Direct Tax Laws & International Taxation - May 2019 MTP

ABC Ltd. owns the following assets on 01.04.2018: Assets Rate of Depreciation WDV on 01.04.2018 Plant A 15% 3,50,000 Plant B 15% 1,75,000 On 10.06.2018, the company acquires Plant C for Rs. 25,000 (rate of depreciation is 15%). The company sells the following assets during the previous year 2018-19: Assets Plant A Sale consideration 2,25,000 Expenses on transfer 12,000 Plant B 3,50,000 Plant C 85,000 200 Determine the amount of depreciation and capital gains for the A.Y. 2019 -20 in…

R & Partners, a partnership firm, purchased the following assets on 15.06.2018: Machine A for Rs.8,00,000 (Rs.4,50,000 paid in cash and balance transferred through NEFT) Machine B for Rs.4,00,000 (Rs.2,00,000 paid through a bearer cheque and balance amount paid through account payee cheque) Machine C for Rs.7,00,000 (Rs.2,50,000 paid through account payee bank draft and balance amount paid in cash) Machine D for Rs.6,50,000 (whole amount transferred through RTGS) For Machine B, a cash subsidy of Rs.40,000 was received by…

Ashiyana Ltd., a domestic company, has distributed on 15/11/2018, dividend of Rs.350 lakh to its shareholders. On 20/10/2018, Ashiyana Ltd. has received dividend of Rs.90 lakh from its domestic subsidiary company Luxury Ltd., on which Luxury Ltd. has paid dividend distribution tax under section 115-O. The additional income-tax payable by Ashiyana Ltd. under section 115-O is – (a) Rs.45.4272 lakhs (b) Rs.53.4438 lakhs (c) Rs.52.9299 lakhs (d) Rs.44.9904 lakhs

Which of the following individuals would be entitled to opt for presumptive taxation schemes under the Income-tax Act, 1961 for A.Y.2019-20? (i) A retail trader having turnover of Rs.2 crore during the previous year 2018-19 (ii) A practising CA having gross receipts of Rs.92 lakhs during the previous year 2018 -19. (iii) A wholesale trader having turnover of Rs.1.96 crore during the previous year 2018 -19. (iv) A doctor having gross receipts of Rs.50 lakhs during the previous year 2018…

Akash and Mr. Manish are partners in AM & Co. They were engaged in business of selling packaging material in the state of UP. In order to save tax, they sold goods to their respective HUFs. HUFs further sold goods to their customers. This arrangement led to tax saving of Rs. 2 lac for A.Y. 2019-20 by AM & Co. Revenue took a stand that this is a case of “Tax Evasion” and issued notice u/s 148 to the firm…

PQR Ltd. took on sub-lease a building from Ms. Sara with effect from 1.7.2018 on a rent of Rs.20,000 per month. It also took on hire machinery from Ms. Sara with effect from 1.10.2018 on hire charges of Rs.15,000 per month. PQR Ltd. entered into two separate agreements with Ms. Sara for sub-lease of building and hiring of machinery. Which of the following statements are correct with reference to PQR Ltd.'s liability to deduct tax at source, assuming that one-month's…

Mr. X acquired a house property at Delhi from Mr. Y, a resident, for a consideration of Rs.85 lakhs, on 21.7.2018. On the same day, Mr. X made two separate transactions, thereby acquiring an urban plot in Gwalior from Mr. C for a sum of Rs.50,00,000 and rural agricultural land from Mr. D for a consideration of Rs.60 lakhs. Which of the following statements are correct? (a) No tax deduction at source is required in respect of any of the…

Mr. Rakesh, a non-resident individual aged 61 years, has not furnished his return of income for A.Y.201920. However, the total income assessed in respect of such year under section 144 is Rs.1 3 lakh. Determine the quantum of penalty leviable under section 270A? (a) Penalty leviable is Rs.2,10,600, being tax payable on total income of Rs.13 lakh (b) Penalty leviable is Rs.1,05,300, being 50% of tax payable on Rs.13 lakh (c) Penalty leviable under section 270A is Rs.66,300, being 50%…