Question

X, maintaining books of account on the basis of financial year, holds the following securities on April 1, 2019:
Rs. 60,000 7% MP Government loan (date of payment of interest : July 15 every year).
Rs. 30000 11% debentures (non-listed) of ABC Ltd. (date of payment of interest: June 30 every year).
Apart from the aforesaid securities, X invests in UP Government Loan, Central Government securities and (listed) debentures of PQR
Ltd
, and receives on December 1, 2019, Rs. 3,000, Rs. 9,000 and Rs. 2,700 (net of tax deducted – rate of tax 10%), respectively, as
interest
. His business income is Rs. 11,86,000. He pays Rs. 200 as commission to his bank for collecting interest on securities.
Determine the taxable income of X for the assessment year 2020-21.​

Answer 1

Explanation:

date of payment of interest: June 30 every year).

Apart from the aforesaid securities, X invests in UP Government Loan, Central Government securities and (listed) debentures of PQR

Ltd

, and receives on December 1, 2019, Rs. 3,000, Rs. 9,000 and Rs. 2,700 (net of tax deducted – rate of tax 10%), respectively, as

interest

. His business income is Rs. 11,86,000. He pays Rs. 200 as commission to his bank for collecting interest on securities.

Determine the taxable income of X for the assessment year 2020-21.