Question

Ms. Shreya, 33 years old, a non-resident, owns a house in India which is let out wef 1st

October 2018. The construction of the house was completed on 1st Sept. 2018. The house

is let out on a monthly rent of Rs. 75,000. Rent of two months could not be realized. Other

details of the house are as follows:

Municipal valuation - Rs. 50,000 pm

Municipal taxes due for 2018-19 - Rs. 50,000 out of which taxes paid during the year are

Rs. 30,000. Out of this Rs. 30,000, Rs. 20,000 is paid by the owner and Rs. 10,000 is paid

by the tenant during the previous year 2018-19.

Ms. Shreya took a loan of Rs. 15,00,000 from HDFC Bank on 1st September 2013 @

12.5% per annum for construction of this house. Rs. 2,00,000 was repaid on 31st March

2016. Remaining amount is unpaid so far.

Compute net income and tax liability of Ms. Shreya for the assessment year 2019-20. She

spends Rs. 30,000 on medical treatment of her dependant brother who is suffering from a

disease specified in the rules made by the Board and claims a deduction for the same under

relevant section. Her income from other sources is Rs. 5,70,000 and a loss of Rs. 50,000

(short term) from Capital Gains head.​

Answer 1

Answer:

Step-by-step explanation:

Total Income Computation of Tax Liability on 441625

On first 250,000 = Nil

On Balance 191625 @5 %= 9581

Less : Rebate 87 A = Nil

Add: Health Education  @4 % = 383

total = 9964

Deduction on spending of 30,000 on medical treatment u/s 80 DDB is not applicable to a non resident assess short term capital loss can be set off against short term capital gain. inter head set off not allowed.

Please see the attachment for full explanation or computation of total income of Shreya.