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Question for Tax Planning

Posted by Prashant Shah on May 11, 2016

Let’s solve following questions. Some of the questions have been there in exams

Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% , 25%,20%,15%. while they are assessable respectively in tax slab on 10% 20% 20% 30%. beneficiary in 10% tax slab has income from trust only. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year:

  1. 123750,
  2. 75000,
  3. 148750,
  4. 114750.

Your client age 40 has a self occupied and 2nd house with combine market value of rs. 1.20 cr .combined outstanding loan on properties is 65 lacs. he also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd @ 10% of rs. 1.5lacs maturing 2 years from now and saving account balance of rs 40000. endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term cover is 15 lacs. he has employee benefits currently value rs. 39 lacs in exigency life. you estimate value is :

  1. 10140000,
  2. 15574650,
  3. 16264650,
  4. 22746500

A management college professor retired from her service on 1st March 2013 at the age of 60 years. She had accumulated a balance of Rs. 1.25 Crore in her retirement account. She also received gratuity from the college under the Payment of Gratuity Act. She commuted the tax exempt value of her retirement fund. The rest of the amount was utilized by her college to buy her a 25-year fixed annuity deferred by a year and paid annually thereafter. If the effective yield from such annuity product were 7.5% p a., and she is willing to save the maximum permissible amounts under Section 80C and 80D, what tax liability do you estimate for her for AY2015-16?

Mr. A purchased 1,000 shares of an unlisted company at Rs. 983 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,400 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)

Mr. A redeemed the entire units of a debt oriented Mutual Fund on 31st December 2013 at Rs. 22.16 per unit. He originally purchased 3,500 units at a price of Rs. 17.47 per unit under dividend reinvestment option on 4th December 2010. He received dividends of 20%, 18%, 17% in this period on his outstanding units which were reinvested respectively at NAVs of Rs. 19.43, Rs. 20.91, Rs. 22.61 in the month of November in the years 2011 to 2013. What is the tax treatment of these transactions for AY2015-16. (Cost inflation index for 2010-11: 711; 2011-12: 785; 2012-13: 852; 2015-16 :1024)

A person taken home loan and education loan ,he paid 30000 as principal 13000 as interest against home loan and 18000 as principal and 8000 as interest against education loan ,what would be deduction u/s 80C and 80 E ?
An assesse lives his parent from 1/august/2013 he takes a rent accommodation for this he is paying 10000 pm his basic salary is 240000 and HRA received by him 2500 pm ,what is his taxable HRA

RCF is trading @ rs 50. it pays dividend of rs 3.5. dividend growth is projected @ 5% & required rate of return is 12%. find value of stock & ascertain whether it is undervalued or overvalued?
A. stock value rs 52.5/ undervalued
B. stock value rs 58.3/undervalued
c. stock value rs 38.3/ overvalued
D. stock value rs 45.2/ undervalued

A house property in Kolkata having a municipal value of rs 5lac, fair rental= 6lac was intended to let out to tenants. Unfortunately during PY there was no tenant for this house property. Municipal tax is rs 5000 ( of which rs 1200 is payable) Interest paid on loan taken for purchase of property is rs 179000. what is d income from h/p ?
(a) loss of 153500
(b) income of 153500
(c) loss of 182500
(d) nil

The average inflation over the last three years is 5.5 % p.a. You invested Rs. 4 lakh in a security 8 years ago which you have redeemed for Rs. 8 lakh. What real return have you obtained from investment?
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 […]

your client age 40 has a self occupied and 2nd house with combine market value of rs. 1.20 cr .combined outstanding loan on properties is 65 lacs. he also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd @ 10% of rs. 1.5lacs maturing 2 years from now and saving account balance of rs 40000. endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term cover is 15 lacs. he has employee benefits currently value rs. 39 lacs in exigency life. you estimate value is : 10140000, 15574650,16264650,22746500

A person taken home loan and education loan ,he paid 30000 as principal 13000 as interest against home loan and 18000 as principal and 8000 as interest against education loan ,what would be deduction u/s 80C and 80 E ?

Couple of more questions which I have been suggested by many readers are:

Mrs. Took a car loan of Rs 8lakhs @12%pa 3 yrs ago, personal loan of Rs 3lakhs @18%pa 4 year ago. Two more years remaining in the tenure of both the loans. She gets wind fall of Rs 6lakhs. She asks you whether to invest this in bank fixed deposit @9%pa for 2 years or repay the loan. You advise her to repay both loans and invest the amount of EMI’s systematically every month in a tax efficient market. You estimate return @ 8-10%pa. Her revised net worth lower tax incidence after 2 yrs. Her net worth would be between?
a) Rs 32,000 to 40,000
b) Rs 37,000 to 52,000
c) Rs 28,000 to 41,000
d) Rs 73,000 to 91,000

Solution:
Car loan: PV= 8,00,000 N=60 I/Y=1 PMT=? THEN FIND BALANCE AFTER 36 MONTHS OF REPAYMENT
PL: PV=3,00,000 N=72 I/1.5 PMT=? THEN FIND BALANCE AFTER 36 MONTHS OF REPAYMENT

TOTAL O/S LOAN BALANCE WHICH SHOULD BE 5,15,092.
NOW REPAY LOAN AND INVEST REMAINING AMOUNT WITH A PMT OF 24,637
TOTAL ACCUMULATION IS 7,38,502
NOT SO CLEAR ABOUT ‘Her revised net worth lower tax incidence after 2 yrs’

HENCE SOLUTION REMAINS HALF!

Mr. A is about to retire in 2yrs has a short fall of Rs. 80,00,000 in his corpus. On retirement is will be getting pension of Rs. 8,000/- p.m. He has a land and a house at his native place. He has no plans to shift to his native place. The building repairs is required which will cost him Rs. 7,00,000/- after which he would get rent of Rs. 5,000/- p.m on the said property. The land would be able to generate Rs. 30,00,000 currently with tax incidence of 12% and transaction charge if sold today. What is your suggestion as his financial planner. (4 Marks)
Sell the Land and repair the building.
Sell the property as it would recover the cost in 10 years which is not recommended at this stage.
Save Rs. 8,000/- pre retirement & Rs. 5,000/- post retirement for ___ yrs and rent out the building

 

Please do not panic. Solutions will be provided soon and please don’t write your mail address in any comment. (Strictly No for that)

83 Responses to “Question for Tax Planning”

  1. nirav navadiya said

    Sir can you please mail me their solutions i have my exam on 2nd june

  2. nirav navadiya said

    9)Mrs. Took a car loan of Rs 8lakhs @12%pa 3 yrs ago, personal loan of Rs 3lakhs @18%pa 4 year ago. Two more years remaining in the tenure of both the loans. She gets wind fall of Rs 6lakhs. She asks you whether to invest this in band fixed deposit @9%pa for 2 yrs. You advise her to repay both loans and invest the amount of EMI’s systematically every month in a tax efficient market. You estimate return @ 8-10%pa. Her revised net worth lower tax incidence after 2 yrs. Her net worth would be between?
    a) Rs 32,000 to 40,000
    b) Rs 37,000 to 52,000
    c) Rs 28,000 to 41,000
    d) Rs 73,000 to 91,000

    Mr. A is about to retire in 2yrs has a short fall of Rs. 80,00,000 in his corpus. On retirement is will be getting pension of Rs. 8,000/- p.m. He has a land and a house at his native place. He has no plans to shift to his native place. The building repairs is required which will cost him Rs. 7,00,000/- after which he would get rent of Rs. 5,000/- p.m on the said property. The land would be able to generate Rs. 30,00,000 currently with tax incidence of 12% and transaction charge if sold today. What is your suggestion as his financial planner. (4 Marks)
    Sell the Land and repair the building.
    Sell the property as it would recover the cost in 10 years which is not recommended at this stage.
    Save Rs. 8,000/- pre retirement & Rs. 5,000/- post retirement for ___ yrs and rent out the building

    The 4th option is incomplete …these questions were asked twice in exam and im unable to solve these problem pls help me sir.

