50,000
(ii) Deduction u/s 80D 25,000
(iii) Deduction u/s 80TTA 10,000 1,85,000
Total Income 6,00,700

Computation of tax liability of Mr. Mukesh for A.Y.2024-25 (As per

original return)

`
Tax on total income [20% of ` 1,00,700 (i.e., ` 6,00,700 – ` 5,00,000) 32,640
+ ` 12,500]
Add: HEC@4% 1,306
Tax payable on total income 33,946
Tax payable on total income (rounded off) 33,950
Less: Tax deducted at source u/s 192 33,950
Tax Payable Nil
 CA Jasmeet Singh Arora 6

Need for filing revised return - Analysis

Since Mr. Mukesh’s birthday falls on 1.4.2023 he would be treated as having

completed 60 years of age in the P.Y.2023-24, and hence, he would be eligible
for the benefit of higher deduction u/s 80D, higher deduction of up-to ` 50,000
u/s 80TTB (instead of ` 10,000 u/s 80TTA) while computing his total income as
well as for higher basic exemption limit of ` 3,00,000 in the P.Y.2023-24 itself
while computing his tax liability. Also, he would be entitled to deduction in
respect of medical insurance premium paid to insure the health of his mother
and medical expenses incurred on his father who is not covered under any
Mediclaim policy. Accordingly, having discovered such omissions in the original
return, he has to file his revised return of income u/s 139(5) on or before
31.12.2024 to avail these benefits which he has not availed while filing his
original return of income. The computation of total income and tax liability
(refund due) as per the revised return are worked out hereunder -

Computation of Total Income of Mr. Mukesh for the A.Y.

2024-25 [As per the Revised Return]

[Link] Particulars ` `
(i) Salaries (Computed) 7,30,000
(ii) Income from Other Sources
Interest on savings bank account 12,700
Interest on fixed deposits 43,000
55,700
Gross Total Income 7,85,700
Less: Deductions under Chapter VI-A
(i) Deduction u/s 80C 1,50,000
(ii) Deduction u/s 80D
Medical insurance premium for self
and spouse 38,000
Preventive health check-up for self
(allowable even if paid in cash) 1,500
Fully allowed as it is within the
overall limit of ` 50,000 for family 39,500
Medical insurance
premium for mother 33,000
Medical expenditure for
father not covered under
any policy 25,000
Preventive health check-
up for parents (` 4,000,
restricted to ` 3,500, being
` 5,000 – ` 1,500 claimed for
self and spouse) 3,500
 CA Jasmeet Singh Arora 7

61,500

Restricted to maximum of
` 50,000 for parents 50,000 89,500
(iii) Deduction u/s 80TTB

Interest on savings bank account 12,700

Interest on fixed deposits 43,000
55,700
Restricted to maximum of ` 50,000 50,000
2,89,500
Total Income 4,96,200
Computation of tax liability of Mr. Mukesh for A.Y.2024-25 [As per the
Revised Return]

`
Tax on total income [5% of `1,96,200 (i.e., `4,96,200 – ` 3,00,000 9,810
basic exemption limit)
Less: Rebate u/s 87A (Since his total income does not exceed ` 5
lakh) – ` 12,500 or tax on total income, whichever is lower 9,810
Tax payable on total income Nil
Less: Tax deducted at source u/s 192 33,950
Refund due 33,950
Therefore, Mr. Mukesh has to file a revised return showing the above revised
computation of total income and tax liability on or before 31.12.2024 to claim the
enhanced deductions which he had not claimed in the original return and get
refund of the entire income-tax of ` 33,950 deducted at source by his employer.

Question :4 Mr. X, an employee of the Central Government is posted at New

Delhi. He joined the service on 1st February, 2020. Details of his income for the
previous year 2020-21, are as follows:

(i) Basic salary : ` 3,80,000

(ii) Dearness allowance : ` 1,20,000 (40% forms part of pay for retirement benefits)
(iii) Both Mr. X and Government contribute 20% of basic salary to the pension
scheme referred to in section 80CCD.
(iv) Gift received by X’s minor son on his birthday from friend: ` 70,000. (No other
gift is received by him during the previous year 2023-24)

(v) During the year 2016-17, Mr. X gifted a sum of ` 6,00,000 to Mrs. X. She started
a business by introducing such amount as her capital. On 1st April, 2023, her
total investments in business was ` 10,00,000. During the previous year 2023-
24, she has loss from such business ` 1,30,000
(vi) Mr. X deposited ` 70,000 in Sukanya Samridhi account on 23.01.2024. He also
contributed ` 40,000 in an approved annuity plan of LIC to claim deduction u/s
 CA Jasmeet Singh Arora 8

80CCC.
(vii) He has taken an educational loan for his major son who is pursuing MBA course
from Gujarat University. He has paid ` 15,000 as interest on such loan which
includes ` 5,000 for the financial year 2023-24.
Determine the total income of Mr. X for the assessment year 2024-25. Ignore
provisions under section 115BAC.(PYP DEC 21)
Solution : 4 Computation of Total Income of Mr. X for A.Y. 2024-25

