Mr. Pankaj, a resident, aged 58, neither working as a salaried employee, nor doing any business or carrying on any profession, had the following receipts during the P.Y. 2018-19: Particulars of Income Amount (₹) (i) Dire

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2019
Mr. Pankaj, a resident, aged 58, neither working as a salaried employee, nor doing any business or carrying on any profession, had the following receipts during the P.Y. 2018-19: Particulars of Income Amount (₹) (i) Directors fee received from a Company 20,000 (ii) Interest on FDRs of Bank 32,000 (iii) Amount credited in bank of which source is not known to him 20,000 (iv) Net amount of winnings from lotteries 70,000 (v) Royalty received on a poetry book written by him for which an amount of ₹1,000 was spent on typing of manuscript 13,000 (vi) Interest received on loan given to a relative 5,000 (vii) Interest on Post Office Savings Bank Account 1,500 (viii) Interest on Monthly Income Scheme of Post Office 63,000 Compute the income chargeable to tax under the respective heads of income for the Asst. Year 2019-20. Notes: 1. Computation of gross total income will suffice. 2. Computation of tax is NOT required.

Answer & Explanation:

Computation of Gross Total Income of Mr. Pankaj for AY 2019-20 Particulars Amount (₹) Amount (₹) Income under the head other sources Director's fees received from a company 20,000 Interest on Bank FDRs * 32,000 Amount credited in the bank of which source is not known taken as income from undisclosed source 20,000 Net amount of winning from lotteries of ₹70,000 to be grossed up with the amount of TDS-Net received 70,000 Add: TDS out of such payment (70,000*30/70) 30,000 1,00,000 Royalty on poetry book written 13,000 Less: Expenses incurred on typing (1,000) 12,000 Interest on loan given to a relative 5,000 Interest of ₹1500 on Post Office Savings Bank [exempt under section 10(15)] Nil Interest on Post Office monthly income scheme 63,000 Gross Total Income 2,52,000

Topics: Income Tax Act, 1961

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