Heads of Income Quiz

Mr. Raja, a proprietor, commenced operation of the business of a new three star hotel in Mumbai on 1.7.2023. He had made a total investment of Rs. 7.58 crores till 30.6.2023. Out of total investment of Rs. 7.58 crores, Rs. 1.58 crores was used for purchase of land in P.Y.2022-23. Rs. 4.70 crores was used for constructing Hotel and balance of Rs. 1.30 used for purchasing the furniture in P.Y. 2023-24. He wants to avail the benefit of deduction under section 35AD as he satisfied with all the conditions prescribed u/s 35AD and has exercised the option of shifting out of the default regime provided under section 115BAC(1A). His profit and gains from the business for P.Y. 202324 is Rs. 50 lakhs before claiming deduction u/s 35AD. He wants to file his income-tax return on 12.12.2024. How much deduction Mr. Raja can claim for A.Y. 2024-25 and the losses which he can carry forward to A.Y. 2025-26?

• He can claim the deduction of Rs. 7.58 crores from his business income but he would not be able to carry forward the business loss of Rs. 7.08 crores

• He can claim the deduction of Rs. 6.00 crores from his business income and can carry

  forward the business loss of Rs. 5.50

• He can claim the deduction of Rs. 6.00 crores from his business income but cannot carry

  forward the business loss of Rs. 5.50

• He can claim the deduction of Rs. 7.58 crores from his business income and can carry

  forward the business loss of Rs. 7.08 crores

In case of a Member of Parliament –

• Daily allowance is exempt but constituency allowance received as per applicable Rules is taxable.

• Constituency allowance received as per applicable Rules is exempt but daily allowance is taxable.

• Both daily allowance and constituency allowance received as per applicable Rules are taxable.

• Both daily allowance and constituency allowance received as per applicable Rules are exempt.

Mr. Raghav has three houses for self occupation. What would be the tax treatment for A.Y.2024- 25 in respect of income from house property?

• One house, at the option of Mr. Raghav, would be treated as self-occupied. The other two houses would be deemed to be let out.

• Two houses, at the option of Mr. Raghav, would be treated as self-occupied. The other house would be deemed to be let out.

• One house, at the option of Assessing Officer, would be treated as self-occupied. The other two houses would be deemed to be let out.

• Two houses, at the option of Assessing Officer, would be treated as self-occupied. The other house would be deemed to be let out.

For the purpose of determining the perquisite value of loan at concessional rate given to the employee, the lending rate of State Bank of India as on is required;

• 1st day of the relevant previous year

• Last day of the relevant previous year

• the day the loan is given

• 1st day of the relevant assessment year

For an assessee, who is a salaried employee who invests in equity shares, what is the benefit available in respect of securities transaction tax paid by him on sale and acquisition of 100 listed shares of X Ltd. which has been held by him for 14 months before sale?

• Rebate under section 88E is allowable in respect of securities transaction tax paid.

• Securities transaction tax paid is treated as expenses of transfer and deducted from sale consideration.

• Capital gains without deducting STT paid is taxable at a concessional rate of 10% on such capital gains exceeding Rs. 1 lakh.

• Capital gains without deducting STT paid is taxable at concessional rate of 15%.

Mr. Devam has received a sum of Rs. 75,000 on 24.10.2023 from his friend on the occasion of his marriage anniversary. What would be the taxability of the said sum in the hands of Mr. Devam?

• Entire Rs. 75,000 is chargeable to tax

• Entire Rs. 75,000 is exempt from tax

• Only Rs. 25,000 is chargeable for tax

• Only 50% i.e., Rs. 37,500 is chargeable for tax

Mr. Kashyap has acquired a building from his friend on 10.10.2023 for Rs. 15,00,000. The stamp duty value of the building on the date of purchase is Rs. 16,20,000. Income chargeable to tax in the hands of Mr. Kashyap is

• Rs. 70,000

• Rs. 50,000

• Nil

• Rs. 1, 20,000

Mr. Kumar, engaged in wholesale business of clothes and speculative business, discontinued its operations on 19.10.2023 and 30.09.2023, respectively. The cloth business loss upto 19.10.2023 for P.Y. 2023-24 is Rs. 8,000 and speculative business loss upto 30.09.2023 for P.Y. 2023- 24 was Rs. 40,000. Out of total bad debts of Rs. 1,00,000 that were claimed by Mr. Kumar in respect of a particular debtor, Rs. 60,000 was allowed by the Assessing Officer in P.Y. 2022-23. On 29.01.2024, Mr. Kumar received a sum of Rs. 68,000 from the debtor in full and final settlement of cloth business. How much amount would be taxable in the hands of Mr. Kumar for A.Y. 2024-25?

• Rs. 28,000

• Rs. 20,000

• Rs. 60,000

• Rs. 68,000

Vidya received Rs. 90,000 in May, 2023 towards recovery of unrealised rent, which was deducted from actual rent during the P.Y. 2021-22 for determining annual value. Legal expense incurred in relation to unrealized rent is Rs. 20,000. The amount taxable under section 25A for A.Y. 2024-25 would be –

• Rs. 70,000

• Rs. 63,000

• Rs. 90,000

• Rs. 49,000

The HRA paid to an employee residing in Patna is exempt up to the lower of actual HRA, excess of rent paid over 10% of salary and -

• 30% of salary

• 40% of salary

• 50% of salary

• 60% of salary