PROBLEMS ON INCOME FROM OTHER SOURCES

Problem-1
From the following receipts and payments of Mr. Devesh (resident), compute his taxable income under the head
income from other sources.
1. Winning from Madhya Pradesh state lottery ₹ 28,000
2. Winning from horse race ₹ 1,000
3. Winning from Rajasthan state lottery ₹ 3,000
4. Winning from horse race ₹ 49,000
5. Winning from cross word puzzle ₹ 2500
6. Gift received from a friend in London ₹ 1,00,000
7. Winning from card games ₹ 2,500
8. Purchase of lottery tickets ₹ 3,000
9. Winning from camel race ₹ 30,000

Problem-2
Sri Suryaputhra has the following investments for the year ended 31-03-2023
1. ₹ 20,000 units of UTI (income received ₹ 4,000)
2. ₹ 80,000 in post office saving bank a/c which earns the interest at 5% p.a
3. ₹ 72,000 10% tax free debentures of Mysuru (Mysore) Municipal corporation
4. 14% Karnataka state Electricity Board Bonds ₹ 30,000
5. ₹ 50,000 fixed deposits with Canara Bank Mysuru (Mysore) at 8% p.a
Compute the income from sources of Sri Suryaputhra from the above investment for the A.Y 2023-24

Problem-3
Mr. Ranjit (resident) gives the following information of his income for the P.Y 2022-23. Compute his Gross Total
Income.
1. Dividend on equity shares from domestic company (gross) ₹ 12,00,000
2. Income from undisclosed sources ₹ 7,000
3. Income from letting on hire of building and machinery under lease ₹ 30,000
4. Interest on bank deposits ₹ 3,200
5. Income received from ground rent ₹ 6,000
6. Directors sitting fee received ₹ 4,000
7. Winning from lotteries (net) received ₹ 7,000
8. Gifts received:
(a) Received ₹ 80,000 as gift from friend Mr. Keshav
(b) Received ₹ 1,00,000 as gift from his elder brother
(c) Received ₹ 1,40,000 as gift on his marriage
(d) Received a gift from his grandmother ₹ 40,00,000

Following are the deductions which are claimed by him:

(a) Depreciation allowed on building and machinery ₹ 2,000
(b) Fire insurance on building and on plant and machinery ₹ 250

Problem-4
Mr. Subash a resident in India earned the incomes during the financial year 2022-23
1. Interest on securities ₹ 6,000
2. Wining from horse races ₹ 12,500
3. Income earned from sub-letting of house ₹ 10,500

UDAYAKUMAR.C, Assistant Professor, [Link], KSET, NET, (Ph.D).

 4. Dividend from a foreign company ₹ 26,000
5. Interest on postal savings bank a/c ₹ 2,000
6. Ground rent for land in Patna ₹ 5000
7. Expenses incurred on sub-letting ₹ 500
8. Income from agricultural land in Bangladesh ₹ 20,000
9. Director’s fee ₹ 1,800
10. He received a gift from his cousin a wristwatch ₹ 5,000 on 01-06-2022
11. ₹ 700 received by an account payee cheque as interest on debentures (listed) of a company in which public are
substantially interested.
12. Interest on deposit under gold monetization scheme, 2015 ₹ 15,000
13. He gets a gift of a house property from Mr. Basu on 10-04-2022. Stamp duty value of the property on the date
of gift is ₹ 45,000

Problem-5
Following incomes are received by Mr. Ajay (resident) in the P.Y 2022-23. Compute his taxable income from the head
other sources.
1. Director’s fee ₹ 10,000
2. Interest from post office saving bank a/c ₹ 500
3. Dividend received from Co-operative society ₹ 7,000
4. Winning from Andhra Pradesh state lottery ₹ 28,000 (net)
5. Family pension received ₹ 30,000 p.a
6. Insurance commission received ₹ 23,500 (expenses incurred in earning insurance commission ₹ 2,500)
7. Mr. Ajay received a gold chain from his friend as gift. Its fair market value is ₹ 32,000 and painting from
another friend as gift. Its fair market value is ₹ 18,000

Problem-6
Mr. Jai furnishes the following particulars of his income for the P.Y ended 31-03-2023
1. ₹ 36,000 10% tax-free debentures of a company listed on a recognized stock exchange in India
2. Interest on P.O.S.B a/c ₹ 2,000
3. ₹ 12,000 12% tax-free commercial securities. (unlisted)
4. Dividend ₹ 7,000 (gross) from a tea co., 60% of the income of the company is agricultural income
5. ₹ 30,000 8% port trust bonds
6. Dividend from a foreign company ₹ 4,000. The company deducted tax at sources ₹ 1,000
7. ₹ 15,000 9% Municipal debentures.
8. Winning from lottery, net amount received ₹ 21,000
9. ₹ 2,00,000 10% debentures of Delhi Development Authority.

