Solapur University
M.Com. (Part – I) (Semester – II) Examination, 2015
TAXATION (GR.C) (Paper – I)
Day and Date : Saturday, 18-4-2015 Max. Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
Instructions : 1) All questions carry equal marks.
2) All questions are compulsory.
3) Figures in the bracket indicate marks.
1. Select the correct answer from alternatives : (10)
i) Loss from a specified business referred to in Section 35AD can be set off from
A) any head of income other than salary
B) income under business or profession only
C) profit of any other specified business only
ii) Where a closely held company gives a loan/advances to shareholder who has 10% voting power in the company or to concern in which such shareholder has 20% share in case such concern is non company assessee or has substantial interest (20% voting power) in case it is a company then loan/
advance so paid shall be deemed dividend to the maximum extent of
A) accumulated profits whether capitalized or not
B) accumulated profits excluding capitalized profits
C) the loan or advance so paid
iii) Loss under the head house property
A) can be carried forward for 8 years
B) cannot be carried forward
C) can be carried forward for only 4 years
P.T.O.
Seat
No.
SLR-H – 16 -2-
iv) Expenditure incurred on acquisition of patents and copyrights are subject to
A) deduction in 14 equal installments
B) deduction in 10 equal installments
C) depreciation under Section 32
v) Interest incurred before the commencement of the production is to be
A) Capitalized
B) Treated as revenue expenditure
C) Either capitalized or treated as revenue expenditure
vi) If the bonus shares are acquired before 01-04-1981, the cost of acquisition of
such bonus share shall be
A) nil
B) market value of such bonus share on the date of allotment
C) market value as on 01-04-0981
vii) In case of long-term capital gain, the amount to be deducted from consideration
price shall be
A) cost of acquisition
B) indexed cost of acquisition
C) market value as on 01-04-1981
D) none of the above
viii) The period of holding of shares acquired in exchange of convertible debentures
shall be reckoned from
A) The date of holding of debentures
B) The date when the debentures were converted in to shares
C) None of these two
ix) In case assessee or dependant relative is a senior citizen then the deduction
under Section 80DDB shall be allowed for a sum of
A) Rs. 40,000 or actual expenditure whichever is less
B) Rs. 60,000 or actual expenditure whichever is less
C) Rs, 60,000 irrespective or actual expenditure
-3- SLR-H – 16
x) In case the donation is made in cash the deduction under Section 80G shall
be allowed to the maximum extent of
A) Rs. 15,000
B) Rs. 1,00,000
C) Rs. 10,000
D) Rs. 50,000
2. Write short notes on any two from the following : (10)
a) Set off and carry forward of losses under capital gains.
b) Presumptive taxation under Section 44AD.
c) Deductions under Section 80G
d) Deductions under Section 80 TTA
3. A) The Gross Total Income of Shivani for the Assessment Year 2013 – 14 is
Rs. 4,10,000 which includes Rs. 40,000 as long-term capital gain and
Rs. 6,000 as interest accrued on National Saving Certificate VIII issue
purchased last year. She has made the following payment during the year. (5)
Rs.
L.I.P. for her own life 5,000
Deposit in Public Provident Fund 30,000
Premium for Mediclaim scheme by cheque 4,000
Donations to :
a) The Prime Minister Drought Relief Fund 5,000
b) Birla Mandir (an approved charitable trust) 40,000
c) Municipal Corporation of Delhi for family planning 5,000
d) National Foundation for Communal Harmony 5,000
Compute the various deductions that will be available to her for the Assessment
Year 2013 – 14.
B) During the Previous Year 2012 – 13 Shri Gurucharan Singh had received the
following interest on securities held by him. (5)
i) Rs. 50,400 on unlisted debentures of Malwa Textile.
ii) Rs. 36,000 on debentures of S Ltd. Listed on recognized stock exchange .
iii) Rs. 40,000 on 8% table saving bonds.
iv) Rs. 90,000 on 6% tax-free bonds issued by notified Public Sector Company.
The interest is paid on 31st December annually. He paid 2% commission to
his bank of collection of interest. Calculate his income from other sources for
the Assessment Year 2013 – 14.
4. A) Bhuvanesh Kumar had purchased 12,000 listed shares of Rs. 10 each of a
company on 15-04-1991 for Rs. 5,46,000. Company declared a right issue in
the ratio of 2 : 1 at a price of Rs. 30 per shares in October, 2012.
He sold the right for 3,000 shares against Rs. 20 per shares and remaining
3,000 shares were purchased by him which were allotted on 05-11-2012.
