Income tax

Assignment 1
Moksha A Sanghvi(19SJCCB223)

My father Mr. Ram T Kapoor is a 42 year old entrepreneur and I have chosen him to be my first tax payer.

Assesse: Mr. Ram Tejraj Kapoor

Residential status: Resident and ordinary resident (ROR)

1. Different sources of income of assesse Mr. Ram T Kapoor for PY 2019-20

Different heads of income Amount

Income from salaries nil
Income from house property Rs 10,11,050
Profits and gains of business or profession Rs 10,93,600
Capital gains nil
Income from other sources Rs 3,58,093.64

a. Income from salary [section 15-17]- the assesse is not entitled to any income under the head income from
salaries for PY 2019-20.
b. Income from house property [section 22-27]- The assesse is entitled to a rental income of Rs 10,11,050
per annum.
c. Profits and gains of business and profession [ section 28-44DB]- The assesse had a profit of Rs 10,93,600
from his business in the PY 2019-20
d. Capital gains [section 45-55 A]- The assesse is not entitled to any income under the head income from
capital gains for PY 2019-20.
e. Income from other sources [section 56-59]- The assesse is entitled to interest income of Rs. 2,79,462 from
M/s Kapoor Steel Syndicate, Rs. 21,838.64 from bank interest, Rs. 43,302 from account interest on PPF and
Rs.13,491interest on Sukanya post for PY 2019-2020.

2. Details of tax deductions availed/ utilized by the assesse Mr. Ram T Kapoor u/s 80 and/or any
income exempt u/s 10-

Tax deductions availed/ utilized by the tax payer u/s 80-

o Under section 80C stamp duty and registration charges of a house property can be claimed as a
deduction. An amount of Rs. 24,236 was paid by the tax payer as property tax and hence is
completely deductible as per the IT act.
o A standard deduction of 30% on NAV is allowed as a deduction from the NAV under section 24 of
income tax. Hence an amount of Rs. 2,96,044.2 is deductible from the head ‘income from house
property’ as standard deduction as per IT act.
o Section 80D states that a person can claim a deduction (up to Rs 25,000) for the health insurance
premium and expense incurred towards preventive health check- up for self, spouse, dependent
children and parents. An amount of Rs. 25,189 was spent by the tax payer for medical insurance but
only Rs 25,000 is deductible as per IT act.
o LIC premium payments, deposits made under the Sukanya Samriddhi Yojana scheme and PPF
provides income tax deduction under section 80C for the amount invested (subject to the limit of Rs
1.5 lakh a year). An amount of Rs. 1,30,081 was paid by the taxpayer for LIC, Rs 35,000 is deposited
in the Sukanya scheme and an amount of Rs 50,000 paid by the tax payer for PPF. The total of the
three amounts to Rs 2,15,081 but only 1,50,000 is deductible under income tax act.
o Under section 80TTA of the income tax act the interest earned on a savings bank account with a
commercial bank or co-operative bank or a post office can be claimed as a deduction of up to Rs
10,000. An amount of Rs 21,838.64 received by the assesse as interest but only Rs 10,000 is
deductible as per IT act.
Tax exemptions availed/utilized by the tax payer under section 10-

o The Sukanya Samriddhi Yojana enjoys exempt status under the Income-tax Act, 1961. The interest
earned on the deposits and the maturity amount is exempted from tax. Interest on PPF also qualifies
for exception under section 10. And hence a total of Rs 56,793 is exempt from tax.

3. Tax deductible at source on sale of property-

 Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013,
Tax @ 1% or 0.75% should be deducted (depending upon the Date of Payment/Credit to the Seller)
by the purchaser of the property at the time of making payment of sale consideration. An amount of
Rs 1,80,152 should be paid by the assesse on the purchase of property.

4. Taxes paid by the assesse-

The tax liability of Mr. Ram T Kapoor under section 288B amounts to Rs 2,89,929. In addition to this the
taxpayers are liable to pay 4% health and education cess on the direct income tax. Hence the assesse has to
pay 4% of Rs 2,89,929 which amounts to Rs 11,597.16 as health and education cess.

