BCom In Accounting & Finance (BCAF) SEM IV 2018 19 May 2018-19 TAXATION III Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q2 All questions carry 15 marks
2. Q3 Figures to the right indicate full marks
3. Q5 Working should form part answer
4. Q1 (A) State whether the following statements are True or False:-(any 8) 8 marks
5. Q1 A firm cannot pay remuneration to its partners if it has incurred loss
6. Q2 Revocable transfer gives the transferor right to re-assume power of the asset
7. Q3 There cannot be a loss under the head ‘salaries’
8. Q4 Belated Return can be submitted at any time before the end of the relevant assessement year or before the completion of the assessement whichever is earlier
9. Q5 Revised return can be filed before the expiry of one year from the end of the relevant assessment year or before the completion of assessment whichever is earlier
10. Q6 The person responsible for deducting TDS is the person who pays the amount
11. Q7 Advance tax is also payable on capital gains income earned by the assessee
12. Q8 Interest u/s 234B is levied if the advance tax that has been deposited in insufficient
13. Q9 Itis a universally accepted principle that same income should not be subjected to tax
14. Q10 Income on which tax has been paid in foreign country is eligible for claiming relief
    • (B) Fill in the blanks with correct option (Any 7) 7
15. Q1 aims to prevent tax avoidance by diversion of income
    • c) Clubbing of Income d) Both (b) and (c)
16. Q2 An individual is entitled to an exemption of in respect of income of minor child
17. Q3 Speculation loss can be set off against
    • a) Short term capital gain b) speculative Income
    • c) Both (a) and (b) d) none of the above
18. Q4 Unabsorbed short-term or long-term capital loss can be carried forward
19. Q5 In case a firm has a book profit of Rs.2,00,000, maximum remuneration allowable as
20. Q6 The due date for filing return of income for an assessee whose accounts are required to
21. Q7 The assessee days period u/s 139 (a) to rectify the mistake in a defective
22. Q8 An individual and HUF whose books of accounts are subject in the preceding financial year is liable to deduct tax at source
23. Q9 TDS is to be deducted @ U/s 194 A 10.___ means taxing the same income twice in the hands of an assessee
    • a) Clubbing of Income b) Double Taxation
    • c) Either (a) or (b) d) Both (a) and (b)
24. Q2 (A) From the following Income and Expenditure Account of Dr. Kamble compute his total taxable income and tax liability for Assessment Year 2018-19 Income & Expenditure Account for the year ended 31-3-2018 (15) To Staff Salaries 1,20,000 | By Consulting fees 4,00,000 To Dispensary Expenses 67,500 | By Visit Fees 1,00,000 To Dispensary Rent | By Gift from Patients 40,000 To Purchase of Medicines 45,000. | By Sale of Medicines at the To Income Tax 35,000 | Dispensary 80,000 To Professional Fees to Doctors 22,000 By Rent From House Property 1,20,000 To Car Expenses (For Profession) 36,400 To Membership Fees 2,000 To Municipal Tax for Rented To Interest on Housing Loan for To Printing Charges 4,000 To Surplus for the year 2,68 ,600
25. Q1 Gift from patients include Rs.1,000 from his father in personal capacity
26. Q2 Depreciation as per Income Tax Rule Rs.45,000
27. Q3 He paid medical insurance premiums of Rs.8,000 by cheque
28. Q4 He purchased National Savings Certificates of Rs.30,000 and paid Life Insurance Premium
29. Q5 He paid Rs.20,000 to Nationalised Bank towards Principal Repayment of Housing Loan
30. Q2 (B) Income and Expenditure A/c of Lawyers & Co. for the year ending March 31,2018 To Expenses 1,50,000 | By Professional Receipts To Depreciation 20,000 | By Other Fees 90,000 To Remuneration to Partners 1,50,000 To Interest on Capital to Partners @ To Net Profit 1,30,000 15 marks
31. Q1 Expenses include Rs.18,000 and Rs.12,000 paid in cash as brokerage to a single party on a
32. Q2 Depreciation calculated as per section 32 is Rs.40,000 Compute the Total income of the firm and also compute tax payable by the firm for
33. Q3 (A) Mrs. X has Tax Liability of Rs.4,90,000 for Previous Year 2017-18. She has paid advance tax as given below: (07) Balance amount of tax was paid on 10 December 2018, while filing the return Compute her liability for the Assessment Year 2018-19 for interest under section 234A,
34. Q3 (B) During the previous year 2017-18 the following transactions occurred in respect of Mr.A
    • (a) Mr. A had a fixed deposit of Rs.5,00,000 in Bank of India. He instructed the bank to credit the interest on the deposit @ 9% from 1-4-2017 to 31-3-2018 to the savings bank account of Mr.B, son of his brother, to help him in his education
    • (b) Mr. A holds 75% share in a partnership firm. Mrs. A received a commission of Rs.25,000 from the firm for promoting the sales of the firm. Mrs. A possesses no technical or professional Qualification
    • (c) Mr. A gifted a flat to Mrs. A on April During the previous year the flat had income as computed under the head House Property Rs.52,000 to Mrs. A
    • (d) Mr. A gifted Rs.2,00,000 to his minor son who invested the same in a business and he got an income of Rs.20,000 from the investment
    • (e) Mr. A’s minor son derived an income of Rs.20,000 through a business activity involving application of his skill and talent. During the year Mr. A got a monthly pension of Rs.10,000. He had no other income. Mrs. A received salary of Rs.20,000 per month from a part time job Discuss the tax implications of each transaction and compute the total income of Mr. A, and their minor child
35. Q3 (C) Ascertain the Amout of T.D.S for the following independent situation 8 marks
36. Q1 Bank of India has to pay interest of Rs. 4,00,000 to Mr. Arun
37. Q2 Aper Rubber Ltd has to pay rent for a warehouse owned by state Government Aper Rubber Ltd has to pay a sum of Rs. 4,00,000 to an engineer
38. Q4 — Mr. Ajay has to pay Rs. 19,000 as Professional charges
39. Q3 (D) Tax payable by Ms. Smita is Rs. 12,570 and T.D.S is Rs 1000. Calculate Advance Tax Payable on the respective due dates For the assessment year, 2018-19. Mr. Ganesh a non-resident individual, furnishes the Income from House Property 32,000 Short Term Capital Gains 4.05 ,000 Income from owning and maintaining race horses 2,15,000 Besides, Mr. Ganesh has the following brought forward losses/ allowances Brought forward loss from the activity of owning and maintaining race horses of Determine the Gross Total Income of Mr. Ganesh for the assessment year 2018-19 Roshan a resident Indian, has derived the following incomes for the previous year relevant to the assessment year 2018-19. (15) 7 marks
40. Q2 Coaching Receipts received in foreign country X (tax paid in country 6,00,000
41. Q3 Salary received from foreign country Y Roshan wishes to know whether he is eligible to any double taxation relief and if so, its quantum India does not have any Double Taxation Avoidance Agreement with Countries X and Y
42. Q5 (1) Discuss circumstances under which the return of Income is considered defective. 8 marks
    • (2) Explain any five provisions of set off and carry forward. 7
43. Q5 Write short notes:- (any 3) 15 marks
    • a) Remuneration to Partner u/s 40(b)
    • b) Advance tax on Capital Gains
    • c) Tax Evasions
    • d) Distinguish between interest u/s 234B and interest u/s 234C

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