Bachelor of Management Studies (B.M.S.) SEM V 2022 2023 Nov 2023 S DIRECT TAXES Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 All Questions are compulsory
2. Q2 Figure to the right indicate full marks
3. Q3 Use of simple calculator is allowed the blanks with appropriate options (Any 8) [08] 1 Winning form lottery is income chargeable under the head income from
   • a) Business or Profession b) Salary c) Other sources. d) None of the above 2 Uncommuted pension is taxable to and private employees d) None of the above 3 The maximum quantum of deduction by way of interest on money borrowed for construction of self-occupied house property is Rs 4 Award received from government is
   • a) Fully taxable b) Fully Exempt c) Exempt up Rs 1,00,000 only d) None of the above 5 Monthly remuneration received by Member of Parliament is chargeable under the head
   • a) Business or Profession b) Salary c) Other sources d) Capital gain 6 Entertainment allowance is allowed as deduction only to employees
   • a) Private b) Government c) Both Private and Government d) None of the above 7 The legal status of Bank of India is
   • a) Individual b) Company c) Partnership firm d) Body of Individual 8 Amount of deduction in case of a person with severe disability under section 80U will be Rs 9 Incase of capital assets acquired on 01/4/1975, Fair market value on this capital asset is determined as on
   • a) b) 04/04/1981 c) 01/04/1975 d) None of the above 10 For non-government employee governed by the Payment of Gratuity Act, 1972, the maximum monetary limit for exemption is
4. Q2 State whether the following statement are TRUE or FALSE (ANY 7) 1 Residential status depend on citizenship 2 Advance against salary is not part of gross salary Dividend received from Indian company is fully taxable 4 Gratuity received by government employee on retirement is fully taxable 5 Maximum limit of deduction under section 80C and 80CCC is Rs 2,00,000 6 Salary received by partner of the firm is taxable as business income 7 Municipal tax paid by tenants is not allowed as deduction for computing Net Annual Value of 8 Indexation benefit is not allowed for calculation of short term capital gain 9 Reserve for Bad debts is not allowed as expenditure for calculation of Income from Business 10 Foreign Income of ordinary resident is fully taxable 7 marks
5. Q2 Mr. Sanjay an Indian citizen furnishes the following information of his Income earned during the previous year 2018-19 Compute his total Income for the Assessment Year 2019-20 assuming: 15 marks
   • a) He is Resident and Ordinarily Resident
   • b) He is Resident but not ordinarily Resident
   • c) He is Non-Resident
6. Q2 Professor Rajesh, a UK citizen (not a person of Indian Origin) is a visiting faculty at JNO University, provides you the details of his visit to India during the last 7 years Prior to 01.04.2012 he did not visit India. Find out his Residential status for the Assessment 15 marks
7. Q3 Mr. Kamlesh purchased a house property for Rs. 1, 00,000 on 27 August, 1998. He made the following additions/ alternations to the house property Cost of construction of 1* floor in F.Y. 2003-04 Rs. 13,00,000 Cost of construction of floor in 2010-11 Rs. 14,00,000 Fair Market Value of the property on 01/04/2001 was Rs 15, 00,000; He sold the property on 20 October, 2018 for Rs. 1, 95, 00,000. He paid the brokerage of Rs. 55,000 for the sale transaction. The cost inflation index for F.Y. 2001-02 is 100, for F.Y. 2003-04 is 109, for F.Y 2010-11 is 167 and for F.Y. 2018-19 is 280 Compute the capital gain of Mr. Kamlesh chargeable to tax for the assessment year 2019-20 15 marks
8. Q3 Following is the Profit & Loss Account of Mr. Prakash for the year ended March, 2019 Profit & Loss Account for the year ended March, 2019 To Printing & Stationery 18,500By Dividend from 10,000 To Advertisement Expenses 80,000|By Interest on company 15,000
9. Q1 Advertisement exps include Rs. 9,000 for advertisement in souvenir of a political party
10. Q2 Deprecation as per Income tax Rule is Rs 20,000
11. Q3 Mr. Prakash has invested Rs 75,000 in Mutual fund which is eligible for deduction
12. Q4 Printing includes Rs. 2,500 paid for printing marriage invitation cards of his daughter You are required to compute his taxable income for the assessment year 2019-20
13. Q4 Mr. Amit owns house at Delhi which is let out . Fair rent of the house Rs 24,000 Municipal Valuation is Rs 20,000, Standard Rent of the house is Rs 30,000.Actual rent received is Rs 2,500. per month for all 12 months. He also received Rs 10,000 from tenants for charges towards life, Generator etc. he makes following expenditure for his house property Municipal Tax paid by Mr. Amit Rs 4,000. Fire insurance Rs 2,400 Repairs Rs 2,000 Ground Rent Rs 2,000. Funds borrowed on 1* April 2014 Rs 40,000 @10% interest p.a. were used for construction of house which was completed on March 2017. Interest on borrowed capital during the previous year 2018-19 is Rs 4,000. Compute the income from house property of Mr. Amit for the assessment year 2019-20 15 marks
14. Q4 an employee of XYZ at Mumbai and covered by Payment of Gratuity Act retires at the age of 64 years on 31/12/2018, after completing 33 years and 7 month service. At the time of retirement his employer pays Rs 20,51,640 as gratuity. He is also entitled to monthly pension of Rs 8,000. He gets 75% of pension commuted for Rs 4,50,000 on February 2019 Calculate the taxable salary for the assessment year 2019-20 from the following details assuming he is covered by Payment of Gratuity Act Employer contribution to recognized provident fund Rs 1, 10, 000 (Exempt Rs 86,400) Explain different items eligible for deduction Under Section 80C. [08] B Explain different income chargeable under the head income from other sources. [07] 15 marks
15. Q5 Write a short notes (Any Three) 2 Deemed to be let out property 5 Profit in Lieu of salary 15 marks

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