Net tax payable Rs 2,89,929

Add: health and education cess 4% Rs 11,597.16
Total Rs 3,01,526.16
Less: TDS Rs 1,80,152
Total tax liability 288B Rs 1,34,779.16
Round off 1,34,780

The taxpayer has adopted different measures to reduce tax by investing in PPF, Sukanya post, LIC, savings
account and medical insurance. These measures have helped the assesse by substantially decreasing the
taxable income. The assesse Ram T Kapoor takes professional help to file taxes.

1. Different sources of income of assesse Mr. Ram T Kapoor for PY 2020-21

Different heads of income Amount

Income from salaries Nil
Income from house property Rs 8,60,100
Profits and gains of business or profession Rs 9,60,750
Capital gains Nil
Income from other sources Rs 3,33,056.67

a. Income from salary [section 15-17]- the assesse is not entitled to any income under the head income from
salaries for PY 2020-21.
b. Income from house property [section 22-27]- The assesse is entitled to a rental income of Rs 8,60,100 per
annum.
c. Profits and gains of business and profession [ section 28-44DB]- The assesse had a profit of Rs 9,60,750
from his business in the PY 2020-21
d. Capital gains [section 45-55 A]- The assesse is not entitled to any income under the head income from
capital gains for PY 2020-21.
e. Income from other sources [section 56-59]- The assesse is entitled to interest income of Rs. 2,79,160 from
M/s Kapoor Steel Syndicate, Rs. 9,607.66 from bank interest, Rs. 34,470 from account interest on PPF and
Rs.9,819 interest on Sukanya post for PY 2020-21.

2. Details of tax deductions availed/ utilized by the assesse Mr. Ram T Kapoor u/s 80 and/or any
income exempt u/s 10-

Tax deductions availed/ utilized by the tax payer u/s 80-

 o Under section 80C stamp duty and registration charges of a house property can be claimed as a
deduction. An amount of Rs. 24,236 was paid by the tax payer as property tax and hence is
completely deductible as per the IT act.
o A standard deduction of 30% on NAV is allowed as a deduction from the NAV under section 24 of
income tax. Hence an amount of Rs. 2,50,759.2 is deductible from the head ‘income from house
property’ as standard deduction as per IT act.
o Section 80D states that a person can claim a deduction (up to Rs 25,000) for the health insurance
premium and expense incurred towards preventive health check- up for self, spouse, dependent
children and parents. An amount of Rs. 19,152 was spent by the tax payer for medical insurance and
the entire amount is deductible as per income tax act.
o LIC premium payments, deposits made under the Sukanya Samriddhi Yojana scheme and PPF
provides income tax deduction under section 80C for the amount invested (subject to the limit of Rs
1.5 lakh a year). An amount of Rs. 1,30,081 was paid by the taxpayer for LIC, Rs 35,000 is deposited
in the Sukanya scheme and an amount of Rs 70,000 paid by the tax payer for PPF. The total of the
three amounts to Rs 2,35,081 but only 1,50,000 is deductible under income tax act.
o Under section 80TTA of the income tax act the interest earned on a savings bank account with a
commercial bank or co-operative bank or a post office can be claimed as a deduction of up to Rs
10,000. An amount of Rs 9,607.66 and the entire amount is deductible under IT tax act.

Tax exemptions availed/utilized by the tax payer under section 10-

o The Sukanya Samriddhi Yojana enjoys exempt status under the Income-tax Act, 1961. The interest
earned on the deposits and the maturity amount is exempted from tax. Interest on PPF also qualifies
for exception under section 10. And hence a total of Rs 44,289 is exempt from tax.

3. Tax deductible at source on sale of property-

 Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013,
Tax @ 1% or 0.75% should be deducted (depending upon the Date of Payment/Credit to the Seller)
by the purchaser of the property at the time of making payment of sale consideration. An amount of
Rs 1,14,354 should be paid by the assesse on the purchase of property.

4. Taxes paid by the assesse-

The tax liability of Mr. Ram T Kapoor under section 288B amounts to Rs 2,20,098. In addition to this the
taxpayers are liable to pay 4% health and education cess on the direct income tax. Hence the assesse has to
pay 4% of Rs 2,20,098 which amounts to Rs 8,803.92 as health and education cess.

