Module 1 – Assignment Problems
1.
Shri Ramesh ,who was born and brought up in India, went for further studies to UK on 1st March
2009 and came back to India on 1st October , 2010 early in the morning. Find out his residential
status for the Assessment Year 2011-12.
2.
Gautham left for USA on 10th March, 2008 after having lived in India for 20 years. He returned to
India on 10th September 2010. Find out residential status for A.Y 2011-12
3.
Mr. Imran Khan, a Pakisthani cricket player, comes to India since 1997-98 every year to play
cricket and stays here for 120 days. State his residential status for A.Y 2011-12
4.
The following are the incomes of Shri Ram Prasad for the PY 2010-11
a) Interest on England Development Board(1/5 received in India)
50000
b) Income from agriculture in America, received there, but later remitted to India
81000
c) Income from property in Canada , received outside in India
40000
d) Income earned from business in Uganda, which is controlled from Delhi
(Rs 25000 received in India)
45000
e) Dividend paid by a domestic company and received outside India
40000
f) Untaxed profit of 2008-09 brought to India
10000
g) Profit from business in Chennai, controlled from London
200000
h) Profit from sale of a building in India but received in Srilanka
18000
From the above ascertain his taxable income if he is a) Resident b) Not ordinarily resident
c) Non resident
5. Ascertain the residential status of the following
a. An HUF family situated in Nepal and its control and management is from India. Kartha resides in
India for 210 days during the previous year and before that he has visited India only for 100 days.
b. An Indian company whose headquarters is UK and all its affairs are controlled from HQ
c. A Company in Nepal whose production decisions are taken from Kochi and marketing decisions
from Katmandu.
d. A partnership firm in India whose partners are in both India and Srilanka.
6. From the following calculate agricultural income and non agricultural income
a) Income from tea business Rs 340000
b) Income from coffee manufacturing Rs 280000
c) Income from Cotton manufacturing Rs 90000. Raw material of 400kg was cultivated in his on farm
and rest 300kg was bought from market at Rs 80 per Kg. Cost incurred for cultivation is Rs 1200.
7) List out the fully exempted incomes
a) Allowances of MPs
b) Salary of a partner
c) Salary of a MLA
d) Pension to
param veer chakra awardee
e) Share from HUF
f) Dividend from a foreign
company
g)Educational scholarship
h) Income from units of unit scheme , 1964
8. From the following calculate GTI of Sri Hari Narayan for the AY 2011-12 if he is a) resident b) not
ordinarily resident
c)Non resident
a) Royalty received from Govt of India
b) Income from business earned in Afganistan Rs 25000 of which Rs 15000 were received in India.
Business is controlled from India.
c) Interest received from Shri Adithya Kumar a non resident against a loan provided to him for a
business carried on in India Rs 5000
d) Royalty received from Shri Al-Afnan a resident for technical services provided to run a business
outside India Rs 20000
e) Income from business in Jaipur Rs 40000 this business is controlled from France. Rs 20000 were
remitted to France.
9. A resident employee is getting the following special allowances besides salary. He is working in an
area which is at a height of more than 9000ft in the state of Jammu and Kashmir covered under
category A of sec 10(14) of Income Tax Act. Compute taxable amount of these allowances.
1. Climate allowances
Rs 700 pm
2. Snow bound area allowance
Rs 300 pm
3. Disturbed area allowances
Rs 800 pm
4. Border area allowances
Rs 600 pm
5. His two children are studying in Delhi and are living in the hostel. For the reimbursement of their
expenses he is getting Hostel Allowances
Rs 800pm
6. For reimbursement of expenses on the education of both the children he is getting allowances
Rs 300pm
10. Sri Manoj Kumar is getting Rs 7500pm as basic pay Rs 750 pm as dearness pay and Rs 500pm as
dearness allowance. During the previous year he received the following allowances also:
1. Rs 10800 as allowances for reimbursement of personal expenditure while on duty during the
running of truck.
2. Rs 120 pm per son as education allowance for education of his two sons.
3. Both these sons are staying in a hostel on whom Kumar is spending Rs 500pm per son. He is
getting Rs 350pm per son as hostel allowance for meeting this expenditure.
4. Rs 350 pm as Tribal area allowance.
5. Rs 100 pm as conveyance allowance which is used by him for private purpose
6. Rs 200pm as HRA
Sri Manoj has taken a house for his residence at Bilaspur at Rs 1000pm as rent. Find out his taxable
salary.
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