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The document contains a set of business taxation questions for a course, focusing on various scenarios involving taxable income components such as HRA, leave encashment, gratuity, and entertainment allowance. It includes calculations for Mr. Rajesh's HRA, Mr. Vikram's leave encashment, Ms. Priya's gratuity, and Mr. Sharma's entertainment allowance, as well as determining the residential status for Mr. Raj and Ms. Priya based on their stay in India. Each question requires specific computations based on the provided salary and leave details.

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9 views1 page

Set A

The document contains a set of business taxation questions for a course, focusing on various scenarios involving taxable income components such as HRA, leave encashment, gratuity, and entertainment allowance. It includes calculations for Mr. Rajesh's HRA, Mr. Vikram's leave encashment, Ms. Priya's gratuity, and Mr. Sharma's entertainment allowance, as well as determining the residential status for Mr. Raj and Ms. Priya based on their stay in India. Each question requires specific computations based on the provided salary and leave details.

Uploaded by

earthactivist2050
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SET A- Business Taxation (SYBBA) 20 marks

Q1:
Mr. Rajesh is entitled to a basic salary of Rs 8,000 per month and a dearness allowance
of Rs 2,000 per month, 50% of which forms part of retirement benefits. He is also
entitled to an HRA of Rs 3,000 per month. He pays Rs 2,500 per month as rent for a
house in Mumbai. Compute the taxable HRA for Mr. Rajesh.
Q2:
Mr. Vikram retired from his job on 31st December 2023. At the time of retirement, he
had 240 days of unutilized leave. His employer allows encashment of leave at the rate
of his last drawn salary. Mr. Vikram's last drawn salary was Rs 50,000 per month (basic
salary: Rs 35,000, dearness allowance: Rs 15,000, 40% of which forms part of
retirement benefits). Compute the taxable leave encashment and the taxable salary for
Mr. Vikram.
Q3:
Ms. Priya retired from her job on 31st March 2023 after working for 25 years. Her last
drawn salary was Rs 60,000 per month (basic salary: Rs 40,000, dearness allowance: Rs
10,000. She received a gratuity of Rs 8,00,000. Compute the taxable gratuity for Ms.
Priya, assuming she is covered under the Payment of Gratuity Act, 1972.
Q4:
1. Mr. Sharma is employed in a private company and receives the following
components of salary for the financial year: Basic Salary: Rs 30,000 per month.
Mr. Sharma has spent Rs 8,000 during the year on official entertainment, for
which he has submitted proper bills. Compute Taxable Entertainment
Allowance for Mr. Sharma.
2. Mr. Raj is an Indian citizen who works as a teacher. During the financial year
2022-23, his stay in India was as follows: He was in India for 190 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
Determine Mr. Raj's residential status for the financial year 2022-23.
Q5:
Ms. Priya is a Canadian citizen who works as a consultant. During the financial year
2022-23, her stay in India was as follows: She was in India for 200 days during the
financial year. In the preceding 4 financial years, she was in India for:
2021-22: 120 days
2020-21: 90 days
2019-20: 80 days
2018-19: 70 days
Additional Information: Ms. Priya left India for the first time on 1st July 2022 and
returned on 1st January 2023. Determine Ms. Priya's residential status for the financial
year 2022-23.

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