Clubbing of Income

1. From the following information, find out the net income of X, Mrs. X and their minor child Z for the
assessment year 2023-24
a) X owns three houses-
 HOUSE 1 – It is let out on monthly rent of Rs. 10,000. It is transferred for an adequate
consideration to Mrs. X on 1st December, 2022. No capital gain generated
 HOUSE 2 – It is let out on monthly rent of Rs. 15,000. X gifts this house to Mrs. X on 30 th
June, 2022
 HOUSE 3 – It is self-occupied. X gifts this house to Mrs. X on 1st January 2023. The house
was constructed out of money borrowed on 1 st June, 1998 and the interest liability for
the previous year 2022-23 is Rs.48,000.
b) On 1 January 1996, X transfers 1,000, 14 per cent debentures of Rs.100 each of A Ltd. without
st

any consideration to Mrs. X (interest is annually payable on 31st December). Out of

accumulated debenture interest, Mrs. X gives a loan to a friend and during 2022-23 she gets a
sum of Rs. 5,600 as interest.
c) On 10th January 2023, 1000 debentures of A Ltd. are transferred by Mrs. X (capital gain Rs.
40,000 which is used for purchasing kitchen appliances) and the sale proceeds (i.e. Rs.
100,000) are invested in Government Bonds (term 2 years) and during the period ending 31 st
March 2023, she gets interest of Rs. 16,000.
d) Mrs. X holds 25 per cent equity shares in B Ltd. On 31 st May 2022, she gets Rs. 35,800 as
dividend.
e) X is employed by B Ltd. without any technical or professional qualification on salary of
Rs.17,000 per month.
f) X and Mrs. X are partners in a firm (other partners being C, D and E). Z is admitted to the
benefits of the firm. During 2022-23, the following payments are received from the firm
PARTICULARS X Mrs. X Z
(Rs.) (Rs.) (Rs.)
Share of Profit 60,000 90,000 20,000
Interest on Capital (Mrs. X has invested half of her capital out of 70,000 80,000 26,000
gifts made by X)
Salary of working partner 15,000 20,000 -
g) During 2017-18, Mrs. X transfers a sum of Rs. 2 lacs to a trust subject to the condition that the
trust will annually pay Rs. 5,000 to X and Rs. 6,000 to her father-in-law.
h) X holds 20 per cent preference share capital in D Ltd. (dividend of Rs. 80,000 is received on
16th January 2023) where Mrs. X is employed (salary being Rs. 30,000 per month). Mrs. X does
not have any professional qualification.
i) Z, the minor son, holds debentures of Tata Sons which are purchased on 20 th September, 2022
out of the monetary gift of Rs. 4,00,000 given to Z by X’s friend in foreign currency on 4th
September 2022. During the year 2022-23, Z gets Rs. 20,000 as interest on debentures.
j) Z is a professional singer. His income from the profession of singing is Rs. 45,000 for the
previous year 2022-23.
 k) Out of the accumulated income from singing, Z makes a fixed deposit with SBI and interest of
Rs. 10,000 is received during 2022-23.

Set-Off & Carry Forward of Losses

2. X, an individual, submits the following information relevant for the assessment year 2023-24:
PARTICULARS PROFIT LOSS
(Rs.) (Rs.)
Salary income after standard deductions 1,42,000
Income from house property (after standard deductions)
 HOUSE A 1,15,000
 HOUSE B 1,17,000
 HOUSE C 3,21,000
Profits and Gains of business or profession
 Business A 1,08,000
 Business B 1,18,000
 Business C (speculative) 1,11,000
 Business D (speculative) 1,23,000
Capital Gains
 STCG 1,06,000
 STCL 1,28,000
 LTCG on sale of building 12,500
Income from Other Sources
 Income from card games 1,08,000
 Loss from card games 1,07,010
 Loss on maintenance of race horses 1,06,000
 Interest on securities 1,04,000
Determine the net income of X for the assessment year 2023-24. Ignore Sec.115BAC

Advance Payment of Tax

3. From the following particulars submitted by Rupam (36 years), ascertain the advance tax payable
during the financial year 2022-23.
Particulars Income Tax deduction
by payer
Salary 4,30,000 6,000
Rent @ Rs.20,000 per month 2,40,000 24,000
LTCG on sale of unlisted shares on 1st June 2022 1,25,000 -
Winning from a TV game show 10,000 3,000
Winning from lottery 5,00,000 1,50,000
Winning from races 50,000 15,000
Bank interest (fixed deposit) 80,000 8,000
Dividend from Indian Companies 70,000 -
Agricultural Income in India 85,000 -
Rupam has contributed Rs. 13,600 towards recognised provident fund and eligible for deduction
of Rs. 2,20,000 under section 80G. All winnings are received prior to 15 th June 2022. Ignore
Sec.115BAC