NMIMS BBA – B.Com Fundamental of Taxation Solved Answer Assignment

Fundamental of Taxation

 

QUESTION 1

 

The Krishna Kumar Bangur Associates business of a HUF is transacted from Singapore and all the policy decisions are taken there. Mr. Krishna Kumar, the Karta of the HUF, who was born in Delhi, visits India during the P.Y. 2022-23 after 25 years. He comes to India on 1.8.2021 and leaves for Singapore on 7.02.2022. Determine the residential status of Mr. Krishna Kumar and the HUF for A.Y. 2023-24.  (10 marks)

 

Ans

 

Introduction:

 

Rooms provide regulations for establishing the household status of different individuals under the revenue tax obligation act. The offered question manages the stipulations of area 6 of the earnings tax act, 1961. In the provided situation, the property condition of a specific Mr. Krishna Kumar, and their HUF, the Krishna Kumar Bangur Associates, will be figured out.

Concept and application:

 

Rules for an individual

The residential status of an individual can be decided on two criteria. They are: 

1. Based upon the number of days of stay in India:

2. Deemed residency

1. Residential status based on the number of days of stay in India- To be an Indian resident, an individual should meet either of the following problems:

(i) Remain In India for 182 days or more, or

(ii) Reside in India for 365 or even more days throughout the previous four years with a minimum stay of 60 days in the appropriate last year.

Conclusion:

In the offered situation, Mr. Krishna Kumar, the Karta, stayed in India for 191 days (31 +30 +31 +30 +31 +31 +07). Hence, he is a local as he was in India for over 180 days. Nevertheless, given that he visited India after 25 years, he still needs to please the problem of being ordinarily resident. Thus, for the AY 2023-24, Mr. Krishna Kumar is a resident but not a regular local.

QUESTION 2

 

From the following particulars of income furnished by Mr. Kapil Rajpal pertaining to the year ended 31.3.2023, compute the total income for the assessment year 2023-24, if he is:

 

(i) Resident and ordinary resident;

(ii) Resident but not ordinarily resident;

(iii) Non-resident (10 Marks)

 

Ans :

 

Introduction:

 

The household standing of an individual influences the scope of his total revenue. It additionally affects the incidence of tax for that individual. The extent of income depends on three critical factors to consider:

Concept and application:

The ambit of the total earnings of the three courses of domestic status is:

1. a) Resident and ordinarily resident 

A Resident assessee’s overall income will include the following:

1. In India, earnings were obtained for the tax duration.

2. In India, earnings accrue or arise, and are considered to have built up or been earned, throughout the previous year.,

3. Income builds up or emerges outside India, even if such earnings or any part has yet to be received or brought right into India throughout the previous year.

Conclusion:

Scope of income based on residency

1. For a homeowner, all the earnings, whether obtained in India or otherwise throughout the previous year, are taxable in India.

2. A resident yet not ordinarily resident’s total earnings includes all earnings gotten in India or built up in India. Incomes that arise or build up outside India and are not gotten in India or deemed to be gotten in India will not create part of their total revenue.

QUESTION 3

 

The following details have been furnished by Mrs. Rashi pertaining to the year ended 31.03.2023

(i) Gift of Rs.80000 received from her family friends on the occasion of her daughter’s wedding. (5 marks)

 

Ans :

Introduction:

The provisions connected to the conditions mentioned in the above question are given in section 56( 2 )( x) of the earnings tax obligation act, 1961. The area tax obligation transfers need to be made at relevant factors to consider.

Concept and application:

As per area 56( 2 )( x) of the earnings tax act, 1961, any sum of money or residential property received without factor to consider or for an inadequate consideration will be taxed in the hands of the recipient. It is done to curb such unwanted transfers without elements to view or for insufficient care.

1. Sum of money- Where an individual receives cash without a factor to consider, and the aggregate Sum of such money obtained surpasses 50,000 during a financial year, the entire amount is taxable.

Conclusion:

In the provided situation, Mrs. Rashi got presents of 80,000 from household friends at her child’s wedding event. Such gifts will be taxed in the hands of Mrs. Rashi. Had her child obtained them in her marital relationship, they would have been exempted.

(ii) On the above occasion, a gold bracelet worth Rs. 5, 00,000 presented by her brother living in Singapore. (5 marks)

Introduction:

The income tax act of 1961 tax obligations gifts by area 56( 2 )( x). In FY 2003-04, the taxes were imposed on the show, and the show was modified in 2003-04 to bring skills under taxation in accordance with the act’s provisions.

Concept and application: 

Section 56(2) (x) also provides some exemptions that apply to the taxability of the gifts. These are:

1. Presents from a family member

2. Presents obtained on an individual’s marital relationship.

3. Presents under a will or by way of inheritance

4. Presents from any local authority

5. The payer or donor gets any amount of money or the value of the building in contemplation of their death.

Conclusion:

In the provided situation, the gold armband worth 5, 00,000 exists to Mrs. Rashi by her sibling, which is consistent with the extent of the term family member. The present so received will not be taxable for Mrs. Rashi.

To get the complete answer/solution to this NMIMS assignment, you can contact Dr. Aravind Banakar’s Academic Writing Services.

Dr. Aravind Banakar prepares two types of Assignments. General assignments & Customized assignments. Both assignments are 100 % Plagiarism-free.

Dr. Aravind Banakar is the number 1 NMIMS Academic Writing Professional. He is a highly experienced academic professional and a reputable and reliable academic content writer with over 24 years of experience. You can obtain ready-made, customized, plagiarism-free MBA, BBA, EMBA, and B.Com assignments.

Important Notice for NMIMS Assignments:

To ensure your NMIMS assignments meet the university’s standards, The NMIMS Assignments must be 100% customized, plagiarism-free, and unique. 

Copying from Google, AI tools, blogs, books, or any other sources is strictly prohibited, and if you copy answers, you will get ZERO marks.

Before purchasing assignments from any academic writer, always demand the following verification:

1. Turnitin Report– To ensure the content is plagiarism-free.

2. Grammarly Report– This is to ensure grammar and writing quality.

3. AI Detection Report– To guarantee no AI-generated content.

Remember, these reports are not just a formality. They are your shield against ZERO marks. Take charge of your grades by ensuring your work is original and meets NMIMS standards.

Dr. Banakar leads a team of over 100 PhD-qualified professionals dedicated to creating high-quality, plagiarism-free assignments tailored to meet the exact standards and requirements of NMIMS. With a proven track record, students who have used his services often score 25+ marks out of 30, highlighting the level of detail, precision, and thorough research into every assignment. This emphasis on research instills confidence in the quality of the work.

SVKM Narsee Monjee EMBA Solved Assignments