Taxmann's CRACKER | Advanced Tax Laws

Page 1




Contents E G A P

Chapter-wise Marks Distribution

I-9

Previous Exams Trend Analysis

I-11

Chapter-wise Comparison with Study Material

I-19

Chapter 1 u

1.1

SUPPLY UNDER GST

Chapter 2 u

LEVY AND COLLECTION UNDER GST (INCLUDING COMPOSITION LEVY)

2.1

Chapter 3 u

3.1

TIME OF SUPPLY

Chapter 4 u

4.1

VALUE OF SUPPLY UNDER GST

Chapter 5 u

5.1

INPUT TAX CREDIT

Chapter 6 u

6.1

REGISTRATION UNDER GST

Chapter 7 u

DOCUMENTS, ACCOUNTS AND RECORDS AND FILING OF RETURNS

7.1

Chapter 8 u

PAYMENT OF GST AND REFUNDS UNDER GST

8.1

Chapter 9 u

ASSESSMENTS AND AUDIT UNDER GST

I-5

9.1


S T N E T N O C

I-6

E G A P

Chapter 10 u

INSPECTION, SEARCH, SEIZURE AND ARREST, PENALTIES, DEMAND AND RECOVERY UNDER GST

10.1

Chapter 11 u

LIABILITY TO PAY GST IN CERTAIN CASES

11.1

Chapter 12 u

ADVANCE RULINGS UNDER GST

12.1

Chapter 13 u

APPEALS AND REVISION

13.1

Chapter 14 u

TRANSITIONAL PROVISIONS

14.1

Chapter 15 u

MISCELLANEOUS

15.1

Chapter 16 u

PLACE OF SUPPLY

16.1

Chapter 17 u

ZERO RATED SUPPLY i.e. EXPORTS UNDER GST

17.1

Chapter 18 u

UTGST ACT

18.1

Chapter 19 u

GST (COMPENSATION TO STATES) ACT, 2017

19.1

Chapter 20 u

INDUSTRY SPECIFIC ANALYSIS

20.1

Chapter 21 u

BASIC CONCEPTS OF CUSTOMS LAW

21.1

Chapter 22 u

VALUATION OF IMPORTS AND EXPORTS

22.1

Chapter 23 u

WAREHOUSING

23.1

Chapter 24 u

DUTY DRAWBACK

24.1


S T N E T N O C

I-7 E G A P

Chapter 25 u

BAGGAGE

25.1

Chapter 26 u

ADVANCE RULING, SETTLEMENT COMMISSION, DEMAND, SEARCH & SEIZURE, REFUNDS, APPELLATE PROCEDURE, OFFENCES AND PENALTIES

26.1

Chapter 27 u

FOREIGN TRADE POLICY TO THE EXTENT RELEVANT FOR INDIRECT TAX LAW

27.1

Chapter 28 u

CORPORATE TAX PLANNING AND TAX MANAGEMENT

28.1

Chapter 29 u

TAXATION OF COMPANIES

29.1

Chapter 30 u

TAXATION OF FIRMS INCLUDING LLP AND PROVISIONS OF ALTERNATE MINIMUM TAX U/S 115JC OF INCOME TAX ACT

30.1

Chapter 31 u

INCOME TAX IMPLICATION ON SPECIFIED TRANSACTIONS

31.1

Chapter 32 u

TAXATION OF NON-RESIDENTS

32.1

Chapter 33 u

GENERAL ANTI-AVOIDANCE RULES (GAAR)

33.1

Chapter 34 u

BASICS OF INTERNATIONAL TAX

34.1

Chapter 35 u

TAX TREATIES - UNILATERAL AND BILATERAL RELIEF (SECTIONS 90, 90A & 91 OF INCOME-TAX ACT)

35.1

Chapter 36 u

TRANSFER PRICING

SOLVED PAPER : DECEMBER 2020 (NEW SYLLABUS)

36.1 P.1

SOLVED PAPER : JUNE 2021 (NEW SYLLABUS)

P.28

SOLVED PAPER : DECEMBER 2021 (NEW SYLLABUS)

P.58


CHAPTER

(SECTIONS 90, 90A & 91 OF INCOME-TAX ACT)

35

/h nd t i re e w vt oas g l i a Gt h siec d ’ m y u h r sc s t i n i, t uxhc a otwA c n t x rec a e hAt ht t ,xe e o a m t dmo n e c ao n c m no ai I i f co d dn ne I I xf na o et ey 1 l wb 9 tu n e o boi tdt r s c se e i i x p eess r rA te e o h p. nt sh s e a ocd die h l Awi a A Tmv oa Dr s ef i s te f a n i ce l e nmr I

, 0 2 0 2 , t c A e c n a n i F y b d e t r e s n i

(b) Doubly Taxed Income × Foreign rate of tax

r e p s A

rd on f a ss t . p e) ocw ne ea f hw t fo p i le ,l r c ax e veE ep l ( wi A tol I HuV .mr e mt ip a a l h c tC o f no ns an co i t ec hu

