Direct Tax Law’2009 (General)
1. (a) What do you mean by “Previous year”
and “Assessment year”? Discuss in
detail the exceptions to the rule that the income of the previous year is
assessed to tax in the assessment year.
Or
(b) Write short notes on the following: a. Assessee b. Method of
accounting c. Agricultural
income d. Tax
deduction at source from salary
Or
3. (a) Mr. X,
Corporate manager (Sales) in Vodafone ltd. Receives the following income during
the year ending march, 31st, 2008:
a)
Basic Salary 300000
b)
Leave travel concession for proceeding on leave
(actual expenditure on rail fare Rs. 11000) 10000
c)
Tiffin allowance 4000
d)
Re – imbursement of medical expenses incurred
for his own treatment 31300
e)
Besides, he enjoys the following perks:
f)
Free unfurnished flat in Delhi (Rent paid by the
company Rs. 86000)
g)
The company provides two watchman (Salary Rs.
700 pm per person)
h)
Free use of Maruti 800 car for official as well
as personal purposes (log book was not maintained by the employer)
i)
Free meal at the work place Rs 14700 (@ Rs. 70
per day for 210 days, amount is directly paid to the canteen by the company)
j)
Interest free loan for purchasing home
appliances (Amount Rs. 120000, date of taking loan march 1st, 2004.
Amount outstanding between April 1st, 2007 to November 30th, 2007 Rs.
76000 and after November 30th, 2007: Rs. 50000). The SBI lending
rate for similar loan on 1st April,
2007 was 15.25%.
Compute his
taxable income from salary for the assessment year 2008 – 2009 from the above information.
Or
(b) Explain in detail the treatment of the following as per provisions
of the income tax act, 1961:
ii.
Encashment of earned leave
Or
(b) Sri abhijit saikia is the owner of a house property. From the
following particulars, compute the incomes from house property for the
assessment year 2008 – 2009:
Ø
Municipal valuation : 90000, Fair Rent : 110000,
Standard rent fixed by the court : 100000
Ø
The house was let our w.e.f. 1-4-2007 for Rs.
8000 p.m. which was vacated by the tenant on 30-9-2007. Since then it remained
vacant for two months. From 1-12-2007, it was again let-out for a rent of Rs.
11000 p.m.
Ø
Municipal tax paid: 20% of municipal valuation.
Ø
Insurance premium paid Rs. 3000
Ø
Interest on money borrowed for Construction of
house property Rs. 30000.
5. (a) What are the
assets mentioned in section 2(ea) of the wealth tax act, 1957? Explain in
detail.
Or
Direct Tax Law 2010 (General)
1.
a) Write short notes on the following:
i)
Assessment year
ii)
Charge of income tax
Or
b) Explain the provisions of the Indian income tax act
relating to deduction of tax from salary at source.
Or
b)
The following are the particulars of income of Mr. R for the previous year
2008-09:
i)
i) Rent from a property in Delhi
received in
USA
: 80,000
ii)
Income from a business in USA
controlled from Delhi :1, 20,000
iii)
Income from a business in Bangalore
controlled from USA: 1, 80,000
iv)
Rent from property in USA received
there but subsequently remitted to India : 60,000
v)
Interest on deposits from an Indian
company received in USA : 20,000
vi)
Profits for the year 2007-08 of a
business in USA remitted to India during the previous year 2008 (not taxed
earlier)
vii)
Gifts received from his parents
Compute
his income for the assessment year 2009-10 if his residential position is as
under:
(i)Resident and ordinarily resident in India
(ii)Resident but not ordinarily resident
(iii)Non-resident Indian
3.
(a) Mr. X has the following income during the previous year 2008-09:
Basic salary --- Rs.1, 20,000.
Dearness allowance (forming part of salary)—Rs 24,000
Medical allowance (actual expenditure Rs 4,000)—Rs, 6,000
Educational allowance (for three children)—Rs 6,000
Rent free house in Delhi for which the employer company paid
Rs 5,000 p.m. as rent. The house was furnished with rented furniture. The rent
of the furniture is Rs 300 p.m.
