REVISION TEST PAPER 1 CMA INTERMEDIATE
PAPER – 4: DIRECT TAXATION
Time Allowed – 3 Hour Maximum Marks – 100
Working Notes should form part of the answer. Wherever necessary, suitable assumptions may be made by the candidates and disclosed by way of a note. Each question c a r r i es 10 mark.
1. X, a foreign citizen, resides in India during the previous year 2021-22 for 83 days. Determine his residential status for previous year 2021-22 assuming his stay in India during the last few previous years are as follows –
| Year | Days | Year | Days | Year | Days | Year | Days |
| 2006-07 | 220 days | 2010-11 | 36 days | 2014-15 | 137 days | 2018-19 | 175 days |
| 2007-08 | 15 days | 2011-12 | 115 days | 2015-16 | 265 days | 2019-20 | 15 days |
| 2008-09 | 257 days | 2012-13 | 123 days | 2016-17 | 310 days | 2020-21 | 67 days |
| 2009-10 | 110 days | 2013-14 | 65 days | 2017-18 | 121 days |
- Compute the taxablehouse rent allowance of Abhijeet from the following data:
- BasicSalary Rs 5,000 m., D.A. Rs 2,000 p.m., HRA Rs 4,000 p.m., Rent paid Rs 4,000 p.m. in Pune.
- On1/07/2021, there is an increment in Basic salary by Rs 1,000.
- On1/10/2021, employee hired a new flat in Kolkata at the same rent as he was posted to Kolkata.
- On1/01/2022, employee purchased his own flat and resides
3. Miss Stuti has the following salary structure: Rs
| a)
b) c) d) e) f) |
Basic salary
Dearness Allowance Hostel Allowance Tiffin Allowance Transport Allowance Bonus
|
15,000 p.m.
5,000 p.m. (not forming part of retirement benefit) 1,000 p.m. (does not have any child) 500 p.m. 200 p.m. 20,000 p.a. |
| g)
h) i) j) |
Commission
Free refreshment in office worth Mobile phone facility by employer Computer facility worth |
15,000 p.a.
5,000 p.a. 900 p.m. 10,000 p.a. |
She has been provided a Rent-free Accommodation (owned by employer) in Kolkata. The house was allotted to her with effect from 1/5/2021 but she could occupy the same only from 1/6/2021. Find her gross taxable salary
- Findtaxable amount of perquisite in the following cases:
- Yhas been allowed a fixed medical allowance of Rs 2,000 m.
- Apartfrom reimbursement of petty medical bill of Rs 25,000, Z and his family get medical treatment in a dispensary maintained by the Value of facility provided to Z and his family members during the previous year are as follows:
| Particulars | Amount |
| a. Z | 2,000 |
| b. Mrs. Z | 5,000 |
| c. Major son of Z (independent) | 8,000 |
| d. Minor daughter of Z | 25,000 |
| e. Dependent younger brother of Z | 8,000 |
| f. Independent younger sister of Z | 10,000 |
| g. Dependent sister-in-law | 5,000 |
5. Find out the gross annual value in respect of the following properties (Rs in thousands)
| Particulars | H1 | H2 | H3 |
| Value determined by the Municipality for determining Municipal tax | 500 | 800 | 600 |
| Rent of the similar property in the same locality | 400 | 900 | 600 |
| Rent determined by the Rent Control Act | 700 | 720 | 700 |
| Actual rent receivable | 350 | 540 | 600 |
| Unrealised rent of the previous year 2021-22 | 10 | Nil | 150 |
| Period when the property remains vacant (in number of months) | 5 | 3 | 2 |
- Following information are provided by an assessee for his house properties for computing interest on loan allowed u/s 24(b):
| Particulars | HP1 | HP2 | HP3 | HP4 | HP5 |
| a) Interest on loan taken for repair of H.P. | 20,000 | 30,000 | 10,000 | 15,000 | 25,000 |
| b) Interest on loan taken for purchasing H.P. (50% paid) | 20,000 | 25,000 | 30,000 | 17,000 | 18,000 |
| c) Interest on new loan taken for repaying old loan which was taken for purchasing H.P. | 10,000 | 12,000 | 13,000 | 14,000 | 16,000 |
| d) Interest on loan taken for payment of interest on earlier loan | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
| e) Interest on loan for payment of Municipal tax | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 |
| f) Interest on loan by mortgaging HP3 for business purpose | — | — | 5,000 | — | — |
| g) Interest on loan for reconstruction of HP1 paid outside India without deducting tax at source | 20,000 | — | — | — | — |
