BCom In Accounting & Finance (BCAF) SEM III ATKT TAXATION II DIRECT TAXES PAPER I 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. Match the following columns: (answer any 8) 8 marks
   • a) Provision for Bad Debts 1. Exempt u/s 10 17
   • c) Training received by Employees 3. Not allowed as deduction from ‘Profit & Gains from Business or
   • d) Mediclaim Insurance premium 4. 50% of income allowed as deduction paid by an individual u/s
   • e) Allowances received by Member 5. Cost inflation Index
   • f) Interest earned on deposits in 6. Not taxable for Non-Residents
   • g) Interest received on 7. Deduction u/s 80 D compensation for compulsory acquisition of land
   • j) Manufacturing salt from sea 10. Not a capital asset
4. Q1 B. State whether the following statements are True or False: [Answer any 7] 7 marks
5. Q1 Bad Debts allowed as deduction in the earlier years shall be taxed when subsequently
6. Q2 The interest taken on new loan taken to pay off old loan is allowed as deduction u/s 24(b)
7. Q3 Bonus is taxable in the year of receipt and not in the year of declaration
8. Q4 The Finance Act is a substitute to Income tax Act
9. Q5 Residential status of a person is influenced his citizenship
10. Q6 Amount actually spent on entertainment is to be allowed as deduction u/s 16(ii)
11. Q7 Disaster compensation 1s exempted u/s to an individual and HUF
12. Q8 A person is deemed to be of Indian origin if his grandfather was born in Pakistan
13. Q9 Transfer excludes compulsory acquisition under law
14. Q10 Commuted pension is taxable in hands of all individual assesses
15. Q2 Mr. Kumar, working as an executive in a private firm. The following are the particulars of his income for the year ended March,2018. [15] salary (net of TDS and professiontax)
    • d. Dearness allowance 40% of Gross
    • k. LIC premium on life of Mr. Kumar paid by 6,000
16. Q1 Interest on education loan paid by cheque by Mr. | 15,000 He also paid Rs.12,000 to ICICI Prudential to keep in force an annuity plan policy qualifying for 80 CCC. Compute the Net taxable salary of Mr. Kumar for Assessment Year 2018-19
17. Q2 Mr. Shrikumar constructed his house on a plot of by him in Kolkata. The house has two floors of equal size. He started construction of the house on 1* April, 2016 and completed construction on 30" June 2017. He occupied the ground floor from July 2017 and let out the first floor at a rent of Rs.20,000 per month on the same date. However, the tenant vacated the floor on January 2018 and Mr. Shrikumar occupied the entire house from February 2018 to Mr. Shrikumar obtained a housing loan of Rs.15,00, 000 at an interest of 10% per annum on July, 2016. He has not paid back any amount of the loan till March, 2018. Compute the income from house property in the hands of Mr. Shrikumar for the Assessment Year 2018-19 15 marks
18. Q3 From the following Profit and Loss account of Mr. Jaguar for the year ending March, 2018 To Interest on Capital of Mr. 6,000 By Interest on Company deposits 15,200 To Bad Debt Reserve 10,000 | By Refund of Income tax for 2,000 To Income tax for Following additional information are given:
19. Q2 General expenses include furniture purchased for Rs.5,000
20. Q3 Office salary includes salary paid to Mrs. Jaguar- Rs.6,000. Mrs. Jaguar, M. Com writes the accounts of the business
21. Q4 Advertisement includes Rs.4,000/- paid for advertisement in souvenir of a political party
22. Q3 From the following information of Mr. Jay for the previous year 2017-18, compute the Gross Total Income for the Assessment Year 2018-19, as if he is a — [15]
    • a. Resident and ordinarily resident Resident and not ordinarily resident
    • c. Non-resident
23. Q1 Income from profession in Srilanka, received in Bhutan 60,000
24. Q4 Mr. Raju acquired residential house property on 1-3-1992 for Rs. 200,000/-. Additional information pertaining to the property is as follows: [15]
25. Q1 Fair Market value as on 1-4-2001 was Rs.240,000
26. Q2 Cost of Improvement made by him He sold the residential property on 25-01-2018 for Rs.180,00,000/ He acquired a new residential house for Rs.73,00,000 on 19.03.2018 Expenses on transfer amounted to Rs. 75 ,000/ Compute the amount of taxable Capital gains for the Assessment year 2018-19
27. Q4 From the following particulars of Mr. Jaish for the previous year ended March 2018 compute the income chargeable under the head ‘Income from Other Sources’: [15] Directors Fees from a company 10,000 Interest on bank deposits 3,000 Income from undisclosed sources 12,000 Winning from lotteries (net of TDS @ 30%) 35,000 Royalty on books written by him 9,000 Interest on loan given to.a relative 7,000 Interest on debentures of listed company (net of TDS@10%) | 3,600 Interest on post office savings bank scheme Interest on Monthly income schemes He paid Rs. 1,000 for typing the manuscript of his book Enumerate any eight expenses not allowed as deduction under head.“Income from Business or
    • b. Explain “transfer” of capital asset as per Section 2(47) of the Income tax Act. 7
28. Q5 Short Notes (Answer any 3) 15 marks
    • a. Person u/s 2 31
    • b. Deduction under section 80 C
    • c. Agricultural Income
    • d. Annual value of House property
    • e. Income u/s 2 24

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