The company provided two servants and one watchman. The
company paid Rs 300 to each of them per month.
The company paid Rs 2,500 on his training programme.
Mr. X paid his professional tax of Rs 2,400 and deposited Rs
20,000 as LIP on his own life and Rs 15,000 for NSC.
Compute his taxable income for the assessment year 2009-10.
Or
b) Explain in detail as to how the following items are
treated in computing taxable income:
4.
a) Discuss in detail the general principles governing determination of business
income.
OR
b) Following are the particulars of house properties of Mr.
X for the previous year 2008-09:
Particulars
|
House
A
|
House
B
|
Construction
started on
Construction
completed on
Annual
rental value
Municipal
valuation
Municipal
tax
Annual
repairing expenses
Interest
on money borrowed for Renovation of the building
Insurance
premium
Ground
rent
House
property was vacant for (months)
Rent
collection charges
|
31.3.1992
31.3.1993
30,000
25,000
2,500
2,000
1,200
200
150
3
1,000
|
10.2.1988
1.6.1992
12,000
12,000
1,200
2,000
-
175
100
-
600
|
Both the above houses were let out for residential purposes.
Insurance premium of house A and ground rent of house B are still outstanding.
Repair expenses of house A And municipal tax of house B was paid by the
tenants.
Compute the income from house property.
5.
a) Write short notes on the following:
Or
b) Explain the provisions of the wealth tax act, 1957 with
regard to the following:
ii) Gift by means of book entries where money has not been
actually delivered to the other person.
Direct Tax Law 2011 (General)
Or
(b) Write short notes on the following:
ii)
Person
iii)
Capital
receipts
iv)
Assessee
Or
(b) Ascertain the residential status of the assessee in the following
cases for the assessment year 2010-2011:
i)
Mr. A is a citizen of India. He left for Iran
on 18th April, 2009 and could not return to India till the end
of the financial year 2009-2010.
ii)
Mr. P left for USA on 10th mar,
2007 after having lived in India for 20 years. He returned to India on 10th September
2009.
iii)
Mr.S is a citizen of India. He left on 15th may,
2009 for London for higher studies. He came back to India on 25th may,
2009. He maintained a dwelling place in India during his absence.
iv)
Mr. K, a senior scientist goes to Nigeria on a
job approved by central government for a period of 3 years on 15th September,
2009. He has never been out of India before.
3. (a) From
the following information, compute the taxable income for assessment year
2010-2011 under the head “Salaries” of Mr. X who is an employee of a transport
company:
Salary @ Rs. 10000 p.m.
Arrears of salary Rs. 5000
DA @ Rs. 4000 p.m.
Employer is paying insurance premium of Rs. 1000 pa on his life.
Bonus Rs. 15000
Education allowance for his two children @ Rs. 300 p.m.
Cash gift Rs. 20000
City compensatory allowance @ Rs. 1000 p.m.
Medical expenses paid by employer Rs. 18000
He contributes 15% of his salary to a recognised provident fund and his
employer also contribute the same.
He is given lunch allowance @ Rs. 100 for 250 days during the previous
year.
He is provided with a mobile phone, the bill of which is paid by the
company Rs. 6000.
Or
(b) Explain the provisions of the Indian income tax act, 1961 with
regard to the following:
ii)
Gratuity
4. (a) For
the assessment year 2010 – 2011
Particulars
|
House
– I
|
House
- II
|
Fair rent
Municipal
Valuation
Standard
Rent
Annual Rent
Unrealised
rent of the previous year 2009 – 2010
Vacant
period
Loss of
account of vacancy
Municipal
taxes paid
Repairs
Insurance
Land
Revenue
Ground rent
Interest on
capital borrowed
|
350000
360000
300000
600000
10000
2 months
100000
40000
5000
20000
25000
66000
-------
|
320000
350000
500000
420000
80000
4 months
140000
50000
7000
30000
40000
82000
140000
|
Determine the taxable income of Mr. X for the assessment year 2010 – 2011
assuming that he pays Rs. 70000 in the public provident fund.
