BCom TY BCom Sem 5 BCom Sem 5 (2019 2020) Oct 2020 DIRECT AND INDIRECT TAXATION PAPER I Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full marks allotted to the question

1. Q3 Working notes should form part of your answer
2. Q4 Use of simple calculator is allowed
3. Q1 A) Fill in the blanks with appropriate answer from the bracket and rewrite the statement. 10 marks
4. Q1 is liable to pay income tax on his income received in India. (Resident./ Non resident Both Resident and Non-resident)
5. Q2 As per Section 24, Standard deduction allowable on Let out house property Actual amount spent on repairs 30 percent of NAV)
6. Q3 Commuted pension received by a Government employee is . (Taxable Exempt from tax
7. Q4 Gas, electricity or water supply provided free of cost to an employee is perquisite taxable in case of employees perquisite taxable in case of all employees)
8. Q5 Municipal tax is deducted from of the house property. (Net Annual Value
9. Q6 Sale of residential House Property is taxable under the head . form House Property Capital gain Profit from business or profession)
10. Q7 Gift received from father is (Taxable as business income Non taxable Taxable as other income)
11. Q8 Gratuity received by Government employees is . (exempt form tax taxed as capital gain profit and gains of business)
12. Q9 Indian citizen leaving India for Employment is considered as resident in India in any previous year if he stays in India for minimum days. (60 182 365)
13. Q10 Salary received by a partner from his firm is regarded as . (Profit and gains of business and profession Income from salaries Income from other sources) a residential house property is held for more than it is considered as a long
14. Q12 Deduction u/s is allowed to the maximum of . (Rs. 50,000
    • B. State whether the following statements are True or False. (Any 10) 10
15. Q1 Income received from smuggling activity is income as per Income Tax Act
16. Q2 Avon Private Limited is a Partnership firm under the Income Tax Act
17. Q3 Examination fees received by a professor of university of which he is an employee is taxable as Salary
18. Q4 Entertainment Allowance received by Government employee is fully taxable
19. Q5 Municipal taxes paid by tenant is allowed as deduction from income from House Property of the owner
20. Q6 Deduction allowed under section 80 D for medical insurance premium paid by the assesse for self, spouse and dependent children, none of whom is senior citizens is
21. Q7 Depreciation is allowed as deduction only when it is claimed as per Income Tax Act
22. Q8 Remuneration received by Member of Parliament is taxed as Income under the head income from salary
23. Q9 Past profit which was earned outside India by a non-resident but brought in India in current year is taxable in India in current year
24. Q10 Agricultural income derived from cultivation of land in India is exempt from tax
25. Q11 Gift received from a friend on Friendship Day of Rs. 49,000 during the year is exempt
26. Q12 Brokerage paid on sale of capital asset will reduce the amount of capital gain
27. Q2 Mr. Ram Patil, who has physical disability to the extent of 50%, works with M/s Excel Engineering, Mumbai. He provides the following particulars of his income for the previous year ended on March, 2019 20 marks
28. Q3 House Rent Allowance Rs. 15,000 per month [Exempt (under section 10) Rs. 9,000 per
29. Q4 Travelling Allowance for business tour Rs. 40,000 (Amount actually spent on travelling
30. Q5 He was provided with the accommodation by his employer, the perquisite value of which
31. Q6 Bonus declared and paid by employer during the year was Rs. 18,000
32. Q8 Employee’s contribution to Provident Fund paid He is also the owner of two houses, he provides following information about the same: Rent Rs. 28,000 per month, Municipal Taxes Rs. 30,000 (paid and borne by the tenant), Interest on housing loan Rs. 25,000 Municipal Taxes paid Rs. 25,000, Interest on Housing Loan Rs. 32,000 loan taken on Following further details are provided for the year:
    • b) Deposit to Public Provident Fund Rs. 12,000 Compute his taxable income for the Assessment Year 2019-20
33. Q2 A) MR. Mangesh Rajawade is employed with M/s Sahyadri Traders. He gives you the following information for the previous year 2018-19 10 marks
34. Q9 Medical insurance paid in cash Rs. 5,000 and paid by cheque Rs. 15,000
35. Q10 Purchase of national Saving Certificate VIII issue Rs. 15,000 Compute his taxable income for the Assessment Year 2019-20