, Sd Ee Td Ag Rn i Xd u Al Tc En Vi Is Tn Ao i Nt Rc Eu Td Le Ad

35.1

relief is

“Unilateral Relief” section 91 to the extent of lower of the following:—

TAXMANN®

seef ei pemro ss aaA s 0 AusA a 9 r Al A / oT Tcf 0 9 De s D l n n epo e o hmt isi t i e t s a fe hc r o t e t s hs , yt uo f nf i l o r l ao I a s wr.nn d e e oh o e ci t nt s s i u ke i pnv oem o ar t r i d p deon ehcI r t we e c np bI e pdo. s xet )a . ek s s wo i taf t on o ee l nbl iei b d e e d l r r e 2r u . a . 1 e odQ sc 6 n t t n 9 a n & e 1 es , dmd1 e e t . uut bc Q e s t A r s o tp nt x ,u i e r a b dt s e ne ,t r e y te n ul vt i im ol i caegmo c b i rc ff e e r Oi n oa pI t (c

NOTE: new section 115BAC an individual can compute tax liability either as per normal rates of tax OR; he may opt for ALTERNATIVE TAX rates

u

-

u

.fet nny osa oel h i b e sut t a wuil a o xtosc t aedart Tbdbe c e eehp h sx et t l t s o sa b i e n t ux yr oenon h Dtenai ee t r rnb w vo e e i s s g p ”e m a e s i sehi s r e a t un eea r sg m mlu e ooco xac cnc ahn t noo c i i i t uh es w dp l t b ce n ufixme h e ax oiw e t d, ) E w y Anl “t fA ibr o e yu ob nTr o D t ”A o( d n e i A t s u r t a uT oo n ge aD cf i l t i mrfce e e h me t i i t he l et . d er e orenm i bg r s e d Ce e o dAh s l c xnn eta u a o ocdcT i i t cnn c “ h a n a i cre f ed i au e r ii c o e shme d t hvn sp i ne TAI a s I u

se i c s r a u bo ns of ,o h s t i o s ba nb oe dh et gn r o a s ha cl se l i x aw t s sa a e se e s s s i e r s a s sa e e . xh e at e t s f s eo l e b s s usa u ot a dt e h fs t o lf a ti o p ete cnm neo d oi s c ce n er i hff To o u

TAX TREATIES - UNILATERAL AND BILATERAL RELIEF

HIGHLIGHTS OF TOPIC

-

(a) Doubly taxed Income × Indian rate of tax; or;


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.2

While solving questions here, WE HAVE SOLVED as per NORMAL RATES of tax and hence claimed deductions of Chapter VI-A. n o i t a t u p m o c y t i l i b a i l x a t o d , m a x E e h t n i d. ex na ot i f t o n es e mt ea s r i l wa rm e r ho t o n sr s e e p l n s Ua

Author’s Opinion:

Q1. Reddy India Ltd. is an Indian company. The following incomes are noted from its books of account: Income from a business in India: ` 3,80,000 Income from business in a Foreign country with whom India has ADT Agreement: ` 2,16,000 According to the ADT agreement, ` 2,16,000 is taxable in India. However, it can also be taxed in foreign country @ 11.85% which can be set off against Indian Tax liability. Find out Indian Tax liability.

[CS Professional, December 2004]

TAXMANN®

Ans. (Computation of net tax payable by Reddy India Ltd. for Assessment Year) 2022-23 (Relevant to Previous Year 2021-22) Particulars

Amount (` )

0 0 0 , 6 1 , 2

ng i n i ee l b b aa xi ad Tn ( I yn r i t t n n ue od ci s ne gR i e r s i o. f d nt i sL s a e i nd i sn uI by d md ) oe. rRo f esC n maa a oi i d cd nI nI n I

0 0 0 , 6 9 , 5

e m o c n I l a t o T

0 6 9 , 4 5 , 1 ) 6 9 5 , 5 2 (

f× o 0 t0 n 0 e, t 6 x 1 e, 2 e( hy t r ot t n ,u A o Ac Tn Dg i re e r po f sn Ai 0 0 0 06 , 91 s2 , / u fn e o i l e d ) Ri% a 5 :p 8 . x1 a1 t i.e.

0 6 9 , 5

% 4 @ C E & H : d d A

`

0 0 0 , 9 4 , 1

Y% P5 n2 i r× e 0 v0 o, 0 n6 r9 u, T5 ) ts a e hr t o gr nc i 0 m0 u4 s s Ad (e e %c 5x 2e t @o en vd oi bd a9 n1 o8 x1 a0 T2 Less

Amount (` )

0 0 0 , 0 8 , 3

a i d n I n i s s e n i s u B m o r f e m o c n I

. . B A

Sr. No.

