--

.7(.';
,,'
Tc
"l'V;
,,0'
"CI
.. J
I
By Discount
" Bad debt recovered
(50% not
in tne past)
By Interest and dividend
By Interest on P.O. Office
Deposit Accounts
5,000
10,000
25,000
25,000
5,000
15,000
9,000
15,000
3,000
10,000
6,000
12,000
3,10,000
6.00;000
Rs.
.1.50.00011 By Gross Profit
'"",
Pmfit 'ltradmissible ,f'XlJenSfS' 0f;1'. .?5,iJoO l:nd dedi
under other fleads "ks; 16.000.)' ,
rofit and Loss Ale o.f Mr. Dhaval .. who is into traq,
.he year cnded 31-3-20li
0,000 paid to Mr. Dhaval.
des Rs. 10,000 for payment made for
aL '
. 9,000 spent on purchase ofnew pecttlanent sign,
des, Rs. 4,000 towards personal pUIpose.
Iludes Rs. 10;000 of Life Insurance Premium.;
as per incOItle-tax Act isRs. 15,000' , ";)'
of Rs.. 20,000 of chemical trade is found
taxable business income for P. Y. 2010-' ui;
, , , .
. Sau. Uni., 2009' & Kutch Uni.,
e:fombuS.iness, s.
etUlcal -/ i,
.llUldmissible La pUl'prietor
+ B.D.!J, R', O,()()() + Personal
. on c . J5,000 + Advance I. T. Rs. 9,
as new signboard Rs. 9,000 = Rs. I,
,.;fJ 'tDxri lllder otlu!r heads :
000 + I -est . 'dend Rs. 5{J,OOO + lrttetfjr 4
75.000; (ii)' ct: Rs. ,OIJO for less deprec'/:atiJ
(i,,) AJd : Un-lU(} business income Rs. 20.Pao;.l

..',

,
.-: .....,.-..
's
'lees
50
:.F' .J__ .J. ..
aHi .0 the owner of the ,
'emaining unpaid at the end of yealj/.vhile
in respect of previous year' has ;rot been
is meant for personal purposes ",
for life ins. policy of the s, of the owner.
'10 as follows : Mac . ery Rs. 80,000,
of Depreciation allowable are 15% and 10%
purchased on 1-12-' 10 or 40,000 on which
%.
DtS purchased but n</put into business use for
under the hea In90me from Business and
.j
12 [Gz(. Uni., 2004 & 2006-modifiedJ
'roJa Rs. 4, ,000.
illudmissib e expenses to Net Profit of Rs. 4,04,000
alary s. 15,000 + local taxes relating to let-out
R 6,000 + BDR Rs. 7,000 + B.D. (as debtor's
,atio Rs. 5,000 + Motor Exps. (40% for personal
00 Excess depreciation (Machinery Rs. 5,000
% Rs. 00) Rs. 19,000 + [merest on capital Rs.
lut to busin s use (wrongly induded in misc. exps.)
rongly debit Rs. 6,000 = Rs. 1,35,000 (3) Items
"eres't and divide dRs. 80.000 + Rent of let-out house
s. 20,000 + Pro on sale of investments Rs. 25,000
P & LAIc Rs. 10, 0 =Rs. 1,35,000 (4) Calculation
inery : WDV Oil 1-4- 0 Rs. 80,000 + Purchases on '
(base): As the new achine has been used for a
ciation is allowed at 1/2 15% =Rs. 3,000 and at.
,000 =Total depreciation . 15,000, which is to be
"CeSS depreciation of Rs. 5,00 is to be added back:
40.000 x 10% =Rs. 4,000 is a wable but P &L
,000 and hence Rs. 8,000 is disallowed.]
ing,Doctor, From the following Cash Account for
his taxable income from profession and deduction
Rs. II Particulars
Rs.
52,750 IBy
1,20.000"
2,12,000"
20.000,,"
.
Hospital Rent
Hospital Exps.
Life Insurance Premium
Investment in Public
Provident Fund
1,54,000
25,000
3,000
: 30,000
' ..

,
:;/:'
.
. i
b
.

" .. ..