Particulars Amount Amount

Salaries
Basic Salary 3,80,000
Dearness Allowance 1,20,000
Employer contribution to NPS = 20% of ` 3,80,000 76,000
5,76,000
Less: Standard deduction
50,000 5,26,000
[` 50,000 or ` 5,76,000, whichever is lower]
Profits and gains of business or profession
Where the amount gifted by Mr. X (` 6 lakh, in this (78,000)
case) is invested by Mrs. X in a business as her
capital, proportionate share of profit or loss, as the
case may be, computed by taking into account the
value of the investment as on 1.4.2023 to the total
investment in the business (` 10 lakh) would be
included in the income of Mr. X [loss of
` 1,30,000 x 6/10]
Income from other sources
All income of the minor son would be included in 70,000
the income of the parent Mr. X, since his income is
higher than the
income of Mrs. X (loss of ` 52,000, based on the
information given in the question). Accordingly, `
70,000, being amount of gift received by minor
son during the P.Y.2023-24, would be included in
the income of Mr. X as the amount of gift exceeds
` 50,000.
Less: Exemption in respect of income of minor 1,500
child
included in Mr. X’s income
68,500
Less: Business loss of ` 78,000 set-off to the extent 68,500
of
(Balance business loss of ` 9,500 to be carried
forward to the next year, since the same cannot be
set-off against salary income)
Gross Total Income
Less: Deductions under Chapter VI-A
Under section 80C – deposit in Sukanya Samridhi 70,000
 CA Jasmeet Singh Arora 9

Account
Under section 80CCC – Contribution to LIC Annuity 40,000
Plan
Under section 80CCD(1) – Employee contribution to 26,000
NPS (` 76,000 – ` 50,000 deduction claimed u/s
80CCD(1B)], since it is lower than ` 42,800, being 10%
of salary (` 3,80,000 + ` 48,000)
Allowable in full, since less than `1,50,000, being 1,36,000
the maximum permissible deduction u/s 80C,
80CCC & 80CCD(1)
Under section 80CCD(1B) – Employee contribution 50,000
to NPS
Under section 80CCD(2) – Employer contribution 59,920
to NPS restricted to 14% of basic salary + DA
forming part of pay, since employer is Central
Government = 14% x (` 3,80,000
+ ` 48,000)
Under section 80E – Interest paid on loan taken for 15,000
higher education
2,60,920
TOTAL INCOME 2,65,080
Notes - The following assumptions have been made while solving the question –
(i) Loan is taken from a financial institution or approved charitable
institution, and hence, interest paid on such loan qualifies for deduction
under section 80E.
(ii) The question mentions that gift of ` 6 lakhs is given by Mr. X to Mrs. X during
the P.Y.2016-17. However, the date of investment in business is not given.
assumed that it was invested between 2.4.2022 to 1.4.2023 for solving the
problem, in the absence of other information in the question.
Question :5 Mr. Bhasin, a resident individual, aged 52 years, provides management
consultancy services to various corporate and non-corporate clients. His Income &
Expenditure A/c for the year ended 31st March, 2024 is as under:

Expenditure Amount (`) Income Amount (`)

To Employees’ 15,00,000 By Gross Receipts from 60,60,000
Remuneration Profession (last
year
` 75,00,000) (No
TDS was deducted
from any of the
receipts)
To Office & Administrative 5,00,000 By Interest on Savings 25,000
Expenses Bank Account
To Rates and Taxes 15,000 By Winnings from 99,500
Lottery (Net of cost
of lottery tickets of
` 500)
To Interest Expenses 80,000 By Rent Received 2,40,000
 CA Jasmeet Singh Arora 10

To Office Rent 2,40,000

To Insurance Premium 72,000
To Professional Fees 2,00,000
To Depreciation on 1,20,000
Computers
To Excess of Income
over Expenditure 36,97,500
64,24,500 64,24,500
The following details relates to F.Y. 2023-24 :
(i) Employees’ Remuneration includes a sum of ` 3,00,000 paid to his wife, Mrs.
Beena who is working as a manager in his office. She does not have any
technical or professional qualification or experience required for the job. The
payment of salary was as per market rates in comparison to similar work
profile.
(ii) Mr. Bhasin owns a big house with 2 independent units. Unit - 1 (with 50% floor
area) has been let our for residential purposes at a monthly rent of ` 20,000 for
the entire year. Unit - 2 (with the balance 50% of the floor area) is used by Mr.
Bhasin as his residence- cum-office. Other particulars of the house are:
Municipal Valuation - ` 3,60,000
p.a. Fair Rent - ` 4,20,000 p.a.
Standard Rent under Rent Control Act -` 4,00,000 p.a.
(iii) Rates and taxes include a sum of ` 10,000 paid as municipal taxes of the house.
(iv) Interest expenses represent interest on capital borrowed from a nationalised
bank for the construction of the house. The construction was completed in
F.Y.2010 -11. Neither the loan nor the interest was paid till the due date of filing
the return of income.
(v) Based on the actual rent received for Unit-1, Mr. Bhasin has debited ` 2,40,000
as notional rent for Unit-2 which is used for his profession.
(vi) The expense on insurance premium of ` 72,000 represents lump-sum health
insurance premium paid by Mr. Bhasin for 3 years effective from 1stJuly, 2023
to 30thJune, 2026 for himself, his spouse and two dependent children. The said
insurance premium was paid through account payee cheque.
(vii) The expenses on professional fees paid includes a sum of ` 1,00,000 paid to Mr.
Raunak, an Indian resident on which no tax was deducted at source.
(viii) There was only one block containing computers which came into existence
only on 2nd April, 2023 when new laptops (for ` 1,60,000), printers and
scanners (for ` 40,000) were purchased. He charged depreciation @ 60% in the
entire cost of ` 2,00,000 and debited the amount to Income & Expenditure A/c.
(ix) Mr. Bhasin has also taken a loan of ` 5,00,000 from a nationalised bank for
higher education of his son. During F.Y.2023-24, he repaid principal of ` 75,000
along with interest of ` 40,000. This amount is not reflected in Income and
Expenditure Account.