`

4 6 3 , 9 2 , 1

y t i l i b a i l x a T t e N Rounded off to nearest of ` 10 u/s 288B

1,29,360

Q2. Mahesh, aged 64 years, is resident in India. His income is ` 16,80,000 from a business in India and ` 5,45,000 from business in foreign country


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.3

with whom India has agreement for avoidance of double taxation (ADT). According to the ADT agreement, income is taxable in the country in which it is earned and not in other country. However, in the other country, such income can be included for computation of tax rate. According to the tax laws of foreign country, Mahesh has paid ` 32,000 as tax in that country. During the previous year, Mahesh has paid ` 28,000 as tuition fee for his daughter in India and ` 90,000 as tuition fee for his son outside India for full time education. Mahesh has also received an interest of ` 48,000 on Government Securities. Find out tax liability of Mahesh. [CS Professional, June 2011, 4 Marks] Ans. Computation of Tax Liability of Mr. Mahesh for Assessment Year 2022-23 (Relevant to Previous Year 2021-22) Particulars

Amount (`)

0 0 0 , 0 8 , 6 1 0 0 0 , 8 4 0 0 0 , 8 2 , 7 1

e m o c n I l a t o T s s o r G A I V r e t p a h C r e d n u n o i t c u d e D :

0 0 0 , 8 2

a i d n I n i n o i t a c u d e , r e t h g u a d f o s e e F n o i t i u T : C 0 8 s / u

Less

0 0 0 , 0 0 , 7 1

e m o c n I l a t o T

0 0 0 , 5 4 , 5

f o e t a r e v i t c e f f e g n i t u p m o c r o f y l n o e m o cA nA I nT gD i r e e r op Fs :a d x da At

0 0 0 , 5 4 , 2 2

x a t f o e t a r e v i t c e f f e g n i t u p m o c r o f e m o c n I l a t o T x a T f o e t a r e v i t c e f f E 0 0 0 , 5 4 , 2 2

n o x a T

-

e r o m r o 0 6 e g a s a n e z i t i C r o i n e S t n e d i s e ) RY gP ne i e h Bt (n si c 0 a6 l 3n a 0 h t

`

`

0 0 5 , 3 7 , 3

) 0 0 1 / 0 3 × 0 0 0 , 5 4 , 2 1 ( % 0 3 @ s c a l 0 1

e v o b A

0 0 5 , 3 8 , 4

`

0 0 0 , 0 0 , 1

% 0 2 @ s c a l 0 1 o t s c a l 5

`

0 0 0 , 0 1

% 5 @ x a T , s c a l 5 o t 3 `

TAXMANN®

t a n i e d n m I n r n e i v n o o G i s s n e o f o t r s P e r r e o t n s I s ( e n s i e s c u r B u o m S o r r e f h s t n o i a G m o d r n f ) a es s mi e t t fi oi o cr r nu P I c .e . B A S

Amount (`)

0 4 3 , 9 1

% 4 @ C E & H : d d A

0 4 8 , 2 0 , 5


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.4

Particulars

2 8 9 3 . 2 2

% ) 0 0 1 × 0 0 0 , 5 4 , 2 2 / 0 4 8 , 2 0 , 5 ( x a t f o e t a r e v i t c e f f e , e r o f e r e h T

Amount (`)

Amount (`) 9 6 7 , 0 8 , 3

0 0 0 , 0 0 , 7 1 ( 0 0 0 , 0 0 , 7 1

n o a i d n I n i y t i l i b a i l ) x0 a0 T1 / ,2 e r 8 o9 f 3 e . r 2 e h2 T×

` 0 7 7 , 0 8 , 3

B 8 8 2 s / u 0 1

f o t s e r a e n o t f f o d e d n u o R `

0 4 8 , 2 0 , 5

A A T D o n s a w e r e h t f i e l b a y a p x a T

Relief (For your understanding)

0 7 7 , 0 8 , 3

A A T D n i e s u a l c g n i r e d i s n o c e l b a y a p x a T

0 7 0 , 2 2 , 1

E S U A L C N E V I G R E P S A A A T D r e p s a f e i l e R

Q3. Amar, an individual, resident of India, receives the following payments after TDS during the previous year 2021-22: Professional Fees on 17-8-2021: ` 2,40,000

TAXMANN®

Professional Fees on 4-3-2022: ` 1,60,000 Both the above services were rendered in Pakistan on which TDS of ` 50,000 and ` 30,000 respectively has been deducted. He had incurred an expenditure of ` 2,40,000 for earning both these receipts incomes. His income from other sources in India is ` 3,00,000. Compute the tax liability of Amar and also relief under section 91, if any, for Assessment Year 2022-23. [CS Professional, June 2015, New Syllabus, Modified, 5 Marks] Ans. Computation of Tax liability of Mr. Amar for Assessment Year 2022-23 (Relevant to Previous Year 2021-22):

0 0 0 , 0 4 , 5 0 0 5 , 2 1

% 5 @ x a T , 0 0 0 , 0 0 , 5 o t s c a l 5 . 2

Tax

2,40,000 0 0 0 , 0 0 , 3

e m o c n I n a i d n I .