  3. nirav navadiya said

    Rahul I have m exam on 2nd june 2016 of tax planning and estate planning

  4. Surya said

    I tried to solve these questions. Kindly suggest the correct answer or rectify the errors.

    Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% , 25%,20%,15%. while they are assessable respectively in tax slab on 10% 20% 20% 30%. beneficiary in 10% tax slab has income from trust only. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year: 123750,75000,148750,114750.

    Beneficiary A Beneficiary B Beneficiary C Beneficiary D Trust Total Income
    Shares of Beneficiaries 40% 25% 20% 15% 850,000.00 0-250000 Nil
    Tax Slab Category 10% 20% 20% 30% 250000-500000 10% 25000
    Income Increase from PY – 80,000.00 – – – 500000-1000000 20% 100000
    Other Sources 0 – – – – 10000000 Above 30% 125000
    Income Distribution by Trust 340,000.00 212,500.00 170,000.00 127,500.00 850,000.00 1,000,000.00
    Total Income 340,000.00 292,500.00 170,000.00 127,500.00 850,000.00
    Tax Liability 9,000.00 4,250.00 Nil Nil 13,250.00
    Education Cess@3% 9,270.00 4,377.50 Nil Nil 13,647.50
    3%

    Your client age 40 has a self occupied and 2nd house with combine market value of rs. 1.20 cr .combined outstanding loan on properties is 65 lacs. he also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd @ 10% of rs. 1.5lacs maturing 2 years from now and saving account balance of rs 40000. endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term cover is 15 lacs. he has employee benefits currently value rs. 39 lacs in exigency life. you estimate value is : 10140000, 15574650,16264650,22746500

    Assets & Receviable on Persoanl A/c Rs. Assets & Receivable on Employee A/c Rs.
    Combined Value of 2 Houses 12,000,000.00 Employee Benefits Value 3,900,000.00
    Combined Outstanding Loans (6,500,000.00) 10140000 15574650
    Investments 4,000,000.00 6,106,500.00 22746500
    Bullions Value 450,000.00 671,850.00
    Tax Saving FD@10% 150,000.00 181,500.00 18,150.00 (6,500,000.00)
    Saving A/c Balance 40,000.00
    Edowment Policy Value 675,000.00 22,746,500.00
    Term Cover 1,500,000.00
    Total Value 12,346,500.00 3,900,000.00
    Client Estate 16,246,500.00

    A management college professor retired from her service on 1st March 2013 at the age of 60 years. She had accumulated a balance of Rs. 1.25 Crore in her retirement account. She also received gratuity from the college under the Payment of Gratuity Act. She commuted 1/3rd the tax exempt value of her retirement fund. The rest of the amount was utilized by her college to buy her a 25-year fixed annuity deferred by a year and paid annually thereafter. If the effective yield from such annuity product were 7.5% p a., and she is willing to save the maximum permissible amounts under Section 80C and 80D, what tax liability do you estimate for her for AY2015-16?

    Funds Under Retirement 12,500,000.00 Tax Liability 38,517.79
    Tax Exempted 4,166,666.67 Education Cess 1,155.53
    Remaing Funds to Buy Annuity 8,333,333.33 Total Tax Liability 39,673.32
    Tenure of Annuity Product 25.00
    Effective Yield 7.50%
    Annual Payment 747,588.93
    Maximum Deductible Eligibile (80C And 80D) 180,000.00
    Total Taxable Income 567,588.93
    Mr. A purchased 1,000 shares of an unlisted company at Rs. 983 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,400 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)

    Price Quantity Price (Rs) Indexed Cost of Acquistion
    Cost of Acquisition of Unlisted Shares on 25th April 2007 983,000.00 1,000 983.00 1,662,715.06
    Company Alloted Right Shares on 18th Jan2010 1/2 500 245.00 180,648.73 122,500.00
    Company Got Listed on 1st March 2013 Indexation Gain/Loss
    Mr. A sold shares on 1st Feb.2014 Off-Market (1,975,000.00) (1,000) 1,975.00 3,637,715.06
    Mr. A sold shares on 1st Feb.2014 Off-Market (790,000.00) (400) 1,975.00 970,648.73
    Balance 100 4,608,363.80

    A person taken home loan and education loan ,he paid 30000 as principal 13000 as interest against home loan and 18000 as principal and 8000 as interest against education loan ,what would be deduction u/s 80C and 80 E ?

    Principal Interest
    Home Loan 30,000.00 13,000.00
    Education Loan 18,000.00 8,000.00
    As Per u/s 80C Eligible Ded. No limit on principal Repayment
    As Per u/s 80E Eligible Ded. No limit on Interest Paid
    Hence Deduction allowed u/s 80C & 80D 30000 8000

    An assesse lives with his parent from 1/august/2015 he takes a rent accommodation for this he is paying 10000/pm, his basic salary is 240000 and HRA received by him 5500/pm ,what is his taxable HRA

    1-Aug-15 Montly Annually
    Rent 10,000.00 120,000.00
    Basic Salary 240,000.00
    HRA 5,500.00 66,000.00
    Eligible Deduction 60,000.00
    Taxable HRA 500.00 6,000.00

    RCF is trading @ rs 50. it pays dividend of rs 3.5. dividend growth is projected @ 5% & required rate of return is 12%. find value of stock & ascertain whether it is undervalued or overvalued?

    A. stock value rs 52.5/ undervalued
    B. stock value rs 58.3/undervalued
    c. stock value rs 38.3/ overvalued
    D. stock value rs 45.2/ undervalued

    Dividend Growth Model
    Dividend 3.5
    Growth Rate 5%
    Required Return 12%
    Value of Share 52.5 Answer (A)
    A house property in Kolkata having a municipal value of rs 5lac, fair rental= 6lac was intended to let out to tenants. Unfortunately during PY there was no tenant for this house property. Municipal tax is rs 5000 ( of which rs 1200 is payable) Interest paid on loan taken for purchase of property is rs 179000. what is d income from h/p ?

    (a) loss of 153500
    (b) income of 153500
    (c) loss of 182500
    (d) nil

    MuncipalValue of House Property 500,000.00
    Fair Rental to tenants 600,000.00 50,000.00
    Muncipal Tax 5,000.00
    Payable Muncipal Tax 1,200.00
    “Total Interest Paid on Purchase
    Purchase Property” 179,000.00
    Income from House Property

    The average inflation over the last three years is 5.5 % p.a. You invested Rs. 4 lakh in a security 8 years ago which you have redeemed for Rs. 8 lakh. What real return have you obtained from investment?

    Inflation Rate 5.50%
    Investment Amount 400000
    Investment Redeemed Amount 800000
    Tenure 8
    Return 9.05%

    Real Return 3.37%

    Mr. Arun invested rs 80000 in debt oriented mutual fund on 31st December 2013 at Rs 15.21 per unit. In the year 2014-2015 under dividend reinvestment option . He received dividend 18 % in 2014 and 20% in 2015 on his outstanding units which were reinvested at NAV of Rs. 17.16, and Rs. 19.10, at the last business day of December. Compute the taxable Income for this transaction if he sold the units in January 2016 at rs 22.15.

