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ANSWERS OF MODEL TEST PAPER 7 
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) (c)  3. (a) 
 (ii) (d)  4. (b) 
 (iii) (a)    
2. (i) (b)    
 (ii) (b)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income and tax liability of Mr. Sahil for  
     A.Y. 2025-26   
 Particulars ` ` 
I Income from house property   
 Annual value of self-occupied property Nil  
 Less: Deduction under section 24(b) 
Interest on housing loan of ` 2,60,000 
restricted to ` 2,00,000 
 
2,00,000 
 
  (2,00,000)  
II Profits and gains of business or 
profession 
  
 Net Profit 94,92,000  
 Add: Expenses debited to Profit and 
loss A/c but not allowable as 
deduction or to be considered under 
other head 
  
 - Commission paid to brother 
[Commission paid to a related 
person/relative to the extent it is 
excessive to market rate is disallowed 
under section 40A(2)] 
10,000  
 - Cash payment to a Transport Carrier 
[Not disallowed under section 40A(3) 
since the limit for one time cash 
payment is ` 35,000 in respect of 
payment to transport operators] 
Nil  
536
Page 2


ANSWERS OF MODEL TEST PAPER 7 
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) (c)  3. (a) 
 (ii) (d)  4. (b) 
 (iii) (a)    
2. (i) (b)    
 (ii) (b)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income and tax liability of Mr. Sahil for  
     A.Y. 2025-26   
 Particulars ` ` 
I Income from house property   
 Annual value of self-occupied property Nil  
 Less: Deduction under section 24(b) 
Interest on housing loan of ` 2,60,000 
restricted to ` 2,00,000 
 
2,00,000 
 
  (2,00,000)  
II Profits and gains of business or 
profession 
  
 Net Profit 94,92,000  
 Add: Expenses debited to Profit and 
loss A/c but not allowable as 
deduction or to be considered under 
other head 
  
 - Commission paid to brother 
[Commission paid to a related 
person/relative to the extent it is 
excessive to market rate is disallowed 
under section 40A(2)] 
10,000  
 - Cash payment to a Transport Carrier 
[Not disallowed under section 40A(3) 
since the limit for one time cash 
payment is ` 35,000 in respect of 
payment to transport operators] 
Nil  
536
 - Interest to bank on term loan [Interest 
paid to bank after the due date of filing 
of return under section 139(1) is 
disallowed as per section 43B] 
2,80,000  
 - Contribution to Prime Minister’s Relief 
Fund [Not allowable since the same is 
not incurred wholly and exclusively for 
business purpose] 
10,000  
 - SGST Penalty paid [SGST penalty 
paid is not compensatory in nature 
and therefore, not allowable] 
49,000  
 - Loss on sale of shares 1,40,000  
 - Depreciation as per books of account   14,00,000  
  1,13,81,000  
 Less: Incomes credited to profit and 
loss account but not taxable as 
business income  
  
 - Dividend from Domestic Companies 1,05,000  
 - Winnings from lotteries 73,500  
 - Profit on sale of shares     3,15,000  
  1,08,87,500  
 Less: Depreciation allowable as per 
Income-tax Rules,1962  
  
 -  On Plant & Machinery [@15% on  
` 98,00,000, being opening WDV of  
` 84 lakhs and additions put to use for 
more than 180 days of ` 14 lakhs + 
@7.5% on ` 14,00,000, being additions 
put to use for less than 180 days] 
 
 
 
 
 
 15,75,000 
 
 Business Income 93,12,500  
 Less: Set off of loss from house property 
as per section 71(3A) 
  2,00,000  
   91,12,500 
III Capital Gains   
 Long term capital gains taxable u/s 112A 
[Since shares are held for 2 years and 
STT has been paid] 
3,15,000  
 Less: Set off of short term capital loss as 
per section 70(2) 
1,40,000 1,75,000 
IV Income from Other Sources   
 Dividend from Domestic Companies 1,05,000  
 Winning from lotteries (` 31,500 +  
` 73,500) 
1,05,000  
   2,10,000 
 Gross Total Income  94,97,500 
537
Page 3