(x) You are required to compute the total income under proper heads of income of
 CA Jasmeet Singh Arora 11

Mr. Bhasin for

(xi) A.Y. 2024-25 under regular provisions of Income-tax Act 1961, assuming that
he has not opted to pay tax under section 115BAC. Also calculate the total tax
payable by him.((PYP MAY 23)

Solution : 5 Computation of total income and tax payable by Mr. Bhasin for A.Y.
2024 -25

Particulars ` ` `
I Income from Salaries
Salary of Mrs. Beena [Remuneration paid 3,00,000
by Mr. Bhasin to his wife Mrs. Beena who
is employed as a manager in his office
would be included in his hands, since Mrs.
Beena does not have any technical or
professional qualification or experience
required for the job] 2,50,000
Less: Standard deduction u/s 16(ia) 50,000
II Income from house property
Let out portion (Unit 1 – 50% area)
Gross Annual Value [Higher of expected 2,40,000
rent of
` 2,00,000 and actual rent of ` 2,40,000 (`
20,000 x 12)]
[Expected rent is higher of municipal
value of
` 1,80,000 (3,60,000 x 50%) and fair rent of
` 2,10,000 (` 4,20,000 x 50%), restricted to
standard rent of ` 2,00,000 (` 4,00,000 x
50%)]
Less: Municipal taxes paid for let out 5,000
portion (` 10,000 x 50%)
Net Annual Value (NAV) 2,35,000
Less: Deduction under section 24
(a) 30% of NAV 70,500
(b) Interest on capital borrowed for 40,000
construction of house relating to
let out portion (80,000 x 50%)
(allowed on accrual basis)
Income from let out portion 1,24,500
Self-occupied (Unit 2 – 25%)
[Since Unit 2 representing 50% of the floor
area is used for residence as well as
business
purpose, it is assumed that it is equally
 CA Jasmeet Singh Arora 12

used for residence and business purpose]

Gross Annual Value Nil

Less: Municipal taxes [not allowed for Nil
self- occupied property]
Net Annual Value Nil
Less: Deduction under section 24(b)
Interest on loan for construction of 20,000
house,
` 80,000 x 50% x 1/2 (allowable on accrual
basis)
Loss from self-occupied portion (20,000)
[Loss from self-occupied portion can be 1,04,500
set off against income from let out
portion]
III Profits and gains from business and
profession
Excess of income over expenditure 36,97,500
Add: Expenses debited to Income &
Expenditure A/c but not allowable as
deduction
Remuneration paid to his wife Mrs. Beena -
[As per section 40A(2) remuneration paid
to Mrs. Beena is allowed, since it is as per
market rates]
Municipal taxes attributable to let out and 7,500
self- occupied portions not allowable [`
10,000 x 75%]
Interest on capital borrowed for 60,000
construction of house attributable to let
out and self- occupied portion not
allowable [` 80,000 x 75%]
Interest on capital borrowed from bank 20,000
for construction of house attributable to
business portion i.e., 25% of ` 80,000 [not
allowable, since it is not paid on or before
due date of filing return of income by
virtue of section 43B]
Notional rent for Unit 2 used for business 2,40,000
or profession [not allowable under
section 30, since Mr. Bhasin himself is the
owner of the property]
Insurance premium [Personal 72,000
expenditure not allowable]
 CA Jasmeet Singh Arora 13

Professional fees to Mr. Raunak without 30,000

deducting TDS [` 1,00,000 x 30%] [Mr.
Bhasin is required to deduct TDS on
professional fees payment to Mr. Raunak
since his gross receipts from profession
exceeds ` 50 lakhs during the P.Y. 2022-23.
30% of the sum paid to Mr. Raunak,
resident without deducting tax to be
disallowed in P.Y. 2023-24]
Depreciation as per books 1,20,000 5,49,500
42,47,000
Less: Income credited to Income &
Expenditure A/c but not taxable as
business income
Interest on savings bank account [taxable 25,000
under
the head “Income from other sources”]
Winnings from lottery [taxable under the 99,500
head
“Income from other sources”]
Rent received [taxable under the head
“Income from house property”] 2,40,000 3,64,500
38,82,500
Less: Depreciation allowable [2,00,000 (` 80,000
1,60,000, being new laptops + ` 40,000,
being printers) x 40%, i.e., 64,000+16,000
as it was put to use for more than 180 days
in the
P.Y. 2023-24. Printers and scanners for
` 40,000 are eligible for higher
depreciation of 40%]
38,02,500
IV Income from Other Sources
Interest on savings bank account 25,000
Winnings from Lottery [No expenditure
or allowance is allowed from lottery 1,00,0001
income]
1,25,000
Gross Total Income 42,82,000
Less: Deduction under Chapter VI-A
Deduction under section 80D
Medical insurance premium [` 72,000 x 1/4, 18,000
being the previous years in which
insurance would be in force] [allowable
for self, spouse and dependent children]
Deduction under section 80E
Interest on loan taken from a nationalised 40,000
bank for higher education of son
 CA Jasmeet Singh Arora 14