    22.15
    Date Invested Amount NAV Allotted Units Dividend /unit Bal. units Sale Consideration Indexed Cost of Acquisition Gain/Loss Term
    31. Dec. 2013 80000 15.21 5259.697567 – 5259.697567 116502.3011 92097.97657 24404.32455 LTCG
    Dec. 2014 9467.455621 17.16 551.716528 1.80 5811.414095 12220.5211 9994.452663 2226.068434 LTCG
    Dec. 2015 11622.82819 19.1 608.5250362 2.00 6419.939132 13478.82955 11622.82819 1856.00136 STCG
    Jan. 2016 22.16 6419.939132 6419.939132 142201.6518

    CII LTCG 26630.39298
    2013-14 939 STCG 1856.00136
    2014-15 1024 Total Gain 28486.39434
    2015-16 1081
    Tax Payable under LTCG 5326.078596 20%with indexation 10%without indexation 6034.56504
    CAGR 33.32% Tax Payable under STCG 278.400204 15%
    Total Tax Payable 5604.4788

    • Ajit GAhlot said

      9)Mrs. Took a car loan of Rs 8lakhs @12%pa 3 yrs ago, personal loan of Rs 3lakhs @18%pa 4 year ago. Two more years remaining in the tenure of both the loans. She gets wind fall of Rs 6lakhs. She asks you whether to invest this in band fixed deposit @9%pa for 2 yrs. You advise her to repay both loans and invest the amount of EMI’s systematically every month in a tax efficient market. You estimate return @ 8-10%pa. Her revised net worth lower tax incidence after 2 yrs. Her net worth would be between?
      a) Rs 32,000 to 40,000
      b) Rs 37,000 to 52,000
      c) Rs 28,000 to 41,000
      d) Rs 73,000 to 91,000

      Mr. A is about to retire in 2yrs has a short fall of Rs. 80,00,000 in his corpus. On retirement is will be getting pension of Rs. 8,000/- p.m. He has a land and a house at his native place. He has no plans to shift to his native place. The building repairs is required which will cost him Rs. 7,00,000/- after which he would get rent of Rs. 5,000/- p.m on the said property. The land would be able to generate Rs. 30,00,000 currently with tax incidence of 12% and transaction charge if sold today. What is your suggestion as his financial planner. (4 Marks)
      Sell the Land and repair the building.
      Sell the property as it would recover the cost in 10 years which is not recommended at this stage.
      Save Rs. 8,000/- pre retirement & Rs. 5,000/- post retirement for ___ yrs and rent out the building

      sir iska sol. snd kro

      • Dear Ajit,
        In the first question something is missing. The sentence ‘Her revised net worth lower tax incidence after 2 yrs’ is not so clear, however I will type half of the solution in the relevant post.

        Same situation with second questions.

        As these are the questions suggested by some of the candidates, they are not full. Even though they were pasted in expectation that the readers will complete these. Which has not happened yet.

        T/R

      • khadar said

        hi sir , plz let me know the answer for the question u posted . MR A is about to retire in 2 years has a shortfall 8000000 in his corpus .

      • Hi,
        I believe the question is not so clear hence answer is not published yet.

    • mj123muskaan said

      Surya can you please helo me withbtax planning exam i have mt exam this week i need your help with the solution that you have posted

  5. Surya said

    Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% , 25%,20%,15%. while they are assessable respectively in tax slab on 10% 20% 20% 30%. beneficiary in 10% tax slab has income from trust only. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year: 123750,75000,148750,114750.

    Beneficiary A Beneficiary B Beneficiary C Beneficiary D Trust Total Income
    Shares of Beneficiaries 40% 25% 20% 15% 850,000.00 0-250000 Nil
    Tax Slab Category 10% 20% 20% 30% 250000-500000 10% 25000
    Income Increase from PY – 80,000.00 – – – 500000-1000000 20% 100000
    Other Sources 0 – – – – 10000000 Above 30% 125000
    Income Distribution by Trust 340,000.00 212,500.00 170,000.00 127,500.00 850,000.00 1,000,000.00
    Total Income 340,000.00 292,500.00 170,000.00 127,500.00 850,000.00
    Tax Liability 9,000.00 4,250.00 Nil Nil 13,250.00
    Education Cess@3% 9,270.00 4,377.50 Nil Nil 13,647.50
    3%

    Your client age 40 has a self occupied and 2nd house with combine market value of rs. 1.20 cr .combined outstanding loan on properties is 65 lacs. he also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd @ 10% of rs. 1.5lacs maturing 2 years from now and saving account balance of rs 40000. endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term cover is 15 lacs. he has employee benefits currently value rs. 39 lacs in exigency life. you estimate value is : 10140000, 15574650,16264650,22746500

    Assets & Receviable on Persoanl A/c Rs. Assets & Receivable on Employee A/c Rs.
    Combined Value of 2 Houses 12,000,000.00 Employee Benefits Value 3,900,000.00
    Combined Outstanding Loans (6,500,000.00) 10140000 15574650
    Investments 4,000,000.00 6,106,500.00 22746500
    Bullions Value 450,000.00 671,850.00
    Tax Saving FD@10% 150,000.00 181,500.00 18,150.00 (6,500,000.00)
    Saving A/c Balance 40,000.00
    Edowment Policy Value 675,000.00 22,746,500.00
    Term Cover 1,500,000.00
    Total Value 12,346,500.00 3,900,000.00
    Client Estate 16,246,500.00

    A management college professor retired from her service on 1st March 2013 at the age of 60 years. She had accumulated a balance of Rs. 1.25 Crore in her retirement account. She also received gratuity from the college under the Payment of Gratuity Act. She commuted 1/3rd the tax exempt value of her retirement fund. The rest of the amount was utilized by her college to buy her a 25-year fixed annuity deferred by a year and paid annually thereafter. If the effective yield from such annuity product were 7.5% p a., and she is willing to save the maximum permissible amounts under Section 80C and 80D, what tax liability do you estimate for her for AY2015-16?

    Funds Under Retirement 12,500,000.00 Tax Liability 38,517.79
    Tax Exempted 4,166,666.67 Education Cess 1,155.53
    Remaing Funds to Buy Annuity 8,333,333.33 Total Tax Liability 39,673.32
    Tenure of Annuity Product 25.00
    Effective Yield 7.50%
    Annual Payment 747,588.93
    Maximum Deductible Eligibile (80C And 80D) 180,000.00
    Total Taxable Income 567,588.93
    Mr. A purchased 1,000 shares of an unlisted company at Rs. 983 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,400 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)

    Price Quantity Price (Rs) Indexed Cost of Acquistion
    Cost of Acquisition of Unlisted Shares on 25th April 2007 983,000.00 1,000 983.00 1,662,715.06
    Company Alloted Right Shares on 18th Jan2010 1/2 500 245.00 180,648.73 122,500.00
    Company Got Listed on 1st March 2013 Indexation Gain/Loss
    Mr. A sold shares on 1st Feb.2014 Off-Market (1,975,000.00) (1,000) 1,975.00 3,637,715.06
    Mr. A sold shares on 1st Feb.2014 Off-Market (790,000.00) (400) 1,975.00 970,648.73
    Balance 100 4,608,363.80

    A person taken home loan and education loan ,he paid 30000 as principal 13000 as interest against home loan and 18000 as principal and 8000 as interest against education loan ,what would be deduction u/s 80C and 80 E ?

    Principal Interest
    Home Loan 30,000.00 13,000.00
    Education Loan 18,000.00 8,000.00
    As Per u/s 80C Eligible Ded. No limit on principal Repayment
    As Per u/s 80E Eligible Ded. No limit on Interest Paid
    Hence Deduction allowed u/s 80C & 80D 30000 8000

    An assesse lives with his parent from 1/august/2015 he takes a rent accommodation for this he is paying 10000/pm, his basic salary is 240000 and HRA received by him 5500/pm ,what is his taxable HRA

    1-Aug-15 Montly Annually
    Rent 10,000.00 120,000.00
    Basic Salary 240,000.00
    HRA 5,500.00 66,000.00
    Eligible Deduction 60,000.00
    Taxable HRA 500.00 6,000.00

    RCF is trading @ rs 50. it pays dividend of rs 3.5. dividend growth is projected @ 5% & required rate of return is 12%. find value of stock & ascertain whether it is undervalued or overvalued?