ANSWERS OF MODEL TEST PAPER 7 
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) (c)  3. (a) 
 (ii) (d)  4. (b) 
 (iii) (a)    
2. (i) (b)    
 (ii) (b)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income and tax liability of Mr. Sahil for  
     A.Y. 2025-26   
 Particulars ` ` 
I Income from house property   
 Annual value of self-occupied property Nil  
 Less: Deduction under section 24(b) 
Interest on housing loan of ` 2,60,000 
restricted to ` 2,00,000 
 
2,00,000 
 
  (2,00,000)  
II Profits and gains of business or 
profession 
  
 Net Profit 94,92,000  
 Add: Expenses debited to Profit and 
loss A/c but not allowable as 
deduction or to be considered under 
other head 
  
 - Commission paid to brother 
[Commission paid to a related 
person/relative to the extent it is 
excessive to market rate is disallowed 
under section 40A(2)] 
10,000  
 - Cash payment to a Transport Carrier 
[Not disallowed under section 40A(3) 
since the limit for one time cash 
payment is ` 35,000 in respect of 
payment to transport operators] 
Nil  
536
 - Interest to bank on term loan [Interest 
paid to bank after the due date of filing 
of return under section 139(1) is 
disallowed as per section 43B] 
2,80,000  
 - Contribution to Prime Minister’s Relief 
Fund [Not allowable since the same is 
not incurred wholly and exclusively for 
business purpose] 
10,000  
 - SGST Penalty paid [SGST penalty 
paid is not compensatory in nature 
and therefore, not allowable] 
49,000  
 - Loss on sale of shares 1,40,000  
 - Depreciation as per books of account   14,00,000  
  1,13,81,000  
 Less: Incomes credited to profit and 
loss account but not taxable as 
business income  
  
 - Dividend from Domestic Companies 1,05,000  
 - Winnings from lotteries 73,500  
 - Profit on sale of shares     3,15,000  
  1,08,87,500  
 Less: Depreciation allowable as per 
Income-tax Rules,1962  
  
 -  On Plant & Machinery [@15% on  
` 98,00,000, being opening WDV of  
` 84 lakhs and additions put to use for 
more than 180 days of ` 14 lakhs + 
@7.5% on ` 14,00,000, being additions 
put to use for less than 180 days] 
 
 
 
 
 
 15,75,000 
 
 Business Income 93,12,500  
 Less: Set off of loss from house property 
as per section 71(3A) 
  2,00,000  
   91,12,500 
III Capital Gains   
 Long term capital gains taxable u/s 112A 
[Since shares are held for 2 years and 
STT has been paid] 
3,15,000  
 Less: Set off of short term capital loss as 
per section 70(2) 
1,40,000 1,75,000 
IV Income from Other Sources   
 Dividend from Domestic Companies 1,05,000  
 Winning from lotteries (` 31,500 +  
` 73,500) 
1,05,000  
   2,10,000 
 Gross Total Income  94,97,500 
537
 
 Less: Deduction under Chapter VI-A   
 Deduction under section 80C    
 Principal repayment of housing loan 50,000  
 Deduction under section 80EE   
 Interest on housing loan of ` 60,000  
[` 2,60,000 – ` 2,00,000, allowed u/s 
24(b)] allowable under section 80EEA 
60,000  
 Deduction under section 80G   
 Contribution to Prime Minister’s Relief 
Fund 
10,000 1,20,000 
 Total Income  93,77,500 
 Tax Liability   
 Tax on LTCG of ` 50,000 exceeding  
` 1.25 lakhs] u/s 112A @12.5% 
 6,250 
 Tax on winning from lotteries of  
` 1,05,000 @30% 
 31,500 
 Tax on balance income of ` 90,97,500 at 
slab rate 
  
 Upto ` 2,50,000 Nil  
 From ` 2,50,001 to ` 5,00,000 @5%  12,500  
 From ` 5,00,001 to ` 10,00,000 @20%   1,00,000  
 From ` 10,00,001 to ` 90,97,500 @30%  24,29,250 25,41,750 
   25,79,500 
 Add: Surcharge @10% since total income 
exceeds ` 50 lakhs but does not exceed 
` 1 crore 
  
