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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – OCTOBER 2013
B.COM – V SEMESTER
INCOME TAX – I
Time: 3 Hours Max. Marks: 100
SECTION – A
I) Answer ALL the following questions: (10×2=20)
1. Define a Person.
2. X starts a new business on March 29th 2012. He closes his books of a/c on
31st March 2012. However he wants the income generated in this period
for AY 13-14. Is he legally correct?
3. How do you differentiate exemption with Deduction in IT.?
4. Give any 4 cases where income of previous year is charged in the
previous year itself.
5. Explain the Tax provisions of Leave Travel Concession availed
6. How do you treat arrears of rent of earlier years recovered in the previous
year?
7. How is Retrenchment Compensation received taxed
8. Mention the conditions given under Rule 4 w.r.t Unrealised Rent.
9. X a resident of Pune gets Rs.2,20,000 p.a as basic salary. He receives Rs.
65,000 p.a as HRA, though he pays a House Rent of Rs. 60,000. Determine
HRA taxable.
10. Calculate the Municipal Tax deductable from the following
MRV Rs. 60,000 , Municipal Taxes 10% of MRV, 50% of it to be payable by
Tenant and the remaining to be paid by the owner of which only 40 %
was paid and the balance due
SECTION – B
II) Answer any FOUR of the following questions: (4×5=20)
11. Explain in detail tax provisions relating to Motor Car facilities availed by
an employee.
12. X was born in Pune in 1978. Later on he migrated to Australia in
December 2011and took citizenship there with effect from Jan 1st 2012. He
comes to India on 15th Feb 2013 for a visit of 190 days. Find out his
residential status of X for AY 13-14 on the assumption that before 2011 he
stayed in India at least 275 days every year explaining the provisions in
detail.
13. X, a marketing specialist of Madras is working with two concerns, P. Co,
& Q Co.. He retires from P.Co on June 30th 2005 and receives Rs. 29,000 as
gratuity out which 28,000 was exempt from tax
He retires from Q Co., on December 2 nd 2012 after 6 years 11 months
service and receives Rs.3,70,000 as gratuity. Basic salary (average) drawn
from Q Co. for preceding 10 months ending November 30th 2012 is Rs.
22,000. Besides, he received Rs. 1,000 as DA which forms part of salary
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and 5 % commission on turnover of Rs. 6,70,000 achieved by him for
previous 10 months. Determine taxable gratuity.
14. Anil built a residential house and for completion of the house he took a
loan of Rs. 20,00,000 from a Bank as under.
a. On 1-5-2006 Rs. 5,00,000 @ 10%
b. On 1-11-2007 Rs. 8,00,000 @ 9%
c. On 1-1-2009 Rs. 4,00,000 @ 8%
House was completed in Oct 2009.and since then it is occupied for the
residential purposes of his family. He repaid Rs. 4,00,000 to the bank on
1st Dec 2012 and the bank adjusted this amount against 1st Loan.
Determine the amount of deduction u/s 24
15. Give any ten incomes which are Totally Exempt from tax u/s 10
16. A house is completed on April 1st 2012 and the following is available
about this house
Particulars Amount
MRV 30,000
p.a
FRV 32,000
p.a
ACTUAL RENT 4,000
p.m
Municipal taxes-paid 6,000
p.a
Due 4,000
Fire insurance premium 3,600
Land revenue 6,000
INTEREST ON LOAN
1-4-09 to 31-3-2012 45,000
1-4-12 to 31-3-13 15,000
The HP was Let out for the Period 1-4-2012 to 31-12 2012 and self occupied
from 1-1-2013. Compute income from House Property
SECTION – C
III) Answer any THREE of the following (3×15=45)
17. Find out the income of Xavier for the AY 13-14 on the assumption
that he is (a) Resident (b) Not Ordinary Resident & (c) Non
Resident
i. Royalty from Patent registered in USA but received in India
Rs.20,00,000
ii. Dividends from Italian Co. Rs.18,00,000
iii. Profit of a sole proprietary business situated in Dubai,
received in Mauritius(business entirely controlled from
India) Rs.4,50,000
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iv. Loss from a business situated in Pakistan Rs. 2,00,000
v. Rent of a commercial property in Bhutan Rs. 2,35,000
vi. Speculation profit earned and received in India on 1st April
2013 Rs.4,00,000
vii. Profit from sale of house property in UK ( 50% received in
Chennai) Rs. 1,77,000
viii. Income from profession set up in Bangalore( consultancy
provided in UK and amount received in UK) Rs. 8,32,000
18. What are the different types of Provident Funds? Explain in detail
IT provisions relating to them.
19. Compute taxable salary form the following.
Particulars Rs.
Salary p.m 8,000
Arrears of salary 4,000
D.A p.m 2,000
LIC premium paid by employer 10.000
Bonus 15,000
Education allowance for grandchild
p.m
400
Cash gift 10,000
CCA p.m 1,000
Medical expenses paid by employer 6,000
He & his employer contributes 15% of
his salary to RPF
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Lunch allowance @ Rs.100 per day for
250 days
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Provided with a credit card,
bill of which is paid by Co.
6,000
20. Mr Ajay is the owner of a house which consists of 3 independent
units. The floor area is in the ratio of 40%: 40%: 20%. The 2nd & 3rd
portion are Let out where as the 1st portion is self occupied. Other
Details are
FRV 90,000
Municipal valuation 1,00,000
Standard rent 80,000
Municipal taxes 10% of MRV
Repair expenses 10,000
Ground Rent
Actual Rent -2nd
portion
5000 p.m
3rd
Portion
2,000 p.m
2nd Portion remains vacant for 2 months. Ajay had started the
construction of the House in 2009. He borrowed Rs. 10,00,000 @ 14 %
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on 1-7-2009 for construction which was completed on 18th July 2011. He
repaid a Loan of Rs. 2,00,000 on 31st March 2012.
21. Explain in detail with examples Capital & Revenue Items
SECTION – D
IV) Compulsory question. (15marks)
22. Mr. Ganesh an employee working in Dreams Ltd. Mumbai has
presented the following particulars of his salary for PY 12-13 and
expects you to determine taxable salary and the deductions that he
can claim u/s 80
i. Basic salary Rs. 20,000 p.m
ii. DA-80% of salary( 50% enters retirement benefits)
iii. Bonus one month
iv. Commission Rs. 66,000
v. Leave encashment of current year Rs. 20,000
vi. He has engaged a helper @ Rs.1,200 p.m and his employer
pays him Rs. 1,500 p.m on this account.
vii. Medical bills re-imbursed (a) notified hospital Rs. Rs.22,000
(b)Private Hospital Rs. 53,000
viii. Mobile Bill of employee paid by employer Rs.15,000
ix. Employment tax paid by employer Rs. 2,500
x. On 1-12-12 he has taken a loan of Rs. 3,00,000 from his
employer to purchase a car @8.25%. Prescribed rate at SBI is
11.25%
xi. He and his employer contribute Rs. 3,200 p.m each towards
RPF.
xii. Interest on RPF credited Rs. 20,000 @ 10%
xiii. He received Rs. 20,000 as LTC but has not travelled
anywhere.
xiv. A car of 1.8 ltrs is provided for personal & official purpose.
xv. He has been provided with a rent free house owned by
Employer along with facility of Gardener costing employer
Rs.6,000 p.a Furniture costing Rs. 1,00,000 has been provided
which is owned by the employer.
xvi. His personal club bills paid by employers. 25,000 p.a
xvii. LIC premium on his life paid by the employer Rs.5.000
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