He sold all the shares @ Rs. 90 each on 15-03-2013 through a recognized
stock exchange. He paid brokerage @ 2% and securities tax at the applicable
rate. Cost inflation index for 1991 – 92 is 199 and for 2012 – 13 is 852.
Compute taxable capital gains. (10)
OR
B) Rohit/Sharma is the owner of the following assets as on 1-4-2012.
Block : Plant and Machinery – Rate 15%
Assets Cost of Date of W.D.V. as on 1-4-2012
Acquisition Acquisition (Rs.)
(Rs.)
Machinery A 20,00,000 1-4-1987 17,50,000
Machinery B 25,00,000 1-5-1988 22,00,000
Machinery C 20,00,000 31-7-2002 15,00,000
During the Previous Year 2012 – 13, he acquired Machinery D on 3-6-2012,
for Rs. 10,00,000 and sold Machinery A for Rs. 72,00,000 on 1-8-2012.
Calculate the amount of depreciation and capital gain for the Assessment
Year 2013 – 14. (10)
SLR-H – 16 -4-
5. A) Mahendra is the proprietor of a business. His Profit and Loss Account for the
year ending 31-03-2013 is as follows. (10)
Amt. Rs. Amt. (Rs.)
To Establishment Exp. 2,30,000 By Gross profit 7,17,180
To Bonus 10,000 By interest on 7,120
To Rent, rates and taxes 48,000 Govt. securities
To General charges 7,500 By Rent from House 1,96,000
To Household expenses 28,000 Property
To Commission 18,000
To Discount and allowance 4,000
To Provision for bad debts 12,000
To Postage and telegrams 2,500
To Law charges 7,500
To Advertising 15,800
To Gift and presents 1,200
To Fire insurance premium
(for goods) 4,000
To Sales tax 14,800
To Repairs and renewals 3,000
To Loss on sale of motors
Car (used for private purposes) 2,500
To Life insurance premium 4,000
-5- SLR-H – 16
To Wealth tax 3,000
To Interest on capital 4,500
To Audit Fee 5,000
To Interest on bank loan 7,000
To Provision for depreciation 25,000
To Provision for income tax 15,000
To Net Profit trf. To capital 4,48,000
Total 9,20,300 Total 9,20,300
Following further information is given :
a) Actual Bad Debts written off during the year amount to Rs. 6,000
b) Amount of income-tax actually paid during the year is Rs. 8,000
c) Depreciation allowable is Rs. 24,000 as per Income Tax Rules.
d) Advertisement expenses include Rs. 10,000 spent on special advertising
campaign to open an another new shop in the market.
e) Law charges are in connection with trade mark.
f) Mahendra carries on his business from rented premises, half of which is
used as his residence. Rent, Rates and Taxes include Rs. 8,000 paid as
rent of the premises during the year.
Compute business income of Mahendra for the Assessment Year 2013 – 14.
OR
B) The Profit and Loss Account of Samarth Ponkshe for the year ended 31-03-2013
is given below : (10)
Amt. Rs. Amt. Rs.
To Opening stock 6,00,000 By Sales 90,00,000
To Purchases 64,87,000 By Rent of Staff 75,000
SLR-H – 16 -6-
To Railway Freight, Octroi 4,00,000 Quarters built
To Salaries and wages 5,00,000 in 1996
To Directors fees 10,000 By Closing stock 10,43,000
To Audit fees (Paid in cash) 30,000
To Legal expenses 25,000
To Repairs to Bldg. and M/c 42,000
To Welfare expenses 11,000
To General expenses 30,000
To Interest paid 3,50,000
To Wealth tax 10,000
To Underwriting commission
for issue of share capital 15,000.
To Reserve for bad debts 10,000
To Bad debt written off 20,000
To Depreciation 15,000
To Telephone expenses 3,000
To Annual contribution to
investment sinking fund 45,000
To Provision for taxation 6,00,000
To Contribution to staff
welfare fund 75,000
-7- SLR-H – 16
To General reserve 1,40,000
To Proprietor drawings 6,50,000
To Net profit 50,000
Total 1,01,18,000 Total 1,01,18,000
Your are required to compute his taxable income from business for the Assessment
Year 2013 – 14 after taking into account the following information.
a) A sum of Rs. 15,000 on account of liability foregone by a creditor has been
carried to a special reserve. The said sum was charged by the company
in the revenue of the preceding year.
b) General expenses include.
i) Rs. 7,000/- Accident insurance premium for employees
ii) Rs. 5,000/- Donation to PMNRF
iii) Rs. 10,000/- Family planning expenditure amongst the assesses employees.
c) Repairs to building include Rs. 20,000 being cost of additions to business premises.
d) Depreciation (including additions to building) is Rs. 30,000. ___________
M.Com. (Part – I) (Semester – II) Examination, 2015
TAXATION (GR.C) (Paper – I)
Day and Date : Saturday, 18-4-2015 Max. Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
Instructions : 1) All questions carry equal marks.