    A. stock value rs 52.5/ undervalued
    B. stock value rs 58.3/undervalued
    c. stock value rs 38.3/ overvalued
    D. stock value rs 45.2/ undervalued

    Dividend Growth Model
    Dividend 3.5
    Growth Rate 5%
    Required Return 12%
    Value of Share 52.5 Answer (A)
    A house property in Kolkata having a municipal value of rs 5lac, fair rental= 6lac was intended to let out to tenants. Unfortunately during PY there was no tenant for this house property. Municipal tax is rs 5000 ( of which rs 1200 is payable) Interest paid on loan taken for purchase of property is rs 179000. what is d income from h/p ?

    (a) loss of 153500
    (b) income of 153500
    (c) loss of 182500
    (d) nil

    MuncipalValue of House Property 500,000.00
    Fair Rental to tenants 600,000.00 50,000.00
    Muncipal Tax 5,000.00
    Payable Muncipal Tax 1,200.00
    “Total Interest Paid on Purchase
    Purchase Property” 179,000.00
    Income from House Property

    The average inflation over the last three years is 5.5 % p.a. You invested Rs. 4 lakh in a security 8 years ago which you have redeemed for Rs. 8 lakh. What real return have you obtained from investment?

    Inflation Rate 5.50%
    Investment Amount 400000
    Investment Redeemed Amount 800000
    Tenure 8
    Return 9.05%

    Real Return 3.37%

    Mr. Arun invested rs 80000 in debt oriented mutual fund on 31st December 2013 at Rs 15.21 per unit. In the year 2014-2015 under dividend reinvestment option . He received dividend 18 % in 2014 and 20% in 2015 on his outstanding units which were reinvested at NAV of Rs. 17.16, and Rs. 19.10, at the last business day of December. Compute the taxable Income for this transaction if he sold the units in January 2016 at rs 22.15.

    22.15
    Date Invested Amount NAV Allotted Units Dividend /unit Bal. units Sale Consideration Indexed Cost of Acquisition Gain/Loss Term
    31. Dec. 2013 80000 15.21 5259.697567 – 5259.697567 116502.3011 92097.97657 24404.32455 LTCG
    Dec. 2014 9467.455621 17.16 551.716528 1.80 5811.414095 12220.5211 9994.452663 2226.068434 LTCG
    Dec. 2015 11622.82819 19.1 608.5250362 2.00 6419.939132 13478.82955 11622.82819 1856.00136 STCG
    Jan. 2016 22.16 6419.939132 6419.939132 142201.6518

    CII LTCG 26630.39298
    2013-14 939 STCG 1856.00136
    2014-15 1024 Total Gain 28486.39434
    2015-16 1081
    Tax Payable under LTCG 5326.078596 20%with indexation 10%without indexation 6034.56504
    CAGR 33.32% Tax Payable under STCG 278.400204 15%
    Total Tax Payable 5604.4788

    • Mansi Ghag said

      Hi Surya,
      I just came through ths blog and i gave my exam on 20th Dec 2020, but couldnt pass. But there were these questions in the exam.
      The AY year has changed.
      Kindly help if u have any latest notes of AY 20-21.

  6. Surya said

    Kindly rectify the error of any?

    Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% , 25%,20%,15%. while they are assessable respectively in tax slab on 10% 20% 20% 30%. beneficiary in 10% tax slab has income from trust only. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year: 123750,75000,148750,114750.

    Beneficiary A Beneficiary B Beneficiary C Beneficiary D Trust Total Income
    Shares of Beneficiaries 40% 25% 20% 15% 850,000.00 0-250000 Nil
    Tax Slab Category 10% 20% 20% 30% 250000-500000 10% 25000
    Income Increase from PY – 80,000.00 – – – 500000-1000000 20% 100000
    Other Sources 0 – – – – 10000000 Above 30% 125000
    Income Distribution by Trust 340,000.00 212,500.00 170,000.00 127,500.00 850,000.00 1,000,000.00
    Total Income 340,000.00 292,500.00 170,000.00 127,500.00 850,000.00
    Tax Liability 9,000.00 4,250.00 Nil Nil 13,250.00
    Education Cess@3% 9,270.00 4,377.50 Nil Nil 13,647.50
    3%

    Your client age 40 has a self occupied and 2nd house with combine market value of rs. 1.20 cr .combined outstanding loan on properties is 65 lacs. he also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd @ 10% of rs. 1.5lacs maturing 2 years from now and saving account balance of rs 40000. endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term cover is 15 lacs. he has employee benefits currently value rs. 39 lacs in exigency life. you estimate value is : 10140000, 15574650,16264650,22746500

    Assets & Receviable on Persoanl A/c Rs. Assets & Receivable on Employee A/c Rs.
    Combined Value of 2 Houses 12,000,000.00 Employee Benefits Value 3,900,000.00
    Combined Outstanding Loans (6,500,000.00) 10140000 15574650
    Investments 4,000,000.00 6,106,500.00 22746500
    Bullions Value 450,000.00 671,850.00
    Tax Saving FD@10% 150,000.00 181,500.00 18,150.00 (6,500,000.00)
    Saving A/c Balance 40,000.00
    Edowment Policy Value 675,000.00 22,746,500.00
    Term Cover 1,500,000.00
    Total Value 12,346,500.00 3,900,000.00
    Client Estate 16,246,500.00

    A management college professor retired from her service on 1st March 2013 at the age of 60 years. She had accumulated a balance of Rs. 1.25 Crore in her retirement account. She also received gratuity from the college under the Payment of Gratuity Act. She commuted 1/3rd the tax exempt value of her retirement fund. The rest of the amount was utilized by her college to buy her a 25-year fixed annuity deferred by a year and paid annually thereafter. If the effective yield from such annuity product were 7.5% p a., and she is willing to save the maximum permissible amounts under Section 80C and 80D, what tax liability do you estimate for her for AY2015-16?

    Funds Under Retirement 12,500,000.00 Tax Liability 38,517.79
    Tax Exempted 4,166,666.67 Education Cess 1,155.53
    Remaing Funds to Buy Annuity 8,333,333.33 Total Tax Liability 39,673.32
    Tenure of Annuity Product 25.00
    Effective Yield 7.50%
    Annual Payment 747,588.93
    Maximum Deductible Eligibile (80C And 80D) 180,000.00
    Total Taxable Income 567,588.93
    Mr. A purchased 1,000 shares of an unlisted company at Rs. 983 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,400 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)

    Price Quantity Price (Rs) Indexed Cost of Acquistion
    Cost of Acquisition of Unlisted Shares on 25th April 2007 983,000.00 1,000 983.00 1,662,715.06
    Company Alloted Right Shares on 18th Jan2010 1/2 500 245.00 180,648.73 122,500.00
    Company Got Listed on 1st March 2013 Indexation Gain/Loss
    Mr. A sold shares on 1st Feb.2014 Off-Market (1,975,000.00) (1,000) 1,975.00 3,637,715.06
    Mr. A sold shares on 1st Feb.2014 Off-Market (790,000.00) (400) 1,975.00 970,648.73
    Balance 100 4,608,363.80

    A person taken home loan and education loan ,he paid 30000 as principal 13000 as interest against home loan and 18000 as principal and 8000 as interest against education loan ,what would be deduction u/s 80C and 80 E ?

