St. Joseph’s College of Commerce VI Sem Taxation – II Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERECE (AUTONOMOUS)

end semester examination – MARCH / april 2015
B.Com (T. & T.) –VI SEMESTER
 C2 12 601: TAXATION – II
Duration: 3 Hours                                                                                          Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                     (10×2=20)
  1. Name any two transactions that qualifies for deduction U/S 80C.
  2. Mr. Ali’s (Ordinary resident, age 42 years) total income for PY amounts to Rs. 5,20,000, compute the his tax liability for AY 2014-15.
  3. In what ways indirect tax is different from direct tax?
  4. Define restaurant services as per section 65(105).
  5. During the previous year 2013-14, Mr. Kumar received following gifts. Ascertain the total amount of gift charged to tax.

  1. Gift of Rs. 84,000 from his father.
  2. Gift of Rs. 55,200 received from his friend on his birthday.
  3. Rs. 30,000 received from his friends on the occasion of marriage anniversary
  6. Who presents the annual finance budget in parliament? Name the person.
  7. Write a note on entertainment tax.
  8. State whether the following are capital assets or not

  1. Wearing appeals
  2. Agricultural Land situated in urban area
  9. What do you mean by Sub-letting?
  10. Mention the rules for grossing up interest on bank deposits.

 
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                    (4×5=20)
  11. Mr. Babu purchased a residential house in Bangalore on 1-4-1979 for Rs. 50,000 and added 1st floor in 1980 at a cost of Rs. 10,000. On 1st December 1990 he gifted the house to his Son Mr. Dabu, who added two rooms in June 1993 at a cost of Rs. 40,000. On 1st November 2013 Mr. Dabu sold the property for Rs. 40,00,000. Find out the taxable amount capital gain if the fair market value of the property as on 1-4-1981 was Rs. 1,50,000. [CII 2013-2014=939, 1993-94=244, 1990-91=182 and 1981-82=100].

 
  12. Mrs. Madhumalati investments during the year ended 31-3-2011 consisted of the following:

  1. Rs. 30,000 (13.5%) securities of a Reliance industries limited (Listed)
  2. Rs. 35,000 (11%) securities of TATA steel limited (Listed)
  3. Rs .3,350 received as interest on securities of Infosys Limited (listed)
  4. Rs.  7,000 received as interest on Karnataka Government bonds.

 

  1. Rs. 6,000 received as interest on tax free Public limited company securities (Listed).

She paid Rs. 150 as commission for collecting the interest on above mentioned securities. Compute her income from other sources.
   

13.

  

Taj Hotel has received following amounts from various clients

  1. Renting of a guest house (Rent above 100 per day) Rs. 10,00,000
  2. Serving of food or beverages by a restaurant (Having licence to serve alcoholic beverages) Rs. 20,00,000
  3. Marriage hall (having the facility of air conditioning) Rs. 20,00,000

Calculate the service tax payable.

 
  14. Calculate the deduction available under section 80C and the taxable income of Sam, having gross total income of Rs. 6,60,000 and he makes the following expenses:

School fees of his 4 children Rs 50,000

Life insurance for wife and kids Rs 10,000 (Sum assured Rs. 10,000)

Life insurance for parents Rs 15,000 (Sum assured Rs. 10,000)

 
  15. Compute tax liability of Mr. X for the AY 2014-15, if his non-agricultural income is Rs 2, 90,000 and agricultural income is Rs 40,000.

 
  16. Briefly explain service tax registration procedure.

 
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                             (3×15=45)                                                                                                 
  17. Mr. Gandhi (resident) gives you the following information. Compute his income under the head capital gains for the assessment year 2014-15.

  1. Agricultural land in Mumbai city purchased in 1998-89 for Rs. 2,25,000 (CII-351) has been sold for Rs. 10,50,000 on 1-8-2013 (CII-939) by paying Rs. 25,000 as brokerage. He purchased another agricultural land in village for Rs. 2,50,000 on 10-3-2014.
  2. Machinery purchased on 1-1-1999 for Rs. 40,000 (CII-351) is sold for Rs. 15,000 on 1-4-2013. The WDV of the machinery was Rs. 25,000.
  3. Sold his residential house for Rs. 36,00,000 on 31-12-2013 (CII 939). The house was gifted by his mother-in-law in july 1980. The house was purchased by her 1979 for Rs. 3,25,000 (FMV on 1-4-1981 was Rs. 3,00,000). Additions were made by him in Jan-1983 by spending Rs. 30,000 (CII 109). He purchased another residential house for Rs. 2,25,000 and deposited also Rs. 75,000 under capital gain account scheme on 30-3-2014.
  4. Debentures purchased in Dec-2009 for Rs. 30,000 were sold for Rs. 55,000 on 1-9-2013.
  5. Write a note on deduction u/s 54EC.