2) All questions are compulsory.
3) Figures in the bracket indicate marks.
1. Select the correct answer from alternatives : (10)
i) Loss from a specified business referred to in Section 35AD can be set off from
A) any head of income other than salary
B) income under business or profession only
C) profit of any other specified business only
ii) Where a closely held company gives a loan/advances to shareholder who has 10% voting power in the company or to concern in which such shareholder has 20% share in case such concern is non company assessee or has substantial interest (20% voting power) in case it is a company then loan/
advance so paid shall be deemed dividend to the maximum extent of
A) accumulated profits whether capitalized or not
B) accumulated profits excluding capitalized profits
C) the loan or advance so paid
iii) Loss under the head house property
A) can be carried forward for 8 years
B) cannot be carried forward
C) can be carried forward for only 4 years
P.T.O.
Seat
No.
SLR-H – 16 -2-
iv) Expenditure incurred on acquisition of patents and copyrights are subject to
A) deduction in 14 equal installments
B) deduction in 10 equal installments
C) depreciation under Section 32
v) Interest incurred before the commencement of the production is to be
A) Capitalized
B) Treated as revenue expenditure
C) Either capitalized or treated as revenue expenditure
vi) If the bonus shares are acquired before 01-04-1981, the cost of acquisition of
such bonus share shall be
A) nil
B) market value of such bonus share on the date of allotment
C) market value as on 01-04-0981
vii) In case of long-term capital gain, the amount to be deducted from consideration
price shall be
A) cost of acquisition
B) indexed cost of acquisition
C) market value as on 01-04-1981
D) none of the above
viii) The period of holding of shares acquired in exchange of convertible debentures
shall be reckoned from
A) The date of holding of debentures
B) The date when the debentures were converted in to shares
C) None of these two
ix) In case assessee or dependant relative is a senior citizen then the deduction
under Section 80DDB shall be allowed for a sum of
A) Rs. 40,000 or actual expenditure whichever is less
B) Rs. 60,000 or actual expenditure whichever is less
C) Rs, 60,000 irrespective or actual expenditure
-3- SLR-H – 16
x) In case the donation is made in cash the deduction under Section 80G shall
be allowed to the maximum extent of
A) Rs. 15,000
B) Rs. 1,00,000
C) Rs. 10,000
D) Rs. 50,000
2. Write short notes on any two from the following : (10)
a) Set off and carry forward of losses under capital gains.
b) Presumptive taxation under Section 44AD.
c) Deductions under Section 80G
d) Deductions under Section 80 TTA
3. A) The Gross Total Income of Shivani for the Assessment Year 2013 – 14 is
Rs. 4,10,000 which includes Rs. 40,000 as long-term capital gain and
Rs. 6,000 as interest accrued on National Saving Certificate VIII issue
purchased last year. She has made the following payment during the year. (5)
Rs.
L.I.P. for her own life 5,000
Deposit in Public Provident Fund 30,000
Premium for Mediclaim scheme by cheque 4,000
Donations to :
a) The Prime Minister Drought Relief Fund 5,000
b) Birla Mandir (an approved charitable trust) 40,000
c) Municipal Corporation of Delhi for family planning 5,000
d) National Foundation for Communal Harmony 5,000
Compute the various deductions that will be available to her for the Assessment
Year 2013 – 14.
B) During the Previous Year 2012 – 13 Shri Gurucharan Singh had received the
following interest on securities held by him. (5)
i) Rs. 50,400 on unlisted debentures of Malwa Textile.
ii) Rs. 36,000 on debentures of S Ltd. Listed on recognized stock exchange .
iii) Rs. 40,000 on 8% table saving bonds.
iv) Rs. 90,000 on 6% tax-free bonds issued by notified Public Sector Company.
The interest is paid on 31st December annually. He paid 2% commission to
his bank of collection of interest. Calculate his income from other sources for
the Assessment Year 2013 – 14.
4. A) Bhuvanesh Kumar had purchased 12,000 listed shares of Rs. 10 each of a
company on 15-04-1991 for Rs. 5,46,000. Company declared a right issue in
the ratio of 2 : 1 at a price of Rs. 30 per shares in October, 2012.
He sold the right for 3,000 shares against Rs. 20 per shares and remaining
3,000 shares were purchased by him which were allotted on 05-11-2012.