    • B) Mr. Jones owns the following houses that are used for residential purposes. The details of his houses are given below. Compute his income from house property for the assessment year Municipal taxes paid 8,400 5% of Gross 5% of Gross Interest on loan Borrowed 1,00,000 1,66,000 Loan taken on Loan taken on Loan taken on 10
36. Q1 The municipal taxes paid on House No. 2 are entirely paid by tenant
37. Q3 A) Siddharth has earned the following income during the previous year ended 31“ March 2019. 10 marks
38. Q1 Income accrued in France and received in India 1,00,000
39. Q2 Income from business in U.S. A. controlled from India 32,000
40. Q3 Profit of a hotel business at South Africa also controlled from 30,000
41. Q4 Past non-taxable income brought to India 38 marks
42. Q5 Rent received from a house in Mumbai 25,000
43. Q6 Income from proprietary business in Mumbai 30,000 Compute his total income for the assessment year 2019-20 assuming, as follows
    • a) He is a Resident and Ordinarily Resident
    • b) He is Resident but not Ordinarily Resident
44. Q3 B) Mr. Suresh purchased a house property of Rs. 2,50,000 on 2"? April, 2001. He made the following additions alterations to the house property Cost of construction of floor in financial year 2003-04 Rs. 1,30,000 Cost of construction of 2" floor in financial year 2010-11 Rs He sold above property on 20" October, 2018 for Rs. 25,00,000. He invested Rs. 1,00,000 in Rural Electrification Corporation Limited (RECL) bonds on 30" October, 2018 The Cost Inflation Index (CI) for financial year are as follows: Compute the capital gain of Mr. Suresh for the Assessment Year 2019-20 Miss Sawant who is an Indian citizen went for employment for the first time to London on 1* (10) April 2013 and came on a visit to India on June 2018. She left for London on 30" December, 2018. Determine her residential status for the Assessment Year 2019-20 10 marks
    • D) Miss Ruchita furnishes the following particulars for the previous year ending 31-03-2019 and requests you to compute the taxable capital gain for assessment year 2019-20 10
    • a) She had a Residential house purchased on 01-04-2001 for
    • b) In the year 2012-13 further construction and improvement cost was incurred Rs. 60,000
    • c) On 10-05-2018 the house was sold for Rs. 50,00,000. Expenditure in connection with the
    • d) On 13-12-2018 she purchased new residential house for Rs. 25,00,000
    • e) She deposited Rs. 25,000 in eligible bonds issued by Rural Electrification Corporation Limited (RCEL) on 20-09-2018
    • f) Cost inflation index (CID) for financial year are us under:
45. Q4 Mrs. Manisha is the proprietor of XYZ & Co. Following is the Profit and loss account for the To General expenses By Agricultural Income from 45,000 To Interest paid 50,000 | By Rent from House Property 1,80,000 To GST 69,000 | By Interest on Saving Bank 13,000 To Municipal Taxes on House 18,000 | By Share of Profit from 65 000 20 marks
46. Q1 General expenses includes Rs. 15,000 Paid as contribution to LIC Pension Fund
47. Q2 Interest paid includes Rs. 28,400 interest on Housing Loan paid to Nationalized Bank
48. Q3 GST includes Rs. 10,000 paid towards penalty for delay in filling of returns Income Tax refund includes interest on income tax refund Rs.5,700 Compute the Net Taxable Income of Mrs. Manisha for the Assessment Year 2019-20
49. Q4 Mr. Mahesh is the proprietor of LMN & Co. Following is the Profit and loss account for the year. 20 marks
50. Q1 Motor car expenses includes personal motor car expenses to the extent of 25%
51. Q2 Depreciation as per Income Tax Rules is Rs.28,700
52. Q3 Old bad debts recovered in respect of which deduction 1s not allowed in the past
53. Q4 Interest paid includes Interest of Rs. 22,000 on loan for higher education of his Son
54. Q5 Mr. Mahesh is also in service with M/s. Patel & Co.and the details regarding salary received are as under:
    • c) House Rent allowance received Rs.5000 per month (exempt to the extent Rs. 2000
    • d) Bonus Rs.48,000 Compute the Net Taxable income of Mr. Mahesh for the Assessment Year 2019-20
55. Q5 A) Discuss the provision of Income Tax Act, 1961 regarding Residential status of an Individual. 10 marks
    • B) Define and explain ‘Person’ and ‘Previous year’ as per Income Tax Act, 1961. 10
56. Q5 Write short notes (Any four) 20 marks
57. Q2 Allowable depreciation from profit and gains business and profession
58. Q3 Deductions U/S 80 C
59. Q4 Perquisites under Income from salaries
60. Q5 Deemed to be let out property
61. Q6 Income from other sources
62. Q3 ANT
63. Q2 WY ii) AT HCA SAT

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