2015 (May)
Commerce (Speciality)
Course: 601
(Direct Tax: II)
Full Marks: 80
Pass Marks: 32
Time: 3 Hours
The figures in the margin indicate full marks for the
questions.
1.
(a) Write true or false: 1x4=4
(i) Capital Assets means property of any kind held by an
assessee whether or not connected with his business or profession.
(ii) Provision for bad and doubtful debts is an allowable deduction
in computing business income.
(iii) Net wealth comprises of aggregate of all assets
including deemed assets but excluding exempted assets.
(iv) As per Section 73(1) of the Income tax Act, the loss
arising out of speculation business can be set off against profit from
non-speculative business.
(b)
Mention four exceptions to the rule given u/s 70 that a loss can be set off
against any other income under the same head. 4
2.
Write short notes on any four of the following: 4x4=16
(a) Unabsorbed depreciation
(b) Expressly admissible deduction in computing business
income
(c) Deemed income
(d) Corporate assessee
(e) Transactions not regarded as transfer
3.
(a) What do you mean by depreciation? Discuss the conditions to claim deduction
for depreciation in computing income from business and profession. 3+8=11
Or
(b)
Mr. X, a resident , is a practising chartered accountant. He also runs a
private accountancy coaching institute. He keeps his accounts on cash basis and
his summarised cash account for the year ended on 31st March, 2015
is as under:
Particulars
|
Amounts
|
Particulars
|
Amount
|
To Balance B/d
To Income from
accounting work
To Audit fee
To Institute fee
To Examination fee
To Withdrawal from
PPF
To Interest on
Investment
To Agricultural
Income
To Rent from let out
house property
|
13,000
1,25,400
2,14,700
6,100
4,600
50,000
18,000
10,000
48,000
|
By Office expenses
By Office telephone
of bills
By Municipal tax of
house property
By Institute
expenses
By Miscellaneous
expenses
By Membership fee
and certificate fee
By Life insurance
premium
By Income Tax
By Motorcar
purchased
By Motorcar expenses
By Insurance of
house property
By Balance c/d
|
24,000
7,000
4,000
1,800
43,500
1,200
17,000
22,500
1,80,000
9,600
840
1,78,360
|
4,89,800
|
4,89,800
|
Additional
Information:
1) 1/3rd of motorcar expenses is in respect of his
professional practice.
2) Miscellaneous
expenses includes Rs. 6000 paid as stipend to trainees and balance is
his personal expenses.
3) He purchased a computer on 30th November, 2014
for Rs. 54,000 and took a loan of Rs. 50,000 @ 15% P.a.
4) Motorcar comes under 15% block while computer comes under
60% block.
Compute
professional income of Mr. X for the previous year, 2014-15. 11
4.
(a) What do you mean by capital assets? Explain the mode of computation of
capital assets. 4+7=11
Or
(b)
Following are the particulars of assets head by Vandana during the previous
year, 2014 – 15:
Assets
|
Year of
acquisition
|
Cost of
Acquisition
|
CII
|
FMV as on
1-4-81
|
Selling expenses
|
Selling price
|
Shop
Jewellery
Shares
Shares
Plant (Depreciable)
Residential house
|
1980-81
1980-81
1990-91
1982-83
1982-83
1984-85
|
20,000
10,000
6,000
20,000
4,00,000 (WDV)
60,000
|
100
100
182
109
109
125
|
40,000
50,000
………..
………..
………..
…………
|
10,000
……….
1,000
2,000
………
………
|
5,80,000
5,20,000
30,000
2,21,560
7,00,000
5,32,560
|
Calculate
the taxable amount of capital gain if CII for 2014 – 15 is 1024. Security transaction
tax on sale of shares has been paid. 11
5.
(a) What is net wealth? How it is computed? 4+7=11
Or
(b)
Discuss, in detail, the provisions of the Wealth Tax Act regarding the deemed
assets. 11
6.
(a) What do you mean by setoff of losses? When can a loss be carried forward to
set off against future income? Discuss briefly the provisions of the Income-Tax
Act regarding the carry forward and setoff of losses from capital gain. 3+4+5=12
Or
(b)
Determine the total income of Mr. A from the particulars given below for the
previous year, 2013-14 and present year 2014-15: 12
Previous year 2013 – 14
|
Previous year 2014 – 15
|
|
Computed Property Income
Computed Salary
Income
Business profit before
depreciation
Depreciation for the
year
Short-term Capital
gain
Income from other
sources
|
20,000
1,90,000
40,000
1,20,000
10,000
20,000
|
20,000
2,20,000
1,20,000
1,40,000
Nil
40,000
|
7.
(a) What propositions may an employee consider for the purpose of tax planning
under the head “Salaries”? 11
Or
(b)
Write notes on the following: 5+6=11
(i) Tax Evasion
(ii) Deduction u/s 80C