e m o c n I l a t o T / e m o c n I l a t o T s s o r G

b

0 0 0 , 0 4 , 2

o t d e r r u c n i s e r u t i d n e p x E . t . r . w se nm oo i t c c n ui ds eh i Dt :n r a e

a. Gross Income from Pakistan (Net Received + TDS) Less

Amount (`) Amount (`) 0 0 0 , 0 8 , 4

Particulars

0 0 0 , 8

% 0 2 @ x a T , s c a l 0 1 o t s c a l 5

- 0 2 3 , 1 2

% 4 @ s s e C n o i t a c u d E & h t l a e H : d d A

0 0 0 2 5 8 , 0 2

l a t o T


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

Particulars

35.5

Amount (`) Amount (`)

Less: Relief u/s 91 of Income-tax Act 5 7 4 , 9

Lower of 2

0 0 0 , 0 4

(2,40,000

) % 1 8 4 9 . 3 ×

Doubly Taxed Income × Indian Rate of Tax

5 7 4 , 9

(2,40,000

) % 7 6 6 6 . 6 1 ×

Doubly Taxed Income × Foreign Rate of Tax

5 4 8 , 1 1

Relief u/s 91 Net Tax liability 1 % 8 4 9 . 3

Rounded off to nearest of ` 10 u/s 288B ) 0 0 1 × 0 0 0 , 0 4 , 5 / 0 2 3 , 1 2 ( x a T f o e t a R n a i d n I

Working Notes:

Total Income in

16.6667

) 0 0 1 ×

/ 0 0 0 , 0 8 (

4,80,000

/ S D T l a t o T x a T

f o e0 t 0 a R1 × n g i e r o F

foreign

11,850

(a) Income from Profession: ` 4,80,000 (b) Share income from a partnership firm in country M (Tax paid in country M for this income in equivalent Indian ` 10,000): ` 50,000 (c) Commission income from a concern in country N (Tax paid in country N @ 20%) converted in Indian ` 35,000. (d) Interest from scheduled banks: ` 18,000 She wishes to know whether she is eligible to any double taxation relief and if so, its quantum. India does not have any double taxation Avoidance Agreement with Country M & Country N. [CS Professional, December 2004, Modified] Ans. Computation of Tax liability for Assessment Year 2022-23 (Relevant to Previous Year 2021-22) 0 0 0 , 0 8 , 4

Amount (`) Amount (`)

n o i s s e f o r p m o r f e m o c n I A

Particulars

d e h c S m o r f t s e r e t n I ( s e c r u o S r e h t o m) os rk f n ea mB od cl e nu I B

0 0 0 , 8 1

M y r t n u o C n i m r i F p i h s r e n t r a P m o r f e m o c n I e r a h S

0 0 0 , 0 5

N y r t n u o C N I N R E C N O C M O R F n o i s s i m m o C

0 0 0 , 5 3

-

TAXMANN®

Q4. Lolita, a resident Indian has derived the following income:

C


- 0 0 5 , 2 1

% 0 2 @ 0 0 0 , 0 0 , 0 1

0 0 6 , 6 1

o t s c a l 5

`

0 0 1 , 9 2

n e e w t e B e m o c n I n O

t a l i n U . t . r . w t c A x a t e m o c n I f o 1 9 s / u f e f i l e e i l Re r :l a r e -

F

Less

M y r t n u o C m o r f e m o c n I . t . r . w

; r o ) % 1 1 9 1 . 5 × 0 0 0 , 0 5 (

) % 0 2 × 0 0 0 , 0 5 (

6 9 5 , 2

f e i l e R

N y r t n u o C . t . r . w

7 1 8 , 1

; r o ) % 1 1 9 1 . 5 × 0 0 0 , 5 3 (

0 0 0 , 7

) % 0 2 × 0 0 0 , 5 3 (

7 1 8 , 1

f e i l e R

1 5 8 , 5 2

y t i l i b a i l x a T , e r o f e r e h T

0 5 8 , 5 2

B 8 8 2 s / u 0 1

f o t s e r a e n o t f f o d e d n u o R

1 1 9 1 . 5

) 0 0 1 × 0 0 0 , 3 8 , 5 / 4 6 2 , 0 3 ( x a T f o e t a R n a i d n I

Working Note:

0 0 0 , 0 1 f o x a t f o e t a r n g i e r o F × e m o c n I d e x a TM y yt r l b n uu oo DC

`

6 9 5 , 2

x a t f o e t a r n a i d n I × M m o r f e m o c n I d e x a T y l b u o D

`

`

4 6 2 , 0 3

4 6 1 , 1

% 4 @ C E & H : d d A

0 0 . 0 2

`

/ 0 0 0 , 0 1 ( M y r t n u o C . t . r . w x a T f o ) 0 e0 t 1 a R× 0 n0 g0 i , e 0 r o5 F

`

`

% 5 @ 0 0 0 , 0 0 , 5

Tax Liability

o t s c a l 0 5 0 . 0 2 , 0 5 n , 2 e e w t e B e m o c n I n O o t p u e m o c n I n O

