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:
- 123750,
- 75000,
- 148750,
- 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 :
- 10140000,
- 15574650,
- 16264650,
- 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)
PVS (Prashant V Shah) 