Net tax payable Rs 2,20,098

Add: health and education cess 4% Rs 8,803.92
Total Rs 2,28,901.92
Less: advance tax Rs 1,00,000
Less: TDS Rs 1,14,354
Refundable Rs 14,547.92

The taxpayer has adopted different measures to reduce tax by investing in PPF, Sukanya post, LIC, savings
account and medical insurance. These measures have helped the assesse by substantially decreasing the
taxable income. The assesse Ram T Kapoor takes professional help to file taxes.

1. Different sources of income of assesse Mr. Ram T Kapoor for PY 2021-22(part year)(estimated)

Different heads of income Amount

Income from salaries Nil
Income from house property Rs 5,05,525
Profits and gains of business or profession Rs 5,46,800
Capital gains Nil
 Income from other sources Rs 1,79,046.82

a. Income from salary [section 15-17]- the assesse is not entitled to any income under the head income from
salaries for PY 2021-22 part year.
b. Income from house property [section 22-27]- The assesse is entitled to a rental income of Rs 5,05,525 per
annum.
c. Profits and gains of business and profession [ section 28-44DB]- The assesse had a profit of Rs 5,46,800
from his business in the PY 2021-22 part year.
d. Capital gains [section 45-55 A]- The assesse is not entitled to any income under the head income from
capital gains for PY 2021-22 part year.
e. Income from other sources [section 56-59]- The assesse is entitled to interest income of Rs. 1,39,731 from
M/s Kapoor Steel Syndicate, Rs. 10,919.32 from bank interest, Rs. 21,651 from account interest on PPF and
Rs.6,745.5 interest on Sukanya post for PY 2021-22 part year.

2. Details of tax deductions availed/ utilized by the assesse Mr. Ram T Kapoor u/s 80 and/or any
income exempt u/s 10-

Tax deductions the tax payer might avail or utilize u/s 80-

o Under section 80C stamp duty and registration charges of a house property can be claimed as a
deduction.
o A standard deduction of 30% on NAV is allowed as a deduction from the NAV under section 24 of
income tax.
o Section 80D states that a person can claim a deduction (up to Rs 25,000 part year) for the health
insurance premium and expense incurred towards preventive health check- up for self, spouse,
dependent children and parents.
o LIC premium payments, deposits made under the Sukanya Samriddhi Yojana scheme and PPF
provides income tax deduction under section 80C for the amount invested (subject to the limit of Rs
1,50,000 part year).
o Under section 80TTA of the income tax act the interest earned on a savings bank account with a
commercial bank or co-operative bank or a post office can be claimed as a deduction of up to Rs
10,000.

Tax exemptions the tax payer might avail/utilize under section 10-

o The Sukanya Samriddhi Yojana enjoys exempt status under the Income-tax Act, 1961. The interest
earned on the deposits and the maturity amount is exempted from tax. Interest on PPF also qualifies
for exception under section 10. Since during the previous year the tax payer has availed the
following exceptions.

The taxpayer might adopt different measures to reduce tax like investing in PPF, Sukanya post, LIC, savings
account and medical insurance. These measures will help the assesse to substantially decrease the taxable
income. The assesse Ram T Kapoor will take professional help to file taxes.

My mother Mrs. Priya Kapoor is a 40 year old home maker and I have chosen her to be my second tax
payer.

Assesse: Mrs. Priya Ram Kapoor

Residential status: Resident and ordinary resident (ROR)

1. Different sources of income of assesse Mrs. Priya Ram Kapoor for PY 2019-20

Different heads of income Amount

Income from salaries nil
 Income from house property nil
Profits and gains of business or profession nil
Capital gains nil
Income from other sources Rs 8,56,536

a. Income from salary [section 15-17]- the assesse is not entitled to any income under the head income from
salaries for PY 2019-20.
b. Income from house property [section 22-27]- The assesse is not entitled to any income under the head
income from house property for PY 2019-20
c. Profits and gains of business and profession [ section 28-44DB]- The assesse is not entitled to any income
under the head profits and gains of business and profession for PY 2019-20
d. Capital gains [section 45-55 A]- The assesse is not entitled to any income under the head income from
capital gains for PY 2019-20.
e. Income from other sources [section 56-59]- The assesse is entitled to bank interest of Rs. 26,754, interest
income of Rs 21,369 from Kapoor Steel Syndicate, interest income of Rs 62,612 from mannat steel, Rs.
19,979 from account interest on PPF, Rs.13,491interest on Sukanya post, Rs 1,750 interest on IT refund, Rs
7,01,953 miscellaneous income and Rs 8,628 from profit on goods sold.

