Salary and income from house property

Statute sections

Landmark cases

Previous-year questions

Mapped 6 / 10 / 15-mark questions on this topic. Frequency is how many papers repeat the question.

• 15 What are the conditions precedent to be complied for claiming exemption of expenses incurred for the treatment of specified deceases under section 80DDB of the Income Tax Act? · 4×
• 10 Prepare the proforma statement of income for the A.Y . 2017-18 of the assessee pertaining to his heads of income from salary, house property and long term capital gains (on sale of his house property), by correctly applying the following sections - Sec 16, 10(13), 10(14), 80DDB, 24 and 30% statutory Deduction, 45(1A), 48, 54, Deduction under Chapter VIA-80C, TDS, and calculate tax liability. · 3×
• 10 The assessee, during the financial year 2012-13, estimated his income and calculated the tax which is around Rs. 15,000. The assessee did not pay any advance tax as envisaged under the Income Tax Act, nor he had any TDS. He paid the entire tax as self assessment tax and filed the returns before the due date. As an assessing officer, while assessing and passing the assessment order, how will you impose the tax as per the provisions of the Income Tax Act? · 3×
• 6 Kinds of persons under the Income Tax Act. · 2×
• 6 Income from House. · 2×
• 6 Persons chargeable to Income Tax. · 2×
• 10 Under section 80C of the Income Tax Act, exemption for tuition fee paid to any college or school can be claimed to an extent of Rs. 12,000/- per annum, for two children. Clarify whether any tuition fee paid for self-education can also be claimed as a deduction under the above section. · 2×
• 10 The assessee, an NRI, wants to sell the house property of his father who purchased it forty years back and died leaving behind his legal heirs, i.e. his wife, son and his two daughters. The assessee needs your advise on the following issues: (a) Does he have to pay tax on the amount that he receives? (b) How can he avoid paying tax? (c) Does his mother, who is a senior citizen, need to pay any tax? As tax consultant, advise the party accordingly with explanation. · 2×
• 6 Income. · 1×
• 6 Agricultural Income. · 1×
• 6 Clubbing of income. · 1×
• 6 Association of Persons under the Income Tax Act. · 1×
• 6 Non Resident under the Income Tax Act. · 1×
• 6 Profit in lieu of Salary. · 1×
• 6 Assessee under the Income Tax Act. · 1×
• 6 Income under IT Act. · 1×
• 6 Meaning of Salary. · 1×
• 6 Characteristics of Salary. · 1×
• 6 H.U.F. under Income Tax Act. · 1×
• 10 The assessee during the financial year, has invested FD of a sum of Rs. 5,00,000/- in the sanme of his wife who is a house wife having no income of her own and not an assessee. The assessee does not want to show the interest accrued on the FD and seeks your clarification and advise. As a tax consultant advise your client. · 1×
• 10 Prepare the draft proforma of computation of Income from Salary, House property, applying the provisions of Sections 10(3), 16, 24, 80DDB, 80E, and 80C appropriately. · 1×
• 10 A has a house property which was let out during the financial year 2016-17, at Rs. 25,000/- p.m. He paid municipal tax Rs. 3,500/- p.a., premium on fire insurance Rs. 3,500/- p.a., paid house loan principal Rs. 30,000/-, and interest Rs. 65,000/- p.a. from HDFC, and paid house loan principal and interest towards the assessment year 2017-18. · 1×
• 10 'A', a government employee, draws Rs. 20,000/- p.m., receives HRA of Rs. 24,000/- and he resides in his own house. He paid total house loan principal of Rs. 15,000/- and interest Rs. 60,000/-. He paid PF Rs. 10,000/-, LIC Rs. 5,000/-, and Tuition fee Rs. 30,000/-. He has undergone treatment for renal failure in a private hospital where he was treated by a general physician, and he has claimed deduction u/s 80DDB. You as an assessing officer, calculate his taxable income. · 1×
• 10 Prepare the proforma statement of income showing computation of income from salary, house property, applying the following sections correctly: Sec. 316, 10(13), 10(14), 80DDB, 80G, 24, 30% statutory deduction, Deduction under Chapter VIA - 80C. · 1×
• 10 The assessee is working with a multinational company in Pune. She pays rent to her flat owner and maintenance charges to the owner's association. But her employer refuses to consider the maintenance charge while calculating rebate on rent, stating that the Income Tax Act mentions rent only. Is she right in her approach? If so why, and if not, why not? Explain. · 1×
• 10 'A' company is formed solely to do the business of building houses and letting them on rent. Is this income of the company taxable? If so under what head of the Income? · 1×
• 10 Prepare the draft proforma of computation of Income from Salary, House property applying Income from other sources and pertaining to his heads of income from Salary, House property and other sources, applying the provisions of Sections 10(3), 16, 24, 80DDB, 80E, and 80C, appropriately. · 1×