| h) Interest on loan for reconstruction of HP2 payable outside India on which TDS has not been deducted and no payment yet been made | — | 20,000 | — | — | — |
| i) Interest on loan on mortgage of HP1 for renovation of HP2 | 10,000 | — | — | — | — |
- Computeincome under the head ‘Income from house property’ of Sri from the following information:
| Particulars | H1 | H2 | H3 | H4 |
| Used for | Self occupied | Self occupied | Self occupied | Own Business |
| Situated at | Mumbai | Abu | Kolkata | Hyderabad |
| Gross Municipal Value | 3,00,000 | 2,00,000 | 7,00,000 | 3,00,000 |
| Fair Rent | 2,00,000 | 2,00,000 | 6,00,000 | 1,20,000 |
| Standard Rent | 3,00,000 | 2,40,000 | 7,00,000 | 2,00,000 |
| Municipal Tax | 15% | 15% | 15% | 15% |
| Repairs | 13,000 | 4,000 | 8,000 | 8,000 |
| Ground Rent | 20,000 | Nil | Nil | 6,000 |
| Land Revenue | Nil | 10,000 | Nil | Nil |
| Interest on Loan | 40,000 | 1,00,000 | 2,10,000 | 20,000 |
| Loan taken on | 1998-99 | 1998-99 | 2018-19 | 1999-00 |
- Ajnabi has a house property in Cochin. The house property has two equal dimension residential units. Unit 1 isself occupied throughout the year and unit 2 is let out for 9 months for Rs 10,000 p.m. and for remaining 3 months itwas self-occupied. Compute his taxable income from the following details:
Municipal value Rs 2,00,000, Fair Rent Rs 1,60,000, Standard rent Rs 3,00,000, Municipal tax 10% (60% paid by assessee), Interest on loan Rs 40,000, Expenditure on repairs Rs 20,000.
- M/sAnita Enterprises has written down value in furniture block (depreciation rate 10%) as on 1/4/2021 Rs 80,000. The block consists of two furniture X and
Compute depreciation u/s 32 for the A.Y. 2022-23 in the following cases:
Case A Furniture X sold for Rs 20,000 on 1/5/2021
Case B Furniture X sold for Rs 1,00,000 on 1/1/2022
Case C Furniture X sold for Rs 1,00,000 and Furniture S purchased for Rs 35,000 as on 1/7/2021
Case D Furniture X sold for Rs 10,000 and Furniture S purchased for Rs 40,000 as on 1/7/2021
Case E Furniture X sold for Rs 10,000 and Furniture S purchased for Rs 40,000 as on 11/11/2021
Case F Furniture X sold for Rs 2,00,000 and Furniture S purchased for Rs 40,000 as on 11/11/2021
Case G Furniture X and Furniture Y both sold for Rs 10,000 and Rs 35,000 respectively.
Case H Furniture X and Furniture Y both sold for Rs 10,000 and Rs 35,000 respectively as on 11/11/2021. New Furniture T purchased for Rs 5,000 as on 1/7/2021.
Case I Furniture Z purchased for Rs 40,000 on 1/7/2021 and the same being put to use on 11/11/2021.
Case J Furniture Q purchased for Rs 50,000 on 1/7/2021 but put to use on 1/11/2022.
Case K Furniture R purchased for Rs 30,000 on 1/7/2020 but put to use on 11/11/2021.
Case L Furniture S purchased for Rs 10,000 on 1/7/2021 but put to use on 11/11/2021 and Furniture X and Y sold for Rs 10,000 and Rs 6,000 respectively.
Case M Furniture R purchased for Rs 30,000 on 1/7/2021 and sold the same for Rs 40,000 on 11/11/2021.
Case N Sold Furniture X and Y for Rs 95,000 on 1/7/2021 & purchased Furniture R for Rs 30,000 on 11/11/2021 Case O Sold Furniture X for Rs 90,000 on 11/7/2021 and following Furniture put to use –
- FurnitureA on 18/12/2021, purchased on 17/12/2021 for Rs 30,000;
- FurnitureB on 18/2/2022, purchased on 15/8/2021 for Rs 50,000;
- FurnitureZ on 18/4/2021, purchased on 17/7/2020 for Rs 60,000;
- FurnitureP on 8/12/2021, purchased on 17/5/2020 for Rs 10,000;
- FurnitureQ on 1/4/2022, purchased on 31/3/2022 for Rs 20,000.
Assume in all cases new furniture is charged to deprecation @ 10%
- M/sSidhant & , a sole proprietary concern is converted into a company, Sidhant Co. Ltd. with effect from November 29, 2021. The written down value of assets as on April 1, 2021 is as follows:
| Items | Rate of Depreciation | WDV as on 1 April, 2021 |
| Building | 10% | Rs 3,50,000 |
| Furniture | 10% | Rs 50,000 |
| Plant & Machinery | 15% | Rs 2,00,000 |
Further, on 15-10-2021, M/s Sidhant & Co. purchased a plant for Rs 1,00,000 (rate of depreciation 15%). After conversion, the company added another
plant worth Rs 50,000 (rate of depreciation 15%). Compute the depreciation available to (i) M/s Sidhant & Co. and (ii) Sidhant Co. Ltd. for the A.Y. 2022-23