Or
5. (a) What are the
assets mentioned in section 2(ea) of the wealth tax act, 1957? Explain in
detail.
Or
Direct Tax Law 2012 (General)
1.
Write short notes on:
(a) Method of accounting
(b) Income tax authorities
(c) Capital expenditure
(d) Charge of income tax
Or
“Income tax is charged on the income of the previous year.”
Do you fully agree with this statement? If not, what are the exceptions?
2.
During the financial year 2010 – 2011, Mr. X had the following incomes:
i)
Salary income received in India for
services rendered in Hong Kong 390000
ii)
Income from profession in India but
received in Germany 360000
iii)
Property income in Uganda (Out of which
240000 was remitted to India) 500000
iv)
Profit earned form a business in Bangalore
150000
v)
Agricultural income in Kenya 160000
vi)
Profits from a business carried on in Nepal
but controlled from India 230000
Compute
the income of Mr. X for the assessment year 2011 – 2012, if he is –
a)
Resident and ordinarily resident
b)
Resident but not ordinarily Indian
resident
c)
Non – resident in India
Or
State
briefly the provisions of section 10 of the income tax Act, 1961 with regard to
incomes which are exempted from tax.
3.
Explain the provisions of the income – tax Act, 1961 with regard to the
following:
(a) Payment of unrecognised provident fund
(b) Gratuity
Or
Mr. X is a manager of a textile company at japer since 1986.
He submits the following particulars of his income for the financial year 2010
– 2011:
a)
Basic salary 240000per
b)
Dearness allowance 5000 p.m. (200
p.m. enters into retirement benefit)
c)
Education allowance for two children @
150 p.m. per child
d)
Commission on sales @1% of turnover of
1000000
e)
Travelling allowance 30000. The entire
amount was spent by him for official purpose
f)
He was given cloth worth 1000 by his
employer free of cost
g)
He resides in the flat of the company
at Jaipur (26 Lacs population)
h)
A cook and a watchman have been
provided by the company at the bunglow who are paid @ 400 each p.m.
i)
He has been provided with a motor car
of 1.8 ltrs engine capacity for his official and personal use. All expenses are
borne by employer of the car.
j)
Emplyer’s contribution to RPF is 40000
and interest credited to RPF @ 13% amounted to 16250.
k)
His own contribution to RPF 40000
l)
Rent of house recovered from his salary
1500 p.m.
Compute
the income from salary for the assessment year 2011 – 2012.
4.
Discuss in detail the general principles governing determination of business
income.
Or
Mr. R has two house properties situated in Delhi. Property A
is self-occupied for the first 6 months from 1 – 4 – 2010 to 30 – 9 – 2010 and w.e.f.
1-10-2010 it was let out for 10000 p.m. Property B is let out w.e.f.1-4-2010 at
a rent of 12000 p.m. and w.e.f. 1-10-2010 it was self occupied as R shifted his
residence from property A to B. The other details of the above two house
properties are as under:
Property
A
|
Property
B
|
|
Municipal
tax paid
Insurance
premium paid
Interest
on money borrowed for purchase of house property
|
30000
3000
35000
|
24000
4000
4000
|
Compute the income from house property for the assessment
year 2011 – 2012.
5.
Write short notes on the following:
(a) Tax incidence
(b) Computation of net wealth
(c) Deemed assets
(d) Exempted assets
Or
Explain
the provisions of the wealth tax act, 1957 with regard to the following:
(a) Property held by a member of a
housing society
(b) Assets held by a minor
Income Tax 2009 (Speciality)
Or
(ii) Mr. Pratap Singh is a production
Manager of an Industrial unit at Mumbai. The particulars of his salary income
areas under:
Particulars
|
Amount
|
Basic
salary
Dearness
allowance(given under the terms of employment)
Entertainment
allowance
Medical
allowance
House
Rent allowance
Rent
paid for the house
|
15,000
p.m
5000p.m
1000
p.m
500
p.m.
