BCom TY BCom Sem 5 2023 2024 Nov 2024 DIRECTB AND INDIRECT TAXES PAPER I Question Paper - Mumbai University | munotes

Questions asked in this paper

• 3. Figures to the right represent full marks to the question

1. Q1 A .Choose the Most Appropriate Alternative and rewrite the Statements (Any Ten) 10 marks
   • 1. Income earned and received in India is taxable in the hands of
   • (a) Resident and Ordinary Resident only (b) Resident but not Ordinary Resident only
   • (c) Non-Resident only. (d) All three Residential categories of persons
   • 2. Voluntary Retirement Compensation received by an employee is exempt upto Rs
   • 3. Lumpsum payment received on retirement from Statutory Provident Fund is
   • (a) Exempt. (b) Exempt up to 12% of Basic Salary
   • (c) Exempt up to 9.5% interest rate. (d) Exempt up to 50% of amount received
   • 4. Pre-construction period interest on housing loan is allowed as deduction in instalments, upon completion of construction
   • 5. is not a deduction under the head of salary
   • (c) Tax on Employment (d) Interest on loan
   • 6. While computing the exemption of Gratuity for a person covered under the Payment of Gratuity Act, Salary refers to
   • (c) Gross Salary (d) Basic plus Dearness Allowance plus % of commission on turnover
   • 7. In case of unlisted shares, Short-Term Capital Gain arises, if the period of holding of shares is
   • (a) Not more than 36 months (b) Not more than 12 months
   • (c) Not more than 24 months (d) Not more than 10 months
   • 8 .Deductions under chapter VI A cannot exceed
   • 9. Indexation of cost will be allowed, only while computing
   • (a) Short term capital gain. (b) Long term capital gain
   • (c) Medium term capital gain (d) Both short term and long-term capital gain Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
   • 10. From the following, ----------- is a capital asset as defined u/s 2(14) of the Income Tax Act,
   • 11. If any asset is used for less than ------- days in the year of acquisition, the depreciation rate will be 50% of the normal rate as per Income Tax Act 1961
   • 12. The value of rent free accommodation provided by the employer is a ---------- perquisite
   • (a) Taxable (b) Taxable only in case of specified employees
   • (c) Not Taxable (d) 50% is Taxable
2. Q1 B. State whether the following statements are True or False (any ten) 10 marks
   • 1. Shiv Shakti Mitra Mandal is assessable under the Income tax as Association of Persons
   • 2. Standard Deduction u/s 16(1) under the head salary cannot exceed Rs.50,000
   • 3. Leave Encashment is exempted upto a maximum of Rs.3,00,000
   • 4. Income earned and received outside India is not taxable to Resident and Ordinary Resident
   • 5. Income from smuggling is not taxable under the Income Tax Act, as it is illegal
   • 6. Depreciation is allowed only when it is claimed
   • 7. Capital gain on transfer of depreciable business assets is always short-term capital gain
   • 8. Income by way of interest received on compensation or on enhanced compensation on compulsory acquisition of capital asset is chargeable under the head Income from Sources
   • 9 .There are total five heads of Income
   • 10. Donation to a political party is an allowable business expenditure
   • 11. Repairs of a worn out part of machinery used in factory is an admissible expense under
   • 12. Status of Indian citizen is always a resident
3. Q2 A Dr Sanjay Ghokshe works as Associate Professor, Dr Y. Y. Patil Institute of Hotel Management. He has provided the following particulars of his income for the previous year ended 31st March 2023; you are required to compute his total income for Assessment Year 2023 Dearness allowances 42% of Basic Pay He received income from crossword puzzle 59,000 He has written book on 'Cafeteria Management' and received 5 royalty from publisher 67,000 He contributed to Pension fund 1,40,000 He paid medical insurance premium of Rs 20,000 by cheque for Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
4. Q2 B From the following information provided by Mr Ashvaghosha for the previous year ended on 31st March 2023, you are required to compute the net taxable income for the Assessment year House at Parel Rs. House at Panvel Rs Interest on loan taken borrowed on 1 April 2022 for Interest on fixed deposit with company Rs 32,000 He invested Rs.60,000 in National Saving Certificates He paid Interest Rs.32,000 on Education loan taken from Bank of India for his son, who is pursing post-graduation in Data sciences from Gokhale Education Socirty,
5. Q2 C. Mr Ghanshyam is employed with M/s ABC Ltd as HR manager. He has provided you with the following income details for the previous year 2022-23. You are asked to compute his net taxable income for the assessment year 2023-24. (20)
   • 4. Perquisite value of Laptop Rs 2,10,000 p.a
   • 8. He invested Rs.2,00,000 in Public Provident Fund He is also the owner of two house properties Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
6. Q3 A. Following is the Profit & Loss Account of “M/s Fashionable Art” owned by Mrs. Urvashi Pandit, for the year ended March, 2023. (20) Profit & Loss Account For the Year Ended 31" March, 2023 To Salaries 3,60,000 | By Gross Profit 10,42,800 To Telephone Expenses 12,650 | By Saving Bank Interest 13,900 To Office Expenses 42,000 | By Interest on Time Deposit 40,000 To Profession Tax 2,500 | By Dividend from Indian Co. 10,000 To Staff Incentives 48,800 To Printing & Stationery 4,500 To Laptop Purchased 58,000 To Interest on Personal Loan 22,000 To Custom Duty Paid 45,000 To Net Profit 4,47,250
