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ANSWERS OF MODEL TEST PAPER 3 
INTERMEDIATE COURSE: GROUP - I 
PAPER – 3: TAXATION 
SECTION – A: INCOME TAX LAW 
Division A – Multiple Choice Questions 
MCQ No. Sub-part Most Appropriate 
Answer 
 MCQ No. Most Appropriate 
Answer 
1. (i) (a)  3. (a) 
 (ii) (d)  4. (c) 
 (iii) (b)    
2. (i) (b)    
 (ii) (c)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income of Mr. Ayush for A.Y. 2025-26 under the 
regular provisions of the Act 
Particulars ? ? ? 
I Income from business or 
profession 
   
 Net profit as per profit and loss 
account 
 82,45,000  
 Add: Items of expenditure not 
allowable while computing 
business income 
   
 (i) Interest on loan taken for 
purchase of plant & machinery 
[Interest from the date on 
which capital was borrowed till 
the date on which asset was 
first put to use, not allowable 
as deduction under section 
36(1)(iii). Accordingly, interest 
of ? 1,75,000 [ ? 50,00,000 x 
10.5% x 4/12] has to be added 
back, since the same is 
debited to the profit and loss 
account] 
1,75,000   
 (ii) Purchase of goods at a price 
higher than the fair market 
value 
[The difference between the 
purchase price ( ? 40 lakhs) 
and the fair market value  
5,00,000  
 
 
 
 
 
 
498
Page 2


ANSWERS OF MODEL TEST PAPER 3 
INTERMEDIATE COURSE: GROUP - I 
PAPER – 3: TAXATION 
SECTION – A: INCOME TAX LAW 
Division A – Multiple Choice Questions 
MCQ No. Sub-part Most Appropriate 
Answer 
 MCQ No. Most Appropriate 
Answer 
1. (i) (a)  3. (a) 
 (ii) (d)  4. (c) 
 (iii) (b)    
2. (i) (b)    
 (ii) (c)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income of Mr. Ayush for A.Y. 2025-26 under the 
regular provisions of the Act 
Particulars ? ? ? 
I Income from business or 
profession 
   
 Net profit as per profit and loss 
account 
 82,45,000  
 Add: Items of expenditure not 
allowable while computing 
business income 
   
 (i) Interest on loan taken for 
purchase of plant & machinery 
[Interest from the date on 
which capital was borrowed till 
the date on which asset was 
first put to use, not allowable 
as deduction under section 
36(1)(iii). Accordingly, interest 
of ? 1,75,000 [ ? 50,00,000 x 
10.5% x 4/12] has to be added 
back, since the same is 
debited to the profit and loss 
account] 
1,75,000   
 (ii) Purchase of goods at a price 
higher than the fair market 
value 
[The difference between the 
purchase price ( ? 40 lakhs) 
and the fair market value  
5,00,000  
 
 
 
 
 
 
498
( ? 35 lakhs) has to be added 
back as per section 40A(2) 
since the purchase is from a 
related party, i.e., his brother 
and at a price higher than the 
fair market value] 
 
 
 
 
 
 6,75,000 
   89,20,000  
 Less: Items of income to be 
treated separately under the 
respective head of income 
   
 (i) Income-tax refund including 
interest on refund of ? 4,550 
15,550   
 (ii) Dividend from Indian 
companies 
15,00,000   
 (iii) Short term capital gains on 
transfer of listed equity shares 
10,00,000  
25,15,550 
 
   64,04,450  
 Less: Depreciation on interest 
on loan capitalised to plant and 
machinery   
   
 ? 1,75,000, being the amount of 
interest on loan taken for purchase 
of plant and machinery from the date 
on which capital was borrowed till 
the date on which asset was first put 
to use, shall be capitalized 
   
 Normal depreciation @15% x 50% 
on such interest 
13,125   
 Additional depreciation @20% x 
50% on such interest  
[Since plant & machinery was put 
to use for less than 180 days in 
P.Y. 2024-25, it is eligible for 50% 
of the rate of depreciation] 
17,500 30,625  
    63,73,825 
II Capital Gains    
 Short term capital gains on transfer 
of listed equity shares 
  10,00,000 
III Income from Other Sources    
 Interest on income-tax refund  4,550  
 Dividend from Indian companies  15,00,000 15,04,550 
 Gross Total Income   88,78,375 
 Less: Deductions under Chapter 
VI-A 
   
