B.Com In Banking & Insurance (BCBI) Sem III 2022 2023 Oct 2023 DIRECT TAX Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) Fill in the blanks (Any 8) 1.Export incentives received in the form of Duty Drawback by an Indian exporter is chargeable 8 marks
2. Q2 Cost inflation index is applicable for computing income
3. Q3 If the business is commenced on 31st December 2021, the first previous year will end on
4. Q4 The legal status of Bar Council of India is F 5. Gift received from friend is chargeable under the head income
5. Q6 Income earned outside India by non resident Indian is fully India
6. Q7 An individual is considered as resident in India if his stay in India during the previous year 8.An individual who does not satisfy both the basic conditions under section 6(1) of Income Tax Act, 1961 is considered to be in India during the previous year
7. Q9 The house property is considered as long term capital asset, if it is held for at least
8. Q10 Monthly remuneration received by Member of Parliament is chargeable under the head
   • B) State whether True or False (Any 7) 7
9. Q1 An association of persons consist of individuals only 2.Residential status depends only on citizenship 3.Income earned in India is not taxed in the hands of Non Resident Assessee the business is commenced on 1.9.2021, the first previous year will end on 31.8.22 for the Assessment year 2022-23 5.Family pension received by a widow of a deceased employee is income from 6.Bonus of earlier year received during the current previous year is not an income from salary for that current year 7.Advance against salary is not a part of Gross salary
10. Q8 Gift received from mother is fully taxable
11. Q9 Gratuity received by Govt. employee on retirement is fully taxable
12. Q10 An association of persons consists of any person
13. Q2 Kennedy, a citizen of U. S. A, came to India, for the first time, on his appointment as a Manager of Thomas Cook & Co., on Ist April , 2017. On Ist February, 2018 he was transfered to Singapore for three years. He comes back to India on 2nd February, 2021 and joins his original M/s Thomas Cook & Co, as a Manager and since then he is in India. Determine the residential status of Mr. Kennedy for the Assessment year 2022-23.Give explanation for your answer. (7)
    • B. Mr. Vishant, an Indian citizen, left India for employment in the USA on 28.9.2021
    • i) Is he resident during assessment year 2022 -23?
    • ii) Is there any other condition under which it is possible to treat him as a resident? 8
14. Q2 M has aresidential property, details of which are given below: Municipal taxes paid @20 percentage of municipal valuation Interest on loan for purchase of this house = Rs. 20,000 The house property was vacated by the tenant on the last day of October, 2021. It could then be let out only from Ist of January, 2022 at Rs. 14,000 per month. Rent for March 2020 could not be realised( the conditions under the relevant income tax rules were satisfied). Compute his income from house property for the assessment year 2022 -23
15. Q3 Mr. G receives the following emoluments during the previous year ending 31.3.22 Professional tax paid = Rs. 3000 ( Rs. 2000 was paid by his employer) Mr. G contributes Rs. 50,000 towards recognised provident fund. He has no other income. Determine the income from salary for A. Y. 2022-23, if Mr. G is a State Government Employee. (15)
16. Q3 A Mr. Chintu Submits the following details in respect of income earned by him during the year
    • i) Dividend from foreign Companies = Net Rs.4, 800 (Income tax deducted at source @ 20 percent)
    • ii) Interest on Sth year National Savings Certificate VIII Series = Rs. 3,500
    • iii) Interest on debentures of TISCO = Rs. 8,000
    • iv) Interest paid on funds borrowed for investment in Debentures of TISCO Ltd. Rs. 9000
    • v) Rent from letting of plot of land = Rs. 7,000
    • vi) Interest earned on saving Bank A/c during the year = Rs. 8,500 Sem III Tax Marks:75 B Ms. Michelle Black, a resident Indian, is suffering from 60 percentage blindness. She submits the following particulars to you for the year ending 31.3.2022 Salary (as computed vide IT Act) = Rs. 21,600 Interest on bank fixed deposit = Rs. 29,000 Interest on loan for higher Compute her taxable income for the assessment year 2022-23. (8) 7
17. Q4 A Machinery of V shows written down value of Rs. 50,000 on 1.4.2021. New machinery is purchased for Rs. 3,00,000 on 1.11.2021. Old machinery was sold on 1.5.2021 for Rs. 40,000 Calculate depreciation @ 20 percentage for previous year 2021-22. (7)
    • B. MLtd. Is an existing Indian Company, engaged in developing and providing computer software services which sets up a new unit. It incurs the following expenditure in connection with the new unit: Preparation of Project Report = Rs. 4,00,000 Legal and other charges for issue of additional capital required for the new unit = Rs. 2,00,000 Engineering services by V Ltd. ( not approved by CBDT u/s 35D) = Rs. 1,00,000 The following further data is given: Cost of project = Rs. 30,00,000 Capital employed in the new unit = Rs. 40,00,00 What is the deduction admissible to the company under section 35 D? (8)
18. Q4 Mr.Roshan is the proprietor of a business. Following was the profit and loss Account of his business for the year ended March ,2022. You are required to compute his income from business for the Assessment year 2022-23. (15) To Opening stock 2,34,000 By Sales 12,40,000 To Purchase 10,00,000 By Closing stock 2,05,000 To Office Salaries 57,000 By Income Tax refund 15,000 To Proprietors salaries 30,000 By Dividend from UTI 20,000 To Bad debts 25,000 By Dividend from Bajaj Ltd. 25,000 To 25,000 By interest on PPF 15,000 To Fire insurance premium 4,500 To Conveyance Expenses 6,000 To Interest on proprietors capital | 25,000 To Medical expenses 20,000 To General expenses 35,000 To Wealth tax paid 5,000 To Residential telephone 14,000 To GST penalty 4,000 To Net profit 20,000 =
19. Q1 The residential telephone is used half the time for office work
20. Q2 Purchase include Rs.80,000 paid for cash purchases, exceeding the limits prescribed under section 40A(3) of the Income Tax Act,1961
21. Q3 General expenses include advance income tax of Rs.10,000 paid during the year and Rs.500 for purchase of Lottery tickets
22. Q4 Depreciation allowable as per Income Tax Rules Rs.25,000
23. Q5 a) List out any 5 deductions w/s 80 8 marks
    • b) Define and explain capital asset and business
24. Q5 Write short note on ( Any three) 15 marks
    • a) Residential status of individual
    • b) Gross Annual value of hose property
    • c) Entertainment allowance
    • e) Deduction u/s 80D

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