Taxation Direct and Indirect | NMIMS Assignment Help June 2023 Questions

Q1. Mr. X sold a residential house property in June 2022 for a sale consideration of ₹75,00,000. The property was purchased by him in May 2010 for ₹35,00,000. He incurred ₹1,50,000 on stamp duty, registration and legal expenses related to the sale. Compute the long-term capital gains, tax liability and the amount of investment to be made in specified bonds to claim exemption under Section 54EC of the Income Tax Act, 1961.

Q2. “How do Double Taxation Avoidance Agreements (DTAAs) work in international taxation and what are the key provisions of such agreements? Critically evaluate the effectiveness of DTAAs in eliminating double taxation and promoting cross-border investments.”

Q3. A) Mr. X owns a house property in Mumbai. The details of the property are as follows:

The property is let out for residential purposes.

The annual rent received from the property is ₹3,00,000.

Municipal taxes paid during the year amounted to ₹20,000.

The interest on loan taken for the property was ₹1,80,000.

Compute the income from house property for Mr. X for the Assessment Year 2022-23.

Q3. B) Mr. A, a resident individual, gifted a residential house property to his wife, Mrs. B, who is also a resident individual. The property generates an annual rent of ₹6,00,000. Mr. A has no other income, while Mrs. B has an income from her profession of ₹5,00,000. Compute the total taxable income of Mr. A and Mrs. B for the Assessment Year 2022-23, considering the clubbing provisions of income.