'. ...
,""

j.
------'-- 1
JNESS :>R lROFESS[Y,
3,500'1'"
Fire Ins. Premi'Jm :
0,000 Hospital 10,000
0,0001
Residence 5,000
2.200 I"
1,500
'so 1,00,000 + Depreciation Rs.' =
urgical eqllipments :Op. lv.D. V. Rs. 75,000 +
Hospital 5,000
Residence 3,000
"Drawings -. -
" Purchase of Medicines
Purchase of Surgical
Equipments (I-I-'ll)
,. Vehicle Exp. (Personal)
" Balance CIF
6,000 from Medical College.
15,QU(} ,
8,000
30,(){)()
1,10,000
75,000
20,000
71,950
5.41.950
al equipmenls after initial depreciation was
:eciation is 25%.
e was Rs. 35,000 and closing stock was
[GIAj. VIIi., 2008; N.G.V.,2011-modijied]
'Profits and gains of Business or
C) Rs. 33,000 (LIP + PPE '
'so 4,72,000 (Rs. , 0 + 2,12,000 + 20,OQO +
I,ses , 25 (Rs. 1,54,000 + 25,00fi. +.10,000
56/)00 - Sale Rs. 10,000 =Rs. 1,40,000, of
S,OOO 25% ,x 50% on new equipment of
mption of = ,Op. Stock
Rs. 45,000 - Rs. 1,O(J;ooO.. j , " ....
from busilli.:ssfromthe
r ending on 31-3-'11 and '
Particulars :. oKS.
8,000 By Gross Profit 2;97,000
1,000 " Income-tax refund 4;000
5,000 " Dividend H;OO6
4,000 ., House rent 14,000
3,000 Lottery Prize 6,000
3,000 Commission , 8,000
9,000 .." Bad debt recovered 10,000
8,000
7,000
6,000
'".j.
i'
_______1
,
rofit Rs. 2,64,000; Start wit ' tProfit (as
t'll} }X-":' '),,' OH !Ill:
1.000 ij
.2.000'1
3,000 I
4,000 !
5,000 i
12,000 I
9,000 II
'.2
0
,000
50,000 I
3.50,000
s for personal purpose.
Rs.15.000.
overed was not allowed as bad-debt in the earlier
,ment
Rs. 3,000
re not recorded in the above Profit & Loss Nc.:
Rs. 5,000
Rs. 4,000
Rs. 6,000
Rs. 1,20,000
(Guj. Uni., 2008 & Sau. Uni., 2()lO; rna )
'
+ Inadmissible e ses etc. Rs. 1.10,000
63,000 + Rs, + Rs. 9,000 +Rs. +
I . 0 5,000 + 1I3rd motor Expo Rs. 3,000)
.. Rs. :J, .e$3*her exempt or taxable
4,000 + Rs. 000'+ Rs. 14,000 +'Rs. 6,000'
UIowed earlier Rs. 3;, Expenses
13,000 (Rs. 4,000 ofAdvt. +""&5. 6,000 of Audit
'on allowable but not recorded) :::: Rs. 2,64,000.]
oth merchant. Following information is obtained'
ng Year 2010-11.
iltowableExpenses and (2) Disallowable Expenses
'nfrom Business and Profession.
Rs. Name of the Expenses
Rs.
16,000 (13) Donation to recognized
5,000 institution
4,000
14,000(14) Donation to unrecognized
, 3,000 institution
5,000
12.000 (15) Exps. to raise the loan
11,000
21,000 (16) Wealth Tax
2,000
, 17,000 (17) Professional Tax
13,000
8,000 (18) Exps. of Illegal Business
14,000
49,000 (19) Compensation to worker
51,000 for the injury 15,060
12,000 (20) Workers' Welfare Exps. 16,000
;,1 :
3,000 (Go u., 2010; Modified) ,
1-'
I
.

,',.,.;
.
. . I
S OR PROFESSION
Rs. Credit
RS: 11J"L;006:---'"
;s going to be taxable, the expenses relating
inS, such //lcome. j
for the year ended on 31-3-' 11 of
able ir.come from Business and Profession.
By Gross Profit
Profit from the sale of Land
Prize from Horse-race
Birth-day gift
B:::d debt recovered
Bank interest
88,000
28,000
16.000
21,000
5,000
2,000
1,60,000
the Travelling Exps. of his family.
till unpaid.
(stock-inctrade) costing Rs. 7,000 are
to PIL Nc as theft.
tionery is Rs. 2,000.
. 3,000 which is not allowed as bad debt.
,on is Rs. 10,000.
irded in the books. (G. u., 2010; Modified)
Rs.40,000;
'.fit of Rs. 95,000- Rs. 70,000 (incomes which
Har m
llati
;:: Rs. 25,000 + Inadmissible expen . of
, bya wo.-ker) ;:: Rs. 44,000 -Deficit ot predation
'orded audit fee. Rs. 2,000;:: . O/XJO.j
;nery in a factory owne ., ,Mr, Shah. Type A
at a cost of . 12,00,000. Installation,
regard am ted to Rs. 2,00,000, Rs. 75,000
me costing Rs. 5,00,000 was bought
, ..mery was sold for
rate of ,15%.
on 1-5-2010 at a cost of Rs,Sb,oo,oOO but
'rest paid for this period on this machinery
. expenses amou'nted tb Rs. 75,009 aqd
Vof Rs. 1 00,000 was received in this regard.
'rate of depre' ion. .

a
1
.}
}
.s
fi
Q

l
4
c
f
1;
(
(:

"'-.
,:
).:
iJ
..!>': .