    
2,57,950 
   28,37,450 
 Add: Health and education cess @4%    1,13,498 
 Tax Liability  29,50,948 
 Tax liability (Rounded off)  29,50,950 
2. (a) Computation of total income of Mr. Tilak for the A.Y. 2025-26 
(if he is Resident and Ordinarily Resident - ROR) 
 Particulars ` 
(i) FTS for services rendered in Malaysia 
Global income is taxable in case of a ROR.  
50,000 
(ii) Profit from business in England controlled from 
Bombay 
Global income is taxable in case of a ROR.  
3,00,000 
(iii) Past untaxed profits earned in Singapore and 
brought to India in current year 
 
Nil 
538
Page 4


ANSWERS OF MODEL TEST PAPER 7 
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) (c)  3. (a) 
 (ii) (d)  4. (b) 
 (iii) (a)    
2. (i) (b)    
 (ii) (b)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income and tax liability of Mr. Sahil for  
     A.Y. 2025-26   
 Particulars ` ` 
I Income from house property   
 Annual value of self-occupied property Nil  
 Less: Deduction under section 24(b) 
Interest on housing loan of ` 2,60,000 
restricted to ` 2,00,000 
 
2,00,000 
 
  (2,00,000)  
II Profits and gains of business or 
profession 
  
 Net Profit 94,92,000  
 Add: Expenses debited to Profit and 
loss A/c but not allowable as 
deduction or to be considered under 
other head 
  
 - Commission paid to brother 
[Commission paid to a related 
person/relative to the extent it is 
excessive to market rate is disallowed 
under section 40A(2)] 
10,000  
 - Cash payment to a Transport Carrier 
[Not disallowed under section 40A(3) 
since the limit for one time cash 
payment is ` 35,000 in respect of 
payment to transport operators] 
Nil  
536
 - Interest to bank on term loan [Interest 
paid to bank after the due date of filing 
of return under section 139(1) is 
disallowed as per section 43B] 
2,80,000  
 - Contribution to Prime Minister’s Relief 
Fund [Not allowable since the same is 
not incurred wholly and exclusively for 
business purpose] 
10,000  
 - SGST Penalty paid [SGST penalty 
paid is not compensatory in nature 
and therefore, not allowable] 
49,000  
 - Loss on sale of shares 1,40,000  
 - Depreciation as per books of account   14,00,000  
  1,13,81,000  
 Less: Incomes credited to profit and 
loss account but not taxable as 
business income  
  
 - Dividend from Domestic Companies 1,05,000  
 - Winnings from lotteries 73,500  
 - Profit on sale of shares     3,15,000  
  1,08,87,500  
 Less: Depreciation allowable as per 
Income-tax Rules,1962  
  
 -  On Plant & Machinery [@15% on  
` 98,00,000, being opening WDV of  
` 84 lakhs and additions put to use for 
more than 180 days of ` 14 lakhs + 
@7.5% on ` 14,00,000, being additions 
put to use for less than 180 days] 
 
 
 
 
 
 15,75,000 
 
 Business Income 93,12,500  
 Less: Set off of loss from house property 
as per section 71(3A) 
  2,00,000  
   91,12,500 
III Capital Gains   
 Long term capital gains taxable u/s 112A 
[Since shares are held for 2 years and 
STT has been paid] 
3,15,000  
 Less: Set off of short term capital loss as 
per section 70(2) 
1,40,000 1,75,000 
IV Income from Other Sources   
 Dividend from Domestic Companies 1,05,000  
 Winning from lotteries (` 31,500 +  
` 73,500) 
1,05,000  
   2,10,000 
 Gross Total Income  94,97,500 
537
 
 Less: Deduction under Chapter VI-A   
 Deduction under section 80C    
 Principal repayment of housing loan 50,000  
 Deduction under section 80EE   
 Interest on housing loan of ` 60,000  
[` 2,60,000 – ` 2,00,000, allowed u/s 
24(b)] allowable under section 80EEA 
60,000  
 Deduction under section 80G   
 Contribution to Prime Minister’s Relief 
Fund 
10,000 1,20,000 
 Total Income  93,77,500 
 Tax Liability   
 Tax on LTCG of ` 50,000 exceeding  
` 1.25 lakhs] u/s 112A @12.5% 
 6,250 
 Tax on winning from lotteries of  
` 1,05,000 @30% 
 31,500 
 Tax on balance income of ` 90,97,500 at 
slab rate 
  