4000
p.m.
5000
p.m.
|
Car of 1.2 Lt. capacities provided by employer meets
expenses of car. He and his employer (each) contribute 15% of salary to R.P.F.
Mr. Singh had taken interest free loan of Rs. 15,000 to
purchase Washing Machine. Compute income under the head salary for the
assessment year 2008—2009.
Or
(b)(i) Mr.S. Saikia had taken a shop on rent at monthly rent
of Rs.3000.He has sublet 25% of the area to Mr. A. Das @Rs. 1,500 p.m. He
incurred Rs. 8000 on repairs of the shop. Calculate his income from subletting.
(ii) From the following statement, compute the income from
profession of Dr.Sanjib Phukan of dibrugarh, if accounts are maintained on
mercantile system.
Particulars
|
Amount
|
Particulars
|
Amount
|
To
Nursing Home
Rent
To
Electricity & water charges
To
Telephone
To
salary to staff
To
Dep. On Surgical Equipment
To
purchase of Medicines
To
Dep. Of X- ray Machine
To
Income Tax
To
Donation to lion club
To
Motor car Expenses
To
Dep. On car
To
Net income
|
39000
6000
6000
35000
6000
36000
4000
5500
4000
9600
4800
94100
|
By
Visiting
fees
By
Consultation fees
By
Sales of medicines
By
Dividends
|
48000
125000
72000
5000
|
250000
|
250000
|
Additional
information:
(i)Electricity and Water charges include domestic bill of
Rs. 2500.
(ii)Half of motor car Expenses are for professional use.
(iii)Telephone Expenses include 30% for personal use.
(iv) Opening stock of medicine was Rs.5000 and closing stock
was Rs.3000.
Or
(ii)Describe the procedure of ascertaining Short Term
capital Gains and long term capital Gains.
4
(a) (i) The following are particulars of the income of a Gauhati University
teacher for the year ending 31st March 2008.
a)
Salary Rs. 14,200 p.m. from which 10%
is deducted for statutory provident fund to which university contributes 12%.
b)
Rent free bungalow of the annual
Letting value of Rs. 18000.
c)
Warden ship allowance Rs.7200 p.a.
d)
12% interest on Govt. Loan of Rs.65000
e)
Income from house property
(computed) Rs.29,560
f)
He received Rs.3, 500 for writing
articles in a journal.
g)
He paid Rs.2000 to G.I.C under
mediclaim.
h)
Interest on postal Saving Bank
deposit Rs.300
i)
Interest Gross Rs.2500.
j)
Examination remuneration Rs. 3500.
During the year he paid Rs.2400 as life insurance premium on his own policies
and spent Rs.600 on books purchased for his own purpose. Find out his total
income, tax and exempted income.
Or
(b) (i) what are the
various investments, payments and savings which are eligible for deduction U\S
80C?
(ii) Briefly state
the provisions for deduction U\S 80D in respect of premiums paid
for mediclaim policy.
5
(a) (i). What do you mean by tax deduction at source?
(ii) State the consequences for failure to deduct tax at
source.
(iii) State the procedure of deduction of tax at source from
salary.
Or
(b) (i) who can appoint Income Tax authorities?
(ii) mention five penalties which can be imposed under the
provision of Income Tax Act, 1961?
(iii) State the procedure of filing an appeal under the
Income Tax Act, 1961.
