Taxation - May Mtp 2020 MTP

Ananya Gupta, a citizen of India, lives with her family in New York since the year 2000. She visited India from 23rd March, 2019 to 28th September, 2019 to take care of her ailing mother. In the last four years, she has been visiting India for 100 days every year to be with her mother. She owns an apartment at New York, which is used as her residence. The expected rent of the house is $ 32,000 p.a. The value…

Mr. Ram acquired a house property at Chennai from Mr. Satyam, a resident, for a consideration of Rs.85 lakhs, on 23.8.2019. On the same day, Mr. Ram made two separate transactions, thereby acquiring an urban plot in Gwalior from Mr. Vipun for a sum of Rs.50 lakhs and rural agricultural land from Mr. Danish for a consideration of Rs.75 lakhs. Which of the following statements are correct? (a) No tax deduction at source is required in respect of any of…

Mr. Ramesh, a citizen of India, is employed in the Indian embassy in the Australia. He is a non-resident for A.Y. 2020-21. He received salary and allowances in the Australia from the Government of India for the year ended 31.03.2020 for services rendered by him in the Australia. In addition, he was allowed perquisites by the Government. Which of the following statements are correct? (a) Salary, allowances and perquisites received outside India are not taxable in the hands of Mr.…

Mrs. Shivani, wife of Mr. Anurag, is a partner in a firm. Her capital contribution of Rs.5 lakhs to the firm as on 1.4.2019 included Rs.3.5 lakhs contributed out of gift received from Anurag. On 10.4.2019, she further invested Rs.2 lakh out of gift received from Anurag. The firm paid interest on capital of Rs.50,000 and share of profit of Rs.60,000 during the F.Y.2019-20. The entire interest has been allowed as deduction in the hands of the firm. Which of…

Mr. Raj, an Indian citizen and a Government employee, left India for the first time on 25.03.2019 on account of his transfer to High Commission in Singapore. During P.Y. 2019-20, he visited India only for ten days on occasion of his sister’s marriage. During F.Y. 2019-20, his income composition includes salary, foreign allowances, rent from property in Singapore and interest earned from fixed deposits maintained with SBI. His taxable income for P.Y. 2019-20 will include: (a) All of them, since…

Mr. A has two bank accounts maintained with ICICI Bank and HDFC Bank. From 01.09.2019 till 31.03.2020, Mr. A withdrew the following amounts as cash from both the said accounts; HDFC Bank: Rs.50 Lakh ICICI Bank: Rs.120 Lakh Compute the amount of tax to be deducted at source u/s 194N by HDFC Bank and ICICI Bank, respectively, while making payment in cash to Mr. A. (a) Rs.1,00,000 and Rs.2,40,000 (b) Nil and Rs.40,000 (c) Nil and Rs.2,40,000 (d) Rs.50,000 and…

From the following information furnished by Mr. Raj, aged 50 years, a resident individual and practicing Chartered Accountant, you are required to compute his total and tax liability for the A.Y. 2020-21. Receipts and payments account for F.Y. 2019-20 Receipts Rs. Payments Opening Balance (01.04.2019) Cash & Bank 50,000 Staff salary, bonus and stipend to article clerks 25,13,500 Fee from professional service 51,36,000 Other general and administrative expenses 13,00,000 Motor car loan from BOB @10% interest per annum 1,00,000 Office…