Income Tax Law (B.Com) 5th Sem Previous Year Solved Question Paper 2022

Practice Mode:
2.

The following investments are held by Hardika on 1-4-2021 :

(a) Rs. 40,000, 10% Punjab Government Loan.
(b) Rs. 35,000, 8% Debentures of a Sugar Mill Co., Sangrur.
(c) Rs. 50,000, 12% Debentures of Ugly Trading Co.
On 1-9-2021, she sold the debentures cum interest of Ugly Trading Co. And purchased Rs. 60,000, 15% debentures cum interest of Beauty Trading Co. Interest on investment is received half yearly on 1st July and 1st January every year. Calculate income from securities for the previous year 2021-22.

Explanation

(a) Punjab Government Loan:
 - Rs. 40,000 * 10% = Rs. 4,000

(b) 8% Debentures of Sugar Mill Co.:
 - Rs. 35,000 * 8% = Rs. 2,800
12% Debentures of Ugly Trading Co. (up to 1-9-2021):
- Rs. 50,000 * 12% * (5/12) = Rs. 2,500 (for the period from 1-4-2021 to 31-8-2021)

(c) 15% Debentures of Beauty Trading Co. (from 1-9-2021 to 31-3-2022):
 - Rs. 60,000 * 15% * (7/12) = Rs. 5,250

Total Income from Securities:
 Rs. 4,000 (a) + Rs. 2,800 (b) + Rs. 2,500 (c) + Rs. 5,250 (d) = Rs. 14,550
Therefore, the income from securities for the previous year 2021-22 is Rs. 14,550.

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