 Upto ` 2,50,000 Nil  
 From ` 2,50,001 to ` 5,00,000 @5%  12,500  
 From ` 5,00,001 to ` 10,00,000 @20%   1,00,000  
 From ` 10,00,001 to ` 90,97,500 @30%  24,29,250 25,41,750 
   25,79,500 
 Add: Surcharge @10% since total income 
exceeds ` 50 lakhs but does not exceed 
` 1 crore 
  
    
2,57,950 
   28,37,450 
 Add: Health and education cess @4%    1,13,498 
 Tax Liability  29,50,948 
 Tax liability (Rounded off)  29,50,950 
2. (a) Computation of total income of Mr. Tilak for the A.Y. 2025-26 
(if he is Resident and Ordinarily Resident - ROR) 
 Particulars ` 
(i) FTS for services rendered in Malaysia 
Global income is taxable in case of a ROR.  
50,000 
(ii) Profit from business in England controlled from 
Bombay 
Global income is taxable in case of a ROR.  
3,00,000 
(iii) Past untaxed profits earned in Singapore and 
brought to India in current year 
 
Nil 
538
(iv) Capital gain on sale of land in India but received in 
Malaysia  
Deemed to accrue or arises in India, since the property is 
situated in India. 
2,00,000 
(v) Income from agricultural land in Nepal, received 
there 
Global income is taxable in case of a ROR 
18,000 
(vi) Interest on saving bank deposit in SBI  
Taxable since it is deemed to accrue or arises in India. 
 
   12,000 
 Gross Total Income 5,80,000 
 Less: Deduction under Chapter VI-A  
 Deduction under section 80C - For repayment of 
housing loan 
50,000 
 Deduction under section 80TTA - Interest on savings 
bank account subject to a maximum of ` 10,000 
 
   10,000 
 Total Income  5,20,000 
Computation of total income of Mr. Tilak for the A.Y. 2025-26 
(if he is Resident but Not Ordinarily Resident - RNOR) 
 Particulars ` 
(a) FTS for services rendered in Malaysia to a non-
resident 
In case of RNOR, FTS would not be taxable in India 
since neither services are utilised for business in 
India nor FTS received in India. 
Nil 
(b) Profit from business in England controlled from 
Bombay 
In case of RNOR, whole profits of ` 3,00,000 from 
business in England is taxable since business is 
controlled from India.  
3,00,000 
(c) Past untaxed profits earned in Singapore and 
brought to India in current year 
Nil 
(d) Capital gain on sale of land in India but received 
in Malaysia  
Deemed to accrue or arises in India, since the property 
is situated in India. 
2,00,000 
(e) Income from agricultural land in Nepal, received 
there 
In case of RNOR, it would not be taxable in India, 
since neither it is deemed to accrue or arise in India 
nor received in India. 
Nil 
(f) Interest on saving bank deposit in SBI 
Taxable since it is deemed to accrue or arises in 
India. 
 
   12,000 
539
Page 5


ANSWERS OF MODEL TEST PAPER 7 
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) (c)  3. (a) 
 (ii) (d)  4. (b) 
 (iii) (a)    
2. (i) (b)    
 (ii) (b)    
 (iii) (b)    
Division B – Descriptive Questions 
1.  Computation of total income and tax liability of Mr. Sahil for  
     A.Y. 2025-26   
 Particulars ` ` 
I Income from house property   
 Annual value of self-occupied property Nil  
 Less: Deduction under section 24(b) 
Interest on housing loan of ` 2,60,000 
restricted to ` 2,00,000 
 
2,00,000 
 
  (2,00,000)  
II Profits and gains of business or 
profession 
  
 Net Profit 94,92,000  
 Add: Expenses debited to Profit and 
loss A/c but not allowable as 
deduction or to be considered under 
other head 
  
