A B C D E F G H I J K L M Solution: 1 1. Subodh's father had invested in shares of AMRO Industries in the year 1996. He had acquired 3000 shares 2 of the company at a price of Rs. 145 per share. In June 2000, the company declared bonus of 1 share for every 2 3 shares held. On his demise in November 2005, Subodh inherited all of his father's property including the shares 4 (Fair Market value in November 2005 was Rs. 215 per share). Subodh got the shares converted to dematerialised 5 form immediately. In August 2018 the Company declared another Bonus of 1 share for every 3 shares held. The 6 stock market rallied in 2019-20 and Subodh sold all the shares in July 2019 @Rs.740 per share and paid 7 Brokerage @1% of sale value. (Fair Market value of shares on 1/4/01 was Rs. 190 per share and the highest price 8 at which the shares were traded on a recognised stock exchange on 31/1/18 was Rs. 390 per share) 9 10 Subodh had also inherited a land from his father, situated at Rohtak, Haryana. His father had acquired the land in 11 August 2002 for Rs. 6,00,000. Subodh after inheritance, carried out improvements to the land by levelling, fencing. 12 etc. at a cost of Rs. 3,50,000 in February 2011. He tried selling the land during July 2019 to an industrialist from 13 whom he also received an advance of Rs. 2,00,000. But the buyer defaulted and the advance received was forfeited 14 as per the contract. In January 2020 Subodh sold the land for Rs. 60 lakhs. On receiving the consideration, Subodh 15 invested in Indian Railways Finance Corporation Bond in May 2020 for Rs5 lakhs and he also acquired a flat at 16 Chandigarh in November 2020 for Rs. 40 lakhs. 17 18 During the P.Y. 2019-20, Subodh made following payments / investments: 19 20 Life insurance premium of his dependant brother Rs. 57,000 (sum assured Rs. 5 lakhs), Premium for senior citizen mother's health insurance Rs. 27,000 (Mother is also dependent on him as she is 21 suffering from severe hearing impairment disability). 22 23 24 Rs. 1,00,000 in PPF account in his own name and Family floater health insurance of Self, spouse and a child of Rs 18,000. 25 Compute his total income and tax liability for the A.Y 2020-21. 26 (15 marks) 27 28 29 30 Instructions & CII Question 1 & Solution Question 2 & Solution | Question 3 & Solution Question 4 & Solution Type here to search O