`

` `

0 0 0 , 3 8 , 5

e m o c n I l a t o T / e m o c n I l a t o T s s o r G `

Amount (`) Amount (`) Particulars D E

`

TAXMANN®

F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.6

`

`

Q5. Paresh, aged 66 years and ordinary resident in India, is a professional. He has earned ` 1,00,000 from services provided outside India. His foreign income was taxed at 20% in that country where services were rendered. India does not have any tax treaty with that country. Assuming that


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

0 0 0 , 2 3

0 0 0 , 8 6 , 6 0 0 6 , 3 4

8 8 7 , 6

0 0 0 , 0 2

x a T f o

e t a R n g i e r o F × e m o c ) n% I d0 e2 x× a0 T0 0 y0 , l b 0 u, o1 D(

8 8 7 , 6

1 9 s / u f e i l e R , e r o f e r e h T

0 6 5 , 8 3

B 8 8 2 s / u 0 1

f o t s e r a e n o t f f o d e d n u o R

`

4 4 3 , 5 4

4 4 7 , 1

) % 0 8 8 7 . 6 × 0 0 0 , 0 0 , 1 (

`

TAXMANN®

0 0 6 , 3 3

x a T f o e t a R n a i d n I × e m o c n I d e x a T y l b u o D

`

- 0 0 0 , 0 1

g n i w o l l o f e h t f o r e w o L Less

) n e z i t i C r o % i 0 n e % 2 S 0 × 2 ) t n 0 @ e 0 d 0 x i , s a 0 e T , 0 R , 5 0 g 0 n 0 i , e % 0 0 0 1 b 0 0 4 9 0 , 0 0 0 x , s , @ / a 0 1 8 T 0 e 6 C u , , m o 5 f E e o 6 N t l o i a l ( & e c o s ( t n h s t o R I c k T H : s a c l a : l a l d b x a t 3 l 5 u d o a T T 0 S A 3

8 7 . 6

) 0 0 1 × 0 0 0 , 8 6 , 6 / 4 4 3 , 5 4 ( x a T f o e t a R n a i d n I

1

Working Notes:

C 0 8 s / u A I V r e t p a h C r e d n u s) nF oP i t P c un di ei t ds o :p e D (

`

38,556

Net Tax liability

`

`

0 0 0 , 0 0 , 7

e m o c n I l a t o T s s o r G

`

`

0 0 0 , 0 0 , 6

e m o c n I n a i d n I

`

`

0 0 0 , 0 0 , 1

e m o c n I n g i e r o F

Less

Amount (`) Amount (`) Particulars

35.7

Indian income of Paresh is ` 6,00,000, what relief of tax under section 91 of the Income-tax Act, 1961 will be allowed to him? He has contributed ` 32,000 towards PPF. [CS Professional, December 2010, Modified, 4 Marks] Ans.

Computation of Tax liability of Mr. Paresh for Assessment Year 2022-23 (Relevant to Previous Year 2021-22)

0 0 . 0 2

x a T f o e t a R n g i e r o F

2


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.8

Q6. Shilpa, an individual and citizen of India received remuneration from a foreign client in the previous year 2021-22. There is no DTAA with that country. The remuneration was ` 60,00,000 and ` 12,00,000 was tax imposed by that country. Income from other sources of Shilpa in India is ` 9,50,000. She has deposited ` 1,00,000 in PPF in the previous year 2021-22. Compute the tax relief available in India, if she brings ` 48,00,000 in India in convertible foreign exchange. [CS Professional, June 2013, 5 Marks] Ans. Computation of tax liability of Mrs. Shilpa for Assessment Year 2022-23 (Relevant to Previous Year 2021-22): Particulars

Amount (`) Amount (`) 0 0 0 , 0 0 , 0 6

e m o c n I n g i e r o F

Sr. No.

0 0 0 , 0 5 , 9

e m o c n I n a i d n I

0 0 0 , 0 5 , 9 6

e m o c n I l a t o T s s o r G

0 0 0 , 0 0 , 1 0 0 0 , 0 5 , 8 6

e m o c n I l a t o T

TAXMANN®

C 0 8 s / u n o i t c u d e D y t i l i b a i L x a T 0 0 0 , 5 5 , 7 1 0 0 5 , 7 6 , 8 1

`

0 0 0 , 0 0 , 1

% 0 3 @ s c a l 0 1

`

- 0 0 . 0 0 5 , 2 1

s c a l 0 1 o t s c a l 5

`

e v o b a e m o c n I n O

d.

`

n e e w t e b e m o c n i n O

c.

s c a l 5 o t s c a 0 l 5 0 . 0 2 , 0 5 , n 2 e e w t e b e m o c n I n O

b.

o t p u e m o c n I n O

a.

s d e e c x e e m o c n I l a t o T s a % 0 1 @ e g r a h c r u S : d d A 0 5 2 , 4 5 , 0 2

l a t o T b u S

`

t c A x a t e m o c n I f o 1 9 s / u f e i l e R :

f e i l e R l a r e t a l i n U

i.e.

: 2 f o r e w o L x a T f o e t a R n a i d n I × e m o c n I d e x a T y l b u o D 6 1 3 , 1 7 , 8 1

% 6 8 8 1 . 1 3 × 0 0 0 , 0 0 , 0 6

a.