    Principal Interest
    Home Loan 30,000.00 13,000.00
    Education Loan 18,000.00 8,000.00
    As Per u/s 80C Eligible Ded. No limit on principal Repayment
    As Per u/s 80E Eligible Ded. No limit on Interest Paid
    Hence Deduction allowed u/s 80C & 80D 30000 8000

    An assesse lives with his parent from 1/august/2015 he takes a rent accommodation for this he is paying 10000/pm, his basic salary is 240000 and HRA received by him 5500/pm ,what is his taxable HRA

    1-Aug-15 Montly Annually
    Rent 10,000.00 120,000.00
    Basic Salary 240,000.00
    HRA 5,500.00 66,000.00
    Eligible Deduction 60,000.00
    Taxable HRA 500.00 6,000.00

    RCF is trading @ rs 50. it pays dividend of rs 3.5. dividend growth is projected @ 5% & required rate of return is 12%. find value of stock & ascertain whether it is undervalued or overvalued?

    A. stock value rs 52.5/ undervalued
    B. stock value rs 58.3/undervalued
    c. stock value rs 38.3/ overvalued
    D. stock value rs 45.2/ undervalued

    Dividend Growth Model
    Dividend 3.5
    Growth Rate 5%
    Required Return 12%
    Value of Share 52.5 Answer (A)
    A house property in Kolkata having a municipal value of rs 5lac, fair rental= 6lac was intended to let out to tenants. Unfortunately during PY there was no tenant for this house property. Municipal tax is rs 5000 ( of which rs 1200 is payable) Interest paid on loan taken for purchase of property is rs 179000. what is d income from h/p ?

    (a) loss of 153500
    (b) income of 153500
    (c) loss of 182500
    (d) nil

    MuncipalValue of House Property 500,000.00
    Fair Rental to tenants 600,000.00 50,000.00
    Muncipal Tax 5,000.00
    Payable Muncipal Tax 1,200.00
    “Total Interest Paid on Purchase
    Purchase Property” 179,000.00
    Income from House Property

    The average inflation over the last three years is 5.5 % p.a. You invested Rs. 4 lakh in a security 8 years ago which you have redeemed for Rs. 8 lakh. What real return have you obtained from investment?

    Inflation Rate 5.50%
    Investment Amount 400000
    Investment Redeemed Amount 800000
    Tenure 8
    Return 9.05%

    Real Return 3.37%

    Mr. Arun invested rs 80000 in debt oriented mutual fund on 31st December 2013 at Rs 15.21 per unit. In the year 2014-2015 under dividend reinvestment option . He received dividend 18 % in 2014 and 20% in 2015 on his outstanding units which were reinvested at NAV of Rs. 17.16, and Rs. 19.10, at the last business day of December. Compute the taxable Income for this transaction if he sold the units in January 2016 at rs 22.15.

    22.15
    Date Invested Amount NAV Allotted Units Dividend /unit Bal. units Sale Consideration Indexed Cost of Acquisition Gain/Loss Term
    31. Dec. 2013 80000 15.21 5259.697567 – 5259.697567 116502.3011 92097.97657 24404.32455 LTCG
    Dec. 2014 9467.455621 17.16 551.716528 1.80 5811.414095 12220.5211 9994.452663 2226.068434 LTCG
    Dec. 2015 11622.82819 19.1 608.5250362 2.00 6419.939132 13478.82955 11622.82819 1856.00136 STCG
    Jan. 2016 22.16 6419.939132 6419.939132 142201.6518

    CII LTCG 26630.39298
    2013-14 939 STCG 1856.00136
    2014-15 1024 Total Gain 28486.39434
    2015-16 1081
    Tax Payable under LTCG 5326.078596 20%with indexation 10%without indexation 6034.56504
    CAGR 33.32% Tax Payable under STCG 278.400204 15%
    Total Tax Payable 5604.4788

    • tishti said

      Hello Sir,
      Can you please provide solutions for the above questions?

      • Surya said

        Tishti all the best for it coming exam on 23rd June. And do prepare for income from house property in case of vacant period, capital gain from equity and debt, and MRI residency and tax status in case of selling of Indian land to another NRI.

  7. tishti said

    Hi Surya.. Thanks for your wishes.. I hope i make it..not prepared fully.. Are the above questions important?

    • Surya said

      Tishti above questions are important as similar type of question will come like indexation gain in equity and on house property, trust of two persons and individuals tax slab in case income is from salary amd short term capital gain.

  8. hello everyone
    I have exam 19th july . Please let me know how much estate planning comes and wt apart of above mentioned questions shd be done ?
    Seeking advice .
    thank you

  9. aprajita said

    sir can i get solutions of above question

  10. aprajita said

    can u please provide the solutions and also i want to know kya aise question aate h as they r appearing somehow difficult than workbook of cfp

  11. BK BHANU PRAKASH said

    dear sir,
    kindly provide solutions.. as we need to give exam..

    thank you

  12. ritu said

    dear sir,
    can you please provide the solutions please.

  13. keshav mall said

    please provide with the solutions asap

  14. Rashmi said

    Prashant sir , kindly provide the solutions please sir. Do the needful.

  15. Rashmi said

    Ok sir. Thanks. I have solved few sums. First sum.i got answer 122055. Nearest to answer but don’t get exact answer. Sir last question not able to solve. Give some hint for last & 2nd question..

    • Tejal Wairkar said

      Can you provide the soln??????

    • mj123muskaan said

      Rashmi please help me with what you have solved can you provide me the solution

      • Rashmi said

        I have posted the solution pls check in comment section .

      • praveen said

        Mr. A purchased 1,000 shares of an unlisted company at Rs. 983 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,400 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)
        please post the solution of this question.

  16. vidisha said

    Mrs. Took a car loan of Rs 8lakhs @12%pa 3 yrs ago, personal loan of Rs 3lakhs @18%pa 4 year ago. Two more years remaining in the tenure of both the loans. She gets wind fall of Rs 6lakhs. She asks you whether to invest this in band fixed deposit @9%pa for 2 yrs. You advise her to repay both loans and invest the amount of EMI’s systematically every month in a tax efficient market. You estimate return @ 8-10%pa. Her revised net worth lower tax incidence after 2 yrs. Her net worth would be between?
    a) Rs 32,000 to 40,000
    b) Rs 37,000 to 52,000
    c) Rs 28,000 to 41,000
    d) Rs 73,000 to 91,000

    Sir
    Plz provide sol. For this qus Asap.

  17. vidisha said

    Thankyou,

    prashant sir ,

    I’ve cleared my RAIP exam with B grade.
    but plz provide sol. for this question as I want to understand the concept behind it.

  18. Amar said

    could anyone who have the answers of above questions of Related to TAx everything could u please post that

  19. Rajesh said

    Can anybody post the solutions for above questions

  20. Harika Niveditha said

    Sir,
    Please provide the solutions for all the questions you have posted with procedure. I got many of these questions in my exam but couldn’t answer them because i don’t know the solutions. It’s very hurting to fail the examination even though I know the questions but couldn’t solve them. please provide the solutions as quickly as possible as I have exam again on 7th july

  21. Tejal Wairkar said

    1) Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40%, 25%,20%,15%. while they are assessable respectively in tax slab on 10% 20% 20% 30%. beneficiary in 10% tax slab has income from trust only. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year:
    1. 123750,
    2. 75000,
    3. 148750,
    4. 114750.

