AAFM GLO_CWM_LVL_1 Exam - Topic 3 Question 44 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 44
Topic #: 3

Ramesh retired as General Manager of XYZ Co. Ltd. On 30.11.2012 after rendering service for 20 years and 10 months. He received Rs. 300000 as gratuity from the employer. (He is not covered by Gratuity Act, 1972).

His salary particulars are given below:

He resides in his own house interest on monies borrowed for the self occupied house is Rs. 24000 for the year ended 31.03.2013

Compute taxable income of Ramesh for the year ended 31.03.2013.

A258900

B272600

C265450

D285470

Show Suggested Answer

Suggested Answer: B

by Marge at May 29, 2022, 02:46 AM

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Denna

4 months ago

Not sure about those calculations, feels off to me.

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Amber

4 months ago

Wait, he’s not covered by the Gratuity Act? That’s surprising!

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Josphine

5 months ago

I'm going with option C, seems right to me.

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Bettyann

5 months ago

I think the gratuity amount seems low for that long of service.

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Helga

5 months ago

Ramesh worked for almost 21 years!

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Nickolas

5 months ago

I believe the total salary components need to be added up first, but I’m confused about how to handle the gratuity since he retired before the cutoff date.

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Yuriko

5 months ago

I feel like the interest on the home loan will be deductible, but I’m uncertain about how much of the gratuity will affect the final taxable income.

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Luz

5 months ago

I remember we discussed how gratuity is treated for tax purposes, but I'm not sure if it applies since he's not covered by the Gratuity Act.

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Shakira

5 months ago

I think we had a similar question in our last practice set about calculating taxable income, but I can't recall the exact steps we took.

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Barabara

5 months ago

I'm a bit confused by this question. Can someone explain the difference between the different stakeholder roles?

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Carma

5 months ago

I think the answer is B. The Due Date field is used to calculate the payment due date based on the Payment Terms.

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Melvin

5 months ago

The System Development Life Cycle (SDLC) seems like the best fit based on the stages mentioned. I'll go with that unless I can come up with a really compelling reason why another option might be better.

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