Taxation - May 2025

(aged 62 years) is a widow of a public sector employee who died during his service in 2011. She earns income from business of running a flower bouquet shop at Kolkata and income from royalty from writing books of science and sells in India and abroad. Profit & Loss account for the year ended 31st March, 2025 furnished by her is given below: Particulars To Opening stock To Purchases To Salaries and wages Particulars 1,00,000 By Sales of flower bouquet…

(a) State with reasons whether income chargeable to tax in India for the A.Y. 2025-26 in the hands of recipients in following independent situations: (i) Mr. Mahesh received dividend of ` 7 lakhs declared and paid by a foreign company outside India. Such dividend has been declared in respect of shares which derive their value substantially from assets situated in India. He is resident and not ordinarily resident in India. 3 (ii) Mr. Shivansh is a non-resident in India and…

(a) Mr. Sandeep, manager in CTL Pvt. Ltd. at Mumbai, furnishes following information for the year ended 31st March, 2025: Basic salary is ` 55,000 per month and entitled to a commission of ` 2,500 per month. A company owned accommodation is provided to him in Mumbai. Furniture costing ` 2,40,000 was also provided. He took a personal loan of ` 3,00,000 on 1st September, 2024 on which the interest @7.75% per annum was charged by the company. The entire…

(a) Mr. Sanju, an individual assessee, aged 32 years, furnishes the following details for the year ended on 31st March, 2025: (i) Loss from Future & Option: ` 75,000 (ii) Profit from restaurant business (computed): ` 2,21,000 (iii) Share of profit in partnership firm M/s XL & Co. (19% share): ` 38,000 (iv) Income from salary (computed): ` 3,15,000 (v) Interest on loan paid for self-occupied house property: ` 1,75,000 (Principal amount paid: ` 1,20,000) (vi) Short-term capital gain: `…

MLM Private Limited, a registered person in Udaipur, Rajasthan engaged in various lines of business, provided the following details regarding the transactions undertook in the month of March, 2024: Outward Transactions Amount (`) Advance received from Mr. Gokul for Business support services to be supplied in the month of April, 2024. 2,00,000 Provided commissioning services under Pure labour contract to M/s Raj Builders of Jaipur, Rajasthan for Multi-storey residential complex. 5,00,000 Stock transferred without consideration to its branch in Jodhpur…

M/s Poorvi Ltd, a registered supplier of various goods and services, provided the following information pertaining to GST paid on inward supplies for the month of August, 2024. No. Particulars GST Paid 1. Purchased goods which are used for activities related to his obligation under corporate social responsibility referred to in section 135 of The Companies Act, 2013. 3,00,000 2. Purchased raw material worth ` 5,90,000 including GST in 5 lots. 3. lots of raw material worth ` 3,00,000 excluding…

Mr. Ranjan availed ITC of ` 1,00,000 in GSTR-3B for the month of June, 2024. The Output tax liability for June 2024 was Nil. His intra-State output supply for the month of July 2024 was ` 5,00,000 (excluding GST). He utilized the available ITC against the output tax liability for the month of July 2024 while 2 Vishwakarma Technical Institute qualifies as an educational institution since it is an ITI which provides courses notified under Apprentices Act, 1961, i.e. approved…

As per Section 7 of the CGST Act, 2017 for the purposes of Goods and Services Tax, the expression "supply" includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or 4 It has been logically assumed that date of payment is same as date of reversal i.e 30.09.2024. INTERMEDIATE EXAMINATION: MAY 2025 disposal made or agreed to be made for a consideration by a person in the course or…