 - Deduction under section 80C 
Life insurance premium for married 
daughter [Allowable as deduction 
 40,000  
499
Page 3


ANSWERS OF MODEL TEST PAPER 3 
INTERMEDIATE COURSE: GROUP - I 
PAPER – 3: TAXATION 
SECTION – A: INCOME TAX LAW 
Division A – Multiple Choice Questions 
MCQ No. Sub-part Most Appropriate 
Answer 
 MCQ No. Most Appropriate 
Answer 
1. (i) (a)  3. (a) 
 (ii) (d)  4. (c) 
 (iii) (b)    
2. (i) (b)    
 (ii) (c)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income of Mr. Ayush for A.Y. 2025-26 under the 
regular provisions of the Act 
Particulars ? ? ? 
I Income from business or 
profession 
   
 Net profit as per profit and loss 
account 
 82,45,000  
 Add: Items of expenditure not 
allowable while computing 
business income 
   
 (i) Interest on loan taken for 
purchase of plant & machinery 
[Interest from the date on 
which capital was borrowed till 
the date on which asset was 
first put to use, not allowable 
as deduction under section 
36(1)(iii). Accordingly, interest 
of ? 1,75,000 [ ? 50,00,000 x 
10.5% x 4/12] has to be added 
back, since the same is 
debited to the profit and loss 
account] 
1,75,000   
 (ii) Purchase of goods at a price 
higher than the fair market 
value 
[The difference between the 
purchase price ( ? 40 lakhs) 
and the fair market value  
5,00,000  
 
 
 
 
 
 
498
( ? 35 lakhs) has to be added 
back as per section 40A(2) 
since the purchase is from a 
related party, i.e., his brother 
and at a price higher than the 
fair market value] 
 
 
 
 
 
 6,75,000 
   89,20,000  
 Less: Items of income to be 
treated separately under the 
respective head of income 
   
 (i) Income-tax refund including 
interest on refund of ? 4,550 
15,550   
 (ii) Dividend from Indian 
companies 
15,00,000   
 (iii) Short term capital gains on 
transfer of listed equity shares 
10,00,000  
25,15,550 
 
   64,04,450  
 Less: Depreciation on interest 
on loan capitalised to plant and 
machinery   
   
 ? 1,75,000, being the amount of 
interest on loan taken for purchase 
of plant and machinery from the date 
on which capital was borrowed till 
the date on which asset was first put 
to use, shall be capitalized 
   
 Normal depreciation @15% x 50% 
on such interest 
13,125   
 Additional depreciation @20% x 
50% on such interest  
[Since plant & machinery was put 
to use for less than 180 days in 
P.Y. 2024-25, it is eligible for 50% 
of the rate of depreciation] 
17,500 30,625  
    63,73,825 
II Capital Gains    
 Short term capital gains on transfer 
of listed equity shares 
  10,00,000 
III Income from Other Sources    
 Interest on income-tax refund  4,550  
 Dividend from Indian companies  15,00,000 15,04,550 
 Gross Total Income   88,78,375 
 Less: Deductions under Chapter 
VI-A 
   
 - Deduction under section 80C 
Life insurance premium for married 
daughter [Allowable as deduction 
 40,000  
499
though she is not dependent, since 
child of an individual whether 
dependent or not falls within the 
meaning of term “Person”. 
Accordingly, whole of the amount 
of ? 40,000 is allowable as it does 
not exceed 10% of the  
? 5,00,000, being the sum assured] 
 - Deduction under section 80D 
Health insurance premium for self, 
spouse and children [Allowable as 
deduction, since it is paid 
otherwise than by way of cash. 
However, it is to be restricted to  
? 25,000 
 25,000    65,000 
 Total Income   88,13,375 
 Total Income (Rounded off)    88,13,380 
Computation of tax payable by Mr. Ayush for A.Y. 2025-26  
under the regular provisions of the Act 
Particulars ? ? 
Tax on total income of ? 88,13,380   
Tax on short term capital gains on transfer of 
listed equity shares @15% u/s 111A [ ? 10,00,000 
x 15%] 
 1,50,000 
Tax on other Income of ? 78,13,380   
Upto ? 2,50,000 Nil  
? 2,50,001 – ? 5,00,000 [@5% of ? 2.50 lakh] 12,500  
? 5,00,001 – ? 10,00,000 [@20% of ? 5,00,000] 1,00,000  
? 10,00,001- ? 78,13,380 [@30% of ? 68,13,380] 20,44,014 21,56,514 
  23,06,514 
Add: Surcharge @10%, since total income 
exceeds ? 50,00,000 but does not exceed ? 1 
crore 
  
