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Capital Gains and Tax Calculations Guide

The document presents four questions related to taxation and capital gains calculations involving various scenarios, including property sales, pension taxation, rental income, and gratuity exemptions. Each question requires the calculation of taxable amounts based on provided financial details. The scenarios involve different individuals and their financial transactions, emphasizing the application of tax laws.

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meenakshi.j3814
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4 views1 page

Capital Gains and Tax Calculations Guide

The document presents four questions related to taxation and capital gains calculations involving various scenarios, including property sales, pension taxation, rental income, and gratuity exemptions. Each question requires the calculation of taxable amounts based on provided financial details. The scenarios involve different individuals and their financial transactions, emphasizing the application of tax laws.

Uploaded by

meenakshi.j3814
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Question 1

points
X purchases a house property for Rs. 26,000 on May 10, 1982. He gets the first floor
of the house constructed in 1987-88 by spending Rs. 40,000. He dies on September
12, 1998. The property is transferred to Mrs. X by his will. Mrs. X spends Rs. 30,000
and Rs. 26,700 during 1999-2000 and 2005-06 respectively for rennovation of the
property. Mrs. X sells the house property for Rs. 21,50,000 on March 15, 2019
(brokerage paid by Mrs. X is Rs. 11,500). The fair market value of the house on April
1, 2001 is Rs. 1,60,000. Calculate the amount of Capital Gain.
Students can use the editor to answer
Question 2
3

points
Z retires from ABC Co. on June 30, 2020. He gets pension of Rs. 20,000 per month
upto January 31, 2019. With effect from Februaray 1, 2019, he gets 60 percent of
pension commuted for Rs. 10,71,000. Calculate the amount of pension taxable for
the assessment year 2019-20
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Question 3
3

points
X owns a residential property in Chennai. It is let out to A. Ltd. rent being Rs. 40,000
per month. Municipal Value of the property is Rs. 2,20,000, fair rent is Rs. 4,80,000.
A Ltd. pays municipal tax. On April 7, 2020, rent is increased from Rs. 40,000 to Rs,
45,000 per month with retrospective effect from April 1, 2017. X gets Rs. 60,000
being arrears of rent for the financial year 2017-18 on April 20, 2020. Find out the
net income of X for the Assessment Year 2020-21 on the assumption that his income
from other sources is Rs. 5,00,000.
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Question 4
3

points
X, an employee of PQ Co. Ltd. receives Rs. 78,000 as gratuity. He is covered by the
Payment of Gratuity Act, 1972. He retires on December 12, 2018 after rendering
service of 38 years and 8 months. At the time of retirement, his monthly basic salary
and dearness allowance was Rs. 2,400 and Rs. 800 respectively. Is the entire amount
of gratuity exempt from tax?
Students can use the editor to answer

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