David Warner an Australian player visits India for 95 days

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Fundamentals of Taxation

QUESTION 1

Mr. Rama has a Net Salary (after adjustment of deductions and allowances) of Rs. 25,00,000 for P.Y.2021-22. Compute his tax liability for A.Y.2023- 24 assuming his age is
(a) 28 years
(b) 65 years

(c) 83 years (10 marks)

Assume that Mr. Rama has not opted for the provisions of section 115BAC

QUESTION 2

David Warner, an Australian player visits India for 95 days in every financial year. This has been his practice for the past 15 financial years.
(a) Find out residential status of David Warner for the assessment year 2023-24.
(b) Would your answer change if the above facts relate to Ish Sodhi, an Indian Origin who resides in New Zealand and represents the New Zealand cricket team?
(c) What would be your answer if David Warner had visited India for 130 days instead of 95 days every year, including P.Y.2021-22? - (10 marks)

QUESTION 3

Reliance Ltd. allotted 4000 sweat equity shares to Dev Anand in July 2022. The shares were allotted at Rs. 800 per share as against the fair market value of Rs. 1800 per share on the date of exercise of option by the allottee viz. Dev Anand. The fair market value was computed in accordance with the method prescribed under the Act.

(i) What is the perquisite value of sweat equity shares allotted to Dev Anand? (5 marks)

(ii) In the case of subsequent sale of those shares by Dev Anand, what would be the cost of acquisition of those sweat equity shares? - (5 marks)

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