• 10 Draft a proforma of statement showing the computation of income from house property, income from profession and income from other sources, applying the following sections: Sec. 10(13), Sec. 19, Sec. 10(14), Sec. 24, Sec. 80E, Sec. 80G, Sec. 80C. · 1×
• 10 Mr. 'A' constructed a house and claimed deduction of interest on such amount from his salary income. The income tax officer disallowed the deduction. Explain the remedy available to the assessee, and whether the decision of the ITO is justifiable? Advise. · 1×
• 10 Mr. 'A' started a partnership business with his major son and also admitted his minor son to the benefits of the firm. The income tax officer has included the share of the minor son's income in the income of Mr. A. Decide whether the decision of the ITO is justifiable. · 1×
• 10 The assessee is a retired employee and he is having income from salary (pension), income from house property, income from other sources. His taxable income for the financial year 2017-18 was Rs. 2,85,000/-. In the month of April 2018 he became a senior citizen. Since he has attained 60 years of age, and since the exempted income for a senior citizen is Rs. 3,00,000/-, he has filed a nil return. The assessing officer assessed the income and levied tax and interest. You as the consultant advise the assessee. · 1×
• 10 Draft a proforma of statement of income showing the computation of income from the heads of income from Salary, House property, Profession and other sources, and arrive at taxable income by applying sections 10(13A), 10(14), 16, 24, 80E, 80DDB, and 80C at appropriate places. · 1×
• 10 The assessee is a retired employee and he is having income from salary (pension), income from house property, income from other sources. His taxable income for the financial year 2009-10 was Rs. 1,80,000/-. In the month of April 2010 he attained the age of 65, and his income is much below the exempted income of Rs. 2,40,000/-, so he has filed a nil return. The assessing officer assessed the income and levied tax and interest. You, as the consultant, advise the assessee. · 1×
• 10 A has a house property which was let out during the financial year 2016-17, at Rs. 25,000/- p.m. He paid municipal tax Rs. 6,000/- p.a., premium on fire insurance Rs. 3,500/-, and paid house loan principal Rs. 30,000/- and interest Rs. 65,000/- p.a. from HDFC. Compute the net taxable income from house property for the assessment year 2017-18. · 1×
• 10 The assessee had filed an incorrect wealth tax return for the A.Y . 2019-20, belatedly, and subsequently died before the wealth tax officer completed the assessment. The wealth tax officer took the value of the property as on the date of filing the return and imposed penalty on various counts. Since the assessee is no more at the time of completing the assessment, the wealth tax officer issued the order and the demand notice on the legal representatives of the deceased assessee. Defend the case as counsel for the legal representatives of the deceased assessee. · 1×
• 10 An assessee had a taxable income in a financial year, but in the subsequent years his income was within the tax threshold limit. Does he need to file the return every year despite not having taxable income? Also clarify if a person was not allotted PAN, does the assessee need to file the return despite having his total income within the threshold limit? Advise your client. · 1×
• 10 The assessee is a naval officer. He is planning to take a housing loan of Rs. 20 lakh. The assessee seeks your advise that if he gets the possession of the house only after one year, but he starts paying interest, will he get income tax rebate? Advise. · 1×
• 10 The assessee is a retired employee and he is having income from salary (pension), income from house property, income from other sources. In the month of April 2013 he became a senior citizen. Since he has attained 60 years of age and his income is much below the exempted income of Rs. 2,50,000/-, he has filed a nil return. The assessing officer advises the assessee. · 1×
• 10 The assessee has purchased house property in the year 1989. Subsequently he invested a sufficient amount for extension and improvement in the year 1993. He sold the house for Rs. 85 lakhs in July, 2012. After calculating the index value of the cost price and improvement of the property as on 2012, the capital gain arose was Rs. 69,50,000. The assessee has deposited this capital gain in a capital gain account with SBI for a lock-in period of 3 years. The assessee did not invest the capital gain in purchase of a house nor in constructing a house. After maturity of the deposit, can the assessee withdraw the deposit? If so, what is the procedure? If he does not invest as required, is the assessee liable to pay the tax? · 1×