  2,30,651 
  25,37,165 
Add: Health and education cess@4%     1,01,487 
Total tax liability  26,38,652 
Less: TDS u/s 194N @ 2% on ? 50 lakhs, being 
the cash withdrawals exceeding ? 1 crore 
1,00,000  
 
Less: Advance tax paid 17,50,000 18,50,000 
Tax payable    7,88,652 
Tax payable (Rounded off)   7,88,650 
 
 
500
Page 4


ANSWERS OF MODEL TEST PAPER 3 
INTERMEDIATE COURSE: GROUP - I 
PAPER – 3: TAXATION 
SECTION – A: INCOME TAX LAW 
Division A – Multiple Choice Questions 
MCQ No. Sub-part Most Appropriate 
Answer 
 MCQ No. Most Appropriate 
Answer 
1. (i) (a)  3. (a) 
 (ii) (d)  4. (c) 
 (iii) (b)    
2. (i) (b)    
 (ii) (c)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income of Mr. Ayush for A.Y. 2025-26 under the 
regular provisions of the Act 
Particulars ? ? ? 
I Income from business or 
profession 
   
 Net profit as per profit and loss 
account 
 82,45,000  
 Add: Items of expenditure not 
allowable while computing 
business income 
   
 (i) Interest on loan taken for 
purchase of plant & machinery 
[Interest from the date on 
which capital was borrowed till 
the date on which asset was 
first put to use, not allowable 
as deduction under section 
36(1)(iii). Accordingly, interest 
of ? 1,75,000 [ ? 50,00,000 x 
10.5% x 4/12] has to be added 
back, since the same is 
debited to the profit and loss 
account] 
1,75,000   
 (ii) Purchase of goods at a price 
higher than the fair market 
value 
[The difference between the 
purchase price ( ? 40 lakhs) 
and the fair market value  
5,00,000  
 
 
 
 
 
 
498
( ? 35 lakhs) has to be added 
back as per section 40A(2) 
since the purchase is from a 
related party, i.e., his brother 
and at a price higher than the 
fair market value] 
 
 
 
 
 
 6,75,000 
   89,20,000  
 Less: Items of income to be 
treated separately under the 
respective head of income 
   
 (i) Income-tax refund including 
interest on refund of ? 4,550 
15,550   
 (ii) Dividend from Indian 
companies 
15,00,000   
 (iii) Short term capital gains on 
transfer of listed equity shares 
10,00,000  
25,15,550 
 
   64,04,450  
 Less: Depreciation on interest 
on loan capitalised to plant and 
machinery   
   
 ? 1,75,000, being the amount of 
interest on loan taken for purchase 
of plant and machinery from the date 
on which capital was borrowed till 
the date on which asset was first put 
to use, shall be capitalized 
   
 Normal depreciation @15% x 50% 
on such interest 
13,125   
 Additional depreciation @20% x 
50% on such interest  
[Since plant & machinery was put 
to use for less than 180 days in 
P.Y. 2024-25, it is eligible for 50% 
of the rate of depreciation] 
17,500 30,625  
    63,73,825 
II Capital Gains    
 Short term capital gains on transfer 
of listed equity shares 
  10,00,000 
III Income from Other Sources    
 Interest on income-tax refund  4,550  
 Dividend from Indian companies  15,00,000 15,04,550 
 Gross Total Income   88,78,375 
 Less: Deductions under Chapter 
VI-A 
   
