BCom In Accounting & Finance (BCAF) SEM III 2018 2019 Oct 2019 TAXATION II Question Paper - Mumbai University | munotes

Questions asked in this paper

• 3. Figures to the right indicate full marks

1. Q4 Workings should form a part of your answer
2. Q5 Use of simple calculator is allowed
3. Q1 A. Multiple choice questions [Answer any 08] 8 marks
4. Q1 Under the head Income from Business or Profession, the method of accounting which an assessee can follow is:
   • a. Mercantile system b.Cash system. c. either of (a) or (b)
5. Q2 Export incentives received by an assessee are:
   • a. Exempt b. Taxable as business Exempt upto certain limit
6. Q3 The asset of a particular block is acquired and ‘Put to use” during the previous year for less than 180 days, the assessee shall charge depreciation at:
   • a. Normalrate b.50% of Normal rate c. No depreciation is allowed
7. Q4 Standard deduction under Section 24 (a) of Income from House property is:
   • a. of Net Annual value b. Rs. 30,000 c. 30% of Net Annual value
8. Q5 The quantum of deduction u/s 80U is
9. Q6 Very senior citizen u/s 80 D means attaining years any time during the
10. Q7 Annual interest accrued on NSC VIII issue shall be
    • a. exempt from tax b. taxable on receipt taxable on accrual basis
11. Q8 Profession tax deducted is allowed on
12. Q9 Tax allowed as deduction while computing the business income is
13. Q10 The amount of payment cash towards any expenditure is allowed as State whether the following sentences are True or False [answer any 07] [07]
    • a. AOP consists of individuals only as members
    • b. Rent received from letting out any asset is income from house property
    • c. Income means any receipt in cash
    • d. Residential status is determined for Assessment year Unrealised rent is deducted from Net Annual Value
    • f. Deduction under section 37(1) is allowed for expenses of capital nature
    • g. Amount brought to India out of past profits is taxed in the year of remittance
    • h. Advance against salary is taxable but advance of salary is not taxable
    • i. Income received by a software professional in UK from the Indian company is taxable in India
    • j. Charging section for business income is Sec.28
14. Q2 Mr. Atul who is totally blind is employed with XBTR Ltd. The details of his salary for the previous year 2017-18 are as follows: [15] Dearness Allowance 75% of Basic
    • H.R.A [exempt amount Rs. 400/- p.m. u/s 10(13A)] 20% of Basic Contribution of employer to Recognised Provident fund in excess of 2300 Bonus equal to 2 months basic wasdeclared Compute the net taxable income for Assessment year 2018-19
15. Q2 A. Mr. Jazz, an American citizen, furnishes the following particulars regarding his income earned during the previous year relevant to Assessment Year 2018-19. [07] 4 Income earned from business in London controlled from Delhi Find his Gross Total Income if he is (i) Resident and Ordinarily Resident (ii) Resident but Not ordinarily Resident Non- resident in India for the Assessment Year 2018-19 Mr. Kumar retires from Aeroforbs Pvt. Ltd. on 30" June, 2017. He gets pension of Rs.28,000/- per month upto January, 2018. With effect from February, 2018 he gets 75% of pension commuted for Rs.126,000/- . Pension becomes due on last day of each month. Determine the taxable amount of pension under two circumstances:
    • i. If he receives gratuity, and li. If he does not receive gratuity
16. Q3 Following is the Income and Expenditure Account of Dr. Ranveer. Compute his total taxable income for the Assessment Year 2018-19 [15] Income and Expenditure Account for the year ended March, 2018 To Purchase of Medicines 45,000 | By Sale of Medicines at 80,000 To Professional feestodoctors To Municipal tax 12,000 To Interest on Housing loan for 18,000 To Surplus forthe 268,000)
    • i. Gift from patients include Rs. 1000/- from his father in personal capacity
    • ii. Depreciation as per Income tax rules Rs.45,000
    • iii. He paid Medical insurance by cheque — Rs.8,000/
    • iv. He purchased National Savings Certificates worth Rs.30,000 and paid LIC premium
    • v. He paid Rs. 20,000 to National Housing bank towards repayment of principal loan Compute the taxable income of Dr. Ranveer for the Assessment Year 2018-2019
17. Q3 A. Mrs. Geeta purchased a house property Rs. 200,000 in the year 1970-71. The following expenses were incurred for the property: 8 marks
18. Q1 Cost of construction in the year 1978-79 — Rs150,000 il. Cost of construction of the floor in 2004-2005 — Rs. 350,000 ili. Alteration of House property in 2013-14 — Rs. 300,000
19. Q4 Fair market value of the property on April, 2001 is Rs.500,000/-. The house property is sold to Mr. Alok in the previous year 2017-18 for Rs.50,00,000/ Expenses incurred on transfer during the previous year Rs. 5,000/ Compute capital gains for Assessment Year 2018-19 [Cost of Inflation Index: 2001-02: 100; 2004-05: 113; 2013-14: 200; 2017-18: 272]
20. Q3 B. Ascertain the legal status of the following persons: 7 marks
    • a. Pune University
21. Q4 Mr. Munnar is the purchase manager of W.V. Pvt. Ltd. His net taxable income under the head Salaries is Rs. 136,000/-. Particulars of his other [15] income are as follows:
    • x. | Deposit made years Term Deposit with 30,000 He spent Rs. 49,000 on his wife who is severally disable as defined u/s 80DD. However, she has claimed deduction u/s 80U while computing her total income You are to compute his net taxable income for the Assessment Year 2018-19
22. Q4 Mr. Norman is of a house property along with his brother. Information regarding the house property is stated as below: The loan for the construction of this house property is jointly taken and the interest charged by the bank is Rs.50,000 of which Rs. 42,000 has been paid. Interest on the unpaid interest is Rs.900. To repay this loan, Norman and his brother took another fresh loan and interest charged on this loan is Rs. 10,000. The Municipal tax of Rs.10,200 has been paid by the Compute the income of Mr. Norman for the Assessment Year 2018-19 after considering the following details further: 15 marks
    • a. on Fixed Deposits with Rs. 10,000/ Interest accrued on Public Provident fund Rs. 2,000/
    • c. Investment in Public Provident Fund Rs. 60,000/
    • d. Paid Rs. 25,000 by cheque as premium for medical insurance policy for self
23. Q5 a. Explain in details items of income included in ‘Profit in Lieu of Salary’ under the head Income from Salary. [08] What are capital assets u/s 2(14) of Income tax Act. Explain in details [07]
24. Q5 Short Notes (Answer any 3) 15 marks
    • a. Perquisites
    • b. Exemption of Gratuity u/s 10 10
    • c. Residential Status
    • d. Remuneration of partners u/s 40(b)

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