• 10 'X', an assessee, transfers some of his assets to 'Y' during the pendency of the proceedings under the income tax act with a view to defraud the revenue. Is this transfer valid? Discuss. · 1×
• 10 Mr. Madhu is a practicing advocate. His wife 'Roja' works in his law firm and draws a salary of Rs. 25,000/- while computing the total income for Mr. Madhu, the assessing officer clubbed the salary of his wife. Discuss. · 1×
• 10 'A' a government employee draws Rs. 20,000/- p.m., receives HRA of Rs. 24,000/- and he resides in his own house. He paid total house loan principal of Rs. 15,000/-, tuition fee Rs. 30,000/-, PF Rs. 60,000/-, LIC Rs. 10,000/-. He resides in a private hospital where he was treated by a general physician. He has undergone treatment for renal failure and claimed deduction u/s 80DDB. · 1×
• 10 A person has sustained a loss of Rs. 1 lakh in his speculative business. He wants to claim set-off of this loss from his income of Rs. 30,000 received under the head income from house property. Will he be allowed to do so under the law? Decide with reasons. · 1×
• 10 The assessee is a senior citizen aged 62 years. He draws pension of Rs. 3.5 lakh per annum. He was given approval for deduction u/s 80U by the income tax officer for the Annual Year 2012-13, availing the present deduction of Rs. 1,00,000 against the approval issued in 2012-13. The allowable deduction rate at that time was Rs. 70,000. Can he avail this deduction every year in the subsequent years despite his disability being permanent in nature, without referring the matter every year to the Income Tax Officer? Advise your client. · 1×
• 10 The assessee was employed in a private limited company for the last one year . Basic salary is Rs. 14,300 p.m., D.A. is Rs. 5,200, special allowance is Rs. 1,650, CCA is Rs. 350 and other allowances are Rs. 1,660. What are the provisions for the unutilized earned leave and the exemption available to him on the above receipt? Is the unutilized earned leave totally exempt, if not to what extent is it taxable? · 1×
• 10 Draft a pro forma of statement of Income showing the computation of income from salary. · 1×
• 10 The assessee filed his wealth tax return for the A.Y . 2012-13 belatedly after the valuation date. Before the completion of the assessment the assessee died. While completing the assessment the wealth tax officer has taken the value of the property as on the date of filing the returns and levied excess tax and interest thereon, and passed the orders. Since the assessee died, the wealth tax officer issued the demand notice on the legal representative of the deceased assessee. Defend the legal representative of the deceased assessee as their counsel. · 1×
• 10 In the year 2020, the assessee took a personal loan and invested the money in the National Savings Certificate. Since he did not make this investment from his taxable income, he did not claim tax deduction under section 80C. In the subsequent years, interest income accrued on the NSC would form part of "income from other sources". Your client seeks your advice as to whether he can claim deduction for the interest accrued, which will be invested every year for the next five years. How should NSCs received as a gift be treated? Advise. · 1×
• 10 The assessee has filed an incorrect wealth tax return, for the A.Y . 2009-10, belatedly after the valuation date, and subsequently died after the wealth tax officer completed the assessment. The wealth tax officer has taken the value of the property as on the date of filing the return and imposed penalty on various counts. Since the assessee died after passing of the orders, the wealth tax officer issued the demand notice on the legal representatives of the deceased assessee. Is there any ground to defend the case of the legal representatives of the deceased assessee? Advise. · 1×
• 15 Define "Perquisite" and give a detailed account of perquisites exempt from Income Tax. · 1×
• 15 What is the meaning of "owner of the property" under section 27 of the Income Tax Act? · 1×
• 15 Explain the method of calculation of gratuity and its treatment on retirement for Government and non-Government employees under the Income Tax Act. · 1×
• 15 What are the various deductions allowed under the head salaries and income from house property? · 1×
• 15 Define income and explain the concept of income tax. · 1×
• 15 Explain the term of income under the Income Tax Act, 1961. · 1×
• 15 When and to what extent are Capital Gains exempted from Tax under the Income Tax Act? · 1×
• 15 Appeals under the Income Tax Act. · 1×
• 15 Explain the provisions of tax deduction at source under the Income Tax Act on the following income: (a) Salary (b) Payment to Contractor. · 1×
• 15 Explain the rules of computation of income from house property. What deductions are permissible under this head. · 1×