Problem-7
Dr. Ahmed (resident), a lecturer in a college furnished the following particulars on the basis of which compute his
total income for A.Y 2023-24
1. Salary at ₹ 6,000 p.m.
2. Wardenship allowance ₹ 1,000 p.m.
3. Examinership remuneration from the University ₹ 8,000
4. Royalty from books and articles ₹ 20,000
5. Winnings from card games in a club ₹ 9,000
6. Winning from Karnataka state lotteries tickets ₹ 50,000 (gross)
7. Expenditure on purchase of lottery tickets ₹ 6,000
8. Interest on 8.5% relief bonds ₹ 8,500
9. Cash gift from the cousin of his father ₹ 30,000
10. Cash gift from the elder brother of his grandfather ₹ 30,000

UDAYAKUMAR.C, Assistant Professor, [Link], KSET, NET, (Ph.D).

Problem-8
Ms. Naina (resident) a lecturer at a college in Delhi gives you the following particulars of her income relating to the
financial year 2022-23
Computed her income from other sources for the A.Y 2023-24
1. She received ₹ 50,000 as royalty from a publisher for publishing her book.
2. Received ₹ 4,000 as remuneration for acting as chief examiner.
3. She won ₹ 10,000 in crossword puzzles
4. Received dividend 20% on preference shares of the F.V of ₹ 50,000
5. Received interest on F.D with Canara Bank at 8% on ₹ 50,000
6. Received interest on government securities ₹ 3,000
She claims the following deductions:
(a) Salary paid to clerk for proof reading ₹ 1,000
(b) Purchase books worth ₹ 1,000 with regard to revision of the book
(c) Bank charges 1% commission for collection of dividends

Problem-9
Mr. Manu (resident) has the following incomes during the year ending 31-3-2023
1. Dividend declared by M co., on 31-3-2023 ₹ 6,000
2. Dividend declared by Z co., on 31-3-2023₹ 9,000
3. Interest dividend received on 01-05-2023 ₹ 3,000
4. He won gold worth ₹ 10,00,000 from Punjab state lottery
5. During March 2023, he earned ₹ 1,00,000 as prize money on horse races.
These horses are owned by him, and expenditure incurred on maintenances of these horses amounted to ₹
1,60,000
6. Gift of building from elder brother of his father-in-law (stamp duty value ₹ 25,00,000).
Compute his income from other sources for the A.Y 2023-24

Problem-10
Mr. Rahul investments during the year end 31-03-2023 consisted of the following:
1. ₹ 25,000, 9% Govt. Securities
2. ₹ 20,000, 11% Delhi Corporation Bonds
3. ₹ 30,000, 12% Bombay port trust bonds
4. ₹ 5,000, 7 years P.O National savings certificates
5. ₹ 10,000, 7% National plan certificates
6. ₹ 15,000, 8% Govt. of England bonds.
7. He paid ₹ 150 as commission for collecting the interest income.
8. SBI savings bank interest in ₹ 19,500
Compute his taxable income from other sources.

Problem-11
From the following incomes of Mr. Lingarj (resident) for the year ended 31-03-2023
Compute his income from other sources
1. Director’s fees ₹ 10,000
2. Interest on bank deposit ₹ 3,000
3. Income from undisclosed sources ₹ 12,000
4. Winning from lotteries (net) ₹ 28,000
5. Royalty on book written ₹ 8,000
6. Income from lectures delivered ₹ 5,000
7. Interest on loan given to relative ₹7,000

UDAYAKUMAR.C, Assistant Professor, [Link], KSET, NET, (Ph.D).

 8. Interest on tax free debentures of a company (net) ₹ 3,600
9. Dividend from o-operative society ₹ 8,000
10. Interest on post office S.B a/c ₹ 500
11. Interest on Central Govt. securities ₹ 2,200
12. He paid ₹ 1,000 for typing of the manuscript of the book

Problem-12
Following are the particulars of income of Mrs. Seetha for the P.Y 2022-23
1. Divided received from an Indian co., ₹ 8,950 (net)
2. Winning from lottery – amount received ₹ 68,500 and tax deducted at source ₹31,500
3. Winning from card games ₹ 20,000
4. Interest received on Govt. securities held as investments ₹ 10,000
5. Family pension received ₹ 48,000
She incurred following expenses:
(a) Interest paid on amount borrowed for purchasing shares ₹ 3,000
(b) Collection charged in respect of interest on Govt. securities at 2% on amount collected
(c) Purchased lottery tickets of ₹100
(d) Gift of the gold chain from her friend ₹ 40,000
(e) Gift of watch from cousin ₹ 20,000
Compute her income from other sources for the A.Y 2023-24

