SCOLLEGE
ceDepartment
November18,2024
Assignment:12th(Previous Year
Questions )
Name: SM Hashir Roll no: 2022/09/030 Date:November20 2024
Section: A ,Semester: 5th
Income tax Assignment
Time:3 Hours. Maximum Marks: 90
Attempt all questions.
All questions carry equal marks.
Question 1
(a) Discuss the concept of Residential Status under the Income Tax Act, 1961. Explain how residential
status affects the scope of total income with reference to:
1. Resident and Ordinarily Resident (ROR)
2. Resident but Not Ordinarily Resident (RNOR)
3. NonResident (NR)
Provide examples for each category . (12 Marks)
(b) Mr. Aditya earned the following incomes during the FY 202324:
Particulars Amount (₹)
Salary received for services rendered in the USA 4,00,000
Income from property in India remitted abroad 1,80,000
Dividend from a foreign company (received abroad) 70,000
Agricultural income in Nepal (remitted to India) 2,00,000
Determine his taxable income for A.Y. 202425 if he is:
(i) ROR, (ii) RNOR, and (iii) NR. (6 Marks)
Question 2
(a) Explain the provisions of Income from House Property under the Income Tax Act, 1961. Discuss the
treatment of selfoccupied and letout properties. Include the computation of Gross Annual Value (GAV) and
deductions under Section 24 in your answer.
(b) Mr. Raj owns a house property with the following details:
Amount
Detail
(₹)
Municipal Value 1,00,000
Fair Rent 1,20,000
Standard Rent 90,000
Actual Rent Received 1,10,000
Municipal Taxes Paid 10,000
Home Loan Interest
1,50,000
Paid
Compute the taxable income from house property for A.Y. 202526 if Mr. Raj:
1. Uses the house as selfoccupied.
2. Lets out the house for residential purposes. (18 Marks)
Question 3
(a) Define Capital Gains under the Income Tax Act, 1961. Explain the difference between shortterm and
longterm capital gains with examples. Discuss the exemptions available under Sections 54, 54F, and 54EC.
(12 Marks)
(b) Mr. Ramesh sold a residential property on 1st January 2025 for ₹40,00,000. He had purchased it on 1st
April 2005 for ₹8,00,000. He also invested ₹10,00,000 in bonds issued by NHAI in March 2025. Assume
the following:
Particulars Value
Fair Market Value (1st April 2001) 6,00,000
Cost Inflation Index (CII) for FY 200102 100
CII for FY 202425 363
Compute his taxable capital gains for A.Y. 202526. (18 Marks)
OR
Question 3A
(a) Discuss the concept of Income from Other Sources under the Income Tax Act, 1961. List out the
common incomes taxed under this head. Explain the deductions available under Sections 57 and 58 (b)
During the FY 202324, Mr. Suresh earned the following incomes:
Particulars Amount (₹)
Interest from fixed deposits in a bank 2,00,000
Dividend received from a foreign company 1,50,000
Gift from a friend 80,000
Lottery winnings 5,00,000
Compute his taxable income under "Other Sources" for A.Y. 202425, highlighting any specific tax rates
applicable.
Question 4 (18 Marks)
(a) What is Clubbing of Income? Explain the provisions under the Income Tax Act, 1961, where income is
clubbed with the income of another person. Provide at least three examples to illustrate your answer.
(b) Mr. Karan gifted ₹5,00,000 to his wife, who invested it in a fixed deposit earning interest of ₹50,000
annually. He also transferred a house property to his minor son, which earned rental income of ₹1,20,000
during FY 202324. Compute Karan’s taxable income under the clubbing provisions for A.Y. 202425.
OR
Question 4A (18 Marks)
(a) Explain the concept of Deductions from Gross Total Income under Chapter VIA of the Income Tax
Act, 1961. Highlight the key deductions available under Sections 80C, 80D, and 80E.
(b) Mr. Ashok earned the following incomes during FY 202324:
Particulars Amount (₹)
Salary Income 10,00,000
Investment in PPF 1,50,000
Health Insurance Premium Paid 25,000
Education Loan Interest Paid 40,000
Compute the taxable income for A.Y. 202425 after claiming deductions under Chapter VIA.
Question 5 (18 Marks)
(a) Define Presumptive Taxation under the Income Tax Act, 1961. Discuss the provisions of Section
44AD for businesses and Section 44ADA for professionals. Highlight the eligibility criteria and conditions.
(b) Mr. Ajay runs a small retail business with total turnover of ₹50,00,000 in FY 202324. He also works
parttime as a consultant earning ₹8,00,000 annually. Compute his taxable income for A.Y. 202425 under
the presumptive taxation scheme.
OR
Question 5A
(a) What is SetOff and Carry Forward of Losses? Explain the rules governing interhead and intrahead
adjustments of losses under the Income Tax Act, 1961.
(b) During FY 202324, Mr. Prakash incurred the following losses:
Loss Type Amount (₹)
Loss from house property 2,50,000
Shortterm capital loss 1,20,000
Speculative business loss 50,000
Compute the treatment of these losses for A.Y. 202425, mentioning the carryforward rules where
applicable.
Reference
Question 1:
Refer to ICAI Study Material, Chapter 2: Residential Status and Scope of Total Income,
Pages 2.3–2.10.
Question 2:
Refer to ICAI Study Material, Chapter 4: Income from House Property, Pages 4.15–4.20 for
selfoccupied and letout property computations.
Question 3:
Refer to ICAI Study Material, Chapter 5: Capital Gains, Pages 5.8–5.12 for the definition,
types of gains, and applicable exemptions under Sections 54, 54F, and 54EC.
Question 3A:
Refer to ICAI Study Material, Chapter 5: Capital Gains, Pages 5.40–5.45 for longterm capital
gain computation, including indexed cost and Section 112 tax rates.
Question 4:
Refer to ICAI Study Material, Chapter 6: Deductions from Gross Total Income, Pages 6.2–
6.8 for Section 80C investments and limits.
Question 4A:
Refer to ICAI Study Material, Chapter 7: SetOff and Carry Forward of Losses, Pages 7.3–
7.12 for interhead and intrahead loss adjustments and carryforward rules.
Question 5:
Refer to ICAI Study Material, Chapter 8: Presumptive Taxation, Pages 8.5–8.10 for Sections
44AD and 44ADA eligibility and computation methods.
Question 5A:
Refer to ICAI Study Material, Chapter 9: Income from Other Sources, Pages 9.10–9.18 for
specific incomes and deductions under Sections 57 and 58.