Income Tax 2010 (Speciality)
1.
a) State whether the following statements are true or false:
(i)
An assessee is always a person but a
person may or may not be an assessee. - TRUE
(ii)
According to income tax act, 1961, the
previous year is that year in which income is earned to be taxable in the next
year. - TRUE
(iii)
Gross total income of an assessee
consists of income from salaries, house property, profit and gains of business
or professions, capital gains and from other sources. - TRUE
(iv) As
per sec. 2(1A) of income tax act, 1961, agriculture income in India is not
chargeable to tax. - FALSE (UNDER
SEC 10[1])
(v)
Incidence of tax of a taxpayer depends
on his residential status, the place and time of receipt of income. - TRUE(SEC. 5)
b) Fill in the blanks with appropriate word/words:
(i)
Foreign income is not taxable in the
hand of NON RESIDENT Indian.
(ii)
Compensation received from a public
sector company at the time of voluntary retirement is EXEMPTED UPTO RS.
5LACS from tax.
(iii)
An educational scholarship received by
Mr. Prada college lecturer finance by Government of India is EXEMPTED income.
(iv) Income
from lottery and horseracing is a CASUAL income as per Income tax
Act.
(v)
Income tax rates are fixed by the FINANCE
ACT and not by income tax act.
c) Determine the residential status in the following cases
for the assessment year 2008-09:
(i)
The control and management of an HUF is
situated in India. The manager of the HUF visited England with his wife from
15-08-2007 to 30-06-2008. Earlier to that he was always in India.
(ii)
A company whose registered office is in
USA, is party controlled and managed from its branch established in India.
OR
2.
Mr. Pranjal working as a Manager (sales) with HL Ltd. provides the following
information for the year ending March 31, 2009:
Basic Salary—Rs
1, 44,000
DA (50% of it is
meant for retirement benefit Rs 1, 44,000)
Commission as a
percentage of turnover of the employer company—0.5%
Turnover of the
company—Rs 50, 00,000
Bonus—Rs 30,000
Gratuity
(received in service)—Rs 30,000
Own contribution
towards RPF—Rs 25,000
Employers
contribution towards RPF—20% of basic
Interest
contribution in the RPF @ 15%--Rs 15,000
Gold ring worth
Rs 10,000 was given by employer on his 20th wedding anniversary
He received
interest Rs 5,860 on bank fixed deposit, dividend of Rs 1,260 from shares of
Indian companies and interest of Rs 7,540 from the debenture of Indian
companies. Made payment by cheques of Rs 15,370 towards premium on LIP and Rs
12,500 for Mediclaim insurance policy. He invested in 6 years NSC Rs 30,000,
FDR of SBI for 7 years Rs 50,000. He has donated Rs 11,000 to an institution
approved under section 80G and of Rs 5,100 to Prime Minister’s national relief
fund during the year.
Compute
his total income and tax payable thereon for the assessment year 2009-10.
OR
a)
Define ‘perquisite’ as per income tax
act. Explain how perquisites are taxable in the hand of employee.
b)
Find out the income from house property
chargeable to tax for the Assessment year 2009-10 in the following cases:
Particulars
|
X (Rs)
|
Y (Rs)
|
Municipal
Value (MV)
Fair
rent (FR)
Standard
rent (SR) under the rent control act
Actual
rent if property is let out throughout
The
previous year
Unrealized
rent of previous year 2008-09
Period
when the property remains vacant(In number of month
Loss
due to
vacancy
Tax
of the year 2008-09
Paid
by X and Y during 2008-09
Paid
by X and Y after March 31, 2009 Paid by tenants during 2008-09
|
1,
20,000
1,
30,000
1,
10,000
1,
26,000
10,500
(1)
10,500
18,000
17,000
1,000
-
|
1,
20,000
1,
30,000
1,
10,000
1,
26,000
Nil
Nil
Nil
18,000
8,000
1,000
9,000
|
Apart from paying municipal tax, no other expenditure is
incurred by X in respect of the house property for generating income from
property.
3. a) B. Boruah and
Associates are chartered accountants in Jorhat. They have submitted the
following income and expenditure account for the year ending 31-03-2009.