` x a t f o e t a r n g i e r o F × e m o c n i d e x a T y l b u o D `

0 0 0 , 0 0 , 2 1

% 0 2 × 0 0 0 , 0 0 , 0 6

b.

0 2 4 , 6 3 , 1 2

0 7 1 , 2 8

l a t o T b u S f o % 4 @ E & H : d d A Less

0 5 7 , 6 8 , 1

e r o r c 1

d e e c x e t o n s e o d t u b s c a l 0 5 `


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

Sr. No.

Particulars

35.9

Amount (`) Amount (`) 0 0 0 , 0 0 , 2 1

1 9 s / u f e i l e R , e r o f e r e h T

0 2 4 , 6 3 , 9

y t i l i b a i L x a T t e N

0 2 4 , 6 3 , 9

B 8 8 2 s / u 0 1

f o t s e r a e n o t f f o d e d n u o R

%

s e t o N g n i k r o W

`

6 8 8 1 . 1 3

x a T f o e t a R n a i d n I ) 0 0 1 × 0 0 0 , 0 5 , 8 6 / 0 2 4 , 6 3 , 1 2 ( `

` 0 0 . 0 2

x a T f o e t a R n g i e r o F ) 0 0 0 , 0 0 , 0 6 / 0 0 0 , 0 0 , 2 1 ( `

`

Q7. Nitin, a resident of India has the following incomes during the previous year 2021-22: Income from Garments business in Canada (with which India does not have DTAA): ` 2,40,000 Tax Levied in Canada on the above said income: ` 54,000 Purchase of NSC issue: ` 70,000 Compute the tax liability of Nitin. [CS Professional, December 2015, New Syllabus, 5 Marks] Ans. Computation of Tax liability of Mr. Nitin for Assessment Year 2022-23 (Relevant to Previous Year 2021-22) Amount (`)

0 0 0 , 0 4 , 2

e m o c n I n g i e r o F . B

0 0 0 , 0 7 , 9

e m o c n I l a t o T s s o r G . C A I V r e t p a h C r e d n u n o i t c ) u C e d S m e N o D ( c : C n I 0 l 8 a s t . / o D u T

0 0 0 , 0 7

Less

0 0 0 , 0 0 , 9

y t i l i b a i L x a T -

0 0 0 , 0 5 , 2

o t p u e m o c n I n O `

Amount (`)

0 0 0 , 0 3 , 7

e m o c n I n a i d n I . A

Particulars

TAXMANN®

Income from Textiles business in India: ` 7,30,000


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.10

Amount (`)

0 0 5 , 2 1

0 0 5 , 2 9 0 0 7 , 3

% 4 @ C E & H : d d A t c A x a t e m o c n I f o 1 9 s / u f e i l e R :

Less

3 5 6 , 5 2 0 0 0 , 4 5

e m o c n I d e x a T y l b u o D . ) % 5 . 2 2 × 0 0 0 , 0 4 , 2 ( x a T f o e t a r n g i e r o F ×

b

1 9 s / u f e i l e R

7 4 5 , 0 7

25,653

y t i l i b a i l x a T t e N

0 5 5 , 0 7

B 8 8 2 s / u 0 1

f o t s e r a e n o t f f o d e d n u o R

TAXMANN®

96,200

) % 9 8 8 6 . 0 1 × 0 0 0 , 0 4 , 2 ( x a T f o e t a R n a i d n I ×

a

e m o c n I d e x a T y l b u o D .

Lower of the following

Amount (`)

0 0 0 , 0 8

s c a l 9

`

l a t o T

`

s c a l 5

`

o t s c a l 5

o t s c a l 5 . 2

`

n e e w t e b e m o c n I n O

n e e w t e b e m o c n I n O

Particulars

` Working Notes: `

9 8 8 6 . 0 1

0 0 1 × 0 0 0 , 0 0 , 9 / 0 0 2 , 6 9

Indian Rate of Tax `

`

0 5 . 2 2

0 0 1 × 0 0 0 , 0 4 2 / 0 0 0 , 4 5

Foreign Rate of Tax `

Q8. Yogita Kumari, a resident individual, is a freelancer dancer deriving income of ` 75,000 from shows performed outside India. Tax of ` 10,000 was deducted at source in the country where the shows were performed. India does not have any DTAA with that country. Her income in India amounted to ` 3,00,000. Compute tax liability of Yogita for the assessment Year 2022-23 assuming she has deposited ` 10,000 in Public Provident Fund and paid ` 20,000 as medical insurance premium in respect of her father (Age 65 years) [CS Professional, Practice Manual] Ans. Computation of Tax liability of Mrs. Yogita for Assessment Year 2022-23 (Relevant to Previous Year 2021-22)


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

Particulars

35.11

0 0 0 , 0 0 , 3

e m e o m c o n c I n n I g n i a e i r d o n F I A B

0 0 0 , 5 7

Amount Amount (`) (`)

