Income tax Mock Test Series for CA Inter May 2022 30 Marks (Time :- 45 min)

TAXATION MOCK TEST NO – 9

CA- INTER MAY 22 ATTEMPT
Chapters Covered:- Income under the head Capital Gains, Taxation of Gifts, Clubbing of
Income and Set-off & Carry Forward of Losses

Total Marks:- 30
Targeted time to complete:- 45 minutes for attempting and 5 minutes for reading the paper

Remember:- The best stage to make mistakes is during Preparation, so that only 1 thing is
left during exams – Perfection..!!!

Instructions for the Test

1) Similar to ICAI patter, we have divided this test into 2 parts – Part A for MCQ Questions and
Part B for Descriptive types Questions.
2) In case of MCQ questions, there is no need for any explanation whereas in case of
Descriptive questions, all working notes are required to be given as part of answer.
3) Students can take necessary assumptions wherever required but these are to be specifically
mentioned by the students in their answer.

Part – A:- MCQ Type Questions

Write the most appropriate answer to each of the following multiple-choice questions by choosing
one of the four options given. (ICAI will provide OMR sheet but here in this test you can write the
correct answer in your sheet)

Mr Akshaya Biyani celebrated his 26th birthday on 15th May 2021 and arranged a grand party at
Radisson Blu hotel. On this occasion, he invited his friends, blood relatives and distant relatives to
attend the party. The ceremony was very grand, the feast was also very spectacular. All the
arrangements and decorations were absolutely wonderful. At the end of party, Mr Akshaya was
awarded by following gifts:-
Gifts received from Type of Gift Remarks
Mother One 22K Gold Chain She purchased on the same day for Rs. 37,822
Father One 22K Gold Bracelet He purchased on the same day for Rs 56,075
Wife 4 Gold Rings She purchased these rings on 15.5.2020 for Rs
35,500 each. FMV on 15th May 2021 is Rs
37,429 each.
Sister Painting This painting is made by her. FMV is Rs
45,000
Cousin Brother (Father’s One Gold Chain He purchased it on the same day for Rs
Brother’s Son) 18,200.
Closest Cousins I-20 Car Value of Rs. 4,10,000
(mother’s sister’s
sons/daughters)
Friends and other distant Cash Rs. 1,51,000
relatives

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Income tax Mock Test Series for CA Inter May 2022 30 Marks (Time :- 45 min)

Mr Akshaya desires to set up a new manufacturing unit with his friend in partnership on 1.12.2021.
For making investment in the firm, he sold following jewellery which he has received on his 26th
birthday celebration as gifts:
• Mother's gifted Gold Chain for Rs 42,150
• Father's gifted Gold Bracelet for Rs 60,180
• Cousin brother's gifted Gold Chain for Rs 20,600

His wife gave him Rs 1 lakh as a gift so that he could invest sufficient money in the unit.
On 1st December 2021, he invested Rs 6,00,000 (including the amount received on sale of above
gifts and amount received from his wife) and his friend invested Rs 4,00,000 in the firm.

On 1st February 2022, his wife again gave him Rs 1 lakh as a gift to invest such money in the firm
and apart from that he invested Rs 50,000 more from his individual savings. On this day, his friend
also invested Rs 1,00,000 in the firm.

Since the firm is a manufacturing unit and at initial stage, the firm requires sufficient fund so Mr
Akshaya sold his wife's gifted Gold Rings for Rs 40,250 each as on 31st March 2022 and he
deployed the funds as partner's capital in the firm on 1 st April, 2022.

Based on the facts of the case scenario given above, choose the most appropriate answer to the
following questions:

Q1) What is the gift amount taxable in the hands of Mr Akshaya for PY 2021-22?
a) Rs 1,51,000
b) Rs 1,69,200
c) Rs 5,79,200
d) Rs 5,61,000 (2 Marks)

Q2) What is the amount of capital gain taxable in the hand of Mr Akshaya for PY 2021-22?
a) Short-term capital gains Rs 10,833
b) Short-term capital gains Rs 29,833
c) Short-term capital gains Rs 15,583
d) No, capital gains is taxable in his hands, since he received the capital assets as gift. (2 Marks)

Q3) Is any amount taxable in the hands of Akshaya's wife in respect of sale of jewellery by Mr
Akshaya, if yes, what shall be the taxable amount in her hands for PY 2021-22?
a) No
b) Yes; Rs 15,284
c) Yes; Rs 19,000
d) Yes; Rs 11,284 (2 Marks)

Q4) During AY 2022-23, Mr Kabir has a loss of Rs 6 lakhs under the head "Income from house
property", loss of Rs 5 lakhs from business/profession and income of Rs 3 lakhs from long term
capital gains. He filed his return of income for AY 2022-23 on 31.12.2022.