   • 1) Deprecation as per Income Tax Rules is Rs.10,000
   • 2) Advertisement includes Rs.15,000 for advertisement in souvenir of a Political Party
   • 3) She paid Rs.25,000 towards Pension Fund of LIC
   • 4) She invested Rs.80,000 in ULIP Plan
   • 5) Salary include Rs.60,000 (Rs.5,000 per month) paid to her Son Mr. Umesh Pandit who is
   • B. Com Graduate and write the accounts for her business Compute the Net Taxable Income of Mrs. Urvashi Pandit’s for the assessment year 2023-24
7. Q3 B. Following is the Profit & Loss Account of “M/s Quality House” owned by Mr. Divakar Raorane, for the year ended 31“ March, 2023. (20) Profit & Loss Account For the Year Ended March, 2023 To Salaries 3,10,000 | By Gross Profit 9,64,800 To Electricity Expenses 9,500 | By Rent Received from Let To Municipal Tax 10,000 | out House Property 2,87,000 To Profession Tax 2,500 | By Unrealized Rent To Income Tax 12,400 | Recovered for 2021-22 10,200 To Conveyance Expenses 45,200 To Repairs & Maintains 25,500 To Professional Fees Paid 12,000 To Interest on Housing Loan 50,000 To Furniture Purchase 82,000 To Net Profit 6,92,400
   • 1) Municipal valuation of House Property is Rs.2,89,000
   • 2) Repairs & Maintains include Rs.15,000 for repairs for house property
   • 3) He invested Rs.60,000 in Equity Linked Saving Scheme (ELSS) for himself
   • 4) He paid Medical Insurance premium of Rs.12,000/- by cheque for himself and spouse Compute the Net Taxable Income of Mr. Divakar Raorane for the assessment year 2023-24 Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
8. Q4 A. Mr. Siddheshwar purchased a residential Property for Rs 8,25,000 on 14" March, Additional information related to property was as follows:
   • 1. Fair market value as on 1* April, 2001 was Rs. 9,75,000
   • 2. Cost of construction of 1* floor in the financial year 2007-08 Rs. 3,50,000
   • 3. Cost of construction of 2" floor in the financial year 2014-15 Rs. 5,00,000
   • 4. the above property on 12-01-2023 for Rs.90,00,000 and paid brokerage of
   • 5. He purchased new residential property for Rs. 25,00,000 on 02-02-2023
   • 6. Healso invested Rs.4,00,000 in eligible bonds issued by National Highway Authority of India Compute his Capital Gain for the Assessment Year 2023-24 Relevant Cost Inflation Indices are as follows:
9. Q4 B. Mr. Vinay, an Indian citizen, leaves India on 11-12-2022 for the first time, to work as an officer of a company in Slovenia. Determine his residential status for the assessment year
10. Q4 C. Mr. Dharmendra furnishes you the following particulars for the previous year ending March,2023. He requests you to compute the taxable capital gain for Assessment year 31 marks
    • 1) He purchased residential property on 15" February, 1998 for Rs. 9,00,000
    • 2) Fair Market Value on 1* April, 2001 was Rs.10,00,000
    • 3) He sold on October, 2022 his residential property for Rs. 95,00,000
    • 4) Expenses on transfer amounted to Rs. 1,25,000
    • 5) He incurred expenses on improvement: Rs. 2,10,000 in the financial year 2007-08 Rs. 3,80,000 in the financial year 2019-20
    • 6) He purchased a new residential house for Rs. 40,00,000 on 22% November, 2022
    • 7) He deposited Rs. 9,50,000 in eligible bonds issued by Rural Electrician Corporation Limited (RECL) on 17" December, 2023 Relevant Cost Inflation Indices are as follows: Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
11. Q4 D: Mr. Tushar has earned the following income during the previous year ended on 31 marks
    • 1) Income from business in Pune, controlled from U.S.A. 3,75,000
    • 2) Income from agriculture in Bangladesh 5,50,000
    • 3) Rent from house in Nasik, received in London 1,25,000
    • 4) Professional fees earned in India, received in Sri Lanka 1,00,000
    • 5) Royalty from a company in Japan, received in U.K. 2,25,000
    • 6) Interest credited to ABC Bank, New York Branch 1,20,000
    • 7) Income from business in U.K. controlled from Mumbai 2,00,000
    • 8) Amount brought into India out of the past untaxed profits earned 1,44,500 Compute his total income for the assessment year 2023-24 assuming as follows:
    • a) He is Resident and Ordinarily Resident
    • b) He is Non Resident
12. Q5 A. State the exempt Income under Section 10 of the Income Tax Act. 10 marks
    • B. Discuss the provisions of Depreciation under Section 32 and explain the concept of Block of
13. Q5 C Write Short notes on: (any four) 20 marks
    • i. Definition of Assessee and Assessment
    • ii. Exceptions to the Basic Conditions of Residential Status of an individual
    • iv. Deductions under Section 80 DD
    • v. Taxability of Gift
    • vi. Gross Total Income and Net Total Income Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
    • (a) tart
    • (F) Fe. (S) 4 0% TAT Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
    • (A) TH. (4) THT
    • (4) So
    • (S) AS
    • 9. TH THT Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
    • 3. LIC 24,000 Paper Subject Code: 23115 Direct and Indirect Taxation Paper - I
    • 4) TA aT
    • 8. 8 TAT
    • 2. AR

Read from the scan above, so a character or two may differ. The scan is the original.