0 0 0 , 5 7 , 3

e m o c n I l a t o T s s o r G A I V r e t p a h C r e d n u s n o i t c u d e D :

C D

0 0 0 , 0 1

) F P P ( C 0 8 s / u

Less

0 0 0 , 0 3

0 0 0 , 0 2

) m i a l c i d e M ( D 0 8 s / u

0 0 0 , 5 4

e m o c n I l a t o T

E

y t i l i b a i L x a T - 0 5 7 , 4

s h k a l 5 . 2 0 % 5 @ x a T , s h k a l 5 o t s h k a l 5 . 2 % 5 × ) 0 0 0 , 0 5 , 2 0 0 0 , 5 4 , 3 (

0 5 7 , 4 0 5 7 , 4

,s y t e i r l i r b o af i l 0 x0 a0 T5 , r o d 0e 0e 0c , x 5 e t o fn o s te n o ed t x I eT es ha t s s l oe a t l u esd i t i a v ri be d ev n Rei ht l :c a n i t e h o d wi T

Less

`

TAXMANN®

`

-

% 4 @ C E & H : d d A

s / u f e i l e r g n i m i a l c f o n o i t s e u q o n s i e r e h t , a i d n I n i e l b a y a p . st i xc aA Tx a ot Ne em co nc i n S I f o 1 9

Note:

Q9. The following are the particulars of Income earned by Mrs. Sunita, a resident Indian aged 25 years, for the assessment year 2022-23: Particulars

Amount (`)

Income from playing basketball match in Netherland

12,00,000

Tax paid in Netherland

1,80,000

Income from playing Basketball match in India

19,20,000

Life insurance premium paid

1,20,000

Medical insurance premium paid through net banking for her father aged 62 years

25,000

Compute her total income and tax liability for the assessment year 202223. Assume there is no Double Taxation Avoidance Agreement between India and Netherland. [Practice Manual]


0 0 0 , 0 2 , 9 1 31,20,000 Gross Total Income

29,75,000 Total Income

5 4 7 , 5 9 , 2

0 0 0 , 0 8 , 1

0 0 0 , 0 8 , 1

5,53,200

Therefore, Tax liability

0 0 2 , 3 3 , 7 0 0 2 , 8 2

`

0 0 0 , 5 4 , 1 0 0 0 , 5 0 , 7

) % 4 5 4 6 . 4 2 × 0 0 0 , 0 0 , 2 1 e ( m x a x o t a ) c f t % n o f 5 I o e 1 d t e e a × t x r 0 a a r n 0 T g n 0 i 0 a y e i l r 0 d b n u o 2 I ; o F 1 r × o D × ( .

`

e m o c n I d e x a T y l b u o D .

1 9 s / u f e i l e r , e r o f e r e h T

4 5 4 6 . 4 2

x a T f o e t a r n a i d n I 1

Working Notes

0 0 5 , 2 9 , 5

x a t f o % 4 @ C E & H : d d A

b

% 0 3 @ x a t , s c a l 0 1 e v o b a e m o c n i n O

Lower of the following:

0 0 0 , 0 0 , 1

% 0 2 @ x a t , s c a l 0 1 o t s c a l 5

a

) 0 0 1 × 0 0 0 , 5 7 , 9 2 / 0 0 2 , 3 3 , 7 (

0 0 . 5 1

x a T f o e t a R n g i e r o F

`

2

`

% 5 @ x a t , s c a l 5 o t s c a l 5 . 2

`

- 0 0 5 , 2 1

s c a l 5 . 2 0

Tax on Above

0 0 0 , 5 2 , n e) z s i t s i e C l rs oi i r n e ev Se sh i c oi hh ww r0 e 0 h, 0 t 0 a 5 f r or f o m0 i0 a l 0 c , i 5 d e2 Me (r Do f 0e 8r se / h ut

`

TAXMANN®

Particulars

0 0 0 , 0 2 , 1

) m u i m e r P e c n a r u s n I e f i L ( C 0 8 s / u

Less: Deductions under Chapter VI-A

0 0 0 , 0 0 , 2 1

a i d n I n i s e h c t a m l l a b t e k s a b g n i y a l p m o r f e m o c n I

`

` `

Amount (`) Amount (`) n g i e r o f n i s e h c t a m l l a b t e k s a b g n i y a l p m o r f y er mn t ou co nc I

`

F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.12

Ans.