    Sir for the above question i am getting ans as d

    Beneficiary A Beneficiary B Beneficiary C Beneficiary D Trust Total Income
    Shares of Beneficiaries 40% 25% 20% 15% 850,000.00 0-250000 Nil
    Tax Slab Category 10% 20% 20% 30% 250000-500000 10% 25000
    Income Increase from PY – 80,000.00 – – – 500000-1000000 20% 100000
    Other Sources 0 – – – – 10000000 Above 30% 125000
    Income Distribution by Trust 340,000.00 212,500.00 170,000.00 127,500.00 850,000.00 1,000,000.00
    Total Income 340,000.00 292,500.00 170,000.00 127,500.00 850,000.00
    Tax Liability 9,000.00 4,250.00 Nil Nil 13,250.00
    Education Cess@3% 9,270.00 4,377.50 Nil Nil 13,647.50
    3%

    the solution you provided unable to understand how u got 13647.5 and ans as A plz clarify the same.

  22. mj123muskaan said

    Sir please provide the solution everyone is asking for the solution😕

  23. mj123muskaan said

    Prashant Sir please provide the solution everyone is asking for the solution . I have my exams this week

  24. Rashmi said

    Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% , 25%,20%,15%. while they are assessable respectively in tax slab on 10% 20% 20% 30%. beneficiary in 10% tax slab has income from trust only. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year:

    123750,
    75000,
    148750,
    114750.

    Solution:
    4 beneficiaries; trust income = 850000

    A- share from trust income = 340000
    A is under 10% tax bracket and only have trust income so tax will be slab wise I.E . (340000 – 250000)= 90000*10%= 9000 ( A)

    B – share from income = 25% I.e = 212500
    B is under 20% tax bracket, here we don’t Know other income so we directly take 20% of 212500.ie 42500 is tax. (B)

    C – income share is 20% = 170000,
    C = tax bracket is 20% , So 20 % of 170000 I.e 34000 tax (C)

    Now D – share from income. = 15% I.e 127500
    And tax bracket of D is 30% ,
    So tax on 127500* 30% = 38250( D)

    Total tax will be (A+B+C+D) = 9000+ 42500+34000+38250= 123750.

    HENCE TOT AL TAX PAYABLE BY TRUSTEE ON ACCOUNT OF TRUST = 123750.

    ANSWER WILL BE OPTION. A

  25. Rashmi said

    Your client age 40 has a self occupied and 2nd house with combine market value of rs. 1.20 cr .combined outstanding loan on properties is 65 lacs. he also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd @ 10% of rs. 1.5lacs maturing 2 years from now and saving account balance of rs 40000. endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term cover is 15 lacs. he has employee benefits currently value rs. 39 lacs in exigency life. you estimate value is :
    10140000,
    15574650,
    16264650,
    22746500.

    Solution.;

    Total assets

    2 house market value = 1,20,00,000
    Investment up to = 40,00,000
    Bullion worth Rs. = 4,50,000
    Tax saving F. D = 1,99,650
    Saving account balance= 40,000
    Endowment policy = 21,75000
    Employee Benefits. = 39,00,000
    _________________________________________

    Total assets = 2,27,64,650

    Less Total Liability = (65,00,0000)

    ________________________________________

    TOT Al NETWORTH. = 1,62,64,650

    HENCE OPTION C is the answer

    Notes:

    Policy = 500000+ 175000+1500000 = 2175000

    FD= fb of 150000 @ 10% fir 3 yrs will be = 199650

  26. Rashmi said

    Mrs. Took a car loan of Rs 8lakhs @12%pa 3 yrs ago, personal loan of Rs 3lakhs @18%pa 4 year ago. Two more years remaining in the tenure of both the loans. She gets wind fall of Rs 6lakhs. She asks you whether to invest this in band fixed deposit @9%pa for 2 yrs. You advise her to repay both loans and invest the amount of EMI’s systematically every month in a tax efficient market. You estimate return @ 8-10%pa. Her revised net worth lower tax incidence after 2 yrs. Her net worth would be between?
    a) Rs 32,000 to 40,000
    b) Rs 37,000 to 52,000
    c) Rs 28,000 to 41,000
    d) Rs 73,000 to 91,000

    Solution:

    Carloan = 8 lacs , 12% for 5 yrs , EMI = 17796, Outstanding loan after 3 yrs = 378047

    Personal loan = 300000, 18%, for 6 yrs EMI =6842
    OUTSTANDING LOAN AFTER 4 YRS I.E TODAY = 137055

    TOTAL OUTSTANDING LOAN= 515102( 137055+378047)

    There re 2 options
    1) repay both loans out of 600000 rathe Invest in Fd. ( Given 2 rates 8% to 10 %)
    OR

    2) Invest in Fd @ rate 9% for 2 yrs .

    Check both the option which is feasible

    Now let’s check 1st option

    1) if repay loan then (OUTSTANDING loan – wind flow ) I.e 515102 – 600000=(84898)
    Now no Outstanding loans and invest both Emi’ s for 2 yrs @ 8 % and 10% both rates

    Investment will be
    @8 %rate = bgn mode, pv = -84898, pmt= -24638, I/y= 8%, n= 24 , fv=? = 740325

    And now @10% rate
    Above steps only raye will be 10% , so FV =756745

    2nd option
    If 600000 invest in FD @ rate 9% for 2 yrs then FV = 712860

    Conclusion
    Fd will generate only 712860 with Tax effects also levied

    If Mrs repay both loans and invest Emi’s amount in tax efficient SIP,so no tax effect also generates higher income than FD I.e @ rate 8% = 740325

    @rate 10% = 756745

    So it is higher by
    8 % = 27465 ( 756745- 712860)
    10% = 43885 ( 740325- 712860)

    So her revised NETWORTH after 2 years with lower tax incidence would be between 28000 to 41000. (Nearest option.)

    So ANSWER will be Option C

    • M Nanda Gopal said

      Dear Sir/Madam,
      Yesterday i have given tax planning This was the 2 attempt,But i was failed with d grade.First attempt also i got d grade only.
      I got the above question Please advise for more question .

  27. M Nanda Gopal said

    I got question like
    An insurance agent got Rs.22947 (Appr..)after deducting TDS. What rate of TDS was deducted????
    1.30%
    2.25%
    3.5%
    4.10%
    Mr.A got interest Rs.14350/- for idib bank Rs.13500/- for yes bank Rs.4500 for IRIA bank.Calculate tds amount for the interest received from all the bank.
    Ex dividend Cum dividend was there.Based on dividend reivestment option. Dividend Rs.14.3214 per share on 10june 15 and Rs.13.1253 on 11 nov15 was there.Dividend was declared on 1 jan 16 at 18% .X purchase 10000 share at Rs.15.123 on 10 oct 15 .He sold all the share on 1/mar/2016 at 22.1657.

  28. M Nanda Gopal said

    Mr.z rent his complex for Rs.5,00,000/- and He won lottery Rs.1,00,000/-.How much Tds was deducted????

    Mr.ravi was an employee earns Rs.42000/- per month.He was gifted Rs.80000/- 25 grm gold in kind by his employer and he was awarded Rs.40000/- for muncipal local authority.He much was his tax liablity for AY 2017-18.

  29. M Nanda Gopal said

    Q.2 An industrialist started a project on 1st nov 2009 with own capital of rs 1crore. He arranged a project of rs 1.5crore by a back on 1st july 2009 at a rate of 12%p.a. the terms of finance were quarterly invested.only payments up to six quarter and the repayment of premium in three equal installments from the end of seven quarter along with interest on the loan outstanding.he infuced fresh own funds towards working capital of rs 20 lakh on 7th december 2009 and rs 30 lakh on 4th november 2010.the project completed with a profit of rs 4.5crore on 6th september 2012.find the return generated by the project…

    a)22.59%p.a.

    b)30.16%p.a.

    c)30.57%p.a.

    d)32.37%p.a.