#f)",
I .,.
;. :'1
Oft 1ROFESSlON
'and t:luuhter-in-Iaw :w,ho is a co!!Jml':rce
guia.rly and they get sala 6. 15,000
tively (included in Ital I'.xpenses).
s. 10,000 for umily pilgrim:lge and Rs.
sincss pr olion tour to Dubai
f Rs . ,000, for his son Rs. 12,000 and for
ni., 2006; N.W,... 2006; 2008, modified]
Rs. 2,68,200.
. patiellts is considered taxable. ?) Salaries paid
nses. (3) Jllterest on loan taken purchase
business expense. (4) Travelling expe esfor
"el expenses for business. prom(j)tion are allowed
authority (6) Deduction Uls BOC for qualifying
rill be fully allowed from total gross income.]
Cr.
10,50,000
6,000
4,000
30,000
20,00,000
30,000
1,35,000
By Gross Profit
Sundry Income
Bad-debts recovered (4)
" Share dividend
.. Commission
: 5,00011" Rent of let-house
7,500
10,000
140,000
,15,000
1,000
8,000
11,oooi
,12,500
,25,000
,50,000
,, Profit and Loss Account for the year ending
rbhai:
:and Loss Ale
It Particulars I Rs.
9,65,000
35,000
10,000
";;'I' '- .. ' .. ...
("
01
(1)
(2J
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10
loco
loss.
on T.
Valu
(of J
reco
21.4
(4) (
IfllItit
year
ToS
"L
9t PI
.. B
nSf
" B
tt Bt
"D
"A
" D
" Sf
" PI.!
" D;
" H,
,;;';1

'.;; "':!:.
,:t
i
!woman. Pwfit and Less Nc of her business
;8 as under ;.
r-n- ---'---""1---
s.
'3ttd-debts
. (allowed as loss in
el'Ilier year)
Discount

ByGl't"t (from her husband)
. LOttery Income
Income-tax Refund
3y Gross Profit
6,000
4,000

10,000
10,000
5,000
Rs.
2,15,000
2,60,000
00 II '
rsonal purposes.
lof daughters' college-fees and Rs. 500 of
rule is Rs. 10,000, whiCh includes
'd which has been included in the above

-.... j
S OF BUSINESS OR PROFESSION
i
IIses are Rs. 50,000, which are to be written off in
hana's taxable business income for the assessment year
[Sau. Uni., 2005; Guj.. T.Y.BBA, 2011-modijied}
I .. .
ime under the head 'Profits and Gains of Business or)
. , / .
expellses : B.D. Res., lilt. 011 capital. oWlle s salary, III come:,
Ie of furniture, Discoullt resen'e. Life-' Isurance premiuf1tli
ee.., Penalty for late filillg of 'Retun!', Excess depreciatio
&.2.. ,000), 1I5th of depreciation 0 motor-car (Rs. -1,000);
'IId<:r other heads or exempt from t : Dividend, Gift, lotte .
to be deducted: Besides additio al Rs. 5,000 of Preliminar;
because the)' are to be writt off in 5 annual instalmelUi
the assessee. (3) Defalcati n of cash is an allowable los,
xpenditure Account of,nr. Ramesh Dave for the previou
Income from Nursing
Home (surgical)
Income from operatiQns
Dividend (gross)
Interest of treasury saving cert.
Consultation' fees
Winning from lottery
Birthday gift (of a minor son
Rental income of
house property
.,
I,
1


, . 12,000 paid to. his W!WhO is a qualified nurse.D....
k ends only. . ,
'eciation on surgical' ins ments is 20,000 an4
1,500.
lude the sumofRs. in respect of his prop,
I

,.j
norarium of Rs. 15,000 as a visiting professor. ':'