Deduction under section 80TTA

Interest on saving bank account to the 10,000
extent of 68,000
Total Income 42,14,000
Tax Payable
On lottery income [30% of ` 1,00,000] 30,000
On other income of ` 41,14,000
Upto ` 2,50,000 Nil
` 2,50,000 @5% [` 2,50,000 – ` 5,00,000] 12,500
` 5,00,000 @20% [` 5,00,000 – ` 10,00,000] 1,00,000
` 31,14,000 @30% [` 10,00,000 – ` 41,14,000] 9,34,200
10,46,700
10,76,700
Less: HEC@4% 43,068
Tax liability 11,19,768
Less: TDS on lottery winnings @30% u/s 30,000
194B
Tax payable 10,89,768
Tax payable (rounded off) 10,89,770
 CA Jasmeet Singh Arora 15

Question: 6 Mr. Ravi, a resident and ordinarily resident in India, owns a let out house
property having different flats in Kanpur which has municipal value of ` 27,00,000 and
standard rent of ` 29,80,000. Market rent of similar property is ` 30,00,000. Annual rent
was ` 40,00,000 which includes ` 10,00,000 pertaining to different amenities provided in
the building. One flat in the property (annual rent is ` 2,40,000) remains vacant for 4
months during the previous year. He has incurred following expenses in respect of
aforesaid property:

Municipal taxes of ` 4,00,000 for the financial year 2023-24 (10% rebate is obtained for
payment before due date). Arrears of municipal tax of financial year 2022 -23 paid during
the year of ` 1,40,000 which includes interest on arrears of ` 25,000.
Lift maintenance expenses of ` 2,40,000 which includes a payment of ` 30,000 which is
made in cash.
Salary of ` 88,000 paid to staff for collecting house rent and other charges.
Compute the total income of Mr. Ravi for the assessment year 2024-25 assuming that Mr.
Ravi has not opted for the provisions under section 115BAC.(PYP DEC 21)

Solution :6

Computation of total income of Mr. Ravi for A.Y. 2024-25 under the regular provisions of
the Act

Particulars Amount Amount

Income from house property
Gross Annual Value
- Expected rent ` 29,80,000 [Higher of Municipal Value
of ` 27,00,000 p.a. and Fair Rent of
` 30,00,000 p.a., but restricted to Standard Rent of
` 29,80,000 p.a.]
- Actual rent ` 29,40,000 [` 30,00,000, being annual
rent for house property less rent of `
60,000 (` 2,40,000 x 4/12 x 3/4) due to vacancy] 29,40,000
Gross Annual Value
In this case, the actual rent is lower than the expected
rent due to vacancy. Otherwise, the actual rent of`
30,00,000 would have been higher than the expected
rent. In such a case, the actual rent would be the gross
annual value, even if it is lower than the expected
rent.

4,75,000
Less: Municipal taxes actually paid during the year:
[` 4,00,000 – rebate of ` 40,000] = ` 3,60,000
 CA Jasmeet Singh Arora 16

[` 1,40,000 arrears – ` 25,000 interest] = ` 1,15,000

Net Annual Value 24,65,000
Less: Deduction from Net Annual Value 17,25,500
30% of Net Annual Value 7,39,500

Income from Other Sources/Profits and gains from

business or profession
10,00,000
Rent for amenities
20,000
Less: Loss due to vacancy [2,40,000 x 4/12 x ¼]
9,80,000

Less: Expenditure in respect thereof

- Lift maintenance expenses [excluding cash payment
of ` 30,000 disallowed] = ` 2,40,000 – ` 30,000=2,10,000

Salary to staff [` 88,000 x1/4, being the proportion 2,32,000 7,48,000

pertaining to amenities]= 22,000
Total Income 24,73,500
Question: 7 During the previous year 2023-24, following transactions took place in
respect of Mr. Raghav who is 56 years old.

