Income Tax - Practic aure

Illustration:
ithe previous 1- Shri Hari
year Gopal is a member of parliament from Pune.I
1.As a member of 2022-23 he had the following incomes:
allowance
2.He
of parliament
Rs.4,00,000 for heattending
receivedvarious
a salarysessions.
of Rs.50,000 p.m.& Duing
held the
a) 10% following
b) 2,000Preference Sharesininvestments.
Pune rWorks Ltd., ofthe face value of RS.
Sugar
Equity
Clared &paid
c) 10% fixed
shares ofat Rs.10 each in Tata Finlay Ltd. The:
a dividend 159% on 15th February, 2025.
deposite of Rs.20,00,000 with Indian Banks.Interest is
1,00,000.de.
company
annually. d)He
socicreedityte.d
3.He won Rs.8000 received
in dividend of Rs. 1000 from a co-operative
4.On- 1 September, 2015 crossword puzzles. a plot of land for
he purchased
house.On let
and hence account constrConst
of shortage of funds, he could not get this house
uctinrugcted
his
out the plot at Rs.3000 PM. form 1
5.He has let machinery and
furniture and also
November, 2022.
at a monthly rent building
of Rs. 10,000 .He spent Rs.3000 on the to Mr.Krishna
ery, furniture and building
during the
Gopal
repair of machin
6.He received Rs.1,00,000 from previous year.
to COVID-19 government on medical treatement relateA
The Bank charged Rs.400 as
from various commission on collection of dividend:
under the headcompan1es.Compute
Income from Other
the taxable income of Shri Hari GoDa So
Mr. Hari Gopal, has exercised the newSources'. So
Solution : taxation regime ws 115 BAC
2023-24 Computation of taxable income of Shrí Hari Gopal for the A.!.
Income from other sources
Rs. : Rs
1.Salary as Member of Parliament (50,000 X 12) 6,00,00
2.Daily allowance (Taxable w.e.f. 1/4/2020) Les
4,00,000
3.Dividend on preference shares (Taxable w.e.f.1/4/20) 10,000
4.Final Dividend on equity shares (15 % on (2000 x10) 3,000
5.Dividend from co-operative society (No T.D.S.) 1,000
6.Interest on Fixed Deposite 2,00,000
7.Winning from crossword puzzles fully taxable 8,000
8.Income from plot of land for 5 months 15,000
9.Rental income from machinery ,furniture & building 1,20,000
10.Receipt from government on COVID treatement
exempted
Less : Admissible 13.57,000
i)Bank commission onexpenses
:
collection of dividend(Note.3) Nl
N
ii)Standard Deduction (Repairs & Dep.) (Note 4) 60.000 60,000
12,97,000
Income from other sources Exenp
Note : 1.Winning from Basic
allowed w.e.f.crossword
tion is not puzzles is casual income, 15BAC
A.Y. 2003-04. optionus 11
2. Daily allowance for attending
sessions is not exempted it
 machincurred 35.840 84,000 'In-
50,000
40,000
ofparticulars
exams.
of 34,400 15,000 1S.000
69,000
15,000
head
other
letting
Rs
particulars from2012) an
3,00,000P.A. Royalty 2023-24.
W.e.f. M.B.A. 10,4% Islands the 84,000 if 1,80,000 for
Noexpenditure Income following
available charges
taxable
ofallowei. endunder
Dweep term BAC Rs. 18,000
Rs. collecting
way and following @ Y.
source
income
(@
31.2% Pramanik Shrilanka-
by other D.TL.
is
head
(M.com not 115the Rs. collection A.
the
Laksha 100/68.8) 2023. Rs.5,20,000
as
of
are earned allowed.
w.e.f.
1/4/2010.
building at the :35,840
100/89.6
x is u/s submits of and for
sources'BAC
the 2023-24 Island) rent
ipanies any deducted
source under Mrs. (iia)
regime company-earning
àre
not incomeor M.Com.
allowed you in 2023-24.
Sources 15,000 57 4,00,000
March in
situated a: PM.
P.M. Paid
residential! 115
insurance
without 2022-23 situated x individual, on 1000.
submits at of A.Y. 34,400 Dweep u/s taxation 60,000 9,800
taxdeducted incomeincome Salary
parliament-
taken
house a) for u/s
of for Rs. pension 31st gn expenses:
foreign Rs. other
50% or
problems
after
year aDeposits
land Year the lottery(Gross:-
or income(Laksha Rs land Rs.
M.P.- Rs.
been
paid1 option
deoreciation, Pramanik Fixed
with fron of for
outAssessment
Computation
deposits
fixed pension family
ended
newresident quarry-
from
house-
3,000 from
at
furniture previoustax sources' sources hasat a the
Standard, as esAdvanced
find
deduction let from
be
e)
repaishallr, Mrs.
after income
Pensi
Familyon
Problem Paticulars: Agricultural
to
required other-
from less
of
pension
Family
S.D.:1/3rd
is other
whichever
for
for a
option
year 1
2:Netai,
Deduction the
income
)Royalty
from
stone member
followingincome
a as sub Rs.Sub-Let
Allowancereceived PAU.
Daily been b)
RS.S00 M.Comn
exercis
2010)
Epenseand 1-
the
torDComes
on.
aterest
Löttery
al
the
for from on
Llnterest
are .Solution 1Income
4.Agricu<tural
from the
for
ncome
GAerCiDlerm
sed
Agricultural
which
he
has
incurred
on
Netaj's
Divident ExpenseS
not
apute bas
he You Come Less: hcome Note- S)His Heiidend Neaij
4 IS 6,
 Computation of income of Mr. Netaji under the head
Solution:
from other sources' for the A.Y.
1. Incomne from Royalty
2023-24
(stone quarry) 4,00,000 Incoe
Less - colletion charges Shrilanka -8,000 392,
2. Agricultural income in
3. Salary as M.P.
4. Daily allownace as M.P. (fully exempted)
5.Income from subletting 50% portion (Rent received)
(9800x 12) 1,17,600
Less-50% of Rent paid Rs. 1,80,000+ Expenses Rs.1000 91,000 266
6. Dividend from a foreign company 18,000
less - collection charges 500
1750
Income from other sources
Important Questions 12,56,10
1.Discuss the scope of the 'Income from other sources'.State the dod.
tions allowable.
2.Give at least 10 examples of Income chargeable to tax under the he
Income from other sources'
3.Write short notes on:
a)lnterest on securities.
b)Methods of Accounting.
c)Deductions allowed from 'income from other sources.
d)Kinds of securities.
e) Gift in cash or kind.