 - Deduction under section 80C 
Life insurance premium for married 
daughter [Allowable as deduction 
 40,000  
499
though she is not dependent, since 
child of an individual whether 
dependent or not falls within the 
meaning of term “Person”. 
Accordingly, whole of the amount 
of ? 40,000 is allowable as it does 
not exceed 10% of the  
? 5,00,000, being the sum assured] 
 - Deduction under section 80D 
Health insurance premium for self, 
spouse and children [Allowable as 
deduction, since it is paid 
otherwise than by way of cash. 
However, it is to be restricted to  
? 25,000 
 25,000    65,000 
 Total Income   88,13,375 
 Total Income (Rounded off)    88,13,380 
Computation of tax payable by Mr. Ayush for A.Y. 2025-26  
under the regular provisions of the Act 
Particulars ? ? 
Tax on total income of ? 88,13,380   
Tax on short term capital gains on transfer of 
listed equity shares @15% u/s 111A [ ? 10,00,000 
x 15%] 
 1,50,000 
Tax on other Income of ? 78,13,380   
Upto ? 2,50,000 Nil  
? 2,50,001 – ? 5,00,000 [@5% of ? 2.50 lakh] 12,500  
? 5,00,001 – ? 10,00,000 [@20% of ? 5,00,000] 1,00,000  
? 10,00,001- ? 78,13,380 [@30% of ? 68,13,380] 20,44,014 21,56,514 
  23,06,514 
Add: Surcharge @10%, since total income 
exceeds ? 50,00,000 but does not exceed ? 1 
crore 
  
  2,30,651 
  25,37,165 
Add: Health and education cess@4%     1,01,487 
Total tax liability  26,38,652 
Less: TDS u/s 194N @ 2% on ? 50 lakhs, being 
the cash withdrawals exceeding ? 1 crore 
1,00,000  
 
Less: Advance tax paid 17,50,000 18,50,000 
Tax payable    7,88,652 
Tax payable (Rounded off)   7,88,650 
 
 
500
2. (a)  Miss Geeta is said to be resident if she satisfies any one of the 
following basic conditions: 
(i)  Has been in India during the previous year for a total period of 
182 days or more  
(or) 
(ii)  Has been in India during the 4 years immediately preceding the 
previous year for a total period of 365 days or more and has been 
in India for at least 60 days during the previous year.  
 Miss Geeta’s stay in India during the P.Y.2024-25 is 142 days 
[30+31+30+31+20] which is less than 182 days.  However, her stay in 
India during the P.Y.2024-25 exceeds 60 days. Since, she left India for 
the first time, her stay in India during the four previous years prior to 
P.Y.2024-25 would be more than 365 days.  Hence, she is a resident 
for P.Y.2024-25. 
 Further, Miss Geeta would be “Resident and ordinarily resident” in 
India in during the previous year 2024-25, since her stay in India in the 
last seven previous years prior to P.Y.2024-25 is more than 729 days 
and she must be resident in the preceding ten years. 
  Computation of business income and agricultural income of Miss 
Geeta for A.Y. 2025-26 
Particulars
 
Income Business 
Income 
? 
Agricultural 
Income 
? 
(i) Income from sale of 
centrifuged latex 
processed from rubber 
plants grown in 
Kanyakumari (Apportioned 
between business and 
agricultural income in the 
ratio of 35:65 as per Rule 
7A of Income-tax Rules, 
1962) 
 
 
 
 
 
 
 
 
 
1,50,000 
 
 
 
 
 
 
 
 
 
52,500 
 
 
 
 
 
 
 
 
 
97,500 
(ii) Income from sale of coffee 
grown, cured, roasted and 
grounded in Colombo and 
received in Chennai [See 
Note 1 below] 
 
 
 
 
5,00,000 
 
 
 
 
5,00,000 
 
 
 
 
- 
(iii) Income from sale of tea 
grown and manufactured 
in West Bengal 
(Apportioned between 
business and agricultural 
income in the ratio of 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
501
Page 5


ANSWERS OF MODEL TEST PAPER 3 
INTERMEDIATE COURSE: GROUP - I 
PAPER – 3: TAXATION 
SECTION – A: INCOME TAX LAW 
Division A – Multiple Choice Questions 
MCQ No. Sub-part Most Appropriate 
Answer 
 MCQ No. Most Appropriate 
Answer 
1. (i) (a)  3. (a) 
 (ii) (d)  4. (c) 
 (iii) (b)    
2. (i) (b)    
 (ii) (c)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income of Mr. Ayush for A.Y. 2025-26 under the 
regular provisions of the Act 
Particulars ? ? ? 
I Income from business or 
profession 
   
