I PCC Tax Exam analysis and solution to practical questions

 

Please find attached here with the Solutions for income tax problems for your May 11 exam. Effort have been taken to reduce the error, however, it is not an error free. Your suggestion is always welcome.

 

Click the below link for exam questions and compare your solution with the attached file

 

Click here to download I P CC tax question paper

Thanks a lot. . . Waiting for pce also

thankyou so much sir....but i have doubhts in your solutions.

thnks sir

Originally posted by : SACHIN SAINI
	thankyou so much sir....but i have doubhts in your solutions.

Yea even I am a li'l sceptical of the answers.

hahaha...roflmao...who wrote dese solutions...m sure he did not pass ipcc...sir pls before uploading these solutions please ensure dat dey r corrext....dese can even lead 2 a heartbreak fr students who gave a gud xam :P

Originally posted by : anuj
	hahaha...roflmao...who wrote dese solutions...m sure he did not pass ipcc...sir pls before uploading these solutions please ensure dat dey r corrext....dese can even lead 2 a heartbreak fr students who gave a gud xam :P

Effort have been taken to reduce the error, however, it is not an error free.

Your suggestion is always welcome. This means Give your suggession where you feel the answer is incorrect or Wrong.

Solution to capital Gain Question Number 5 (a)

 

Computation of Capital Gain
Particular	Amount
Full Value of consideration	12,00,000
Less Expense in connection with transfer	Nil
Net consideration	12,00,000
Less Indexed cost of Acquisition
45000/140*711 ( Working note 3)	228536
Less Indexed cost of improvement
Improvement expense incurred by Rakesh
50000/140*711	253929
Improvement expense incurred By A
190000/244*711	5,53,648
Long term capital Gain
Less exemption	NIL
Taxable capital Gain	163,887

 

 

Working notes

Where the property acquired on or before 1981, then following workings are warranted

 

Working note	Computation of cost of acquisition
a)	Cost of acquisition	105000
b)	Fair Market value as on 1/4/4981	150000
	a) or b) whichever is higher Shall be	150000

                                              Cost of acquisition

Working note 2

 Section 51

 

 

Calculation of Total advance received for sale of property

a)	Advance received by Rakesh	25000
b)	Advance received by  Mr A	80000
	Total advance received	105000
This will be deducted from FMV
Working note 3
	Calculation of adjusted Cost of acquisition
	Cost of acquisition as per WN (1) above	150000
	Total advance received   WN  (2) Above	105000
	Adjusted Cost of acquisition	45000
Working note 4

Cost of improvement incurred on or after 1^st April 1981 is eligible for deduction .Cost of improvement expense incurred by Mr. Rakesh for the year 1979-80 will not eligible for deduction.

Indexation will be given for the year of  Gift of property to Mr A. year of Gift was 1986-87 and the index point during that year is 140 point.

This is a correction

Originally posted by : anuj
	hahaha...roflmao...who wrote dese solutions...m sure he did not pass ipcc...sir pls before uploading these solutions please ensure dat dey r corrext....dese can even lead 2 a heartbreak fr students who gave a gud xam :P

 

What is the meaning of Roflmao!!! new word which is not found in dictionory.... You are making an impression that the solution is wrong fully  ?? hope you have passed I PCC ,So plz  tell me where it is incorrect and what is  your correct answer which will help the students . I already mentioned in above post that it is not an error free post. Means this contain error and which require rectification. So, those who can tell where i am incorrect can correct it that is why i have mentioned feed back is welcome.. Feed back in the form of correction is useful and comments will not helpful. 

When you will give your suggesstion for correcting the incorrected solutions?? So that "heart break" to those who have written well the exam can be avoided. I am waiting for your reply for correcting the solutions to avoid such heart break incidents.

Originally posted by : SACHIN SAINI
	thankyou so much sir....but i have doubhts in your solutions.

yes, dear Some solutions require rectification. I am waiting for the Feed back for solutions. finally we will get a final solution Soon.

Sorry sir, i found most of the solutions wrong!!! how you arrived at those answers???

sir...most of d answers r wrong...for instance...d solution fr d capital gains question is wrong..v nevr deduct d amount forfeited by d previous owner as d bare act clearly says dat deduct d amount deducted by d 'assessee'.. n yes sir hum to tuch praani hai i've not even passed my ipcc yet dis may is my first attempt at it n i ws about 2 b 'heartbroken' by dese solutions when i realised dat deir were sum basic errors....sorry 2 offend u..meri aapke aage bolne ki haisiyat nahi hai ...but did u reely make dese solutions??

no offences sir...but i cud not reely stop myself frm askin dis....did u do a balanced study???haha ....sry....