  30. M Nanda Gopal said

    ) Your client, a businessman has a house worth Rs. 1.6 crore and a farm house worth Rs. 85 lakh. His business is worth Rs. 10 crore as per last balance sheet. His
    He and his wife is one of the partner in the business having stakes of 20% each . He has two cars purchased at Rs. 40 lakh and Rs. 20 lakh, the latter being in personal account. The cars
    have depreciated/market value at Rs. 30 lakh and Rs. 8 lakh, respectively. His wife has stock worth Rs. 1.65 crore in a Demat account where she is the primary holder.
    The business has taken Keyman’s insurance on his life of value Rs. 1.5 crore. He has himself insured his life for an assured sum of Rs. 1.5 crore. You evaluate your
    client’s estate in case of any exigency with his life as _____

  31. anushka jain said

    value of house-16000000
    value of farm house-8500000
    market value of car-800000
    life insurance-15000000
    total=40300000

    assets received on business accounts-
    business worth-100000000
    key men insurance-15000000
    total value=115000000
    his share in business=20%
    therefore-115000000*20%=23000000
    total estate=40300000+23000000=63300000

    • M Nanda Gopal said

      Please do reply for this question,I have got question this in 2 attempts
      Q.2 An industrialist started a project on 1st nov 2009 with own capital of rs 1crore. He arranged a project of rs 1.5crore by a back on 1st july 2009 at a rate of 12%p.a. the terms of finance were quarterly invested.only payments up to six quarter and the repayment of premium in three equal installments from the end of seven quarter along with interest on the loan outstanding.he infuced fresh own funds towards working capital of rs 20 lakh on 7th december 2009 and rs 30 lakh on 4th november 2010.the project completed with a profit of rs 4.5crore on 6th september 2012.find the return generated by the project…

      a)22.59%p.a.

      b)30.16%p.a.

      c)30.57%p.a.

      d)32.37%p.a.

  32. M Nanda Gopal said

    1.When a tenant dies,His right will be passed to?????
    a.his nominees
    b.other tenants

    2.Mr.X has a house property Rs.1,00,00,000/- (of which 60%) was being used for business purpose.He bought furniture & computer worth Rs.5,00,000/- & Rs.3,00,000/-.He also purchased a car Rs.8,00,000/- which was used for office and personal use. Deprecitaion was 10% on furniture & computer and Deprecition on car and house property was 40%.He paid municipal tax Rs.10000/- & He incurred Rs.30000/- for renovation purpose.calculate allowable expenses???

  33. M Nanda Gopal said

    Any body please answer this question.I have got this in exam.plzzzzz

    Mr. A is about to retire in 2yrs has a short fall of Rs. 80,00,000 in his corpus. On retirement is will be getting pension of Rs. 8,000/- p.m. He has a land and a house at his native place. He has no plans to shift to his native place. The building repairs is required which will cost him Rs. 7,00,000/- after which he would get rent of Rs. 5,000/- p.m on the said property. The land would be able to generate Rs. 30,00,000 currently with tax incidence of 12% and transaction charge if sold today. What is your suggestion as his financial planner. (4 Marks)
    Sell the Land and repair the building.
    Sell the property as it would recover the cost in 10 years which is not recommended at this stage.
    Save Rs. 8,000/- pre retirement & Rs. 5,000/- post retirement for ___ yrs and rent out the building

  34. M Nanda Gopal said

    I have a doubt, A house worth 1,00,00,000/- of which 60% was used for business purpose Then depreciation of 10% should be calculated on whole 1crore or 60% of house. Plz clarify???

  35. krupa vora said

    .Mr.X has a house property Rs.1,00,00,000/- (of which 60%) was being used for business purpose.He bought furniture & computer worth Rs.5,00,000/- & Rs.3,00,000/-.He also purchased a car Rs.8,00,000/- which was used for office and personal use. Deprecitaion was 10% on furniture & computer and Deprecition on car and house property was 40%.He paid municipal tax Rs.10000/- & He incurred Rs.30000/- for renovation purpose.calculate allowable expenses???

  36. Divya Chaturvedi said

    Sir i have my paper day after tomorrow and these sort of sums had come in my frst attempt…please send the solutions of these sums they are really important…

    Divya

  37. Debalina Bose said

    Very urgent : Posting three questions for tax planning, would appreciate if some one can reply back on these three with the correct detailed solution, I could not solve these :

    1. Mrs. Anju whose date of birth is 30th March 1958 has a total salary income of Rs. 8,78,000 for the previous year 2017-18. She has income from other sources of Rs. 28,178 from her savings bank account. Her only investments are contributions to Employee Provident Fund account which are 12% of her basic salary of 30,000 per month. Find her tax liability for AY 2018-19. 
      Rs. 1,01,160
      Rs. 1,14,030
      Rs. 83,010
      Rs. 99,180

    2.From the following information, compute the total income and the tax payable by an individual for the AY 2018-19 a) Salary @ Rs 30,000 p.m. b) Dearness allowances Rs. 10,000 p.m. c) He contributes 20% of his salary and D.A. to recognized provident fund d) Employers contribution to provident fund is 14% of salary and dearness allowance e) Rent from house property Rs.12,000 p.m. f) Interest from an Indian company Rs. 50,000 (Gross) g) Life insurance premium paid Rs. 4,000 
      Rs. 21,200
      Rs. 21,250
      Rs. 30,030
      Rs. 41,590

    3.Compute the total income of tax payable by Kamal for AY 2018-19- Income from HP (-)208,000,Short term capital loss on sale of share 95,000,Long term capital gain on sale of building 365,000,Other sources: Interest on govt. securities 15,000. Mr. Kamal has unabsorbed depreciation of Rs. 40,000 being b/f from AY 2017-18. Kamal has closed the business and all the assets have been disposed of. 
    Rs. 70,000
    Rs. 45,000
    Rs. 400,000
    Rs. 470,000

    Regards,

    Debalina

  38. Shekar said

    Can Any One pls help me for tax planning …any Imp Questions; pls share your inputs of these 3 Questions

    1. Mrs. Anju whose date of birth is 30th March 1958 has a total salary income of Rs. 8,78,000 for the previous year 2017-18. She has income from other sources of Rs. 28,178 from her savings bank account. Her only investments are contributions to Employee Provident Fund account which are 12% of her basic salary of 30,000 per month. Find her tax liability for AY 2018-19.
    Rs. 1,01,160
    Rs. 1,14,030
    Rs. 83,010
    Rs. 99,180

    2.From the following information, compute the total income and the tax payable by an individual for the AY 2018-19 a) Salary @ Rs 30,000 p.m. b) Dearness allowances Rs. 10,000 p.m. c) He contributes 20% of his salary and D.A. to recognized provident fund d) Employers contribution to provident fund is 14% of salary and dearness allowance e) Rent from house property Rs.12,000 p.m. f) Interest from an Indian company Rs. 50,000 (Gross) g) Life insurance premium paid Rs. 4,000
    Rs. 21,200
    Rs. 21,250
    Rs. 30,030
    Rs. 41,590

    3.Compute the total income of tax payable by Kamal for AY 2018-19- Income from HP (-)208,000,Short term capital loss on sale of share 95,000,Long term capital gain on sale of building 365,000,Other sources: Interest on govt. securities 15,000. Mr. Kamal has unabsorbed depreciation of Rs. 40,000 being b/f from AY 2017-18. Kamal has closed the business and all the assets have been disposed of.
    Rs. 70,000
    Rs. 45,000
    Rs. 400,000
    Rs. 470,000

    1Q: Answer is 83013

    Solution:

    Income 878000
    other income 28178
    EPF : 12%*30000*12 = 43200

    Deductions :
    Other Income : 28178
    TDS : 10000
    Remain : 18178
    Total Income ; 878000+18178 =896178
    Less EPF : 43200

    Net Income : 896178-43200 =852978

    Tax 0-300000 = 0%
    300000-500000 =5% : 10000
    500000-852978 = 20% : 70595
    Cess 3% = (10000+70595)*3% =2417
    Total Tax : 10000+70595+2417 =83013

  39. Shekar said

    Good After Noon Prashanth Sir..

