B.Com.

(Hons) II yr, Semester-IV, Academic Year 2018-19 SEC Paper: E-Filing of Returns
Case Study-501 on ITR-5 Dr SB Rathore, Associate Professor, Shyam Lal College
Generate income Tax Return for AY 2018-19 in ITR-5 from the data given below
Name Rathore and Associates
Date of formation 19-Nov-86
Address 25, Saakshara, A-3, Paschim Vihar, New Delhi-110063
PAN AAAFR6835H
Mobile No. 9811116835
Landline number 011-45023899
Residential Status Resident
e-mail ID rathore_incometax@yahoo.co.in
Status Partnership firm (not being LLP)
Return to be filed under which section 139(1), Original Return
Liable to maintain accounts u/s 44AA and Audit u/s 44AB Yes
CA Kapil Singhania, PAN-AAAPS8160R;
Audit u/s 44AB done by
Membership No 986835
Ward/Circle Ward 40(2), Civic Centre, New Delhi-110002
Partners' information
Name of partners Mohd Sajid Shyam Singh Varun Panwar
Date of admission 19-Nov-86 19-Nov-86 19-Nov-86
Percentage of Share 50% 25% 25%
84-A, Gali Shatara, 45/9, Kucha 1129, Asaf Ali
Chawri Bazar, Rehman, Chandni Road, New Delhi-
Residential Address Delhi-110006 Chowk, Delhi- 110002
110006

PAN AANPS5842G AASPS8752C AAXPP4521E

Partner who will verify return Mohd Sajid
Father's Name of Partner to verify return M.A. Ansari
No. of bank accounts held by firm during the previous year Two
Details of bank accounts Punjab National Bank State Bank of India
Account No. 25478963254 32568457824
IFS Code PUNB0466400 SBIN0006623
Type of account Current Current
Refund (if any) to be credited Yes
Date of Filing 30-Sep-18
Place of filing return New Delhi
Income / Expenditure / Investment Details:
Income From House Property
Address of property: 15/25, Kamla Nagar, Delhi-110007. Fully owned by the Firm, Name of the Tenant:
Harish Technology Ltd, Kamla Nagar. Delhi-110007; PAN: AHECH3899K
Rent received from Tenant 18,00,000
Municipal taxes paid by the Firm (Owner) during the previous year 90,000
Interest on capital borrowed for Purchase of property 4,50,000
Tax deducted by the Tenant (DELH16835A) as per section 194I 180000
Capital Gain
Sale of Plot of Land CII (FY 2017-18) 272 31/10/2017 60,00,000
Stamp duty value 61,80,000
Expenditure on transfer 60,000
Plot was purchased during FY 1989-90 1,50,000
FMV of the Plot as on 01-04-01 CII (FY 2001-02) 100 3,00,000
Investment in NHAI's Capital Gain Bonds 05/03/2018 36,00,000
Income from other sources
Birthday Gift to Sajid (Partner) by Varun (Partner) 1,20,000
Interest on Fixed Deposits 12,000
Donation to Opposition Political party (Included in other expenses in P & L A/c ) 1,20,000
Advance tax / Self assessment tax paid by the Firm
Tax paid on 10-09-2017 (BSR Code of SBI 0006623 ,Challan No.: 00001 3,00,000
Tax paid on 31-03-2018 (BSR Code of SBI 0006623 ,Challan No.: 00011 3,75,000
Income from Trading Business (Books of account maintained) Code No. 09010
Profit and Loss Account for the year ending 31-03-2018
Opening stock 16,83,000 Gross Turnover 1,50,00,000
Purchases 78,75,000 Excise duty Received 1,50,000
Excise duty on goods purchased 83,750 IGST Received 1,72,500
IGST in respects of goods 92,125 Closing Stock 15,30,000
Freight 43,125
Power and Fuel 8,625
Rent of office and Godown 51,750
Repair (Building) 47,438
Repair (Machinery) 75,000
Salary to employees 22,50,000
General insurance 10,625
Entertainment 1,26,750
Sales Promotion expenses 1,20,000
Newspaper/ Advertisement 2,70,000
Commission 37,500
Domestic Travel 1,57,500
Telephone/internet 60,000
Festival expenses 33,750
Gift to distributors 2,40,000
Audit fees 22,500
Depreciation 3,28,860
Intt on capital to partners(@ 14% 4,20,000
Remuneration to Partners (Rs 50,000
per partner per month) 18,00,000
Other expenses 8,65,000
Net Profit 1,50,202
1,68,52,500 1,68,52,500
Other Information
(1) Other expenses include a cash payment to a supplier 45,000
(2) Tax is not deducted at source in respect of payment of rent of office and godown 51,750
(3) Income tax paid as advance tax is included in other expenses. 6,75,000
(4) During the year, the firm paid Excise Duty of FY 2015-16. It was not allowed then
as per u/s 43B on account of non payment. 10,000
(5) Following information in regard to depreciation on the Assets
Plant & Machinery Computer