.;,
::i",
.
',.
1
Wi
,'1.1 .23
Howing .'ansactions for the Ae(:ounting Year
n:
,000
Selling
PriceRs.
1,01,000
3,92,000
1-1-11 I 1,87,000\
,700 1-1-11 25,000
'on 1-4-81 was Rs. 10,000.
Transfer Index
Fee Rs. No.
3,100 100
6,200 305
1,200 I
140
1,000 447
flat for Rs. 1,43,600 on 1-3-'11.
'ear 2010-'11 is 711.
Uni., 2008; G.U.T.Y.,B.B.A., 2010 - Modified)
15)
capital profit Rs. 1,70,400.
nsideratioll = Rs. I - 3,100 = Rs. 97,900
7/11100)- 'able L. T. Capital Profit Rs. 26,800;
- s. 3,92,000 - 6,200 = R:;. 3.85,800 -Indexed
= Rs. 2,43,600 !II: Exemption Vis 54 (for newflat
,
Jewellery Personal Car
1-1-76 1-1-87 1-1-95
s.30,OC<l Rs.42,ooo Rs.80,000
s.40,OOO -
.3,45,000
Rs.4,47,000 I
Rs.50,000
s.25,OOO Rs. 12,000 Rs.2,000
100 140 259
sold during January, 2011.
the Accounting Year 2010-'11 is 711.
(Cuj. Uni., 2009, Modified)
mfit Rs. 2,57,300.
sutera/ion Rs. 3,45,000 - selling expenses Rs. 25,000
x 711/100 = ..
- elling expenses Rs. 12,000 -Indexed
1/140) = Long-te ital profit Rs.2,21,700;
red a 'capital asset " profit or is not
"--;0.'-:..."
(3) Jewellery: Net = Rs. 1,87,000
. 1,42,200 (Rs. 28,000 x 7/11140) = Taxable LT.
car is not treated a capital profit
'lity.] .
gain of Pawankumar for the Accounting Year
s done by Khushali ior 'he year ended on
Ilecapitcl gain.
of
s l Price
jPurchase
Price Rs
I Sellingl Price on
1-4-81 Rs.
Index
No.
10 I
10
to
11
80,000
24,000
25,000
90,000
6,68,000
117,79,000
99.950
1,75,800
60,000
I I,OO,()(){) 100
480
125
491
;ar2010-' 11 is 711. [G. V., 2011-modijiedj
: Rs. 17,79,000 - Indexed cost Rs. 7,11,000
- Exempt VIS 54 Rs. 6,68,000:: Rs. 4,00,000;
cots Rs. 35,550:: Rs. 64,400; (3) Silver: Rs.
I
=33,600; (4) Personal Car is not a 'Capital
ability.]
Jwing details in respect of building
1at Rs. 30,00,000.
1967-'68 for Rs. 80,000.
kted in 1978-'79 for s.I,OO,OOO.
structed in 1988-' forRs.2,00,000"
ilding on 1-4-1 1was Rs. 1,80,000.
ential buildi g immediately after the sale of
,00,000.
Cost inflation index
100
161
711
for the Assessment Year 2011-' 12.
ious year 2011-' 12 for Rs. 21,00,000, compute
Year 2012-' 13.
(N.G.V.,2007-modijied)
.lid in. ihe. Po 'J2/or Rs. 21,00,000 the total
.000000(on sa o/new house/or Rs. 21,00,(00) +
2010-'Ii) :: Rs..,36.970.J
ye<
Sr.
No
-
1
2
3
4
5
Th
sal
TaJ
Lta
Rs.

Sed
XI
sal
(RJ
val
xi
M:
(1)
(2)
(3)
(4)
(5)
_____________ 0 5 J
--
:.Al'lT,'-l- II V.5
the following 'ietails pertaining to previous
he A.. y. 2011-' 12
e financial year 2010-' U.
Date
'rom'" Iem.
of prke Charges. i2
tion
purchase
Rs. Rs.) ex of
year or
purchase
100
1-7-'70
Moo
,.ro;y:
480 1,20,000 400 1-8-'04 0,250
Date of Sales Tran$fer
Sales Price Expense
Rs. Rs.
10-6-10 30,50,000 33,750
1-10-10 1,67,800 1,800
1-10-10 3,76,500 1,500
21-9-10 15,13,000 3,000.
2-2-11 2,42,000
. 2,000
Purchase
Price
Rs.
2.00,000
1,0.3,800
50,000
2,50,000
2,00,000
1-2-'94 1,22, '. 1,500
244
10,000 133

I
I 2,75,O<YJL I
__ ...-:;
(2)
t,
iediately after she sold the residential house.
3,10,000112-12-.0
p,OO,OOC -
year 2094'05 for additional cor.struction
1-4-1981 were as under:
Rs.3,50,000
Rs.4,00,000
Rc;.40,OOO
been paid on sale of X Ltd. Shares.
) has been paid on sale of YLtd. Shares.
100
125
480
519
711
(1)
(2)
(3)
(4)
(5)
Oth
(1)
:ortheA.Y. 2011-' 12.
[N.G.U...)069, modified] .
Profit =Rs. 1,47 '
sales - Transfer Chafg.es
'0 (Rs.}Mf.OOOX 711/100 = Rs. 24,88,500 +
Exemption VIS 54 Rs. 3;83,750 =
'oral sales price Rs. 1.67,800 - Transfer cifarges
000 -Indexed cost (Rs. 1,03,BOO x.71'J/S19) ,
Rs. i
because the transaction is subjeci.tO SIT;
'rn=. ,. :stIles value Rs. 3, 76,500 Trallsfer
(Rs. ,
)() x 711/1 s. 3,55,500 = Taxable L T.
amo
illing Rs. 13,000"" Transfer Rs.
Qgric
- T. Capital prOfit (taxable)
2(14,
':':'Tra er charges Rs, 2,000
Rs. 1
Rs. i
Prop
'J R<. = Profit
LTO
X 71,
othel