He sold all the shares @ Rs. 90 each on 15-03-2013 through a recognized
stock exchange. He paid brokerage @ 2% and securities tax at the applicable
rate. Cost inflation index for 1991 – 92 is 199 and for 2012 – 13 is 852.
Compute taxable capital gains. (10)
OR
B) Rohit/Sharma is the owner of the following assets as on 1-4-2012.
Block : Plant and Machinery – Rate 15%
Assets Cost of Date of W.D.V. as on 1-4-2012
Acquisition Acquisition (Rs.)
(Rs.)
Machinery A 20,00,000 1-4-1987 17,50,000
Machinery B 25,00,000 1-5-1988 22,00,000
Machinery C 20,00,000 31-7-2002 15,00,000
During the Previous Year 2012 – 13, he acquired Machinery D on 3-6-2012,
for Rs. 10,00,000 and sold Machinery A for Rs. 72,00,000 on 1-8-2012.
Calculate the amount of depreciation and capital gain for the Assessment
Year 2013 – 14. (10)
SLR-H – 16 -4-
5. A) Mahendra is the proprietor of a business. His Profit and Loss Account for the
year ending 31-03-2013 is as follows. (10)
Amt. Rs. Amt. (Rs.)
To Establishment Exp. 2,30,000 By Gross profit 7,17,180
To Bonus 10,000 By interest on 7,120
To Rent, rates and taxes 48,000 Govt. securities
To General charges 7,500 By Rent from House 1,96,000
To Household expenses 28,000 Property
To Commission 18,000
To Discount and allowance 4,000
To Provision for bad debts 12,000
To Postage and telegrams 2,500
To Law charges 7,500
To Advertising 15,800
To Gift and presents 1,200
To Fire insurance premium
(for goods) 4,000
To Sales tax 14,800
To Repairs and renewals 3,000
To Loss on sale of motors
Car (used for private purposes) 2,500
To Life insurance premium 4,000
-5- SLR-H – 16
To Wealth tax 3,000
To Interest on capital 4,500
To Audit Fee 5,000
To Interest on bank loan 7,000
To Provision for depreciation 25,000
To Provision for income tax 15,000
To Net Profit trf. To capital 4,48,000
Total 9,20,300 Total 9,20,300
Following further information is given :
a) Actual Bad Debts written off during the year amount to Rs. 6,000
b) Amount of income-tax actually paid during the year is Rs. 8,000
c) Depreciation allowable is Rs. 24,000 as per Income Tax Rules.
d) Advertisement expenses include Rs. 10,000 spent on special advertising
campaign to open an another new shop in the market.
e) Law charges are in connection with trade mark.
f) Mahendra carries on his business from rented premises, half of which is
used as his residence. Rent, Rates and Taxes include Rs. 8,000 paid as
rent of the premises during the year.
Compute business income of Mahendra for the Assessment Year 2013 – 14.
OR
B) The Profit and Loss Account of Samarth Ponkshe for the year ended 31-03-2013
is given below : (10)
Amt. Rs. Amt. Rs.
To Opening stock 6,00,000 By Sales 90,00,000
To Purchases 64,87,000 By Rent of Staff 75,000
SLR-H – 16 -6-
To Railway Freight, Octroi 4,00,000 Quarters built
To Salaries and wages 5,00,000 in 1996
To Directors fees 10,000 By Closing stock 10,43,000
To Audit fees (Paid in cash) 30,000
To Legal expenses 25,000
To Repairs to Bldg. and M/c 42,000
To Welfare expenses 11,000
To General expenses 30,000
To Interest paid 3,50,000
To Wealth tax 10,000
To Underwriting commission
for issue of share capital 15,000.
To Reserve for bad debts 10,000
To Bad debt written off 20,000
To Depreciation 15,000
To Telephone expenses 3,000
To Annual contribution to
investment sinking fund 45,000
To Provision for taxation 6,00,000
To Contribution to staff
welfare fund 75,000
-7- SLR-H – 16
To General reserve 1,40,000
To Proprietor drawings 6,50,000
To Net profit 50,000
Total 1,01,18,000 Total 1,01,18,000
Your are required to compute his taxable income from business for the Assessment
Year 2013 – 14 after taking into account the following information.
a) A sum of Rs. 15,000 on account of liability foregone by a creditor has been
carried to a special reserve. The said sum was charged by the company
in the revenue of the preceding year.
b) General expenses include.
i) Rs. 7,000/- Accident insurance premium for employees
ii) Rs. 5,000/- Donation to PMNRF
iii) Rs. 10,000/- Family planning expenditure amongst the assesses employees.
c) Repairs to building include Rs. 20,000 being cost of additions to business premises.
d) Depreciation (including additions to building) is Rs. 30,000. ___________
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