Shri Joseph is a businessman dealing in cloth. On 1-4-2023, the position of his investments was as under:
1) Rs. 38,000, 9% (tax free) Debentures of Birla Jute Mills Ltd (listed)
2) Rs. 20,000, 12% Debentures of G Ltd.
3) Interest on National Savings Certificate (VIII issue) due Rs. 3,860
4) Rs. 22,000, 7.5% Govt. of Indian loan
5) Rs. 35,000, 7% Karnataka Investment loan
6) Rs. 18,000, 7% Capital Investment Bonds
The due dates of interest of all the above securities are 1st May & 1st November.
Calculate the income from other sources for the assessment year 2024-25.
Answer (1)
To calculate Shri Joseph's income from other sources for the assessment year 2024-25, we need to focus on the interest income from his investments as given in the details provided.
Let's break it down for each investment to calculate the interest income:
9% Debentures of Birla Jute Mills Ltd :
Investment: ₹38,000
Interest Rate: 9%
Annual Interest = 100 9 × 38 , 000 = 3 , 420
12% Debentures of G Ltd :
Investment: ₹20,000
Interest Rate: 12%
Annual Interest = 100 12 × 20 , 000 = 2 , 400
Interest on National Savings Certificate (VIII issue) :
Due Amount: ₹3,860 (This is already provided as the interest due)
7.5% Government of India Loan :
Investment: ₹22,000
Interest Rate: 7.5%
Annual Interest = 100 7.5 × 22 , 000 = 1 , 650
7% Karnataka Investment Loan :
Investment: ₹35,000
Interest Rate: 7%
Annual Interest = 100 7 × 35 , 000 = 2 , 450
7% Capital Investment Bonds :
Investment: ₹18,000
Interest Rate: 7%
Annual Interest = 100 7 × 18 , 000 = 1 , 260
Now, we add up all the interest incomes:
Total Interest Income = 3,420 + 2,400 + 3,860 + 1,650 + 2,450 + 1,260 = ₹15,040
Therefore, the total income from other sources for Shri Joseph for the assessment year 2024-25 is ₹15,040. This is the sum of interest from all his investments mentioned above.