"dfor

Cost I Fair
Rs. I of
Value 0.0 Sale
1-4-'81
Rs.
90,JOO I 1,80,000 I 16-8-10 I 20,42,200
1,80,000
1,08,000
90,000
1,26,000 117.10-10
36,000 5-7-10
81,000 6-3-11
21,60,000
1,44,000
7,50,000
1-3-11 I 77,04,400 54,000 I 10,80,000
r the assessment year 2011-' 12.
2010; modified!
,Jm Rs. 1.07,112 (Net
.Rs. 36.000).
: Sales val s. 20,42,2{)() - Indexed cost
Rs. 7, {)():.. Exempt Uls 54B (to the e.xIeni
t. 7, = Taxable LTCG Rs. 42,400; (2) Rural
definition of 'Capital Assets' as per section
. ation purpose; (3) Shares: Sales value
= ST s. 36.(}()(); (4) Gold: Sales Value
'0 x 71JII09) . 5.87,064 = Rs.. 1,62,936 _
1,62,936 x 5,00, 7.50,{)()() Rs. 1,08.624 =
Salesvafue 77,04,400 - In red cost (Rs. 10,80,(}()()
Rs. 25.600, which is against
,000 on 25-62011 in the capital gain account
agricultural land in Urban area.
l, he has invested Rs. 5,00,000 on the purchase
I5-5-L-OJ 1.
are as under:

...... J
nn assets as on lith
Gold I Silver I Diamonds
(Rs.)
(Rs.) (Rs.)
-I
I
8,10,000
2,96,200 I 6,40,200
1,15,000
I 1,78,000 I 4,30,003
81.000 I 6.000 I 32.000
mefortheA.Y. 2011-' 12. is July 31, 2011.
, d 54 EC, Shri A.H. Jadeja has purchased
Date.of Amount
Acquisition Rs.
iuse) March 31,2011. 1,00,000
August 5, 2011 50,000
ion 81,000
July 5, 2011 7,50,000
,.
,es
120) July 10,2011 3,00,000
adeja for the A. Y. 2011,12.
(N.G.u., 2011 -Modified)
,fit Rs. 64,200 .
'efore claiming exemption if. allowll are to
17,5a
cost asgive
iRs. 3,10,000; Gold: . 6,14,000; :
As the qmount " er the
depositedb e the due date o/furnishing the
. dforclaimi/lg exemption; (3) Total
.' + Rs. 3,00,(00) ofRs.10,50,000 only
. ledbeivw: .
fal House
lof land; Rs. 2,10,000
Rs. 6,14,000
Rs. 02,000
Rs. 1,14,000*
"-
Rs. 10,50,000

= Rs. l,14,000J
. .,.... , "
14,
under:
( 1)
sold on
(2)
of the 1
(3)
in the I
Co
Co
[AI
is
within:
NOi
= Rs. 7

'\
of capit
Jev
5-2010.
sale.
On
(NHAI)
Int
instead
111<
-100,21
[AI
-Broke
(1,11,00
Not
expiry C?J
consider.
Opt
house/'"
term cap
,
S29
. -..
..
":[[1

.1
CAPITAL ':';AINSII . 129
/'
'.0 transactions of Shti as
,;.,.il
for personal use was (
.000 (out of sales consideration received)
was 259 and that of 2010-' 11 711.

!i., 20 . 2006; Guj. Uni., 2006-modifiedJ
rain ofRs. 676 the exemption of Rs. 60,000
bfpurchase po of Bonds of NHAI bought
Capital Gain =Rs. 5,676,
les exps. Rs. 4,000 + I exed cost Rs. 2,93,734)
&Jexed -cost is to be compu a ter additiolJ of
[(1,07,000 x 7111259 = Rs. 2,93,73 "
bnofMr. Kapildev calculate the taxable amount
forRs. 1,09;000 was sold for Rs. 8,47,690 on 2
OOrespectively as brokerage for purchase and
rnds of National Highway Authority of India
after 3 years.
<purchased a residential building for Rs. 6,74,552
. t will be the change in answer?
:lleryon 1-4-81 was Rs. 1,11,000. Index: 1981-82
,2009,2011; G.V., T.Y. BBA, 20ll-Modified)
'rofit =Rs. 53,980; Total sales s. 8,47 6
irationRs. 7,89,210
mt Bonds ofNHAI has been made after
.ilrliOt available and hence entire capital profit is
,tal long-term X Investment in residential

