IPCC May 2013 Todays paper Solved.... simply Romancing the Taxation

Q1 –A (10Marks)

For Mrs.Rani

AY.13-14

PGBP

Particulars	Rs.	Rs.
Fees	1000000
Less:- Honorarium (Taxable in Other Sources)	24000	976000
Less:- Depreciation Staff Salary Rent Medicine & Needles (105000-22000) Admin Exp	60000 240000 120000 83000 152000	(655000)
Total		321000

Other Sources

Particulars	Rs.	Rs.
Dividend Less:- Exempt	10500 (10500)	Nil
Winning From Lottery (Gross)		10000
Honorarium		24000
LIP Matured Less: Exempt U/s 10 (10D)	57860 (57860)	Nil
Total		34000

Computation of total Income

Particulars	Rs	Rs
PGBP (WN.1)	321000
Other Sources (WN.2)	34000	355000
Gross Total Income		355000
Less: Deduction U/s 80C LIP (50000 x 20%) (note) U/s 80G (100%)	10000 20000	(30000)
Total Income		325000

Computation of Tax Liability

Particulars	Rs	Rs
Normal Income (325000-10000)=315000	11500
Lottery (10000 x 30%)	3000	14500
Total Tax		14500
Add :- Education Cess @ 3%		435
Total Tax Liability		14935
TDS Paid (lottery)		3000
Tax Payable		11935

Notes:-

1.       It is assumed That LIP is Taken Before 1/4/2012.