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Set B

The document contains a series of questions related to business taxation, focusing on the computation of taxable income for various individuals based on their salaries, allowances, and retirement benefits. It includes scenarios for Mr. Arjun, Mr. Ramesh, Ms. Sunita, Ms. Anjali, and Mr. Akash, each requiring calculations for taxable HRA, leave encashment, gratuity, entertainment allowance, and residential status. The questions are designed to assess understanding of tax implications in different employment and retirement situations.

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27 views1 page

Set B

The document contains a series of questions related to business taxation, focusing on the computation of taxable income for various individuals based on their salaries, allowances, and retirement benefits. It includes scenarios for Mr. Arjun, Mr. Ramesh, Ms. Sunita, Ms. Anjali, and Mr. Akash, each requiring calculations for taxable HRA, leave encashment, gratuity, entertainment allowance, and residential status. The questions are designed to assess understanding of tax implications in different employment and retirement situations.

Uploaded by

earthactivist2050
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

SET B- Business Taxation (SYBBA)

Q1:
Mr. Arjun is entitled to a basic salary of Rs 12,000 per month and a dearness allowance
of Rs 3,000 per month, 60% of which forms part of retirement benefits. He is also
entitled to an HRA of Rs 4,000 per month. He pays Rs 3,500 per month as rent for a
house in Chennai. Compute the taxable HRA for Mr. Arjun.
Q2:
Mr. Ramesh retired from his job on 30th June 2023. At the time of retirement, he had
300 days of unutilized leave. His employer allows encashment of leave at the rate of his
last drawn salary. Mr. Ramesh's last drawn salary was Rs 70,000 per month (basic
salary: Rs 50,000, dearness allowance: Rs 20,000, 60% of which forms part of
retirement benefits). Additionally, he received a bonus of Rs 1,00,000 in the year of
retirement. Compute the taxable leave encashment for Mr. Ramesh
Q3:
Ms. Sunita retired from her job on 31st December 2023 after working for 30 years. Her
last drawn salary was Rs 80,000 per month (basic salary: Rs 55,000, dearness
allowance: Rs 25,000, 70% of which forms part of retirement benefits). She received a
gratuity of Rs 12,00,000. Additionally, she received a retirement bonus of Rs 2,00,000.
Compute the taxable gratuity and taxable salary for Ms. Sunita.
Q4:
1. Ms. Anjali is employed in a private company and receives the following
components of salary for the financial year: Basic Salary: Rs 25,000 per month.
Ms. Anjali has spent Rs 6,000 during the year on official entertainment, for which
she has submitted proper bills. Compute the Taxable Entertainment Allowance for
Ms. Anjali.
2. Mr. Akash is an Indian citizen who works as a software engineer. During the
financial year 2022-23, his stay in India was as follows:
He was in India for 150 days during the financial year. In the preceding 4 financial
years, he was in India for:
2021-22: 100 days
2020-21: 80 days
2019-20: 70 days
2018-19: 60 days
Mr. Akash left India for the first time on 1st June 2022 and returned on 1st
December 2022. He has been working for an Indian company during this period.
Determine Mr. Akash's residential status for the financial year 2022-23.
Q5:
Mr. Akash, an Indian citizen, has the following details for the financial year 2022-23:
Period of stay in India:
1st April 2022 to 30th June 2022 (3 months)
1st October 2022 to 31st March 2023 (6 months)
Period of stay abroad:
1st July 2022 to 30th September 2022 (3 months)
He was in India for 730 days during the previous 7 years. Determine Mr. Akash's
residential status for the financial year 2022-23.

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