 Net profit as per profit and loss 
account 
 82,45,000  
 Add: Items of expenditure not 
allowable while computing 
business income 
   
 (i) Interest on loan taken for 
purchase of plant & machinery 
[Interest from the date on 
which capital was borrowed till 
the date on which asset was 
first put to use, not allowable 
as deduction under section 
36(1)(iii). Accordingly, interest 
of ? 1,75,000 [ ? 50,00,000 x 
10.5% x 4/12] has to be added 
back, since the same is 
debited to the profit and loss 
account] 
1,75,000   
 (ii) Purchase of goods at a price 
higher than the fair market 
value 
[The difference between the 
purchase price ( ? 40 lakhs) 
and the fair market value  
5,00,000  
 
 
 
 
 
 
498
( ? 35 lakhs) has to be added 
back as per section 40A(2) 
since the purchase is from a 
related party, i.e., his brother 
and at a price higher than the 
fair market value] 
 
 
 
 
 
 6,75,000 
   89,20,000  
 Less: Items of income to be 
treated separately under the 
respective head of income 
   
 (i) Income-tax refund including 
interest on refund of ? 4,550 
15,550   
 (ii) Dividend from Indian 
companies 
15,00,000   
 (iii) Short term capital gains on 
transfer of listed equity shares 
10,00,000  
25,15,550 
 
   64,04,450  
 Less: Depreciation on interest 
on loan capitalised to plant and 
machinery   
   
 ? 1,75,000, being the amount of 
interest on loan taken for purchase 
of plant and machinery from the date 
on which capital was borrowed till 
the date on which asset was first put 
to use, shall be capitalized 
   
 Normal depreciation @15% x 50% 
on such interest 
13,125   
 Additional depreciation @20% x 
50% on such interest  
[Since plant & machinery was put 
to use for less than 180 days in 
P.Y. 2024-25, it is eligible for 50% 
of the rate of depreciation] 
17,500 30,625  
    63,73,825 
II Capital Gains    
 Short term capital gains on transfer 
of listed equity shares 
  10,00,000 
III Income from Other Sources    
 Interest on income-tax refund  4,550  
 Dividend from Indian companies  15,00,000 15,04,550 
 Gross Total Income   88,78,375 
 Less: Deductions under Chapter 
VI-A 
   
 - Deduction under section 80C 
Life insurance premium for married 
daughter [Allowable as deduction 
 40,000  
499
though she is not dependent, since 
child of an individual whether 
dependent or not falls within the 
meaning of term “Person”. 
Accordingly, whole of the amount 
of ? 40,000 is allowable as it does 
not exceed 10% of the  
? 5,00,000, being the sum assured] 
 - Deduction under section 80D 
Health insurance premium for self, 
spouse and children [Allowable as 
deduction, since it is paid 
otherwise than by way of cash. 
However, it is to be restricted to  
? 25,000 
 25,000    65,000 
 Total Income   88,13,375 
 Total Income (Rounded off)    88,13,380 
Computation of tax payable by Mr. Ayush for A.Y. 2025-26  
under the regular provisions of the Act 
Particulars ? ? 
Tax on total income of ? 88,13,380   
Tax on short term capital gains on transfer of 
listed equity shares @15% u/s 111A [ ? 10,00,000 
x 15%] 
 1,50,000 
Tax on other Income of ? 78,13,380   
Upto ? 2,50,000 Nil  
? 2,50,001 – ? 5,00,000 [@5% of ? 2.50 lakh] 12,500  
? 5,00,001 – ? 10,00,000 [@20% of ? 5,00,000] 1,00,000  
? 10,00,001- ? 78,13,380 [@30% of ? 68,13,380] 20,44,014 21,56,514 
  23,06,514 
Add: Surcharge @10%, since total income 
exceeds ? 50,00,000 but does not exceed ? 1 
crore 
  
  2,30,651 
  25,37,165 
Add: Health and education cess@4%     1,01,487 
Total tax liability  26,38,652 
Less: TDS u/s 194N @ 2% on ? 50 lakhs, being 
the cash withdrawals exceeding ? 1 crore 
1,00,000  
 
