Solution For Taxation Nov,11 by FCA Manish Dafria

Dear CA Student
Its Our Great Pleasure to Provide you with the Solution of Nov,11 Taxation Paper Group 1 of FCA Manish Dafria ( Tax King ) :

1(a) (i) 4,90,000 (ii) 3,84,000

1(b)

Madan – Total Income – 3,80,500, Tax – 19,620 [(9050+10000)+Cess]

Hema – Total Income – 1,75,000, Tax – Nil

HP income for full year taxable for Madan

1(c)

15,14,053 assuming figures are inclusive of service tax.

(Sports coaching fees not taxable, rest all are taxable)

1(d) 1,50,000

2(a) 10,17,000

(Basic 6,50,000, DA 2,60,000, Bonus 70,000, PF 26000, Prof. Tax Perquisite 2000, Motor Car 2400 X 5 = 12000 Less Prof. Tax deduction 3000)

3(a) AY 2011-12 – LTCG 33,75,986, AY 2012-13 – STCG 40,00,000

3(b) 144741 - assuming figures are inclusive of service tax.

4(a)

(i) Not allowed

(ii) Depreciation @ 25% on 20,00,000 (full year)

(iii) If scientific research is approved Allowed 200% of 8,00,000 else allowed 100% of 8,00,000

(iv) Bad debts Allowed Rs. 5,00,000

(v) No deduction

(vi) No deduction

(vii) Not allowed from Business Income, but allowed as deduction u/s 80GGB

(viii) Taxable

5(a)

Total Income – 2,90,000 (carry forward business loss is allowed as set off but unabsorbed depreciation is not since assessee has opted for Sec. 44AE)

5 (c) 5,38,000

6(a) (i) Resident but Not Ordinary Resident

(ii) 2,50,000 (Legal Exp. Not allowed as deduction)

7(a) (ii)

(a) 4,200

(b) No TDS being payment for personal purpose

7(b)

56,21,034 Assuming figures are inclusive of service tax.

7(c) Gross Product – 12,000, Consumption – 2,000