Wednesday, November 13, 2013

                                                    CA IPCC Tax Paper Nov.2013
Solution by Prudential Classes, Indore (CA. Manish Dafria)
Q No.
Particulars
Answer
Imp. Points/Assumptions
Q.1 (a)
Total  Income  
235750
     i.      Gift recd. not taxable being less then Rs. 50000.
   ii.      No depreciation.
 iii.      No deduction for Municipal Taxes as no payment by assessee.
iv.      Minor income clubbed Rs. 8500
  v.      Chap. VI-A Deduction- 80DD Rs. 1,00,000 80E Rs. 10000
Q.1  (b)
Tax Payable
148320

Assumptions :
     i.      “Other Receipts”  are against taxable services.
   ii.      No other services provided prior to March 13 and as such  Rs. 10,00,000 exemption is available against taxable services of March 13.
 iii.      Education cess given in Question is 1% but taken as 2% since as per law it is 2%.
Q.1 ( c)
Net  VAT Liability 
10752

Q.2(a)
Net Income
41352
        i.            G.A.V. Rs. 1,08,000.
      ii.            No deduction for Light & Water Charges, Insurance Charges and Painting Expenses
Q2 (c)   
Excess Credit C.F.
(-)15000


Q.3 (a)

Salary Chargeable To Tax
546166.3
Basic Salary 302500, DA 45375, Bonus 41250. PF Taxable 20872.50, Tel. Allowance Taxable 12000. House Perq. Taxable @15% 60168.75. Medical Reimb. Taxable 25000. House Keeper 24000. Car  - : 36600 - (1800 x12)=  15000

Gift voucher not taxable as less then Rs. 5000.

Assumption :  Value of free lunch does not exceed Rs. 50 per meal

Q.4 (a)
Long Term Capital Gains  Chargeable
1248000

LTC Gain  from Land 1348000 (after indexation)
STC Loss from house  -100000
Q.4 (b)


                 i.            Interest taxable under Income From Other Sources 48000 (50% deduction is allowed)
               ii.            Rent for Agri. Land for movies shooting- taxable under Income From Other Sources –Rs. 72000
Q.4 ( c)


                 i.              Yes
               ii.            Yes
Q. 5 (b)
Depreciation
10.1 lacs
No additional dep. Allowed on Colombo plant as it is a 2nd hand plant.
Add. Dep. Allowed on computer as installed in generation wing.


Q.5  ( c)



Value of taxable service – 58 lacs
Tax payable – 7,16,880.

e-filing of return – mandatory for all.

Assumption: Amounts are exclusive of service tax
Q.6 (a)
Total Income
283000

Plot capital gains is Short Term hence no indexation.
All dividends are exempt (assumed to be from Indian company)
80C deduction Rs. 100000 for House Loan repayment.

Q 7  (b)

Business Income
2. 8 Lacs
Ded. For SEZ income – Rs. 12 Lacs.

For detail solution of any question, you may mail to  naeemshake@gmail.com or pru.class@gmail.comCall   9826046463

No comments:

Post a Comment