 - Commission paid to brother 
[Commission paid to a related 
person/relative to the extent it is 
excessive to market rate is disallowed 
under section 40A(2)] 
10,000  
 - Cash payment to a Transport Carrier 
[Not disallowed under section 40A(3) 
since the limit for one time cash 
payment is ` 35,000 in respect of 
payment to transport operators] 
Nil  
536
 - Interest to bank on term loan [Interest 
paid to bank after the due date of filing 
of return under section 139(1) is 
disallowed as per section 43B] 
2,80,000  
 - Contribution to Prime Minister’s Relief 
Fund [Not allowable since the same is 
not incurred wholly and exclusively for 
business purpose] 
10,000  
 - SGST Penalty paid [SGST penalty 
paid is not compensatory in nature 
and therefore, not allowable] 
49,000  
 - Loss on sale of shares 1,40,000  
 - Depreciation as per books of account   14,00,000  
  1,13,81,000  
 Less: Incomes credited to profit and 
loss account but not taxable as 
business income  
  
 - Dividend from Domestic Companies 1,05,000  
 - Winnings from lotteries 73,500  
 - Profit on sale of shares     3,15,000  
  1,08,87,500  
 Less: Depreciation allowable as per 
Income-tax Rules,1962  
  
 -  On Plant & Machinery [@15% on  
` 98,00,000, being opening WDV of  
` 84 lakhs and additions put to use for 
more than 180 days of ` 14 lakhs + 
@7.5% on ` 14,00,000, being additions 
put to use for less than 180 days] 
 
 
 
 
 
 15,75,000 
 
 Business Income 93,12,500  
 Less: Set off of loss from house property 
as per section 71(3A) 
  2,00,000  
   91,12,500 
III Capital Gains   
 Long term capital gains taxable u/s 112A 
[Since shares are held for 2 years and 
STT has been paid] 
3,15,000  
 Less: Set off of short term capital loss as 
per section 70(2) 
1,40,000 1,75,000 
IV Income from Other Sources   
 Dividend from Domestic Companies 1,05,000  
 Winning from lotteries (` 31,500 +  
` 73,500) 
1,05,000  
   2,10,000 
 Gross Total Income  94,97,500 
537
 
 Less: Deduction under Chapter VI-A   
 Deduction under section 80C    
 Principal repayment of housing loan 50,000  
 Deduction under section 80EE   
 Interest on housing loan of ` 60,000  
[` 2,60,000 – ` 2,00,000, allowed u/s 
24(b)] allowable under section 80EEA 
60,000  
 Deduction under section 80G   
 Contribution to Prime Minister’s Relief 
Fund 
10,000 1,20,000 
 Total Income  93,77,500 
 Tax Liability   
 Tax on LTCG of ` 50,000 exceeding  
` 1.25 lakhs] u/s 112A @12.5% 
 6,250 
 Tax on winning from lotteries of  
` 1,05,000 @30% 
 31,500 
 Tax on balance income of ` 90,97,500 at 
slab rate 
  
 Upto ` 2,50,000 Nil  
 From ` 2,50,001 to ` 5,00,000 @5%  12,500  
 From ` 5,00,001 to ` 10,00,000 @20%   1,00,000  
 From ` 10,00,001 to ` 90,97,500 @30%  24,29,250 25,41,750 
   25,79,500 
 Add: Surcharge @10% since total income 
exceeds ` 50 lakhs but does not exceed 
` 1 crore 
  
    
2,57,950 
   28,37,450 
 Add: Health and education cess @4%    1,13,498 
 Tax Liability  29,50,948 
 Tax liability (Rounded off)  29,50,950 
2. (a) Computation of total income of Mr. Tilak for the A.Y. 2025-26 
(if he is Resident and Ordinarily Resident - ROR) 
 Particulars ` 
(i) FTS for services rendered in Malaysia 
Global income is taxable in case of a ROR.  
50,000 
(ii) Profit from business in England controlled from 
Bombay 
Global income is taxable in case of a ROR.  
3,00,000 
(iii) Past untaxed profits earned in Singapore and 
brought to India in current year 
 
Nil 
538
(iv) Capital gain on sale of land in India but received in 
Malaysia  
Deemed to accrue or arises in India, since the property is 
situated in India. 
2,00,000 
(v) Income from agricultural land in Nepal, received 
there 
Global income is taxable in case of a ROR 
18,000 
(vi) Interest on saving bank deposit in SBI  
Taxable since it is deemed to accrue or arises in India. 
 