(i) Mr. Raghav owns two house properties in Mumbai. The details in respect of these
properties are as under -

House 1 House 2
Self occupied Let-out
Rent received per month Not applicable ` 60,000
Municipal taxes paid ` 7,500 Nil
Interest on loan (taken for purchase of ` 3,50,000 ` 5,00,000
property)
Principal repayment of loan (taken ` 2,00,000 ` 3,00,000
from HDFC bank)
(ii) Mr. Raghav had a house in Delhi. During financial year 2013-14, he had transferred the
house to Ms. Vamika, daughter of his sister without any consideration. House would
go back to Mr. Raghav after the life time of Ms. Vamika. The transfer was made with
a condition that 10% of rental income from such house shall be paid to Mrs. Raghav.
Rent received by Ms. Vamika during the previous year 2023-24 from such house
property is ` 5,50,000.
(iii) Mr. Raghav receives following income from M/s M Pvt. Ltd. during P.Y. 2023-24:
 CA Jasmeet Singh Arora 17

• Interest on Debentures of ` 7,50,000; and

• Salary of ` 3,75,000. He does not possess the adequate professional qualification
commensurate with the salary received by him.
Shareholding of M/s M Pvt. Ltd. as on 31.3.2024 is as under -
Equity shares Preference shares
Mr. Raghav Nil Nil
Mrs. Raghav 2% 25%
Mr. Jai Kishan
(brother of Mrs. Raghav) 98% 75%
(iv) Mr. and Mrs. Raghav forms a partnership firm with equal share in profits. Mr. Raghav
transferred a fixed deposit of ` 1 crore to such firm. Firm had no income or expense
other than the interest of ` 9,00,000 received from such fixed deposit. Firm distributed
the entire surplus to Mr. and Mrs. Raghav at the end of the year.
(v) Mr. Raghav holds preference shares in M/s K Pvt. Ltd. He instructed the company to
pay dividends to Ms. Geetanshi, daughter of his servant. The transfer is irrevocable
for the life time of Geetanshi. Dividend received by Ms. Geetanshi during the previous
year 2023-24 is ` 13,00,000.
(vi) Other income of Mr. Raghav includes
- Interest from saving bank account of ` 2,00,000
- Cash gift of ` 75,000 received from daughter of his sister on his birthday.
Compute the total income of Mr. Raghav for the Assessment Year 2024-25.

(PYP JAN 21)

Solution :7 Computation of Total Income of Mr. Raghav for A.Y. 2024-25

Particulars Amount Amount

(`) (`)
Salary Nil
[Since Mrs. Raghav along with her brother holds shares
carrying 100% voting power in M/s M Pvt. Ltd., they have
a substantial interest in the company. Since Mr. Raghav
is working in the same company without any
professional qualifications commensurate with his
salary, the salary of
` 3,75,000 received by him would be included in the
hands of Mrs. Raghav.
Income from house property
House 1 [Self-occupied]
 CA Jasmeet Singh Arora 18

Net annual value -

Less: Interest on loan [upto `2,00,000] 2,00,000 (2,00,000)
House 2 [Let out]
Gross annual value7 [`60,000 x 12] 7,20,000
Less: Municipal taxes -
Net annual value 7,20,000
Less: Deductions from Net Annual Value
(a) 30% of Net Annual Value 2,16,000
(b) Interest on loan 5,00,000 4,000
House in Delhi [Since Mr. Raghav receives direct or
indirect benefit from income arising to his sister’s
daughter ,
Ms. Vamika, from the transfer of house to her without
consideration, such income is to be included in the total
income of Mr. Raghav as per proviso to section 62(1),
even
though the transfer may not be revocable during
lifetime of
Ms. Vamika’s]
Gross Annual Value 5,50,000
Less: Municipal taxes -
Net Annual Value 5,50,000
Less: Deductions from Net Annual Value
(a) 30% of Net Annual Value 1,65,000
(b) Interest on loan - 3,85,000
1,89,000
Profits and gains from business or profession
Share of profit from firm [Exempt u/s 10(2A)] -
Exempt income cannot be clubbed
Income from other sources
Dividend on preference shares exceeding ` 10,00,000 13,00,000
taxable
under section 115BBDA [Taxable in the hands of Mr.
Raghav
as per section 60, since he transferred the income, i.e.,
dividend, without transferring the asset, i.e.,
preference shares]
Interest on debentures 7,50,000
Interest from saving bank account 2,00,000
Cash gift [Taxable, since sum of money exceeding
` 50,000 is received from his niece, who is not a relative
as per section 56(2)] 75,000 23,25,000
 CA Jasmeet Singh Arora 19

Gross Total Income 25,14,000

Less: Deduction under Chapter VI-A
Deduction under section 80C [Principal repayment of 1,50,000
loan ` 5 lakh, restricted to ` 1,50,000]
Deduction under section 80TTA [Interest from
savings bank account] 10,000 1,60,000
Total Income 23,54,000

Question: 8 Mr. Kamal, a resident individual aged 48 years, is working at a senior

management position in a private bank since past 20 years. During the previous year
2023-24, he received the following emoluments from the employer:

(a) Basic Salary ` 3,50,000 per month.

(b) Client entertainment reimbursement of ` 20,000 per month out of which he submitted
bills for ` 2,00,000 for the relevant year.
(c) Leave travel allowance of ` 4,00,000 per annum. He took a trip to Goa with his spouse
and two children in December 2023, for which plane boarding tickets of ` 1,00,000 and
hotel bookings of ` 3,00,000 were submitted to the employer.
(d) Performance bonus amounting to 20% of annual basic salary.
(e) He is eligible to take a staff housing loan upto ` 20,00,000 at a concessional rate of 2.5%
p.a. He availed a housing loan of ` 15,00,000 out of the same on 1st June 2023. No
repayment of loan has been made during the F.Y. 2023-24. The lending rate of SBI as
on 1.4.2023 for housing loan may be taken as 8% p.a.
(f) The Bank also allotted 1,500 sweat equity shares to Mr. Kamal in May 2023 at the rate
of ` 1,300 per share. The Fair market value of the share was ` 1,500 per share on the
date of exercise of option by Mr. Kamal. He sold all the shares for ` 2,100 per share on
31.03.2024 on recognised stock exchange. Assume Securities transaction tax has been
paid.

