| ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS) | ||||||||||||||||||||||||||||||||||
| END SEMESTER EXAMINATION – SEPT/OCT. 2015 | ||||||||||||||||||||||||||||||||||
| BBM – V SEMESTER | ||||||||||||||||||||||||||||||||||
| M1 11 501: INCOME TAX -I | ||||||||||||||||||||||||||||||||||
| Duration: 3 Hours Max. Marks: 100 | ||||||||||||||||||||||||||||||||||
| SECTION – A | ||||||||||||||||||||||||||||||||||
| I) | Answer ALL the questions. Each carries 2 marks. (10×2=20) | |||||||||||||||||||||||||||||||||
| 1. | Define Person as per Section 2(31) of Income Tax Act of 1961. | |||||||||||||||||||||||||||||||||
| 2. | Explain the meaning of Assessee as per the Income tax Act. | |||||||||||||||||||||||||||||||||
| 3. | A, a resident in India, aged 60 years, earned agricultural income of Rs. 5,00,000 during the previous year 2014-15. Compute his tax liability assuming that he has non-agricultural income of Rs. 2, 70,000. | |||||||||||||||||||||||||||||||||
| 4. | Name the different types of Provident Fund. | |||||||||||||||||||||||||||||||||
| 5. | State the provisions of income tax in respect of exemption of Entertainment allowance. | |||||||||||||||||||||||||||||||||
| 6. | Explain the provisions relating to Section 23(2)(a) in respect of Income under the head house property. | |||||||||||||||||||||||||||||||||
| 7. | The total income of R for the assessment year 2015-16 is Rs. 1,01,20,000 Compute the tax payable by R for the assessment year 2015-16. | |||||||||||||||||||||||||||||||||
| 8. | Write a note on the standard deduction as per section 24 (a) under the head house property. | |||||||||||||||||||||||||||||||||
| 9. | Explain the provisions relating to Interest on borrowed capital | |||||||||||||||||||||||||||||||||
| 10. | Write a note on the provision relating unrealized rent recovered under the head Income form house property. | |||||||||||||||||||||||||||||||||
| SECTION – B | ||||||||||||||||||||||||||||||||||
| II) | Answer any FOUR questions. Each carries 5 marks. (4×5=20) | |||||||||||||||||||||||||||||||||
| 11. | Compute the tax liability of G who is 62 years old and resident in India for the assessment year 2015-16:
– Rent of agricultural land Rs. 1,00,000 Land revenue paid to state government Rs. 10,000 Collection charges on recovery of agricultural rent Rs. 5,000 – Interest on arrears of land revenue received from tenants Rs. 12,000 – Income from manufacturing business carried on by G Rs. 5,50,000 |
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| 12. | Mr. Kohli a citizen of India is an export manager of Arjun Overseas Limited, an Indian Company, since 1.5.2010. He has been regularly going to USA for export promotion. He spent the following days in USA for the last five years:
Determine his residential status for assessment year 2015-16 assuming that prior to 1.5.2010 he had never travelled abroad. |
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| 13. | A earns the following income during the financial year 2014-15:
Determine the total income of A for the assessment year 2015-16 if he is; (i) Resident and ordinarily resident (ii) Not ordinarily resident , and (iii) Non-resident in India. |
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| 14. | Shri Rajesh was employed since 1.1.1983 in a commercial establishment. His salary was fixed at Rs. 14,800 in the grade of Rs. 14,000-400-22,000 with effect from 1.7.2012. He got 15% of his salary as dearness allowance which is treated as salary for computation of retirement benefits. He retired for service on 1.2.2015. He received Rs. 3, 40,000 as gratuity form his employer. Calculate his gross total income under the head salaries for the assessment year 2015-16 if-
(i) Payment of Gratuity act 1972 applies, (ii) Payment of Gratuity act 1972 does not apply. |
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| 15. | R an employee of a company at New Delhi is given the choice of either accepting house rent allowance at Rs. 8250 p.m. or rent free unfurnished accommodation having fair rental value of Rs. 8,250 p.m. if he accepts HRA he will have to pay rent at Rs. 8,250 p.m. himself. His salary other than facility of house or HRA is fixed at 11,000 p.m. which one of the two options should he accept? | |||||||||||||||||||||||||||||||||
| 16. | The construction of a house property was completed on 28.02.2015. the assessee had taken a loan of Rs. 10,00,000 @ 12% p.a. Compute the deduction of interest for the previous year 2014-15, if the loan was taken on:
(i) 1.4.2012 (ii) 1.6.2013 (iii) 1.5.2014 |
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SECTION – C |
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| III) | Answer any THREE questions. Each carries 15 marks. (3×15=45) | |||||||||||||||||||||||||||||||||