Compute the income from profession:
Expenses
|
Amount (Rs.)
|
Incomes
|
Amount (Rs.)
|
To
drawings
To
office rent
To
telephone installation
Charges
(OYT)
To
electricity bill
To
salary of staff
To
charities
To
gifts given to relatives
To
car expenses
To
subscription for journal
To
institute fee
To
stipend given to trainees
To
net income
|
72000
48000
15000
6000
75000
800
10000
25000
3000
1300
24000
395900
676000
|
by
audit fee
by
financial consultancy service
by
dividend from company
by
dividend on units of UTI
by
accountancy work
|
460000
140000
15000
11000
50000
676000
|
Additional
information:
(i)
Depreciation of car during the year
amount to Rs 15000
(ii)
25% of the time car is used for
personal purpose
b). What are income chargeable to tax under the head profit
and gain of business or profession?
OR
4.
Mr. Talukdar, a resident individual, furnishes the following information for
the assessment year 2009-10:
Particulars
|
Amount (Rs.)
|
Basic
pay
Project
allowance
Education
allowance (Rs 200 per month for two sons and Rs 150Per month for a daughter)
Hostel
allowance (Rs 650 per month for one
child)
Transport
allowance (for journey between office and residence)
Free
car (1150 c.c) facility for Mr. Talukdar for official and private Purposes
Cost
of employers free meals in office
Employers
contribution towards URF
Share
of profit from a firm
Share
of profit from an association of person
Share
of profit from an HUF
Income
from betting
Income
from business
Payments
and investments:
Contribution
towards UPF
Payment
of premium on mediclaim insurance on Talukdar’s father who is resident in
India
Payment
of premium on own medical policy
Investment
in NSC VIII issue
Donation
to an approved public charitable institution
|
130000
39400
6600
7800
9600
27000
12700
3000
36000
34000
18000
2400
481600
6700
500
16000
5000
3000
|
Determine
the net taxable income of Mr. Talukdar for the assessment year 2009-10.
OR
b)
How deductions are made in respect of
the following section of the income tax act 1961?
5.
Write short notes on:
a) Tax deduction at source
b) Advance payment of tax
c) Procedure for filing an income tax return of an
individual
d) CBDT
OR
a)
Explain the procedure of filing an
appeal under the income tax act, 1961
b)
Mention the power and function of
income tax authorities in respect of appointment and penalties.
Income Tax 2011 (Speciality)
1.
(a) State whether the following
statements are true or False:
(i) Agricultural income is fully exempted from tax U\S 10(1)
and does not from part of total income.
TRUE
(ii)Education cess is to be levied @ 2% of tax plus
secondary and higher education cess @ 1% of tax. TRUE
(iii) Surcharge has been abolished for individuals w.e.f.
assessment year 2010—11 TRUE
(iv)A person deducts tax at source but does not deposit it
in the treasury is known as assessee---in—default. TRUE
(v)Assessment year is that year for which tax on income is
calculated. TRUE
(b) Fill in the blanks with appropriate word \words \
figures:
(i)Income from lottery is a CASUAL INCOME.
(ii)U/S 14 the term ‘gross total income’ consists of
salaries, house property, profits and gains of business or profession, capital
gains and INCOME FROM OTHER
SOURCES.
(iii)An individual must stay in India during the relevant
previous year for a period of 182 days
(1st basic condition) to become a resident of India.
(iv) Daily allowance received by an MP is FULLY EXEMPTED (ALL ALLOWANCES).
(v) Interest received on investments is assessable under the
head INCOME FROM OTHER SOURCES.
(c) Explain the incomes which do not from a part
of total income of an individual under the Income---tax
Act, 1961.
2.
(a)Mr. Robin is appointed as a Manager of power grid Ltd.,
Guwahati, on 1st february,2007 in the scale of Rs.
23,600—800—47,600.His annual Increment of Rs 800 falls due on 1st February
of every year. Dearness allowance is 20% of salary. Salary falls due on the 1st day
of every month. Bonus during the year is Rs.10, 000 and CCA is Rs 800 p.m.