Less: Advance tax paid 17,50,000 18,50,000 
Tax payable    7,88,652 
Tax payable (Rounded off)   7,88,650 
 
 
500
2. (a)  Miss Geeta is said to be resident if she satisfies any one of the 
following basic conditions: 
(i)  Has been in India during the previous year for a total period of 
182 days or more  
(or) 
(ii)  Has been in India during the 4 years immediately preceding the 
previous year for a total period of 365 days or more and has been 
in India for at least 60 days during the previous year.  
 Miss Geeta’s stay in India during the P.Y.2024-25 is 142 days 
[30+31+30+31+20] which is less than 182 days.  However, her stay in 
India during the P.Y.2024-25 exceeds 60 days. Since, she left India for 
the first time, her stay in India during the four previous years prior to 
P.Y.2024-25 would be more than 365 days.  Hence, she is a resident 
for P.Y.2024-25. 
 Further, Miss Geeta would be “Resident and ordinarily resident” in 
India in during the previous year 2024-25, since her stay in India in the 
last seven previous years prior to P.Y.2024-25 is more than 729 days 
and she must be resident in the preceding ten years. 
  Computation of business income and agricultural income of Miss 
Geeta for A.Y. 2025-26 
Particulars
 
Income Business 
Income 
? 
Agricultural 
Income 
? 
(i) Income from sale of 
centrifuged latex 
processed from rubber 
plants grown in 
Kanyakumari (Apportioned 
between business and 
agricultural income in the 
ratio of 35:65 as per Rule 
7A of Income-tax Rules, 
1962) 
 
 
 
 
 
 
 
 
 
1,50,000 
 
 
 
 
 
 
 
 
 
52,500 
 
 
 
 
 
 
 
 
 
97,500 
(ii) Income from sale of coffee 
grown, cured, roasted and 
grounded in Colombo and 
received in Chennai [See 
Note 1 below] 
 
 
 
 
5,00,000 
 
 
 
 
5,00,000 
 
 
 
 
- 
(iii) Income from sale of tea 
grown and manufactured 
in West Bengal 
(Apportioned between 
business and agricultural 
income in the ratio of 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
501
40:60 as per Rule 8 of the 
Income-tax Rules, 1962) 
 
12,00,000 
 
4,80,000 
 
7,20,000 
(iv) Income from sapling and 
seedling grown in a 
nursery at Cochin. Basic 
operations were not 
carried out on land [See 
Note 2 below] 
 
 
 
 
 2,00,000 
 
 
 
 
            -          
 
 
 
 
  2,00,000 
  20,50,000 10,32,500 10,17,500 
Notes: 
(1) Since Ms. Geeta is resident and ordinarily resident in India for 
A.Y. 2025-26, her global income is taxable in India. Entire income 
from sale of coffee grown, cured, roasted and grounded in 
Colombo is taxable as business income since such income is 
earned from sale of coffee grown, cured, roasted and grounded 
outside India i.e., in Colombo. 
(2) As per Explanation 3 to section 2(1A), income derived from 
sapling or seedlings grown in a nursery would be deemed to be 
agricultural income, whether or not the basic operations were 
carried out on land. Hence, income of ? 2,00,000 from sapling and 
seedling grown in a nursery at Cochin is agricultural income. 
(b) TDS implications 
(i) On pre-mature withdrawal from EPF  
No tax is deductible under section 192A even though the 
employee, Mr. Vikas, has not completed 5 years of continuous 
service, since termination of employment is on account of his ill-
health. Hence, Rule 8 of Part A of the Fourth Schedule is 
applicable in this case. 
(ii) On payment of service fee to bank 
Even though service fee is included in the definition of “interest” 
under section 2(28A), no tax is deductible at source under section 
194A, since the service fee is paid to a banking company, i.e., 
Indian Bank.   
3.  (a) Computation of Gross Total Income of Mr. Jain and Mrs. Jain for 
A.Y. 2025-26 
Particulars Mr. Jain Mrs. Jain 
? ? ? ? 
Salary 12,50,000  -  
Less: Standard 
deduction under 
section 16(ia) 
 
 
 
   50,000 
 
12,00,000 
  
502
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