2. Details of tax deductions availed/ utilized by the assesse Mrs. Priya Ram Kapoor u/s 80 and/or any
income exempt u/s 10-

Tax deductions availed/ utilized by the tax payer u/s 80-

o LIC premium payments, deposits made under the Sukanya Samriddhi Yojana scheme and PPF
provides income tax deduction under section 80C for the amount invested (subject to the limit of Rs
1.5 lakh a year). An amount of Rs. 55,673 was paid by the taxpayer for LIC, Rs 35,000 is deposited
in the Sukanya scheme and an amount of Rs 60,000 paid by the tax payer for PPF. The total of the
three amounts to Rs 1,50,673 but only 1,50,000 is deductible under income tax act.
o Under section 80TTA of the income tax act the interest earned on a savings bank account with a
commercial bank or co-operative bank or a post office can be claimed as a deduction of up to Rs
10,000. An amount of Rs 26,754 received by the assesse as interest but only Rs 10,000 is deductible
as per IT act.

Tax exemptions availed/utilized by the tax payer under section 10-

o The Sukanya Samriddhi Yojana enjoys exempt status under the Income-tax Act, 1961. The interest
earned on the deposits and the maturity amount is exempted from tax. Interest on PPF also qualifies
for exception under section 10. And hence a total of Rs 33,470 is exempt from tax.

3. Tax deductible at source on sale of property-

 Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013,
Tax @ 1% or 0.75% should be deducted (depending upon the Date of Payment/Credit to the Seller)
by the purchaser of the property at the time of making payment of sale consideration. An amount of
Rs 47,078 should be paid by the assesse on the purchase of property.

4. Taxes paid by the assesse-

The tax liability of Mrs. Priya Ram Kapoor under section 288B amounts to Rs 45,114. In addition to this the
taxpayers are liable to pay 4% health and education cess on the direct income tax. Hence the assesse has to
pay 4% of Rs 45,114 which amounts to Rs 1804.56 as health and education cess.

Net tax payable Rs 45,114

Add: health and education cess 4% Rs 1804.56
Total Rs 46,918.56
 Less: TDS Rs 47,078
Total tax liability 288B Rs 159.44
Round off 160

The taxpayer has adopted different measures to reduce tax by investing in PPF, Sukanya post, LIC and
savings account. These measures have helped the assesse by substantially decreasing the taxable income.
The assesse Priya Ram Kapoor takes professional help to file taxes.

1. Different sources of income of assesse Mrs. Priya Ram Kapoor for PY 2020-21

Different heads of income Amount

Income from salaries nil
Income from house property nil
Profits and gains of business or profession nil
Capital gains nil
Income from other sources Rs 7,31,138.79

a. Income from salary [section 15-17]- the assesse is not entitled to any income under the head income from
salaries for PY 2020-21.
b. Income from house property [section 22-27]- The assesse is not entitled to any income under the head
income from house property for PY 2020-21
c. Profits and gains of business and profession [ section 28-44DB]- The assesse is not entitled to any income
under the head profits and gains of business and profession for PY 2020-21
d. Capital gains [section 45-55 A]- The assesse is not entitled to any income under the head income from
capital gains for PY 2020-21.
e. Income from other sources [section 56-59]- The assesse is entitled to bank interest of Rs. 4973, interest
income of Rs 70,109 from Kapoor Steel Syndicate, interest income of Rs 1,70,409 from mannat steel, Rs.
14,572 from account interest on PPF, Rs 3,71,018 miscellaneous income, Rs 54,402 interest income from
advance trading co. and Rs 45,574.79 from profit on goods sold.

2. Details of tax deductions availed/ utilized by the assesse Mrs. Priya Ram Kapoor u/s 80 and/or any
income exempt u/s 10-

Tax deductions availed/ utilized by the tax payer u/s 80-

o LIC premium payments, deposits made under the Sukanya Samriddhi Yojana scheme and PPF
provides income tax deduction under section 80C for the amount invested (subject to the limit of Rs
1.5 lakh a year). An amount of Rs. 55,673 was paid by the taxpayer for LIC, Rs 35,000 is deposited
in the Sukanya scheme and an amount of Rs 50,000 paid by the tax payer for PPF. The total of the
three amounts to Rs 1,40,673 and the total amount is deductible as per IT act.
o Under section 80TTA of the income tax act the interest earned on a savings bank account with a
commercial bank or co-operative bank or a post office can be claimed as a deduction of up to Rs
10,000. An amount of Rs 4,973 is completely deductible under the income tax act.