| 17. | Shri A.K.Gupta was employed in a factory in Faridabad. He retired on 1.1.2015 after completing a service of 26 years and 5 months. He had been getting a salary of Rs. 23,000 per month and a dearness allowance of Rs. 2,000 per month (forming part of retirement benefits) for the last four years. His pension was determined @ Rs. 9,000 p.m. and 3/4th portion of it was commuted for Rs. 2,70,000. In addition to this he received a gratuity of Rs. 4,00,000 and as per entitlement of 30 days earned leave for each year of service, he also received Rs. 3,00,000 for encashment of earned leave of 12 months during the previous year. Compute gross income from salaries of Shri Gupta for the assessment year 2015-16, assuming he is not covered under the payment of Gratuity Act. | |||||||||||||||||||||||||||||||||
| 18. | (a)X, a German national came to India for the first time on 1.7.2008. During the period from 1.7.2008 to 31.3.2015, he stayed in India as follows – from 1.7.2008 to 31.10.2008; from 1.5.2009 to 31.10.2009; from 1.11.2010 to 31.12.2010 and from 1.7.2013 to 31.8.2014. Determine the residential status of Mr. X for the assessment year 2015-16. (6 Marks)
(b) following are the particulars of taxable income of R for the previous year ended 31.03.2015: (i) Royalty received from Government of India Rs. 24,000. (ii) Income from business earned in Afghanistan Rs. 25,000 of which Rs. 15,000 were received in India (iii) Interest received from G a non-resident against a loan provided to him to run a business in India Rs. 5,000. (iv) Royalty received in India from S a resident for technical services provided to run a business outside India Rs. 20,000 (v)Income from business in Jaipur Rs. 40,000. This business is controlled from France, Rs. 20,000 were remitted to France. Find out gross total income of R for assessment year 2015-16, if he is – (i) Resident and ordinarily resident (ii) Not ordinarily resident , and (iii) Non-resident in India. (9 Marks) |
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| 19. | Mrs. R aged 50 years an executive in X Ltd. In Delhi, gets the following emoluments during the previous year ending 31.3.2015:
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20. |
R and his family members have occupied 3 houses for their residential purpose the houses were constructed by R. the particulars of the houses were as under:-
R borrowed Rs. 2, 00,000 @ 10% p.a. for construction of House 3 (date of borrowing 1.4.2008 and date of repayment of loan 11.08.2015). Construction of all the houses was completed on 1.5.2013. Compute the taxable income of R for assessment year 2015-16. His income for other sources is Rs. 20,000. He has given the option to treat the third house as his self occupied house. |
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| 21. | (a) X owns a big house (construction completed on March 31, 2010). The house has three units Unit 1 (50% of the floor area) is let out for residential purpose on monthly rent of Rs. 8,200. Unit 1 remains vacant for 1 month when it is not put to any use. A sum of Rs. 700 could not be collected from the tenant. Unit 2 (25% of the floor area) is used by X for the purpose of his profession, while Unit 3 (the remaining 25 %) is utilized for the purpose of his residence.
Other particulars of the house are as follows: Municipal valuation: Rs. 60,000, Fair rent: Rs. 70,000, Standard rent: Rs. 90,000, Municipal taxes: Rs. 15,000, repairs: Rs. 4,000, interest on borrowed capital for renewal of the property: Rs. 36,000. Determine the taxable income for the assessment year 2015-16. (b) X (age: 63 years) owns two houses. Relevant details are given below:
Find out his net income and tax liability for the assessment year 2015-16. |
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| SECTION – D | ||||||||||||||||||||||||||||||||||
| IV) | Case Study (1×15=15) | |||||||||||||||||||||||||||||||||
| 22. | R aged 48 years a director of X Ltd., receives the following emoluments during the previous year ending 31.3.2015: Salary: Rs. 42,000; Bonus: Rs. 2,500; salary in lieu of leave: Rs. 3,000; and entertainment allowance Rs. 2,500. Besides the aforesaid emoluments, his employer provided free gas and water for his domestic use (cost Rs. 8,000), a domestic servant (salary paid by the employer: Rs. 24,000), concessional education facility for his family members in a school maintained by it (cost of education R’s son: Rs. 30,000, amount paid by R Rs. 9,000; R’s dependent sister Rs. 36,000, amount paid by R is Rs. 12,000), free meals in office ( cost Rs. 30,000 (Rs. 100X300days) ) and free holiday home facility of Manali ( Cost Rs. 20,000). Salary of a personnel attendant (Rs. 12,000) engaged by R is paid by his employer during the year. On 31.3.2015, the employer company sells an air-conditioner for Rs. 5,000 (cost of air-conditioner to the company: Rs. 50,000, date of purchase: 30.7.2010, it is used for business purposes before its transfer to R). R contributes Rs. 6,000 towards recognized provident fund; his employer contributes Rs. 5,000. Further, during the previous year R has deposited Rs. 80,000 in Fixed Deposit for a period of 5 years with SBI as per notified scheme. Determine the taxable income and tax liability of R for the assessment year 2014-15, if income of R from other sources is Rs. 3,00,000. | |||||||||||||||||||||||||||||||||
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