:200]'
TG'AA
house for Rs. ";,00,000 during the year
;1,76,250 as additional construction expenses I
house for Rs. 44,08,825 and paid Rs. 8(?),000.
!anolher house for Rs. 8,02,825. Relevant cost
in according to Sec. 54 for the A.Y. 2011-' 12.
[S.G.U., 2009, modified]
Jfit of Rs. 6,49,400 is fully exempt DIs 54.
. profit =Rs. 44,08,825 - (Indexed cos s. 36;79,425
i400; (2) Indexed cost of Purchase onsideration =
Indexed cost of additional construction cost
:35,425; (3) As the assessee ha invested the entire
?use within the prescribed timeI' mit, it isfully. exempt
his investments :
Cost \ Date er
i following particulars
Sale IFair M. V.
Price 00:1-4-'81
Rs.
Safe
Rs. Rs.
72,100 10;000
3,1-16-2010
30-6-2010
1,78,250 1l5,000
30-12-2010 26,000;
31-1-2011
14,(00)
2.41.500\1 30-6-2010 I 12,14,000"
2,32,900
48.300
,is perso,nal resid. ce in Mumbai on 31-10-2010
. - an expenditure 0 s. 5,000 on registration and
!perty at Poona. Secu ..es Transaction Tax was
jltd., C Ltd. andD .
F. the taxable capital gain r the assessment year
nanciaJ years 1981-'82, 198 -'89 and 2010-'11 are
[S.G.U. 1995-modified]

sll
=
oc
co
DI
=
tel
inc
be
the
sll.
2C
0;
(2;
(3;
(4;

(6)
tra
nu
Pre
'!;r(. .'. J ...
GleNS III
-1
at
'\
the sale ta6k ',.
'Ilnce according to the contract. .",
ifore the deal vJas cancelled and the advance
al,"onslruction of this house were Imder :
"7,300 and

,if Rs. 27.52,350 a'1d paid Rs. 25,000 as brokerage.
in Surat at Rs. 20.00,000.
, pl:fchased 1,060 shares at Rs. 66.50 paise per
right shares at Rs. 86 per share at the rate
bare.
(5 with him at Rs. 445.50; and paid Rs. 8,000 as
for Security Transaction Tax (SIT). Relevant
2(0)..'01 =406
2010-'11=711
e years bonds of National HighwaysAuthority
j_
,rthe A. Y. 2011' 12. .
(S. G. Viti.. 2009. Modified)
,on sale of residential house = Rs. 11,98,700,
, capital gain on sale of shares (on which
- Exemption Dis 54EC
i10,COO.
'toJ/he residentia ouse = Rs. 2,34,500 - Advance
! 1,99,500 Q1 Its indexed cost = Rs. 1,99,500 X 7111
?/ad1J1k'nal construction = (Rs. 27.300 X 711/182 =
3.55.500) = Rs. 4.62.150; (3) Total long-term
'sala va!ue Rs. 27,52,350 - Brokerage Rs. 25,000
Indexed costs of additional constructions
elll.ll(as it is ill vested ill another house. (4) Indexed
711/133 =Rs. 3,55,500 alld Indexed cost of
boo>: 71 ft{72 = Rs. 3,55,500; (5) Long-term capital
5.50) =Rs. 8,91.000-Brokerage Rs. 8.000-1ndexed
7,ll,OOO := Rs. 1,80,000 - Exemption Vis 54EC
I
I
i Ltd.
ate pf TDS 30%

'ebentures of Adani Lt
:ion charges of Rs. 150. He
pita! Investment Bonds
[ruts Bonds
S 30%)
e

.
:,',',t,:;'1
R SOURCES
to'.r
'"
to make investment in shares is also not deductible/{
r RP Lld- = Rs. 27,000 x 100190 == Rs. 30,Oog{interes,'
'ucrion); Gross Income from card games ==,RS. 17.500 x: "
rf?spe.::t of card games are not (3) Family;:,
'hIS head subject to a standard de;MCtion @ 33 1/3% or,
ormation of Mr. income from other
Rs.
2,50,000.'
2,00,000'
iance Energy Ltd.
2,00,000
4,00,000 '.
2,10,000
48,000
of Rs. 1,00,000. He ,paid
cei ved interest on above
(Guj. Vni. 2007
m Other sources Rs. 3,78,000 ai1cl,Taxable Income
,s exempt. (2) Gross Lottery Income;::: Rs. 2,07,300 x 100/
's taxable under the head 'Salary Income.J
Ibrmation you are required to compute taxable income
:Income from Other Sources for the Previous Year
Rs.
Fixed Deposit (Gross) 6,800
5,000
. 2,500
bebentures'of Krish Ltd. (TDS 20%) 9,000
17,500
free Debentures of Kanak Ltd. (TDS 20%) 12,000
(G. V., 20ll-Modified)
unde:- the head "Income from Other Sources"
"
vestment Bonds is exempt (ii) Gross int - on
!()OOx 100. 00; (iii) Gross Lottery income
: 25.000;.(iv) Gross interest on
FRs. 15,000]
2010-' 11 Mr. G held the following securities:
. unlisted debentures of M Ltd. (TDSrate 20%)
listed debentures of S Ltd. (IDS Rate 10%)
saving bonds.
I bonds issued by notified public sector company.