   12,000 
 Gross Total Income 5,80,000 
 Less: Deduction under Chapter VI-A  
 Deduction under section 80C - For repayment of 
housing loan 
50,000 
 Deduction under section 80TTA - Interest on savings 
bank account subject to a maximum of ` 10,000 
 
   10,000 
 Total Income  5,20,000 
Computation of total income of Mr. Tilak for the A.Y. 2025-26 
(if he is Resident but Not Ordinarily Resident - RNOR) 
 Particulars ` 
(a) FTS for services rendered in Malaysia to a non-
resident 
In case of RNOR, FTS would not be taxable in India 
since neither services are utilised for business in 
India nor FTS received in India. 
Nil 
(b) Profit from business in England controlled from 
Bombay 
In case of RNOR, whole profits of ` 3,00,000 from 
business in England is taxable since business is 
controlled from India.  
3,00,000 
(c) Past untaxed profits earned in Singapore and 
brought to India in current year 
Nil 
(d) Capital gain on sale of land in India but received 
in Malaysia  
Deemed to accrue or arises in India, since the property 
is situated in India. 
2,00,000 
(e) Income from agricultural land in Nepal, received 
there 
In case of RNOR, it would not be taxable in India, 
since neither it is deemed to accrue or arise in India 
nor received in India. 
Nil 
(f) Interest on saving bank deposit in SBI 
Taxable since it is deemed to accrue or arises in 
India. 
 
   12,000 
539
 
 Gross Total Income 5,12,000 
 Less: Deduction under Chapter VI-A  
 Deduction under section 80C - For repayment of 
housing loan 
50,000 
 Deduction under section 80TTA - Interest on 
savings bank account subject to a maximum of  
` 10,000 
                
10,000   
 Total Income  4,52,000 
 (b) (i) ABC Limited is required to deduct tax at source under section 194-
I @10% on rent of ` 75,000 per month exclusive of GST 
component, since the aggregate rent of ` 9,00,000 during the 
financial year exceeds the threshold limit of ` 2,40,000.  
 Tax has to be deducted at the time of payment or credit, whichever 
is earlier.  
(ii) XYZ Pvt. Ltd. is not required to collect tax at source on sale of car 
of ` 4,00,000 to Mrs. Anju  since its value does not exceed ` 10 
lakhs. 
 However, it is required to collect tax at source u/s 206C(1F) @1% 
on the total sale consideration of ` 12 lakhs since the value of this 
car exceeds ` 10 lakhs.  
Tax has to be collected at the time of receipt of ` 12 lakhs. 
3. (a) (i)  In the present case, the amount of advance of ` 2,00,000 received 
by Mr. Ravi from closely held manufacturing company would be 
deemed as dividend to the extent of accumulated profit of  
` 1,00,000, since Mr. Ravi holds 22% shareholding in the company 
which is not less than 10% of the voting power in the company. 
 Accordingly, deemed dividend of ` 1,00,000 would be taxable in the 
hands of Mr. Ravi under the head “Income from Other Sources” for 
the A.Y. 2025-26. 
(ii)  Computation of deduction allowable u/s 35 for the  
A.Y. 2025-26 
 Particulars ` 
(i) Revenue expenditure on scientific research 
allowable as deduction u/s 35(1)(i), assuming 
such expenditure is related to his business. 
1,00,000 
(ii) Capital expenditure allowable as deduction 
u/s 35(1)(iv), assuming such expenditure is 
incurred for his business. 
3,00,000 
(iii) Contribution to notified approved research 
association for scientific research – 100% of 
the amount paid is allowed as deduction u/s 
35(1)(ii). 
1,50,000 
540
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Viva Questions

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video lectures

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Sample Paper

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practice quizzes

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Previous Year Questions with Solutions

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pdf

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Extra Questions

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Free

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Income Tax Law (Group I) Model Test Paper - 7 (Answers) | Model Test Papers for CA Intermediate

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Summary

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Income Tax Law (Group I) Model Test Paper - 7 (Answers) | Model Test Papers for CA Intermediate

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Income Tax Law (Group I) Model Test Paper - 7 (Answers) | Model Test Papers for CA Intermediate

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MCQs

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shortcuts and tricks

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mock tests for examination

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Objective type Questions

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Exam

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study material

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ppt

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