Problem-13
Dr. Ashok (resident) is a prof. of Economics. He submits the following information and wants you to compute his
income from other sources for the A.Y 2023-24
1. He is an author of a textbook and received royalty of ₹ 45,000. He claims the following deductions from the
amount:
(i) Salary to clerk for gathering information for him to write the books ₹5,000
(ii) Cost of books purchased ₹ 1,000 for reference work in order to write his book.
(iii) Telephone expenses of ₹ 800 in connection with printing and publication of the book
2. Income from articles published in “Economic Times” ₹ 7,000
3. He lives in a rented house paying a rent of ₹ 4,000 p.m. he has sub-let half portion of the house for a rent of ₹
3,000 p.m. Dr. Ashok pays the municipal tax for the whole house ₹ 4,000
4. He received ₹ 200 per lecture delivered at the economics institutes. (During the year he delivered 22 lectures).
5. As an examiner of various Universities, he received remuneration of ₹ 5,000
6. His other income was:
Winning rom lottery ₹ 21,000 (net) and interest on Govt. of England Bonds ₹ 3,000
7. Interest on P.O. cumulative time deposit ₹ 1,000
8. Interest received on deposit with a firm ₹ 5,400

Problem-14
Mrs. Narayan submits the following particulars of income from other sources for the year ended 31-03-2023
i. Family pension from Govt. of Karnataka yearly ₹ 42,000
ii. Royalty from books written ₹ 20,000 (expenses incurred for this purpose ₹ 2,500)
iii. Remuneration from articles published in a magazine ₹ 2,000
iv. Cash worth ₹ 1,00,000 was found in her private locker. The source of which could not be explained by her.
v. Interest on fixed deposit in a bank ₹ 15,000 (gross)
vi. Rent from sub-letting a house ₹ 1,500 p.m. (rent paid to the owner ₹ 1,000 p.m. and repair expenses ₹ 200).
vii. Winning from lottery net ₹ 70,000 (purchase of lottery ₹ 100)
viii. Winning from house race ₹ 35,000 (net)
Compute her taxable income from other sources for the A.Y 2023-24

UDAYAKUMAR.C, Assistant Professor, [Link], KSET, NET, (Ph.D).

Problem-15
Computation of income from other sources of Dr. Gokak who held the following investments in P.Y. 2022-23
a) ₹ 1,10,000, 10% Central Govt. securities
b) ₹ 4,00,000, 10% commercial securities
c) ₹ 8,000 (gross) received as interest on Public Ltd. Co., Securities (listed)
d) ₹ 7,200 received as interest on Karnataka Govt. securities
e) ₹ 3,600 received as interest on debentures XYZ Ltd. (listed)
f) ₹ 3,00,000, 13.5% securities of X Co., Ltd (unlisted)
g) ₹ 3,50,000, 11% securities of a paper Mill Co., (listed)
h) Interest on post office savings bank a/c ₹ 6,500
i) Dividend received from Carona Ltd, (gross) ₹ 32,000
For purchasing securities of X Co., Ltd., he took a loan of ₹ 2,50,000 at 12% p.a. This loan was taken from his
friend in UK, but no TDS is made. Bank charges ₹ 2,000 as collection charges.
During the year he also got a prize in Karnataka state lottery. The net amount received by him was ₹ 2,80,000.
Interest on all securities is payment on 1st July and 1st January every year.

Problem-16
Mr. Suplab Singh has the following investments in the P.Y. ended 31-03-2023
a) ₹ 11,000, 10% Karnataka state Govt. loan
b) ₹ 30,000, 13.5% debentures LMT Ltd. (listed)
c) ₹ 35,000, 11% securities of sugar Mill Co., (not listed)
d) ₹ 32,000, 10% tax-free commercial securities (listed)
e) ₹ 3,580, received as interest on Tamil Nadu Govt. securities
f) ₹ 3,600 received as interest on the securities of a paper Mill Co., (not listed)
g) ₹ 4,500 received as interest on securities of textile company (listed)
Interest on all securities is payable on 30th June and 31st December. The bank charged 1½ commission on Net
Realization of interest as collection charges.
He was also a director in a company from which he received ₹ 3,000 as Director’s fees.
His other incomes are:
i. Winning from lottery ₹ 25,000
ii. Income from agriculture in Sri Lanka ₹ 10,000
iii. Winning from Horse race ₹ 15,000
iv. Interest on P.O.S.B a/c ₹ 5,000
Find out his taxable income from other sources for the A.Y. 2023-24

UDAYAKUMAR.C, Assistant Professor, [Link], KSET, NET, (Ph.D).