Determine the total income of Mr Kabir for AY 2022-23 and the amount of loss which can be carried
forward in a manner most beneficial to him; (2 Marks)

a) Total income Nil; loss of Rs 4,00,000 from house property and loss of Rs 4,00,000 from business
or profession. ,

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Income tax Mock Test Series for CA Inter May 2022 30 Marks (Time :- 45 min)

b) Total income Rs 1,00,000; loss of Rs 4,00,000 from house property.

c) Total income Nil; No loss is allowed to be carried forward.
d) Total income Nil; loss of Rs 6,00,000 from house property

Q5) Mr Rana is a resident of India residing in Meerut. During FY 2010-11, he purchased an

agricultural land situated in Bahadurpur for Rs 10 lacs: This. land is situated in an area which has
aerial distance of 3 km from the local limits of Municipality of Bahadurpur. Total population of this
area is 80,000 as per the last preceding census.

During FY 2021-22, Mr Rana sold this land to Mr Jeet for Rs 25 lacs on 29.1.2022. Mr Rana
invested Rs 5 lakhs in bonds of NHAI on 31.7.2022. CII for FY 2010-11 and FY 2021-22 is 167 and
317 respectively. Compute the amount of capital gain taxable in the hands of Mr Rana for AY 2022-
23: ·
a) Rs 1,01,796
b) Rs 6,01,796
c) Rs 15,00,000
d) None of the above (2 Marks)

Part B:- Descriptive Type Questions

Q1) Ms. Pooja a resident individual provides the following information of her income/losses for
the year ended on 31st March, 2022:
S. No. Particulars (Rs. )
1. Income from salary (Computed) 2,20,000
2. Income from House Property (let out) (Net Annual Value) 1,50,000
3. Share of loss from firm in which she is partner 10,000
4. Loss from specified business covered under section 35AD 20,000
5. Income from textile business before adjusting the following items: 3,00,000
(a) Current year depreciation 60,000
(b) Unabsorbed depreciation of earlier year 2,25,000
(c) Brought forward loss of textile business of the A.Y. 2018-19 90,000
6. Long-term capital gain on sale of debentures 75,000
7. Long-term capital loss on sale of equity shares (STT not paid) 1,00,000
8. Long-term capital gain on sale of equity shares listed in recognized 1,50,000
stock exchange (STT paid at the time of acquisition and sale)

During the previous year 2021-22, Ms. Pooja has repaid Rs. 5,25,000 towards housing loan from a
scheduled bank. Out of this Rs. 3,16,000 was towards payment of interest and rest towards principal.
Compute the gross total income of Ms. Pooja and ascertain the amount of loss that can be carried
forward assuming she has not opted for Sec 115BC. Ms. Pooja has always filed her return within the
due date specified under section 139(1) of the Income-tax Act, 1961. (8 Marks)

Q2) Mr. Govind purchased 600 shares of "Y" limited at Rs. 130 per share on 26.02.1979. "Y" limited
issued him, 1,200 bonus shares on 20.02.1984. The fair market value of these share at Mumbai Stock
Exchange as on 1.04.2001 was Rs. 900 per share and Rs. 2,000 per share as on 31.01.2018. On
31.01.2021 he converted 1000 shares as his stock in trade. The shares was traded at Mumbai Stock
Exchange on that ·date at closing price of Rs. 2,100 per share.

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Income tax Mock Test Series for CA Inter May 2022 30 Marks (Time :- 45 min)

On 07.07.2021 Mr. Govind sold all 1800 shares @Rs. 2,400 per share at Mumbai Stock Exchange
and securities transaction tax was paid. Compute total income of Mr. Govind for the assessment-year
2022-23. (5 Marks)

Q3) Mr. Deepak has a residential house property taxable under section 22. Such property was
acquired on 12-08-2005 for Rs. 2,00,000. The property is sold for Rs. 22,00,000 on 01-06-2021. The
subregistrar refused to register the documents for the said value, as according to him, stamp duty
value based on State Government guidelines was Rs. 28,00,000. Mr. Deepak preferred an appeal to
the revenue divisional officer who fixed the value of the house Rs. 25,00,000. He acquired another
residential house on 31-03-2022 for Rs. 17,00;000 for self-occupation. On 01-03-2023, he sold such
new residential house for Rs. 30,00,000.

Compute his capital gain for the A.Y. 2022-23 and 2023-24. (Cost Inflation Index : 2001-02; 2005-
06 and 2021-2 are, 100; 117 and 317) (4 Marks)

Q4) ) Miss Himanshi (68 years) is a resident individual. During the assessment year 2022-23, she has
income from Long-term capital gain on transfer of equity shares Rs. 1,80,000 (Securities transaction
tax has been paid on acquisition and transfer of the said shares) and income from other sources Rs.
2,75,000. Compute her tax liability for Assessment year 2022-23. (3 Marks)

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