please help me

Tax queries 634 views 4 replies
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STUDENT CS
377 Points Joined February 2010

from the following particulars submitted by raju.  compute his income from other sources for asst year 2010-11

director meeting fee received from y ltd                                                       4000

AGRICULTURE INCOME FROM LAND SITUALTED in india                  12000

agriculture income from nepal                                                                      20000

interest 

a)  from bank on FDR                                                                                     30000

b) on post office savign acount                                                                      12000

c)  on govt securities                                                                                        6500

d) on PPF                                                                                                           13000

E) on NSC VIII issue                                                                                           8000

 

dividend from A limited Declared as on 25-08-2009                                  35000

LOttery Prize Received after TDs                                                                     27640

Rent from Sub Letting of a flat                                                                            12000

( rent paid to landlord for the flat is rs 6000/- )

 

raju spent Rs 600 on realising the rent Ha had also spent 10000 for the purchasse of lotery ticket and received the prize on one ticket.

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On 22 February 2010 at 00:13 Report
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Learner
4016 Points Joined December 2009

Dear Sunny,

 

Income From Other Sources
         
S.No. Particulars    Amount  Remarks
1 Sitting Fees          4,000.00  
         
2 Agriculture Income      
   - India                   -     Exempt
   - Nepal    20,000.00      20,000.00  
         
3 Interest      
   - FDR    30,000.00   Assumed as Gross
   - PO Saving A/c                   -     Exempt 
   - PPF Interest                   -     Exempt 
   - Govt. Securities      6,500.00    
   - NSC VIII Issue      8,000.00      44,500.00  
         
4 Dividend from A Ltd.                       -   Exempt on assumption that  A ltd. is a Domestic Company
         
5 Lottery        39,486.00 Grossed Up - TDS Rate 30%
         
6 Subletting      
   - Income    12,000.00    
  Less - Expense    (6,600.00)        5,400.00  
  Total      113,386.00  
         
  Note: For rate purposes Agriculture Income from India will also be included
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On 22 February 2010 at 12:11
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CA
433 Points Joined September 2009

Amir, Pls explain why we need to include Agriculture income for rate purpose? & what will be its impact on Taxes?

Thnx

shikha

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On 22 February 2010 at 12:49
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Learner
4016 Points Joined December 2009

Dear Shikha

Why we add Agriculture Income - Becos Law says this :))

What would be it's impact on taxes  - Lets say assessee, Mr. A has a Total Income of Rs. 4,80,000 + Agriculture Income of Rs. 70,000

Now Tax will be computed as follows

Tax on {Total Income (including agriculture Income = 5,50,000)} = 69,000

Less: Tax on {Exemption limit +Agriculture Income = 2,30,000}    =  (7,000)

Now Tax payable will be Rs.                                                                       62,000 +Education cess

 

Now had this thing is not there then Tax on Rs. 480000 = Rs. 50,000+ Education cess

 

So u can see the effect of adding agriculture income for rate purposes..............

1 Reply
On 22 February 2010 at 14:12
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CA
433 Points Joined September 2009

Thanks for explaining.

Rgds

Shikha

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On 22 February 2010 at 14:27


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