 

 

 
  18. Mr. Salman submits the following particulars of income from other sources for the year ended 31-3-2014.

  1. Family pension from Govt. of Karnataka Rs. 42,000
  2. Royalty from books written Rs. 20,000 (expenses incurred for this purpose Rs. 2,500).
  3. Remuneration from articles published in a Magazine Rs. 2000
  4. Cash worth Rs. 1,00,000 was found in his private locker, the source of which could not be explained by him.
  5. Interest on fixed deposit in a bank Rs. 15,000(gross)
  6. Rent from sub-letting a house Rs. 1,500pm (rent paid to the owner of the house Rs. 1,000pm and repair expenses Rs. 200.)
  7. Winning from lottery net Rs. 70,000 purchase of lottery Rs. 100)
  8. Winning from horse race Rs. 35,000(net)

Compute his taxable income from other sources for the A.Y 2014-2015.

 
  19. a)      Highlight VAT benefits to the Tourism Industry.

b)     Write short notes on Negative list and Mega Exemptions.

c)      Complete the following table:

Tax Point of Taxation Incidence of taxation
a)      VAT    
b)     Central Excise Tax    
c)      Service Tax    
d)     Luxury Tax    
e)      Entertainment Tax    
   

20.

  

Mr.Arora furnishes the following particulars of his income for the PY 2013-14, from which compute taxable Income from Other Sources.

Dividend received from UTI Rs 10,000
Net amount received as winning from horse race Rs 21,000
Winning from camel race (net) Rs 15,000
Winning from lottery  (net)

(Cost of lottery ticket was Rs 500, commission paid to lottery seller Rs 1000 out of prize money)

 Rs 70,000
Income tax refund (related to past year) Rs 10,000
Interest on income tax refund Rs 1,000
Amount won from T.V game show Rs 2,00,000
Interest on 8% Tax free Relief Bonds issued by RBI Rs 5,000
On 1/10/2013, he purchased 1,000, 8% debentures of Rs 100 each of Nirma Company from open market @ Rs 105. Dates of interest payment are 30 June and 31 December every year  
On 1/10/2013, he subscribed for 1,000, 10% debentures of Rs 100 each of Pearl Ltd. The date of interest payment is 31st March every year  
Interest received on Punjab Government Loan Rs 20,000
Interest received on 8% debentures of Phymox Ltd (unlisted co) Rs 4,500
Gift from father Rs 50,000
Family pension received Rs 48,000
He lives in a rented house paying rent @ Rs 10,000 p.m. He has sublet 1/3 portion of the house on a rent of Rs 4,500 p.m. The municipal tax Rs 6,000 and repairs of the whole house Rs 2,700 have been borne by him  
   

21.

  

Discuss major taxes applicable to the travel & tourism sector
 

SECTION – D
IV) Case Study                                                                                                            (1×15=15)                                                                                          
  22. The following are the different incomes earned by Prof. Jagadish during the PY 2013-14

  1. Salary from Loyala college for working as a full-time lecturer Rs. 25,00,000 p.a
  2. Income from agricultural land situated in Srilanka Rs. 65,000
  3. Income from sale of agricultural produce from a land Bangalore rural area Rs. 1,00,000
  4. Income from conducting quiz shows for school students Rs. 5000
  5. Income from his textile business Rs. 3,00,000
  6. Winnings from game shows Rs.15,000(net)
  7. Remuneration from Allianz university for working as part time faculty in Rs. 3,00,000p.a
  8. He also receives a family pension of Rs. 1,20,000 p.a  from Government of Karnataka
  9. Interest on tax free Government securities issued by central government Rs. 6,000
  10. Compensation received on account of maturity of Life insurance policy Rs. 1,00,000

During the PY he made following payments

  1. He made a fixed deposit of Rs. 10,000 in a nationalized bank for 6 years
  2. He purchased a National Savings Certificate from a post office worth Rs. 10,000
  3. Paid interest on Education loan taken for her daughters education Rs. 3,000
  4. Contribution towards his ICICI pension fund amounted to Rs. 50,000 during the PY

Task: You are required to:

  1. Classify these incomes under different heads provided in Income tax act 1961
  2. Compute his GTI and Total income
  3. Determine tax liability for the AY 2014-15.

 

 

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