B.Com. (Financial Management) SEM III 2018 2019 Oct 2019 DIRECT TAX I Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 All questions are compulsory
2. Q2 Figures to the right indicate full marks
3. Q3 Use of simple calculator is allowed
4. Q1 Fillin the Blanks (any 8) which accrue outside India from a business controlled from India is taxable in 8 marks
   • a) Resident and Ordinary Resident only
   • b) Resident but not Ordinary Resident only
   • d) Both (a) & (b) 2 Winning from lotteries is taxable under income from
   • a) Salaries b) Other sources C) Business and Profession received from Indian company is under Income Tax Act 1961 4 deduction on House Property is % of Net Annual Value fees received will be chargeable to tax under the head Income from 6 Rent free furnished Accommodation is Provided by employer to employee is Gift received by doctor from his patients Rs. 70,000 shall be 8 The deduction in respect of Medical Insurance Premium paid by the assessee is allowed under section of Income Tax Act.1961 9 is Rent fetched by the similar house in the same locality where house property is situated 10 There are heads of Income under Income Tax Act 1961
   • a) One c) Five State whether the following statements are True or false (any 7) (7)
5. Q1 An Indian company is always a resident company
6. Q2 Municipal tax paid by the owner is allowed as deduction for Let Out property Medical Insurance premium paid by the employer for employee is not taxable 4 Dividend received from Indian company is taxable under income from other sources
7. Q5 Deduction for permanent physical disability of Assessee is allowed under section 80(DD) of Income Tax Act 6 Uncommuted pension received by the government employee is fully taxable Profit on sale of import license is taxed under Income from Business and profession 8 — company whose control and management is wholly outside India is taxable as non resident maximum deduction that can be claimed under section 80( C) is Rs. 1,20,000
8. Q10 stand for Cost of Improvement Index
9. Q2 Mr. Bipin is an employee of Godrej Ltd. He retired on March 2018 after 13 years and 3 months of his service. He furnishes the following Information for the year ended 31st March 2018 15 marks
   • (b) Dearness Allowance
   • (c) Professional Tax 2,500 p.a
   • (d) Bonus received 48,000
   • f) Gratuity Received (he was covered under the Gratuity payment Act) 7,50,000
10. Q2 He paid LIC premium for himself Rs. 40,000
11. Q3 He paid Medical Insurance Premium by cheque of Rs. 25,000 Compute his net taxable income for the Assessment Year 2018-19
12. Q2 From the following details you are required to calculate the Taxable Income of Mr.X under the head Income from House Property for the 2018-19 Mr X owned 2 houses. One was self-occupied& the other was let out at a monthly rent of Rs, 25,000p.m.The Municipal Value of the let out house was Rs. 3,20,000. Fair Rent was Rs 3,10,000, Municipal Tax is @ 10% but 50% of the municipal tax was paid by his tenant He had taken a housing loan for the purpose of the construction of the let out property on 1-4-2012 for @ 10% pa. the construction of the house was completed on 1-4 2014. The second house which was Self occupied which had a Municipal Value of Rs.5 Fair Rent Rs.5,10,000 and Standard Rent Rs. 5,00,000 15 marks
13. Q3 Following is the Trading & P/L A/c of Mr.X for the year To Office Salaries 30,000 | By Gross Profit b/d 1,50,000 20,000 | By Interest on Fixed Deposit 3,000 To Interest on Capital to Mr X 6,000 | By Interest on Bank 29 000 To Bad Debts Reserves 3,000 | By Winning from Lotteries 17,000 To Bad Debts 1,000 | By Refund of Income Tax 1,000 To Advance Tax To Embezzlement by employee To Office Expenses To Net profit c/d 15 marks
14. Q1 Office Salaries include Rs.4,000 paid as salary to the proprietor
15. Q2 Depreciation allowable as per tax rules Rs. 10,000
16. Q3 Advertisements includes an advertisement for Political Party of Rs. 4,000
17. Q4 Office expenses includes a sum of Rs. 2,000 as Bribe Paid
18. Q5 Repairs to the extent of 30% are Personal in nature Calculate his Net Taxable Income for the A.Y. 2018-19
19. Q3 Mr. M is a lawyer, he solves the cases of his clients, he furnishes you with the Following information for the year ended 31/3/2018 Dividend from Indian company 50,000 50,000 Winning from Lotteries 1,00,000. | Stationery and printing 10,000 Interest Accrued on NSC 50,000 1,40,000 15 marks
20. Q1 Depreciation allowable as per Income tax on car @ 10%
21. Q2 Half of the rent is attributable towards proprietor’s residential flat
22. Q4 4 of the car is used or personal purpose Compute total taxable Income from Business or profession for assessment year 2018-19
23. Q4 Professor Bhatt a UK citizen (not a person of India Origin) is a visiting faculty at Mumbai University, he provides you the details of his visit to India during the last 7 years No. of Days stay in India Prior to 01/04/2013 he did not visit India. Find out his Residential status for the 8 marks
    • B) Determine the scope of total income from the following incomes of Mr.R that he 7
24. Q4 purchased a house property for on 6th July 1997. He made addition to the house property by constructing a first floor during the financial year He sold the entire property on 10th June 2017 for He paid brokerage @ 1% on the sale value. The fair market value of the property on Ist April He purchased a new residential flat on uly 2017 for Rs. 25,00,000 The Cost Inflation Index: For financial year 2001-2002 is 100, For financial year 2005-2006 is 117 and For financial year 2017-2018 is 272 Compute the Capital gain of Mr. Raj chargeable to tax for Assessment Year 2018-19 8 marks
    • Q. Determine the legal status from the following. 7
    • a) Reserve Bank of India
    • b) Mumbai University
    • c) A village Panchayat
    • d) LIC of India
    • e) Motors Ltd
    • f) Rohan (minor)
25. Q5 Explain any eight exempted incomes mentioned under section 10 of Income Tax Act. 1961 8 marks
    • B. What do you mean by allowances? Explain any six allowances with examples QS. Write Short Notes on (any 3) (15) 7
    • a) Pension
    • b) Short Term capital gains
    • c) Deduction under section 80(E)
    • d) Unrealised Rent
    • e) Expenses disallowed under business and profession

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