Robin’s contribution to RPF is at 12% of the basic pay and DA equal to his
contribution is made by his employer.
He
is in possession of a company car for his official duties and personal use with
1.4 lt. capacity. All expenses including the driver’s salary are met by the
company.
A
free accommodation has been provided Rent paid by the company is Rs 4,800 p.m.
cost of furnishing the home is Rs 48,000. He receives Rs 500 p.m as
entertainment allowance. The company has reimbursed Rs 24,000 being the actual
air fare to and from Guwahati and Delhi to attend the company’s meeting.
He
has insured his life for Rs1, 00,000 and his wife’s life for Rs 40,000 for
which the monthly premium are Rs 500 and Rs 600 respectively.
He
paid Rs 19,200 p.p. as installment of his flat purchased. He received Rs 680 as
interest on fixed deposit.
Compute
his taxable income under the head ‘salaries’ for the assessment year 2010—11
Or
(b) what deductions are allowed from the annual value in
computing taxable income from house property? How does annual value differ from
annual rental value?
3.
(a) From the following statement, compute the income from profession of Dr.A.M.
Saikia:
Particulars
|
Amount
|
Particulars
|
Amount
|
To Dispensary rent
To Electricity and water charges
To Telephone expenses
To Salary to nurse and Compounder
To purchase of medicines
To Depreciation on Surgical equipment
To Depreciation on X—ray machine
To income tax
To Donation to Ramakrishna Mission
To Motor car expenses
To Depreciation on car
To Net income
|
36000
6000
6000
36000
36000
6000
4000
5500
4000
9600
4800
93100
|
By Visiting fees
By consultation fees
By sale of medicines
By Dividends
|
45000
125000
72000
5000
|
247000
|
247000
|
Additional
information:
(i)Electricity and water charges include domestic bill of Rs
2,500
(ii)Half of motor car expenses are for professional use
(iii) telephone expenses include 40% for personal use
(iv) Opening stock of medicines was Rs 6,000 and closing
stock was Rs 4,000.
Or
(b) Describe the procedure for computation of capital gains
as prescribed by the Income –tax Act, 1961. How will you distinguish between
capital gain’ and income?
4. (a) Mr.p.k. Dutta is in service in Mumbai (population
above 25 lakhs), drawing a monthly salary of Rs 30,000. He is also provided
with a rent –free unfurnished flat, for which employer pays a rent of Rs 5,000
p.m. He contributes 10 percent of his salary to a recognised provident fund.
The interest @8% on his provident Fund Account for the year ended 31st March,
2010 amounted to Rs 5,000.He is also the owner of a house which is let out at a
monthly rent of Rs 5,000. His expenses for the house were:
(i)Municipal taxes: 6,000
(ii) Interest on loan for construction of the house: 13,200
(iii) Repairs: 1,000
He has interest on government securities amounting to Rs
28,000 (gross).
He has also received a share of Rs 1,200 from profit of the
firm.
He has paid Rs 1,400 as life insurance premium for a policy
on his own life. He paid Rs 400 to prime Minister’s National Relief
Fund.
Compute the total income of Mr.p.k. Dutta.
Or
(b)
Explain the following:
(i) Setoff and carry forward of losses
(ii) Deduction U/S 80(c)
(iii) Rebate U/S 86 on share from AOP
(iv) computation of total income and tax liability of HUF
5.
What are the authorities provided by the Income—tax Act for the administration
of tax? what are the powers of an Income—tax Officer?
Or
Write
short notes on the following:
(i) self—assessment
(ii)PAN Card
Income Tax 2012 (Speciality)
1.
(a) Define the term “assessee” and “person” under the income tax act. What is
regarded as income under the income tax act?
Or
(b) “The incidence of tax depends upon the residential
status of an assessee.” Discuss. Write four distinctions between avoidance of
tax and tax evasion.
