B.Com. (Financial Management) SEM IV 2022 2023 March 2023 DIRECT TAX Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a) Multiple Choice Questions. (Any Eight) The assesses gets days period u/s 139(a) to rectify the mistake in a defective return 8 marks
   • 2. First due date of payment of advance tax of individual is ‘
   • 3. Business loss can be set off against is paid for Land and Building, TDS is tobe
   • 5. An individual is entitled to an exemption of in respect of income of minor child
   • 6. In case of firm has a book profit of maximum remuneration allowable as deduction
   • 7. What is the rate at which interest is levied under section 234B?
   • 8. Company Assesse are required to pay advance tax in
   • 9. The first installment of advance tax is required to be deposited by non-company assessees on or
   • 10. All income which arises to the minor child shall be clubbed inthe income ofhis
2. Q1 b) State whether the statement is True Or False. (Any Seven) 7 marks
   • 1. Business loss is not eligible for set off against income from salaries
   • 2. Advanced tax is payable in four installments by a non-corporate assessee
   • 3. There cannot be a loss under the head salaries
   • 4. Interest,under section 234B is levied in the advance tax that has been deposited is insufficient
   • 5. Clubbing of income aims to prevent tax avoidance by diversion of income
   • 6. The due date for filing return of income for an assessee whose accounts are required to be audited is 31st October
   • 7. Income transferred without transfer of asset is taxable in the hands of transferor
   • 8. Income earned by a minor child from utilization of his personal skills shall not be clubbed in the hands of any of the parents
   • 9. A good tax planning requires up to date knowledge of tax laws
   • 10. Tax planning is ethical and legal VCD SYFMG SEM IV DIRECT TAX 2HRS 30 MIN 75- MARKS
3. Q2 a) X, Y and Z are the three partners of a firm. Sharing profit and losses as 2:3:5. It is constituted by a deed of partnership, but there has been a change in the profit- sharing ratio in the financial year 2020-21 from the earlier year. The firm did not submit a certified copy of the new deed of partnership. The profit and loss account of the firm for the year ending on March 31, 2021 shows the following. (15) Remuneration to partners 2,42,000 Interest to partners @24%p.a 1,08,000
4. Q2 b) Mr. Kulkarni gives you the following information for the year ended 31st March, 2021 Profit and Loss Account for the year ended 31-03-2021. (15) To salaries to staff 2,00,000 | By Gross Profit 10,00,000 To salary tg Mr. Kulkarni 60,000 | By Winning from horse racing 1,00,000 To General Expenses 1,50,000 | By Dividend from Co-operative Bank 20,000 To Conveyance 70,000 | By Interest on P. P. F Account 40,000 To Rent of premises 1,00,000 | By Old Debts recovered 38,000 To Fire Insurance Premium 27,000 To Reserve for Doubtful Debts 20,000 To Income Tax 15,000 To Contribution to P.P.F 50,000 To Net Profit 4,36,000
   • 1. Depreciation allowance under Income Tax Rules is 60,000 VCD SYFMG SEM IV DIRECT TAX 2HRS 30 MIN 75- MARKS
   • 2. General Expenses include 10,000 for gifts to staff and 220.000 for LIC Pension Plan
   • 3. Old debts in respect of which recovery is made were not allowed as deduction in the past, though they were written off in books Compute his total taxable income and Tax for Assessment Year 2022-23
5. Q3 a) Mr. P, a resident individual, furnishes the following particulars of his income and other tdetails for the previous year 2021-22. (15) I. Income from salary (computed) 218, 000
   • 2. Net annual value of House Property 70,000
   • 3. Income from Business 80,000
   • 4. Income from speculative business 12,000
   • 5. Long term capital gain on sale of land 15,800
   • 6. Loss on Gambling 8,000 Depreciation allowable under the Income Tax Act comes to 2 8.000 for which no treatment is given The other details of unabsorbed depreciation and brought forward losses are:
   • 1. Unabsorbed Depreciation 9.000
   • 2. Loss from speculative business
   • 3. Short term capital loss 27,800
   • 4. Unrealised Rent 17,000 Compute the gross total income of Mr. P, for the assessment year 2022-23 and the amount of loss that can or cannot be carried forward
6. Q3 b) Mr. Suraj Vike is an employee of L&T Ltd. and has a substantial interest in the company His salary is p. m. Mrs. Suraj vike also is working in that company at a salary of without any professional qualifications. Mr. Suraj also receives as income securities. Mrs. Suraj owns a house property which she has let out. Income from is Both the husband and wife have three minor children- two twin daughters and one son. Income of the twin daughters is each and that of his son is 1,200p.a Compute the income of Mr. Suraj Vike and Mrs. Suraj vike for assessment year 2022-23
7. Q3 c) Mr. Khanna is a doctor. His tax liability for the financial year 2021-22 amounted to 12,400. The due date of filing the return of income in his case is 3 Ist July, 2022. On Ist August, 2022 he paid tax of and filed the return of income. Will he liable to pay interest under section 234A and 234B? If yes, calculate the same. (07) 2 marks
8. Q4 a) Roshan a resident Indian, has derived the following incomes for the previous year relevant to the assessment year 2022-23. (15) VCD SYFMG SEM IV DIRECT TAX 2HRS 30 MIN 75-MARKS
   • 1. Net Income from Profession in India 6,00,000
   • 2. Coaching Receipt received in foreign Country X 6,00,000 (Tax paid in country X for his income in equivalent Indian rupees 60,000)
   • 3. Fees received from foreign country Y (Tax paid in country Y @20%) converted in Indian rupees. 1,00,000
   • 4. Fixed Deposit Interest from Indian Banks 2,00,000 Roshan wishes to know whether he is eligible to any double taxation relief and if so, it's quantum Indian does not have any Double Taxation Avoidance Agreement with Countries X and Y
9. Q4 b) Ruchita Ltd. has made payment on various dates in financial year 2021-22 to Raja Ltd towards work done under different contract as follows. (08) Ruchita Ltd. claims that it is not liable to deduction of tax at source under section 194C. Examine the correctness of the claim made by the company. What would be the position if the value of the contract no. 5 is only and there is no other contract during the year
10. Q4 c) Tax payable by Ms. Smita is 215, 000 and T. D. S is = 1,000. Calculate Advance Tax Payable on the respective due dates. (07)
11. Q5 a) Distinguish between Tax Avoidance and Tax Planning. 8 marks
    • 5) b) Discuss the provisions of Income of minor child. 7
12. Q5 c) Write Short notes on. (Any Three) 15 marks
    • 1. Tax Evasion
    • 2. Belated Return
    • 3. Provision of section 194J
    • 5. Loss under the head capital gain :

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