1. Purchased agricultural land(Agra city) in 1986-87 ( self-cultivated ) Rs.60,000
2. Sold the land on 10.8.2014 for Rs.7,00,000
3. Invested in purchase of a house on 10.9.2014 Rs.2,00,000
4. Purchased another piece of agricultural land on 10.10.2014. Rs.1,50,000.
5. CII = 1986-87 = 140, he does not own any other house.

a. Rs.11,000 , 10% Central Government Securities

b. Rs.36,000, 10% Tax-free commercial securities

c. Rs.6,300 received as interest on Tax free public limited company securities (listed)

d. Rs.7,200 received interest on Karnataka Government securities

e. Rs.4,000 received as interest on debentures of Deepak fertilizers (listed)

f. He also received the winnings from Karnataka State Lottery Rs.35,000

1. National Defence Fund Rs.10,000
2. Prime Minister’s National relief fund Rs.1,00,000
3. To Family Planning Association of India Rs.10,000
4. All India Congress Party ( Recognised political party ) Rs.1,00,000
5. University of Allahabad ( Notified as Institute of National Eminence ) Rs.50,000
6. Notified charitable hospital Rs.50,000

He also paid LIC premium of Rs.25,000 on a policy of Rs.2,00,000 which he acquired on 10^th March 2015. Compute his relief in respect of Donations and LIC premium.

a. Package tour to Australia – Rs.30,00,000

b. Package tours to Vaishno Devi – Rs.15,00,000

c. One day package tour to Shimla – Rs.4,00,000

d. Non package tour to Kerala – Rs.4,50,000

e. Hotel booking charges – Rs.1,00,000

f. Touring to American Embassy , New Delhi – Rs.50,000

g. One day non package tour to Naina Devi – Rs.70,000

1. Shares sold for Rs.1,50,000 on 20.12.2014. these were purchased in Sept.1994 for Rs.40,000
2. Sale of listed Debentures for Rs.20,000 on 31.1.2015. these were purchased in June 93 for Rs.30,000
3. Sale of Residential House. It was inherited from his father in June 1979. It was built at a cost of Rs.1,00,000 by his father in 1975. Additions were made by him at a cost of Rs.50,000 in May 1992. Its Fair market value as on 1.4.1981 was Rs.1,80,000. Alterations and additions were made in March 2001 at a cost of Rs.40,000. This property was sold for Rs.28 lakhs in June 2014. The selling expenses were Rs.20,000 on brokerage. He purchased another residential house for Rs.2,50,000 in December 2014.

Compute his taxable gain for the A.Y 2015-16 if CII for 1981-82=100, 1992-93=223, 2000-01=406, 1993-94=244, 1994-95=259 and 2014-15=1024.

a. Salary Rs.15,600 p.m. from Vaishnav College.

b. He is the author of a text book which fetched him a gross royalty of Rs.20,000 in lump-sum and which in consideration of the transfer of copyright. He claims the following deductions from the amount:

-Salary to a clerk who collected for him necessary data and goes through the final proof reading Rs.3,000

-Purchased books worth Rs.400 in connection with the revision of the book

-Telephone expenses of Rs.1,600 attributed to the publication and sale of his book and other matters in connection with the printing of the new edition of the book

c. Income from articles which were published in Yojna Rs.4,000

d. He lives in a rented house paying rent @ Rs.3,000 p.m. he has sublet 1/3 portion of the house on a rent of Rs.1,500 p.m. Dr.P has undertaken the liability of paying municipal taxes of Rs.5,400 on the whole house and also current repairs of the whole house amounting to Rs.6,000

e. Dr.P received Rs.60 per lecture delivered at Ambedkar institute during the previous year. He delivered 20 lectures.

f. He is an examiner in university. This source gave him a remuneration of Rs.2,600. He incurred Rs.60 on postage etc. in connection with the examination work which were reimbursed by the university. He received Rs.400 as remuneration for invigilation work in the university examinations.

f.  His other incomes were

–          Wins from card games and betting Rs.6500

–          Wins from chess Rs.1,000

–          Received interest on Govt. of Nepal Bonds Rs.1,500

g.      Received Rs.2,000 as dividend from an Indian Co in which the public is substantially interested.

h. Income from agricultural land situated at Bangladesh Rs.7,000

i. Rs.800 p.m. scholarship received for research work from UGC.

Salary income Rs.8,60,000

House property income ( computed ) Rs.40,000

Winning from lottery Rs.1,00,000

Profit on sale of shares (STT) ( short term ) –Rs.90,000

Long term capital gain on sale of plot Rs.2,20,000

1. Rs.14,000 ( Rs.8,000 by cheque and RS.6,000 by cash) to General Insurance Corporation under Mediclaim. He also paid by cheque Rs.18,000 for medical insurance of his parents.
2. 20,000 to ICICI PRU Insurance Pension Fund
3. Rs.40,000 to a hospital for treatment of his minor son who is suffering from a notified chronic ailment
4. RS.6,000 p.m. paid as rent of a house at Delhi. He does not own any other house.
5. Rs.10,000 to a scientific research association
6. Mr.Rane’s son is studying in a reputed management college and he took a loan of Rs.3,00,000 @ 10%p.a. from a Nationalised bank. He repaid RS.50000 which includes interest for that year.
7. He contributed to Provident Fund Rs.1,000 p.m.
8. LIC premium Rs.20,000 p.a. on a policy value of Rs.1,50,000. Policy acquired in 2008.
9. He is also medically handicapped person and has been duly certified by the Govt. doctor.
10. Repayment of house loan taken from LIC for residential house Rs.4,000 p.m. including Rs.1,000 p.m. as interest.

b. How do you determine the Due date of Payment of Service Tax and Point of taxation?

c. Find out POT and Due date. Date of completion of service: June 12^th 2015, Date of Invoice: June 21^st 2015, Date of receipt of payment: 10^th July 2015.

SECTION – D

a.      Income from house property (computed) Rs.26,200.

b.      He is a property linker and during the previous year earned an income of Rs.1,50,000 by way of commission.

c.       He had purchased a plot in Delhi for construction of house in October , 2001 ( CII – 426 ) for Rs.80,000. He sold this plot for Rs.3,10,000 during the previous year 2014-15 ( CII – 1024 ) and incurred the following expenses on transfer of the plot:

Advertising Rs.2,220

Brokerage Rs.10,000

d.     The interest on fixed deposit in a bank during the previous year amounted to Rs.18,400 . He earned during the previous year Rs.20,000 as prize money on Maharashtra State Lottery ticket. The cost of ticket was RS.500.

He deposited Rs.3,000 in his PPF account during the year and gave the following donations.

i.        To a Technology Development and Application Fund Rs.1,000

ii.     To a political Party ( registered ) Rs.1,000

iii.   To Rajiv Gandhi Foundation Rs.2,000

You are required to:

1. Classify these incomes under different heads provided in Income tax act 1961
2. Compute his GTI and Total income
3. Determine tax liability for the AY 2015-16.