2.
(a) Following are the particulars of salary of Mr. Borkakoty, an employee of
ONGCL of Ahmedabad (Population exceeding 25 lakhs):
a.
Basic salary 60000 p.m.
b.
DA 10000 p.m. (50% forms part of
salary)
c.
Transport allowance 4000 p.m.
d.
Bonus 20000
e.
Commission 80000 on turnover
f.
Telephone bill of his residence paid by
employer 20000
g.
Amount paid by employee for free supply
of gas and electricity at residence 36000
h.
He got a loan of 1000000 from his
employer at a nominal rate of interest of 3.25% for the construction of his
house. SBI lending rate as on 1-4-2010 at 8%.
i.
He is paid house rent allowance of
10000 p.m. till 31st July, 2010 and thereafter he is given a
rent-free house got by his company on a monthly rent of 20000. Cost of
furniture 100000. Before shifting to rent free house he was paying a rent of
8000 p.m.
j.
Leave travel concession 40000
k.
He is given a free lunch worth 100 per
day
l.
Both he and his employer are contributing
10000 p.m. each towards recognised provident fund (RPF)
Find out Mr. Borkakoty’s salary income for the assessment
year 2011 – 2012.
Or
(b)
(i) Define annul value. How does it differ from annual rental value?
(ii) How would you determine the annual value of the house
used by assessee as let-out and self occupied residence in computing taxable
income from house property?
3.
(a) From the following particulars, compute the business income of Mr. k.k.
Boruah to be taxable for the assessment year 2011 – 2012:
Particulars
|
Amount
|
Particulars
|
Amount
|
To
salaries
To
rent and taxes
To
service charges
To
legal expenses
To
reserve for tax
To
depreciation
To
exp. On acquisition of patent
To
office expenses
To
contribution RPF
To
bad debts
To
Donation to NDF
To
net profit
|
180000
40000
8000
10000
12000
24000
112000
84000
24000
9000
5000
211200
|
By
gross profit
By
dividend
By
bad debts recovered (allowed earlier)
By
Interest from post office savings bank
|
700000
8000
8800
2400
|
719200
|
719200
|
Other
information:
a)
Legal expenses include 4000 incurred by
assessee for defending a case for damages for breach of contract which was
decided in favour of assessee
b)
Depreciation of the year on assets
other than patent rights is 33800
c)
Contribution to RPF due on 31-3-2011 –
4000
Or
(b)
(i) How is cost of acquisition
determined under capital gains tax?
(ii) Explain, in detail, capital gain exempted from tax.
4.
(a) Following are the particulars of
income of Mrs. A Borgohain for the year ending 31 – 3 – 2011:
(i) salary received from an office working for 10 months –
600000
(ii) Interest on government securities – 6600
(iii) Interest from bank deposits – 7000
(iv) Rental value of house property (Municipal tax being
1500) – 8000
(v) Profits of retail cloth business – 294600
(vi) Dividends from cooperative societies – 6400
(vii) Dividends from Indian companies – 5400
(viii) Interest on debenture of a company – 6000
He is insured for 100000 and paid an insurance premium of
15000. He donated – 4000 to a school (recognised) in which his son is studying.
Compute her taxable income and tax payable for the
assessment year 2011 – 12.
Or
(b)
(i) Explain the provisions of the
income tax Act, 1961 regarding carry forward and setoff of losses.
(ii) Explain the provisions of sec. 80c and 80ccc of the
income tax act for claiming deduction in computing income of an individual.
5.
(a)(i) What is the procedure for filling of return of income and what is the
time limit under the income tax act, 1961?
(ii) What are the provisions relating to deduction of tax at
source from income chargeable under the head “Salaries”?
Or
(b) (i) Draw a list of authorities of administrative wing
under section 116of the income tax act, 1961. What are the powers of income tax
officer?
(ii) What are various appellate authorities under the income
tax act? Give the procedure for filling appeal to the appellate tribunal.