Tax exemptions availed/utilized by the tax payer under section 10-

o The Sukanya Samriddhi Yojana enjoys exempt status under the Income-tax Act, 1961. The interest
earned on the deposits and the maturity amount is exempted from tax. Interest on PPF also qualifies
for exception under section 10. And hence a total of Rs 14,572 is exempt from tax.

3. Tax deductible at source on sale of property-

 Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013,
Tax @ 1% or 0.75% should be deducted (depending upon the Date of Payment/Credit to the Seller)
 by the purchaser of the property at the time of making payment of sale consideration. An amount of
Rs 29,500 should be paid by the assesse on the purchase of property.

4. Taxes paid by the assesse-

The tax liability of Mrs. PriyaRam Kapoor under section 288B amounts to Rs 26,684. In addition to this the
taxpayers are liable to pay 4% health and education cess on the direct income tax. Hence the assesse has to
pay 4% of Rs 26,684 which amounts to Rs 1067.36 as health and education cess.

Net tax payable Rs 26,684

Add: health and education cess 4% Rs 1067.36
Total Rs 27,751.36
Less: TDS Rs 29,500
Total tax liability 288B Rs 1748.64
Round off 1750

The taxpayer has adopted different measures to reduce tax by investing in PPF, Sukanya post, LIC and
savings account. These measures have helped the assesse by substantially decreasing the taxable income.
The assesse PriyaRam Kapoor takes professional help to file taxes.

1. Different sources of income of assesse Mrs. PriyaRam Kapoor for PY 2021-22 part year (estimated)

Different heads of income Amount

Income from salaries nil
Income from house property nil
Profits and gains of business or profession nil
Capital gains nil
Income from other sources Rs 4,28,268

a. Income from salary [section 15-17]- the assesse is not entitled to any income under the head income from
salaries for PY 2021-22 part year.
b. Income from house property [section 22-27]- The assesse is not entitled to any income under the head
income from house property for PY 2021-22 part year.
c. Profits and gains of business and profession [ section 28-44DB]- The assesse is not entitled to any income
under the head profits and gains of business and profession for PY 2021-22 part year.
d. Capital gains [section 45-55 A]- The assesse is not entitled to any income under the head income from
capital gains for PY 2021-22 part year.
e. Income from other sources [section 56-59]- The assesse is entitled to bank interest of Rs. 13,377, interest
income of Rs 10,684.5 from Kapoor Steel Syndicate, interest income of Rs 31,306 from mannat steel, Rs.
9,989.5 from account interest on PPF, Rs. 6,745.5 interest on Sukanya post, Rs 875 interest on IT refund, Rs
3,50,976.5 miscellaneous income and Rs 4,314 from profit on goods sold.

2. Details of tax deductions availed/ utilized by the assesse Mrs. PriyaRam Kapoor u/s 80 and/or any
income exempt u/s 10-

Tax deductions the tax payer might avail/ utilize u/s 80-

o LIC premium payments, deposits made under the Sukanya Samriddhi Yojana scheme and PPF
provides income tax deduction under section 80C for the amount invested (subject to the limit of Rs
1.5 lakh a year).
o Under section 80TTA of the income tax act the interest earned on a savings bank account with a
commercial bank or co-operative bank or a post office can be claimed as a deduction of up to Rs
10,000.
Tax exemptions the tax payer might avail/utilize under section 10-
 o The Sukanya Samriddhi Yojana enjoys exempt status under the Income-tax Act, 1961. The interest
earned on the deposits and the maturity amount is exempted from tax. Interest on PPF also qualifies
for exception under section 10.

The taxpayer might adopt different measures to reduce tax by investing in PPF, Sukanya post, LIC and
savings account. These measures will help the assesse to substantially decrease the taxable income. The
assesse PriyaRam Kapoor will take professional help to file taxes.