m:

mber :i:muaily. He paid Rs. 500 as commission

-':I.OM' OTIJER SOURCES. 169
Rs.
Ii
3,000
10,000
15,000
Ili
28,000 1/:
, 1,000
rom other sources for the A. Y.20ll-'12
(N.G.V.,201D-modified)
Ii
head "Income from other Sources" Rs. 74,000
Ible Income Rs. 73,500.
,II
r
ax
1
r
ee :mlisted debelltures ofM Ltd. = Rs. 56,OQ
?SS 011 10% Tax-free listed debentures S
"
iRs. 4.0W; (3) Interest 011 notified debentuT< of a
'O( 15); (4) Gross Lot'!ty Prize =Rs. 28.0Q x 1001
le following particulars of his in me for the
the head "Income from Other Sources." for
; less-tax debentures of 'o.' (T.D.S. 20%).
!sit Rs. 17,000.
ltd.' Rs. 15,000.
, Rs. lI.200
(N.G.V., 2008, Modified)
,nder :he head .income from other Sources'
-tax debentuds of A Ltd. =Rs. 8,800 x 100180 =
race = R..(1I,200 x 100f70 = Rs. 16.000.]
the details pertaining to previous
\ I
head "Income from other Sources" for
listed-,Redeemable Debentures of AC Ltd.,
t) Rs. 1,57,500 (TDS Rate 30%);
.
and back) for collecting the cheque
. (N.G.v., 2008, Modified)
Inder the head come from other sources
!other sources Rs. ,02,000.
k (2) Gross illterest n Debentures =Rs. 2,700 x
,ncome =Rs. 1,57,5 x 100f70 =Rs. 2,25,000;
, allowed as a specific eduction; (5) Unexplained
1
'j
I
,I
,
. . ... H_n_1
_ER SOURCES
I
g details of Shri Anandbhai Joshi, find out the taxabl
orne fr.>m other SOufcers" for the A. Y. 2011-'12 : '
\S intere>t earned on Gold Deposits Bonds, 1999.
s received on shares of Reliance Power C6:
\
's interesl received on less-tax debentures of "Ashth'
20%)
's interest received on less-tax debentures of "Garde,
(Surat (T.D.S. rate is10%).
h10% Rs. 10,40,000 less tax debentures of "Chenna.
!1O%). On 1-7-2010 these debentures were sold an
pk loan taken to purchase the debentures of
! ,,
IVed as a1 author Rs. 63,000 net (after deduction OJ

, 10% Rs. 5,40,000 tax-free debentures of Delhi Ltd.
rom race is Rs. 35,000 (T.D.S. 30%). , ".
[kposit (Gross) Rs. 68,000.
purchased Rs. 4,80,00012% tax-free debentures ofl
i. (T.D.S. 20%). >I'
he b:mowect a loan from the bank for Rs. 4,00,000
'erest rate.
been received as ground rent.
all the securities was received on 30th June and 31 st
year. Rs. 1,380 Was paid for collection of interest.
(N.G.u., 2011, modified)
the head Income from other sources Rs. 4,85,680; ,,'
furces (afler allowing specific d 'ons ofRs. 4,000 ;i
14,80,3CO. ,
(i) are fuily ex 2) Gross lilt. all Ash/ha Ltd's less-tax
?/80 - '. 43.750; (3) Gross lilt - 011 Gardell warelli's
\ - Rs. 49,000; (4) Gross Illl- Oil debentures o!Chellnai
i6/1 t. 52.000; (5) Net Royalty 00; (6) Gross
Ltd. = J 5.40,000 x 101100 100180 Rs. 67.500;
k =Rs. 35,00 00170 =Rs. 5 , ;)lilt . on Bank
h. on ds!belltures of LId, =Rs. 4,80,000 x 121
) Ground rellt Rs. 25,080.]
Sanyasee's income given below find out the
\. "Ir,come from others sources" for the assessment
on Gold Deposit Bonds, 1999.
!received on shares of Reliance Co. Ltd.
lived on less-tax debentures of 'A' Ltd. (T.D.S. 20%)
teceived on less-tax debentures of 'B' Co. Ltd.,
i I

