MCom MCom Accountancy SEM III GROUP A ADVANCED ACCOUNTING, CORPORATE ACCOUNTING AND FINANCIAL MGT DIRECT TAX Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Following is the Account of Receipts and Payments of Dr. Dharam of “Mahatma Clinic” for the To Balance b/d. Cash 1,500 | By Salaries 44,000 To Balance b/d. Bank 3,000 To Gift from Patients | By Rent of Clinic (paid to 12,000 To Winning from horse 10,000 | By Electricity 11,150 To Amount received 30,000 | By Car Expenses 30,000 under Keyman Insurance By Purchase of Equipments | 12,000 By Balance ; Cash 2,600 By Balance e/d. Bank 42,250
   • 1) Rs.6,000/- is to be considered as a reasonable rent of the clinic
   • 2) Misc. Expenses are incurred for personal purposes
   • 3) Donations are eligible for deduction u/s.80G
   • 4) Depreciation allowable on equipments according to Income Tax Act is Rs.4,000/ Compute from business or profession of Dr. Dharam for the Assessment Year 2018-19 Mr. Krishna Sharma who is an Indian citizen resides in U.K. and came to India on April, 2017 and again leaves India to proceed to U.K. on 25" September 2017 for the purpose of employment He was in India for more than 365 days during the preceding previous years 2013-14 to 2016-17. What will be residential status of Mr. Sharma for the assessment year 2018-19. Give necessary justification of your answer. (08)
2. Q1 B) Mr, Shyam has Occupied two houses for his own residential purposes viz Shanti Niwas and Ganesh Niwas, particulars of which are as follows : You are required to ascertain which Property should be treated as Self-occupied and determine taxable income for the assessment year 2018-19 of Mr. Shyam, assuming both the loans Were taken prior to
3. Q2 Mrs. Lajwanti aged about 66 years is a finance Manager of M/s. Lakhme & Co. Ltd. based at Calcutta. She is in continuous service since 2005 and received the following salary and perks from the company during the year ending 31.03.2018
   • 2) DA (20,000 x Rs.2,40,000
   • 4) Commission 0.1% of the Turnover of the Company which was Rs.15 Crores
   • 5) Contribution of the Employer and employees to PF Account Rs.3,00,000 each
   • 6) Interest Credited to PF Account at 8.5%
   • 7) Rent free unfurnished accommodation provided by the company for which the company Pays @ rent of Rs.70,000 per annum
   • 9) Children’s education allowance tO meet the hoste| expenditure Of children : Rs. 15,000 She makes the following payments and investments !) Premium paid to insurance the life of her major son : Rs. | 5,000
   • 2) Medical Insurance Premium for self - Rs.22,000 and Spouse Rs.5,000 Determine the Net Table Income of Mrs. Lajwanti for the Assessment Year (15)
4. Q2 A) Mr. Sukumar is employed with M/s. Sager International at Kalbadevi, Mumbai since 2008 As per the terms of contract salary become due on the last day of every month, Due to the financial Crisis faced by the employer M/s. Sagar International, the salary of March 20] 8 to May 2018 was paid on 31" May 2018. He is entitled for salary of Rs 4000/. pm. During the year ended on March 2018 he received from the employer as follows abject Code: 72206 Group A: Advanced Accounting, Corporate Accounting and Financial Management : Direc ) Net salary of Rs.39,820- after deduction of PF contribution of Rs.3,520/- and Profession Tax of Rs.2200/-for 11 months from April 2017 to February 2018
   • 2) Bonus Rs.8,000/
   • 3) An award of appreciation of Rs.4,000/- on account of saving of the shop from fire in Diwali
   • 4) Compensation of Rs.6,000/- due to modification of terms and conditions of contract of You are required to ascertain the taxable income under the head “Salaries” of Mr. Sukumar for
5. Q2 B) Mr. Vijay Kaushik acquired residential property on March, 1982 for Rs.20 Lakhs Additional information pertaining to property was as follows: ) Fair market value as on 01.04.2001 was Rs.24 Lakhs
   • 2) Cost of Improvement made by him :
   • 3) residential property on 25" January 2018 for Rs. | Crore 80 Lakhs
   • 4) He acquired new residential house for Rs. 58 Lakhs on 19" March 2018
   • 5) invested Rs. 15 Lakhs in Rural Electrification Bonds on 19" March 2018
   • 6) Expenses on Transfer amounted to Rs. 75,000 Compute Taxable Long Term Capital Gain for assessment year 2018-2019 after considering the relevant cost inflation indices (CII) as follows : (07)
6. Q3 For Assessment year 2018-19 Mr. Akash submits the following particulars : Commission (@2% on Turnover) 50,000 House Rent Allowance (Rent paid in Mumbai Rs.90,000) Pension from a former Employer 85,600 Profits and Gains of small scale industrial undertaking 37,000 Profits from Publications of Books Profit from business of dealing in Equity Shares 35,000 Dividend from British Company 25,000 Subject Code: 72206 Group A: Advanced Accounting, Corporate Accounting and Financial Interest from British Company 2,000 Interest received on Debentures in “S” Ltd. 15,000 Mr, contributes at 12% to recognized PF & employer also contribute 36,000 Remuneration from other company for Visits 10,000 Life Insurance Premium paid on his life 15,000
   • N.S.C. Investment during the assessment year 2018-19 12,000 Mediclaim insurance premium on own life 10,000 Determine the net taxable income of Mr. Akash for Assessment Year 2018-19, (15) Ms. Pooja is a social worker. She owns a house property at Vasai which is let out at an annual rent of Rs. 25,000/ She incurred following respect of house property : Her other income is as follows :
   • 1) Interest on Bank deposits Rs.12,500 charges and Rs. 2000 as interest on loan borrowed for purchase of Jindal Agro Ltd. Shares
   • 3) Dividend from Unit Trust of India Rs.47,000/
   • 4) Accrued Interest on NSC Rs.17,800/
   • 5) Dividend from foreign companies Rs.14,500/ Compute Ms. Pooja’s Gross Total Income for assessment year 2018-2019, (15)
7. Q4 A) Multiple Choice Questions: 8 marks
   • 1. Mumbai University is assessable under the Income Tax Act, as ;
   • a. An Individual An artificial judicial person
   • c. A local authority d. None of these
   • 2. In which year is the income tax liability computed :
   • 3. The rates of income tax are laid down
   • a. for each calendar year b. for each assessment year
   • c. foreach previous year d. for each of head of income
   • 4. Tax is allowed as a deduction while computing the business income :
   • c. Sales Tax d. All of the above Code: 72206 Group A: Advanced Accounting, Corporate Accounting and Financial Management : Direc
   • 5. The rate of tax applicable to a firm for A.Y.2018-19 is :
   • 6. Standard Deduction \nder section 24(a) from Income from House Property is : a NAV b. repairs actually incurred by the owner
   • 7. Exemption under section 54, shall be available a All assesses b. Individual only
   • c. Individual and HUF d. None of the above
   • 8. Deduction under section 80CCC is allowed to the extent of :
8. Q4 B. Match the Columns Column A Term Column B Section of Income Tax Act 7 marks
   • 7) Charge of Income Tax g) 3
9. Q4 Short notes (any three) 15 marks
   • a) Salient features of the scheme of taxation of firm and partner
   • b) Any Five general conditions for claiming deduction u/s. 37
   • c) Five tems of deductions under chapter VI A

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