Mr. Rohan Mehta, aged 45 years, a resident individual, is a retail trader. He is an eligible assessee under section 44AD of the Income-tax Act, 1961…

Mr. Rohan Mehta, aged 45 years, a resident individual, is a retail trader. He is an eligible assessee under section 44AD of the Income-tax Act, 1961 and follows the mercantile system of accounting. For the financial year 2024-25, his total turnover amounts to 130 lakhs. The breakup of turnover and mode of receipts are as follows: 25 lakhs received by account payee cheque during the previous year; 50 lakhs received by cash during the previous year; 25 lakhs received by account payee bank draft before the due date of filing of return under section 139(1); 30 lakhs not received till the due date of filing of return. Rohan had taken a housing loan of 15,00,000 on 1 st April 2021 from a nationalized bank at 10% per annum for constructing his self-occupied residential house. The construction commenced in June 2021 and was completed on 30 th June 2024. No repayment of the loan has been made so far. During the year, he sold two pieces of land: On 4 th October 2024, he sold a piece of agricultural land for 52 lakh which he had acquired on 13 th September 2023 at a cost of 49.25 lakh. The land is located 7 km away from the municipal limits of a town having a population of 4,00,000.On 12 th December 2024, he sold another agricultural land for 53 lakh which he had acquired on 15 th February 2023 at a cost of 46 lakh. The said land is located 1.5 km from the municipal limits of an area having a population of 12,000. CII for F.Y. 2022-23: 331; 2023-24: 348; 2024-25: 363 From the information given above, choose the most appropriate answer to the following questions –