Depreciated value 01/04/2017 12,00,000 1,80,000

Add: Original cost of assets acquired 01/05/2017 2,40,000 36,000
Less: Sale proceeds of assets 31/05/2017 72,000 10,800
Add: Original cost of assets acquired 23/10/2017 1,44,000 21,600
Written down value 31/03/2018 15,12,000 2,26,800
(7) New Plant & Machinery (if any) purchased by 15-08-17 is qualified for additional depreciation @ 20% .
This additional depreciation is not available in respect of Computer.

Balance Sheet as on 31-03-2018

Capital account of Closing Stock 15,30,000
Mohd Sajid 15,00,000 Sundry debtors 52,50,000
Shyam Singh 7,50,000 Depreciable assets 17,38,800
Varun Panwar 7,50,000 Investment in Shares 22,50,000
Sundry Creditors 1,50,84,175 Bank Balance 68,05,000
Cash balance 5,10,375
1,80,84,175 1,80,84,175
Compiled by Dr SB Rathore 9811116835 rathore_incometax@yahoo.co.in www.taxclasses.in
 Tax Calculations -Case Study 501 (ITR-5) Dr SB Rathore, Associate Professor, SLC

Income from House Property

Rent Received GAV 18,00,000
Less Local Taxes paid 90,000
NAV 17,10,000
Less Repairs 5,13,000
Less Intt on Loan 4,50,000 9,63,000 7,47,000
Capital Gains
272 Sale of Plot 31-Oct-17 61,80,000
Less Exp -60,000
100 FMV as on 01-04-01 01-Apr-01 -8,16,000
53,04,000

Less Exemption u/s 54EC 36,00,000 17,04,000

Other Sources
Birthday Gift to Sajid (Partner's ITR)
FDR Intt (Taxable) 12,000
Income from Business / Profession
Book Profit as per P & L A/c 28,18,662
Partners' Remuneration Allowed as per
40(b) on Book Profit First Rs. 300000 (90%
or 150000); Balance @ 60%
17,81,197 10,37,465
NP as per P & L A/c 1,50,202
OI-8Ae Exps Disallowed (Tax) 6,75,000 Auto BP-16

OI-9b Exps Disallowed (Cash) 45,000 Auto BP-17

OI-8B Excise Duty of FY 15-16 -10,000 Auto BP-30

BP-11 Depreciation Added 3,28,860 Auto from P & L

BP-12(i) Dep Allowed -3,50,400 Auto from DEP

OI-7c Donation Political 1,20,000 Auto BP-15

OI-8Ah Excess Intt on Cap 60,000 Auto BP-16

Adjusted profit 10,18,662

Add Remu paid 18,00,000
Book profit 28,18,662
Sec 40(b)
First Rs. 300000 2,70,000

Balance @ 60% 15,11,197

Remu Allowed u/s 40(b) 17,81,197
Gross Total Income 35,00,465
Less 80GGC 1,20,000
Total Income Rounded by 10 33,80,470
 Normal Tax 30% 5,02,941
Special Tax (LTCG) 20% 3,40,800
8,43,741
Add Edu Cess 3% 25,312
Tax Liability 8,69,053
TDS by Tenant 1,80,000
Advance Tax 6,75,000 8,55,000
Bal Tax Payable 14,053
Late Fees u/s 234F 10000
Rounded by 10 Total Tax Payable 24,050

15% 40%
Plant & Mach Computer
Dep Full 2,05,200 82,080
Dep Half 10,800 4,320
Add Dep 20% 48,000
2,64,000 86,400 3,50,400

1 Intt on Capital to Partners

Manually- P & L A/c at 44(ii)(a)
2 Remuneration to Partners
Auto from Gen (2) to P & L A/c at S No. 38 but Editable
3 Excess Intt on Capital Self-Calculation
Manually- OI at S.No. 8A (h) u/s 40(b)
4 Excess - Partners' Remuneration Self-Calculation
Manually- OI at S.No. 8A (h) u/s 40(b)