Computation of Tax Liability of Mrs. Sunita for Assessment Year 2022-23 (Relevant to Previous Year 2021-22)

Less: Relief u/s 91 w.r.t. doubly taxed income


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.13

Q10. Mrs. Kareena, an individual resident and citizen of India, earned remuneration in the foreign currency from an enterprise in foreign country during her stay in that country in the previous year 2021-22. There is no DTAA with that country. The remuneration was ` 8,00,000 and ` 1,60,000 was deducted at source by the enterprise. Income from other sources of Mrs. Kareena in India was ` 2,00,000. Compute the relief available to her u/s 91 assuming that Mrs. Kareena brings ` 3,00,000 in India in convertible foreign exchange by 30th September, 2021. Also compute the taxable income and tax liability of Mrs. Kareena for the Assessment Year 2022-23. [CS Professional, June 2016, 5 Marks] Ans. Computation of Tax liability for Mrs. Kareena for Assessment Year 2022-23 (Relevant to Previous Year 2021-22) Amount (`) Amount (`)

0 0 0 , 0 0 , 8

e m o c n I n g i e r o F . A

Particulars

0 0 0 , 0 0 , 0 1

e m o c n I l a t o T / e m o c n I l a t o T s s o r G . C y t i l i b a i L x a T o t s c a 0 l 0 . 5 0 2 , 0 5 , n 2 e e w t e b e m o c n I n O .

0 0 5 , 2 1 0 0 0 , 0 0 , 1

`

0 0 5 , 4

% 4 @ C E & H : d d A 1 9 n o i t c e s r e d n u f e i l e R :

1,17,000

: g n i w o l l o f e h t f o r e w o L

Less

0 0 5 , 2 1 , 1

`

s c a l 0 1

`

-

s c a l 5

o t s c a l 5

`

n e e w t e b e m o c n I n O .

c

o t p u e m o c n I n O .

b

`

) 0 7 . 1 1 × 0 0 0 , 0 0 , 8 ( 0 0 0 , 0 6 , 1

x a t f o e t a r n g i e r o F × e m o c ) n% I d0 e2 x× a0 T0 0 y0 , l b 0 u, o8 D( .

`

b

0 0 6 , 3 9

x a T f o e t a R n a i d n I × e m o c n I d e x a T y l b u o D .

a

1 9 s / u f e i l e R

`

93,600

Net Tax Liability

23,400

Rounded off to nearest of ` 10 u/s 288B

23,400

TAXMANN®

0 0 0 , 0 0 , 2

e m o c n I n a i d n I . B a


F E I L E R L A R E T A L I B D N A L A R E T A L I N U S E I T A E R T X A T

35.14

Particulars

Amount (`) Amount (`)

x a T f o e t a R n a i d n I

0 7 . 1 1

Working Notes:

) 0 0 1 × 0 0 0 , 0 0 , 0 1 / 0 0 0 , 7 1 , 1 ( 0 0 . 0 2

`

x a T f o e t a R n g i e r o F

`

) 0 0 1 × 0 0 0 , 0 0 , 8 / 0 0 0 , 0 6 , 1 ( `

`

Q11. Arvind, a textile merchant and resident Indian is doing business in India and abroad. During the previous year 2021-22, he disclosed the following information: Figures in ` Income from business in India

27,00,000

Income from business in country A with which India does not have TAXMANN®

Agreement for avoidance of double taxation

15,00,000

Income Tax levied by Government in country A

5,00,000

Loss from business in country B with which also India does not have Agreement for avoidance of double taxation

(4,00,000)

Contribution to Public Provident Fund

1,50,000

Payment of Life Insurance Premium on the life of his father and Mother

20,000

Compute the tax liability of Arvind for the Assessment Year 2022-23. [CS Professional, December 2015] Ans. Computation of Tax liability of Mr. Arvind for Assessment Year 2022-23 (Relevant to Previous Year 2021-22)

Income from Foreign Country A

15,00,000

Gross Total Income

38,00,000

0 0 0 , 0 0 , 7 2

Amount (`) Amount (`)

a i d n I n i s s e n i s u b m o r f e m o c n I

Particulars

0 0 0 , 0 0 , 4 -

f f o t e s g n i e b B y r t n u o C n g i e r o f m o r f s s o L


CRACKER

Advanced Tax Laws AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO PAGE NO. BINDING TYPE

: : : : : : :

PRATIK NEVE TAXMANN FEBRUARY 2022 3RD EDITION 9789393880703 516 PAPERBACK

Rs. 625 | USD 41

Description This book is prepared exclusively for the Professional Level of Company Secretary Examination requirement. It covers the entire revised, new syllabus as per ICSI. The Present Publication is the 3rd Edition for CS-Professional | New Syllabus | June/ Dec. 2022 Exams, authored by CA Pratik Neve, with the following noteworthy features: u

Strictly as per the New Syllabus of ICSI

u

[Updated & Amended Solutions] n

Income-tax Solutions are provided as per Assessment Year 2022-23

n

GST/Customs Solutions are provided as per Finance Act 2021 & Applicable Circulars/Notifications

u

Coverage of this book includes n

[Fully-Solved Questions of Past Exams]; Topic-wise

l Solved Paper: December 2020 | New Syllabus l Solved Paper: June 2021 | New Syllabus l Solved Paper: December 2021 | New Syllabus n

[460+ Questions] including Numerical & Theory Questions

n

ICSI Practice Manual Questions

u

[Important Additional Questions] from Past CA & CMA Exams with Answers are provided

u

[Marks Distribution] Chapter-wise marks distribution

u

[Trend Analysis] Previous Exams Trend Analysis

u

[ICSI Study Material] Chapter-wise comparison

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