Direct Tax Laws & International Taxation - May 2022

M/s Kaveri Ltd., a manufacturing company, having an annual turnover of 7 6,000 lakhs, shows a net profit of € 850 lakhs after debit / credit of following amounts to its Statement of Profit and Loss for the year ended 31s March, 2022: (a) Depreciation as per Companies Act 765 lakhs. (b) Employer's contribution to EPF of ¢ 18 lakhs together with similar amount of Employee's contribution for the month of March, 2022 was remitted on 20th May, 2022. (The…

Estate Investment Trust, registered under relevant SEBI Regulations, holds 51% shares in HATS Ltd. Buildwell Ltd. provides the following information about its income for the F.Y. 2021-22. (ii) Dividend income from HATS Ltd. - ₹3 crores (iii) Short-term capital gains on sale of developmental properties - 71 crore (iv) Interest received from investments in unlisted debentures of companies - ₹10 lakhs (v) Rental income from directly owned real estate assets - % 2.5 crores Mr. Vijay, a resident Indian, holds…

(a) Examine each of the following independent cases of charitable trust/institutions for the assessment year 2022-23: (i) | Raj Charitable trust registered under section 12AB, received corpus donation of 75 lakhs during the previous year 2021-22. The trust intends to utilize it during the PAPER - 7 : DIRECT TAX LAWS & INTERNATIONAL TAXATION "1 previous year 2022-23 and claimed that since the donor gave the donation with a specific direction that it is towards the corpus of the trust…

(a) In respect of the following independent case scenarios you are required to discuss the provisions related to tax deducted/collected at source and amount of tax deductible for the year ended 31st March 2022. (i) Mr. Rajat aged 79 years, a retired resident individual, maintains a savings bank account (S) and a fixed deposit account (F) with ABC Bank, Delhi. He provides the following details to ABC Bank in respect of financial year 2021-22: Interest on (S) % 75,100 Pension…

(a) Your answer should cover these aspects: e — Issue involved e — Provision applicable e Analysis and ¢ — Conclusion PAPER - 7 : DIRECT TAX LAWS & INTERNATIONAL TAXATION 19 (i) Mr. X filed his return of income for A. Y. 2022-23 by declaring a total income of 7 10 lakhs. His case was selected for scrutiny assessment and an addition of ₹4 lakhs was made by the Assessing Officer on account of disallowances of certain expenses. During…

(a) State with reason, whether the following acts can be considered as Tax Planning or Tax Management or Tax Evasion. (i) An individual assessee deposits a sum of # 10,000 in Sukanya Samriddhi Account of his daughter, so that his total income is reduced from # 5,05,000 to # 4,95,000 which entitles him to rebate under section 87A and consequently his tax liability becomes Nil. (ii) A company obtaining declaration in Form No.60 from customers who are required to provide…