The following transactions were made by Mr. Kamal during the previous year 2023-24:

(a) He earned rental income of ` 35,000 per month from a 3 BHK residential flat situated
at Delhi. He purchased the said flat for ` 45 Lakhs in June, 2022 using the housing loan
availed from the employer and his own savings. It was let out from July, 2023.
Municipal taxes of ` 12,000 for F.Y. 2023-24 was paid by Mr. Kamal.
(b) He invested ` 30,00,000 in RBI Floating Rate Savings Bonds on 1st September 2023
earning an interest of 7% p.a. Interest is credited half yearly on 1st January and 1st July
every year. (Assume receipt basis for taxation)
 CA Jasmeet Singh Arora 20

(c) He also paid LIC premium of ` 15,000 for self, ` 20,000 for wife and ` 30,000 for
dependent father, aged 75 years. Medical insurance premium paid on the health of
dependent brother and major dependent son amounted to ` 5,000 (paid by cheque)
and ` 10,000 (paid in cash), respectively.
(d) In December 2023, he earned dividend income of ` 5,00,000 (gross) on shares of the
bank held by him.
You are required to compute his total income and tax liability for the assessment year
2024-25, clearly showing all workings.

(RTP MAY 23)

Solution :8 Computation of total income of Mr. Kamal for the A.Y. 2024-25

Particulars Amount (`) Amount (`)

I Income from salaries
Basic Salary [` 3,50,000 x 12] 42,00,000
Client entertainment reimbursement [` 40,000
2,40,000 -
` 2,00,000]
Leave Travel Allowance [` 4,00,000 - ` 1,00,000] 3,00,000
[Note 1]
Performance Bonus (20% of Basic Salary) 8,40,000
Interest on Housing loan 68,750
[` 15,00,000 x (8% - 2.5%) x 10/12]
Sweat Equity allotted by the 3,00,000
employer (` 1,500 - ` 1,300) x 1,500
57,48,750
Gross Salary
50,000
Less: Standard deduction
56,98,750
Taxable Salary
II Income from house property 3,15,000
Gross Annual Value under section 23(1) [Rent
received for 9 months has been taken as the
Gross Annual Value in the absence of other
information relating to Municipal Value, Fair
Rent and Standard Rent] [` 35,000 x 9] 12,000
Less: Municipal taxes paid 3,03,000

Net Annual Value (NAV)

90,900
Less: Deduction u/s 24 31,250
(a) @30% of NAV
 CA Jasmeet Singh Arora 21

(b) Interest on borrowed capital [15,00,000 x 1,80,850

2.5% x 10/12]
9,00,000
III Capital gains
STCG on sale of sweat equity shares [1,500 X (` 5,00,000
2,100 - ` 1,500)]
70,000 5,70,000
IV Income from other sources
73,49,600
Dividend Income
Interest on RBI bonds [` 30,00,000 X 7% X 4/12)
35,000
Gross total Income
Less: Deduction under Chapter VI-A Nil 35,000
Deduction u/s 80C for LIC premium paid for self 73,14,600
and wife [Note 2]
Deduction u/s 80 D [Note 3]
Total Income

Computation of tax liability of Mr. Kamal for the A.Y. 2024-25

Particulars Amount (`) Amount (`)

Tax on STCG u/s 111A @15% on ` 9,00,000 1,35,000
Tax on other income of ` 64,14,600
Upto ` 2,50,000 Nil
` 2,50,001 - ` 5,00,000 @5% 12,500
` 5,00,001 - ` 10,00,000 @20% 1,00,000
` 10,00,001 - ` 64,14,600 @30% 16,24,380 17,36,880
18,71,880
Add: Surcharge@10% since total income exceeds 1,87,188
` 50 lakhs but does not exceed ` 1 crore
20,59,068
Add: Health and Education cess @ 4% 82,363
Tax Liability 21,41,431
Tax Liability (Rounded off) 21,41,430
(1) Hotel Bookings and lodgings are not covered under leave travel facility. Hence, only `
1,00,000 of cost of tickets would be exempt under section 10(5).
(2) Premium for life insurance policy of father is not allowed as deduction under section
80C.
(3) Medical insurance premium on the health of brother is not allowable since brother
 CA Jasmeet Singh Arora 22

does not come within the meaning of family u/s 80D. In case of son, premium is paid
in cash, hence, the same is not allowed.

