Title: INCOME TAX PLANNING AND MANAGEMENT Case Analysis Code: CO2-31/SDE-A/2019-20 Case Analysis Coverage: All Modules Maximum Marks: 10 Attempt both cases in 4-5 pages. Each case carries 5 marks 1. One of your clients, a government employee, would like to reduce his taxes. He is trying to decide whether he should contribute 50,000 to a Retirement Savings Plan this year. He has life insurance policy to which he pays a monthly premium of 8500. a. What advice would you give to your client regarding Retirement Savings Plan contribution? Explain your conclusion. b. What are the other alternative methods through he can plan his income and tax. 2. The following four Cases make different assumptions with respect to the amounts of income and deductions of Mr. John for the current year: Case I Case II Case III Case IV Employment Income 35,000 33,000 16,000 28,000 Income (Loss) From Business (10,000) (39,000) 22.000 15,000 Income (Loss) From Property 12,000 14,000 (21,000) (36,000) Taxable Capital Gains 42,000 36,000 32.000 21,000 Allowable Capital Losses (18,000) (42,000) (69,000) (27,000) Subdivision e Deductions (80C) (4,000) (7,000) (5,000) (11,000) a. Required for each Case, calculate Mr. John's Net Income for tax purposes. b. Indicate the amount and type of any loss carry overs that would be available at the end of the current year