il!l;
:".
,if!;
CES
'"1.
i
free debenture
!. 32000
'II Vikas Patra 8:000
, 9,000
jbank loan borrowed for purchase of Indian
I
!bank loan borrowed for purchase of Indian'
I ,
!bank for transferring the of dividend
and N.G.U., 2009 with changes illfigures)
the head Income
lather Sources " 1;JU.
f13 . empt: (2) Commission paidjor"transjer
uctible a;; a specific deduction; (3) Gross Loltery
, ross interest on Swati Ltd.s debentures
b) Gross Inte II Sanjay LId. 's debentures =
,lAs dividend on share ndian company is not
,purchase these shares is not a d as deduction.]
!held by Miss Disha during the previous year
I
I
i Rs. 30,000
ovt. Securities Rs. 40,000
I '
i Rs.20,000
anumant Ltd. (1DS Rate: 20%) Rs. 30,000
rtificate Rs. 10,000
pany Rs. 40,000
ase tax free securities of Indian Government,
LThe interest paid on the loan to purchase the
1,1 2,000. She paid the bank commission of Rs.
Rs.
4,500
2,400
2,000
.. ,.

I
I (Sau. Uni., 2011 - modified)
ead 'Income from Other sources =Rs. 10,950;
h
after
allowing specific
,Ks.. 6,92L
fs centificcte is ex U/s (10)( 15); (ii) Gross int
'd = 30/1 100/80 = Rs. 3,750; (iii) As prej.
e is 0 root deductible.]
receives the following incomes during the
ired to calculate the Income chargeable under'
'ces' :
I) to collcet the amount of dividend.
iss Disha under the head "Income from other


J(
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.1/)
-il'
f:.'
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SOLiRCf:<;
r
'ived qn t::Lx-frce Gf')' {..,cd., (T.O.S. 10%)
prd puzzics ('6ross) 'Ks \000 nnd winning from
b (t.O.S. 30%) . 01/ .
ipitaJ [investments Bonds Rs. 4,00 .
Ii Rs. 10.000 of 7
In sub-tenant. /".,
I: securities due 30th June 3nd 31st
'laharashtra Govt's loarv6f Rs. 50,000 was sold at
.same day 15% Bihar Oov1.'s Loan of Rs. 53,000
.uiredbalance of mount for such purchase was
a friend 0 1-8-'10 9% Gujarat Govl's Loan
r yr.D.S. 20%) of Himson PV1. Ltd. of
P% leSS-fr;-t<' debentures of Reliance Pvt. Ltd. of
e purch e
ncurr for cd ection of interest on taxable securities.
i [ G. Uni., 2005 & 2007-modifiedJ
'eI: he head Incon e from other sources Rs. 1,00,245 '.
r (Interest Rs. 90 collection charge Rs. 155) =
j'.
IE
re
exempted illcomes; \ ) Item J : Rs. 80,000 x 12%
::: Rs. 6,600; (3) Ha yearly illt. all 9% Guj. Govt.
debentures of Rimsa Ltd.::: Rs. 40,000 x 15/100
"s into all B Ltd. 's debenture Rs. 6,000; (6) Gross into
100190::: Rs. 1,500; (7) t. on D Lid. 's debentures
'; (8) Gross income from 'ord puzzles Rs. 5,000;
)0 x JO0/70 ::: Rs. 25,000; (9) into on Bihar
Intures of Reliance Ltd. l1een p"chased on 1-1-'11
rest date), no interest would have upto 31
iwed money (Rs. 53,000 - Rs. 51,000) 2,000.x 6%
deductwn. J
following particulars of his investments for the
kt Bonds
of Reliance Co. Ltd. (TOS at 10%)

i :tive PreE Shares of Nobel Co. Ltd.
'ee debentures of Ashapura Co Ltd. (TDS at 20%)
Port Trust Bonds for Rs. 21,000 and purchased
ntures of Krishna Co. Ltd. for Rs. 84,000 (TDS at
% Govt. loan at par.
comes due half-yearly on 1st January and 1st July.
3i-12-201O. .
I
i
~ i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i l i i l i i i i i i J
i
INCOME "'ROM OTHER SOURCES II 175
ission to his bank for collection ofiriterest on
paid bank commission ofRs. 400for selling
,e st Bonds and Debentures of KrishilaLtd."
,nder the head of "Income from othersources"
i '. ". . .... '. (KutchUni., 2010, Modified)
'!h.. . 1;51.,51)0 s

was sold prior to f st half-yearly
ible. (2) Gross intere,st 011 Redeemable Debelltures =
I .
(3) Gros_s .i.n.. Govt loan (only 6 months)
ble:'(5) Gruss-'.' st 011 debentures ofAshapura
o== Rs. 75.000:, intere bentures of
0/80 = Rs. f2;OOO.] .