Question: 9 Mr. Suresh has a sole proprietory manufacturing unit. On 1st April, 2023, he
owns Plant A and Plant B (rate of depreciation 15%). Depreciated value of the block on 1 st
April, 2023 is ` 10,00,000. Plant B is transferred on 15th October, 2023 for ` 19,00,000.
Expenditure on transfer of Plant B is ` 20,000. Plant C (rate of depreciation 15%) is
purchased on 10th March, 2024 for ` 22,00,000. However, Plant C is put to use on 2nd
September, 2024 Business income of Mr. Suresh before claiming any depreciation is `
11,00,000.
On 1st March, 2024, Mr. Suresh transfers 900 equity shares in A Ltd. (unlisted) for `
23,50,000. Mr. Suresh does not own any residential house property. These shares were
purchased on 2nd April, 2015 for ` 2,00,000. To avail of the benefit of exemption under
different sections, he made the following investments on 1st May, 2024.
(i) A residential house property at Kolkata: ` 19,00,000 (out of which stamp duty
expenditure is ` 30,000).
(ii) NHAI bonds: ` 3,00,000.
Find out the gross total income of Mr. Suresh for the A.Y. 2024-25. CII – F.Y. 2023-24: 348;
F.Y. 2022-23 :331 FY 2015-16: 254(RTP MAY 23)

Solution : 9 Computation of gross total income of Mr. Suresh for the A.Y. 2024-25

Particulars Amount (`) Amount (`)

Profits and gains of business or profession
Business income before depreciation 11,00,000
Depreciated value of the block on April 1, 2023 10,00,000
Add: “Actual cost” of Plant C acquired on March 10, 22,00,000
2024
Less: Sale Consideration of Plant B 19,00,000
Written down value on March 31, 2024 13,00,000
Normal depreciation (not available as Plant C is not Nil
put to use during the P.Y. 2023-24)
Additional depreciation (not available as Plant C is not Nil
put to use during the P.Y. 2023-24)
Capital Gains

Long term capital gain on transfer of unlisted equity

shares [Since shares were held for more than 24
months]
 CA Jasmeet Singh Arora 23

Sale consideration 23,50,000

Less: Indexed Cost of Acquisition [2,00,000 x 348/254] 2,74,016

20,75,984

Less: Exemption under section 54EC Nil

[Deduction under section 54EC is allowable only in

respect of long term capital gain on transfer of land
and building]
Exemption under section 54F 16,89,278 16,89,278

[20,89,370 x 19,00,000/23,50,000]

3,86,706

Gross Total Income 14,86,706

Question: 10 Compute total income and tax liability thereon of Mr. Raghav for the A.Y.
2024-25 from the following details:

Mr. Raghav (aged, 61 years) working in a private company from last 10 years. His salary
details for the financial year 2023-24 are:
(i) Basic Salary 1,70,000 p.m.
(ii) Dearness Allowance (forms part of retirement benefits) 80,000 p.m.
(iii) Commission 32,000 p.m.
(iv) Transport Allowance 5,000 p.m.
(v) Medical Reimbursement 40,000
(vi) Mr. Raghav resigned from the services on 30th November, 2023 after completing 10
years and 5 months of service. He was paid gratuity of ` 25 lakhs on his retirement.
He is not covered under the Payment of Gratuity Act, 1972.
(vii) He started business of hiring of goods vehicle, purchased 4 small goods vehicle on
10th December, 2023 and 4 heavy vehicles having gross weight of 20 MTs each· on 1st
January, 2024. He did not maintain books of accounts for the business of hiring of
goods vehicle. Mr. Shivpal, his very close friend gifted him ` 2 lakhs to purchase the
vehicles.
(viii) He was holding 30% equity shares in TSP (P) Ltd., an Indian company. The paid up
 CA Jasmeet Singh Arora 24

share capital of company as on 31st March, 2023 was ` 20 lakh divided into 2 lakh
shares of` 10 each which were issued at a premium of ` 30 each. Company allotted
shares to shareholders on 1st October, 2016.
(ix) He sold all these shares on 30th April, 2023 for ` 60 per share. Equity shares of TSP
(P) Ltd. are listed on National Stock Exchange and Mr. Raghav has paid STT both at
the time of acquisition and transfer of such shares. FMV on 31.1.2018 was ` 50 per
share.
(x) On 12.2.2024, interest of fixed deposits of ` 90,000 credited to his SBI Bank. On
30.4.2023, ` 5,500 and on 30.12.2023, ` 8,500 credited to interest on saving bank A/c with
SBI Bank.
(xi) He deposited ` 1,10,000 in PPF A/c. He paid insurance premium of ` 20,000 on his life
policy during the financial year 2023-24. The policy was taken in April 2014 and sum
assured was ` 3,00,000. He also made payment of ` 25,000 towards L.I.C. pension
fund and premium of ` 40,000 towards mediclaim policy for self and ` 20,000 for his
wife. All the payment he made by A/c payee cheque.
(xii) There was no change in salary of Mr. Raghav from last two years. He does not opt to
pay tax as per section 115BAC.
(xiii) Cost inflation Index is:
(xiv)
Financial Cost Inflation
Year Index
2013-14 220
2020-21 301
2023-24 348

(RTP May 21)

Solution : 10 Computation of Total Income of Mr. Raghav for the A.Y.2024-25

Particulars ` `
Salaries
Basic Salary = 1,70,000 x 8 13,60,000
Dearness Allowance = 80,000 x 8 6,40,000
Commission = 32,000 x 8 2,56,000
Transport Allowance = 5,000 x 8 40,000
Medical reimbursement [Fully taxable] 40,000
 CA Jasmeet Singh Arora 25