    Week ago i attempted Tax planning Exam..but i got D grade..due to theory questions

    these are some questions i remembered posting here kindly help me..and give some material about residential status & Estate planning…Most of the theory questions covered by these 2 topics only
    1.who will write temporary will (1M)
    A. NRI Residential
    B. Residential
    C . Non residential
    D . Lunatic

    2. A women is not working & she was divorced . She received monthly income from husband. Her minor daughter earn 15000/- from singing competition. what is the tax liability of daughter earnings (2M)
    A. high earning parent
    B. Father
    c. Mother
    D. Nill

    3. Mr.A transfer power of attorney to Mr.B & Mr.B borrowed some amount from Mr.C.Later he not paid the amount. Now C decide to take legal action? Who will punish by Mr.c ?(2M)
    A. Mr.A
    B. Mr.B
    C. Mr.A & Mr.B
    D. Null

    4. Mr.X,y & Z are tenants of a property.Mr.Y is relative to Mr.X .Suddenly Mr.X demised,who will responsible for Mr.X amounts ?(2M)
    A. Nominee
    B. Legal Heirs
    C. Mr.Y
    D.None

    5. Hindu Undivided Family to write a will, what is mandatory ?(1/2M)
    A. Registration documents
    B. stamp duty
    C. Two Witness Persons
    D.

    6. A widow having 2 minor kids she form a trust for those kids,she is also having dependent parents. Her parents having a irrevocable trust.She is recently bankrupted? What is next level procedure (3M)

    • suraj said

      hello shekar did you get above same questions

    • Suraj said

      1.c
      2.Father
      3.B
      4.a
      5.c
      6.Need the options for the same

      • Shekar said

        1.Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% , 25%,20%,15%. while they are assessable respectively in tax slab on 5% 20% 20% 30%. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust only. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year:

        123750,
        45000,
        148750,
        105750.

        2.Mr. A purchased 1,000 shares of an unlisted company at Rs. 1000 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,200 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)

        3.Mr. A is about to retire in 2yrs has a short fall of Rs. 80,00,000 in his corpus. On retirement is will be getting pension of Rs. 8,000/- p.m. He has a land and a house at his native place. He has no plans to shift to his native place. The building repairs is required which will cost him Rs. 7,00,000/- after which he would get rent of Rs. 5,000/- p.m on the said property. The land would be able to generate Rs. 30,00,000 currently with tax incidence of 12% and transaction charge if sold today. What is your suggestion as his financial planner. (4 Marks)

        Sell the Land and repair the building.
        Sell the property as it would recover the cost in 10 years which is not recommended at this stage.
        Save Rs. 8,000/- pre retirement & Rs. 5,000/- post retirement for ___ yrs and rent out the building

        4.A house property in Kolkata having a municipal value of rs 5lac, fair rental= 6lac was intended to let out to tenants. Unfortunately during PY there was no tenant for this house property. Municipal tax is rs 5000 ( of which rs 1200 is payable) Interest paid on loan taken for purchase of property is rs 179000. what is d income from h/p ?

        (a) loss of 153500
        (b) income of 153500
        (c) loss of 182500
        (d) nil

        5.An industrialist started a project on 1st nov 2009 with own capital of rs 1crore. He arranged a project of rs 1.5crore by a back on 1st july 2009 at a rate of 12%p.a. the terms of finance were quarterly invested.only payments up to six quarter and the repayment of premium in three equal installments from the end of seven quarter along with interest on the loan outstanding.he infuced fresh own funds towards working capital of rs 20 lakh on 7th december 2009 and rs 30 lakh on 4th november 2010.the project completed with a profit of rs 4.5crore on 6th september 2012.find the return generated by the project…

        a)22.59%p.a.

        b)30.16%p.a.

        c)30.57%p.a.

        d)32.37%p.a.

        kindly provide the answers to above questions

  40. Pranjal said

    Plz sir
    Can u plz help me with theory questions of vehicles of estate planning -featues
    And sums of taxation of various financial products and transaction, tax planning strategies where i have performed unsatisfactory..

  41. vikas rawat said

    ye question aaya the iss baar
    1- Ek project me kiya invested 1500000
    1st year return 150000,
    2nd year return 200000,
    3rd year return 400000,
    4th year 450000 and calculate 5th year expected rate of return ?

    Iska answer % term me aayega.

    plz solve this question

  42. vikas rawat said

    1.capital gain ( numerical )
    2.estate planning ( numerical and theory )
    3.trust ( numerical and theory ) dono important hai.
    4. 1 marks residential status
    5. income from house property
    6. tax liability calculation wale question dekh lena important hai .

    plz pdh kr jaana in topics ko

  43. Preeti Chhatwal said

    1.Trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% , 25%,20%,15%. while they are assessable respectively in tax slab on 5% 20% 20% 30%. tax on 2nd beneficiary is 20% bracket exceeds previous slab by 80000 pursuant to receiving income from trust only. total income is 8.5lacs to be distributed among year. what would be tax payable by trustee on account of trust in that year:

    123750,
    45000,
    148750,
    105750.

    2.Mr. A purchased 1,000 shares of an unlisted company at Rs. 1000 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,200 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)

    3.Mr. A is about to retire in 2yrs has a short fall of Rs. 80,00,000 in his corpus. On retirement is will be getting pension of Rs. 8,000/- p.m. He has a land and a house at his native place. He has no plans to shift to his native place. The building repairs is required which will cost him Rs. 7,00,000/- after which he would get rent of Rs. 5,000/- p.m on the said property. The land would be able to generate Rs. 30,00,000 currently with tax incidence of 12% and transaction charge if sold today. What is your suggestion as his financial planner. (4 Marks)

    Sell the Land and repair the building.
    Sell the property as it would recover the cost in 10 years which is not recommended at this stage.
    Save Rs. 8,000/- pre retirement & Rs. 5,000/- post retirement for ___ yrs and rent out the building

    4.A house property in Kolkata having a municipal value of rs 5lac, fair rental= 6lac was intended to let out to tenants. Unfortunately during PY there was no tenant for this house property. Municipal tax is rs 5000 ( of which rs 1200 is payable) Interest paid on loan taken for purchase of property is rs 179000. what is d income from h/p ?

    (a) loss of 153500
    (b) income of 153500
    (c) loss of 182500
    (d) nil

    5.An industrialist started a project on 1st nov 2009 with own capital of rs 1crore. He arranged a project of rs 1.5crore by a back on 1st july 2009 at a rate of 12%p.a. the terms of finance were quarterly invested.only payments up to six quarter and the repayment of premium in three equal installments from the end of seven quarter along with interest on the loan outstanding.he infuced fresh own funds towards working capital of rs 20 lakh on 7th december 2009 and rs 30 lakh on 4th november 2010.the project completed with a profit of rs 4.5crore on 6th september 2012.find the return generated by the project…

    a)22.59%p.a.

    b)30.16%p.a.

    c)30.57%p.a.

    d)32.37%p.a.

    Plz Provide Solution of these question

  44. Preeti Chhatwal said

    Q1) Mr. A purchased 1,000 shares of an unlisted company at Rs. 1000 per share on 25th April 2007. The company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March 2013 and Mr. A sold 1,200 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014. Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015: 932)

    Answer- 606271

    Is this answer is correct. Can anyone tell me

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