PVS (Prashant V Shah)

– Authorized Education Provider of FPSB Ltd. (CFP Coaching and Study Material)

  • Join 790 other followers

  • Contact for Coaching and Study Material

    Prashant V Shah
    Ahmedabad.

    Ph: 92274 08080

    Email: pvs.cfp@gmail.com

  • Content Under Updation

    Tax Planning and Estate Planning

  • Next Batch

    Weekend Batch: October 2020
    Saturday: 5 pm to 9 pm
    Sunday: 9 am to 1.30 pm
    Fees: Rs.60,000

    Weekday Batch: September 2020
    Monday to Friday: 3 pm to 6 pm
    Fees: Rs.60,000

    Duration: 8 months

    Legacy Program Coaching also Available.

  • Blog Stats

    • 736,361 hits
  • Link to FPSB India

Archive for April, 2012

Important questions for Tax Planning and Estate Planning – CFP

Posted by Prashant Shah on April 20, 2012

No.

Question

Chapter

1

Pramod redeemed entire units of debt oriented mutual fund on 31 December 2011 at Rs 22.16. He originally purchased 3500 units at Rs 18.27 during 2007-08 .He received dividends of 18% 20% 18% 17% in this period. He reinvested the same by Rs 19.15, Rs 20.06, Rs 21.11, Rs 21.81 at last business day of November 08 to 11.Compute his taxable income for this transaction. CII 07-08 551, 08-09 582, 09-10 632, 10-11 711, 11-12 785.

  • Solution:
 

div%

opening

amt

units

cost of acq

Nov-08

18

3500

6300

328.981723

19.15

Nov-09

20

3828.981723

7657.963446

381.752914

20.06

Nov-10

18

4210.734637

7579.322346

359.039429

21.11

Nov-11

17

4569.774066

7768.615912

356.195136

21.81

 

units

sale consi

indexed cost

gain/loss

 

3500

77560

91101.31579

-13541.316

long term

328.981723

7290.234987

8497.42268

-1207.1877

long term

381.752914

8459.644565

9511.869154

-1052.2246

long term

359.039429

7956.313747

8368.168835

-411.85509

long term

356.195136

7893.284209

7768.615912

124.668298

short term

         
 

taxable income

124.668298

short

     

-16212.583

long

Hence, LTCL=16,212 and STCG = 125

Capital Gains

2

Xavier aged 37 was awarded a car of market value 4.5 lakh by his credit card company in a draw on 27 sep 2011. The company did not deduct any TDS. Xavier has a total income of Rs 7.85lakhs in PY 11-12. He saved Rs 1.5 lakh under different investment instruments eligible for exemption in 80 (c) and Rs 18k was paid by him on 5 January 12 towards health insurance policy. Find his tax liability for 12-13

  • (a)  202980
  • (b)   193640
  • (c)    206410
  • (d)   157980

Solution:

  • For financial year 2011-12 there is not cess applicable on TDS apart for TDS on salary payments.
  • Hence, 1,35,000 is the tax (@30% on gross value) on the car as it covered under the definition of lottery.
  • Other taxable income is 6,70,000 (i.e. 7,85,000-1,00,000-15000)
  • Tax on the same is 66,000+cess
  • Hence the tax amount = 135,000+67,980 = 2,02,980
  • And answer is A
IFOS

3

Father purchases residential house for Rs 7 lakh on 28 sep 86. He dies on 21 mar 09 and his son inherited the property. On this date the fair mkt value of property is Rs 36 lakh. His son sold the property on 25 June 11 and received a net consideration of Rs 25 lakh. Determine nature and amount of capital gains earned by son? CII 81-87 140 , 08-09 582 , 11-12 785Solution:

  • Section 49 is applicable here.
  • Sale consideration = 25,00,000
  • Indexed cost of acq = 7,00,000 * (785/582) = 9,44,158
  • LTCG= 15,55,842

CG

4

Mr. Paresh earned income from other sources Rs 30 and LTCG of Rs 70k by selling house. For 11-12 he invested Rs 80k in ELSS of MF. Compute his net total income.

  • (a)   30k
  • (b)   20k
  • (c)   70k
  • (d)   1 lakh

Reason: Deduction U/S 80 C to 80 U cannot be availed in case of LTCG and STCG

CG

5

Mr. Malav purchases house property in 81-82 for Rs 3 lakh and sold for 34 lakh on 14 may 11. He purchased new house on 28 June 11 for Rs 10 lakh. Calculate LTCG? CII 81-82 100 and 11-12 785

Solution:

  1. Sale consideration = 34,00,000
  2. Indexed cost of acq = 23,55,000
  3. LTCG = 10,45,000
  4. Deduction u/s 54 = 10,00,000
  5. Taxable LTCG = 45,000

CG

6

Mamta age 63 is having income from other sources 4,50,000 and Agriculture income of 50,000. Calculate tax on income (ignore cess).

Solution:

Total income i.e. 4,50,000+50,000=5,00,000

Tax = 25,000 – 5000 = 20,000

AI 

7

Which of the value of asset attract Wealth tax?

  • (a)   20 Lakh
  • (b)   25 Lakh
  • (c)   30 Lakh
  • (d)  45 Lakh

Reason: Wealth tax applies when the net assets exceed 30L

WT

8

Mr A owns a let out property in Delhi whose net annual value is Rs 100000. The interest paid on loan of the property is Rs 30000. Calculate income from house property?

  • (a)    NIL
  • (b)   1,00,000
  • (c)   40,000
  • (d)   70,000

Solution:

The answer of the question looks like 1,00,000-30,000=70,000. But thats not right.

The correct solution is,

  1. NAV    = 1,00,000
  2. less: SD 30% = 30,000
  3. less: Interest   = 30,000
  4. Hence, the income from HP is 40,000

HP

 These are the questioned which have been asked by visitors of the site. I have no ownership of any of the question stated above.

Posted in Practise Questions, Tax Planning | 362 Comments »

Are CFPs made for investment management?

Posted by Prashant Shah on April 18, 2012

Dear All,

Recently I had a meet with many of the brokers, Mutual fund and Insurance agents. While discussing about CFP as career qualification and as a need of future, I came across interesting feedback.

Almost everybody has the same understanding about CFP and were in the opinion that, they have been doing the same job of investment planning from the years, hence they showed less interest in understanding the actual science of financial planning.

So I would also like to know your opinion on the same. Are CFPs ment only for investment planning in real life (not in books). What is the real role of a CFP in our country. How can the qualification be promoted?

As it has been observed that many of the CFPs are involved only in investment planning and earn commissions or brokerage and have not started charging clients. Lets discuss the same in the comments.

Prashant V Shah.

Posted in CFP | 4 Comments »