Gratuity – Amount received 25,00,000

Less: Least of the following exempt u/s 10(10)

(i) Actual Gratuity received ` 25,00,000

(ii) ½ month’s salary for every year of
completed service [ ½ x 2,50,000 (Basic
salary plus DA) + x 10] = ` 12,50,000
(iii) Notified limit of ` 20,00,000
Least of the above is exempt 12,50,000
12,50,000
Gross Salary 35,86,000
Less: Standard deduction u/s 16(ia) [Actual salary or
` 50,000, whichever is less] 50,000
Net Salary 35,36,000
Profits and gains of business or profession
Income from business of hiring goods vehicle
Other than heavy goods vehicles = 4 x (` 7,500 p.m.) x (4 1,20,000
months)
Heavy goods vehicles = 4 x (20 MTs x ` 1,000 per MT) x (3
months) 2,40,000
3,60,000
Capital Gains
On transfer of 60,000 shares (2,00,000 x 30%)
Sales consideration [60,000 x ` 60 per share] 36,00,000
Less: Cost of acquisition, higher of – 30,00,000
- Actual cost [60,000 x ` 40 per share] 24,00,000
- Lower of
• FMV on 31.1.2018 [60,000 x 30,00,000
50]
• Actual sales consideration 36,00,000
[60,000 x 60]
Long-term capital gains u/s 112A (since shares are held for 6,00,000
a period of more than 12 months before transfer)
Income from Other Sources
Gift from friend taxable u/s 56(2)(x) since the same
exceeds ` 50,000. It is fully taxable 2,00,000
Interest on Saving A/c with SBI Bank 14,000
Interest on Fixed deposits with SBI Bank 1,00,000
[Since interest is credited after deduction of at source @
 CA Jasmeet Singh Arora 26

10%, as the amount of interest exceeds ` 50,000, amount

included in the total income need to be grossed up (`
90,000 x 100/90)] 3,14,000
Gross Total Income 48,10,000
Less: Deduction under Chapter VI-A
Section 80C
Deposits in PPF A/c 1,10,000
Life Insurance premium [fully deductible, since, in respect
of a policy taken before 1.4.2012, the actual premium paid
(` 20,000) or 20% of the sum assured (` 3,00,000 x 20%
= ` 60,000), whichever is lower, has to be deducted] 20,000
1,30,000
Section 80CCC
Payment to LIC Pension Fund 25,000
1,55,000
Restricted to ` 1,50,000, being the maximum allowable 1,50,000
deduction
Section 80D
Medical insurance premium for self and spouse ` 60,000,
allowable to the extent of ` 50,000, since Mr. Raghav is a 50,000
senior citizen
Section 80TTB
Deduction in respect of interest on fixed deposits and
saving bank allowable as deduction under section 80TTB,
since Mr. Raghav is a senior citizen, to the extent of `
50,000 50,000
Total Income 45,60,000
Computation of tax liability of Mr. Raghav for A.Y. 2024-25
Particulars ` `
Tax on total income of ` 45,60,000
Tax on long-term capital gains of ` 6,00,000 arising 50,000
from transfer of listed shares @10% under section
112A after deducting ` 1 lakh.
Tax on other income of ` 39,60,000 [` 45,60,000 –
` 6,00,000 capital gains]
Upto ` 3,00,000 Nil
` 3,00,001 – ` 5,00,000 [i.e., ` 3,00,000@5%] 10,000
` 5,00,001 – ` 10,00,000 [i.e., ` 5,00,000@20%] 1,00,000
` 10,00,001 – ` 39,60,000 [i.e., ` 29,60,000@30%] 8,88,000 9,98,000
10,48,000
 CA Jasmeet Singh Arora 27

Add: Health and Education cess@4% 41,920

Tax liability 10,89,920

Question 11: Fssrom the following information of Ms Ruchi born on 14 Oct 1980, an Indian
Resident , you are required to compute Total Income for the AY 2024-25

Particulars Amount Amount

LTCG on sale of House 1,50,000
STCG on sale of Shares in [Link] .Ltd 50,000
Loss from House Property 3,50,000
Interest from Saving Account in Post Office 15,000
Prize Winning from a TV show ( Gross) 20,000
Business Income 5,50,000
Net Agriculture Income 1,10,000
LIC Premium of self 70,000
(RTP Nov 19)

Solution : 11 Computation of Total Income of Ms Ruchi for AY 2024-25

Particulars Amount Amount

PGBP
Business Income 5,50,000
Less : Loss from House Property restricted upto Rs 2 2,00,000 3,50,000
lakhs
Capital Gains
LTCG on sale of House 1,50,000
STCG on sale of Shares in [Link] .Ltd 50,000 2,00,000
Income from Other Sources
Interest from Saving Account in Post Office 15,000
Less : Exempt u/s 10(15) to the extent of Rs 3,500 3,500
11,500
Prize Winning from a TV show ( Gross) 20,000 31,500
Gross Total Income 5,81,500
Less : Deductions under Chapter VI A :
LIC Premium of self u/s 80 C 70,000
U/s 80TTA 10,000 80,000
Total Income 5,01,500