Solapur University Question Paper
M.Com. – I (Semester – I) (New) Examination, 2014
TAXATION (Paper – I) (Gr. C)
Day and Date : Saturday, 19-4-2014 Total Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
Instructions : 1) All questions are compulsory.
2) Figures to the right indicate marks.
1. Select the correct choice : 10
1) Finance Bill becomes the Finance Act when it is passed by
A) The Lok Sabha
B) Both the Lok Sabha and Rajysabha
C) Both the Houses of Parliament and given the assent of the President
D) Both the Houses of Parliament and given the assent of the Prime Minister/
Finance Minister
2) Body of individuals should consist of
A) Individuals only
B) Persons other than individuals only
C) Both the above
D) None of these
3) Surcharge on income tax is payable by
A) All assesses except a foreign company
B) Individual and HUF only
C) A company, domestic or foreign
D) None of these
SLR-NN – 16 -2-
4) The maximum amount on which income tax is not chargeable for the
assessment year 2013-14 in case of a resident woman who is less than 60
years old is
A) Rs. 2,00,000
B) Rs. 5,00,000
C) Rs. 2,50,000
D) Rs. 2,40,000
5) The maximum amount on which income tax is not chargeable for the assessment
year 2013-14 in case of a resident woman who is less than 60 years old is
A) Rs. 2,00,000
B) Rs. 5,00,000
C) Rs. 2,50,000
D) Rs. 2,40,000
6) RDC Ltd., is registered in U.K. The control and management of its affairs is
wholly situated in India. R Ltd., shall be
A) resident in India
B) non-resident in India
C) not ordinarily resident in India
D) None of these
7) An award of Rs. 1,00,000 was announced for tracing a missing person.
R traced the person and received the award amount. Such receipt shall be
A) casual income
B) fully exempt
C) fully taxable
D) None of these
-3- SLR-NN – 16
8) An employee is covered under Payment of Gratuity Act, 1972. If the employee
has completed service of 16 years 6 months and 5 days, the number of
completed year shall be taken as
A) 16 years
B) 17 years
C) 16 years 6 months and 5 days
D) None of these
9) If rent is paid for a house situated in Delhi, the house rent allowance shall be
exempt to the maximum extent of
A) 40% of salary
B) 50% of salary
C) 60% of salary
D) None of these
10) An assessee was allowed deduction of unrealized rent to the extent of
Rs. 40,000 in the past although the total unrealized rent was Rs. 60,000. He
is able to recover from the tenant Rs. 45,000 during the previous year on
account of such unrealized rent. He shall be liable to tax to the extent of
A) Rs. 45,000
B) Nil
C) Rs. 25,000
D) None of these
2. Write short note on : 10
a) Determination of Residential status of the assesse
b) Taxable perquisites under Income from Salary.
SLR-NN – 16 -4-
3. A) Mr. Sumit, a citizen of India, is an export manager of Sidharth Overseas
Limited, an Indian Company. Since 1-5-2008. He has been regularly going to
Germany for export promotion. He spent the following days in U.S.A. for the
last five years : 10
Previous year
ended
No. of days spent in
Germany
31-3-2009 318
31-3-2010 150
31-3-2011 270
31-3-2012 311
31-3-2013 295
Determine his residential status for the assessment year 2013-14 assuming
that prior to 1-5-2008 he had never travelled abroad.
B) Following are the incomes of Raghavan, a citizen of India, for the previous
year 2012-13.
1) Interest on saving bank deposit in corporation bank, Delhi 12,000
2) Income from agriculture in Africa invested in Russia 5,000
3) Dividends received in USA from an English Company,
out of which Rs. 2,000 were remitted to India 12,000
4) Salary drawn for two months for working in Indian
Embassy’s Office in Australia and Salary received there 48,000
5) Income from house property (The building is situated in
Iraq, out of which Rs. 20,000 deposited in a bank in Iraq
and the balance remitted to India 25,000
6) Pension received in Belgium for services rendered in
India with a limited company 10,000
You are required to compute his gross total income for the Assessment Year
2013-14 if he is
a) resident and ordinarily resident,
b) not ordinarily resident, and
c) a non resident.
4. A) Arvind, an employee in a private company at Delhi has furnished the following
particulars in respect of his earnings for the year ending 31-3-2013. He retired
on 31-3-2013. 10
Rs.
1) Basic Salary including D.A. 6,20,000
2) Retirement gratuity not exceeding 1/2 months salary for
each year of completed service computed on average salary of
last 10 months claimed exempt u/s 10(10). He is not covered
under the payment of Gratuity Act 11,00,000
3) Though he had no earned leave to his credit yet he was paid
Rs. 50,000 which is claimed exempt u/s 10(10AA) as retirement
benefit of en-cashing earned leave.
4) He has been provided with a car from company (Less than 1.6 ltr. engine
capacity) without driver for only coming and going from residence to office
and back. The car is owned by the company.
5) Company has paid the residential gas, electricity and water bills of
Rs. 20,000 during the year.
6) The accommodation provided is a company owned flat fully furnished at a
cost of Rs. 1,00,000. Its fair rental value is Rs. 8,000 p.m. only.
He has paid professional tax of Rs. 2,500 during the year. Compute his income
under the head salaries for the assessment year 2013-14.
OR
-5- SLR-NN – 16
B) Mr. Arun Lal is employed in Bharat Taxtiles Ltd. Mumbai on a monthly salary
of Rs. 20,000. In addition to this fixed salary, he is entitled to a commission
@ 5% on the sales made by him. During the previous year 2012-13, he had
received following allowance and amenities from his employer.
i) Dearness allowance @ Rs. 2,000 per month which is granted to him
under the terms of employment and counted for retirement benefits.
ii) Bonus equal to two months basic salary
iii) House Rent Allowance @ Rs. 5,000 per month
iv) Entertainment allowance @ Rs. 250 per month.
v) The company paid Rs. 1,000 as his income tax penalty.
vi) In September 2012 during leave he went on a visit to Kashmir with his
family. The expenditure amounting to Rs. 16,000 as passage money by
air was paid to him by employer as leave travel assistance.
vii) He had been provided with the amenities of gas, electricity and water, the
expenses of which amounting to Rs. 12,000 were paid by the company.
viii) Commission on sale of Rs. 10,00,000 @ 5%.
ix) He was given Titan Watch worth Rs. 9,000 by his employer on the foundation
day of the company.
x) He and his employer each contributed 12.5% of his salary to recognized
provident fund. The interest credited to this fund for the previous year at
13.5% rate of interest amounted to Rs. 27,000.
Compute the taxable income from salary of Mr. Arun Lal for the assessment
year 2013-14 keeping in mind that he spent Rs. 6,000 p.m. as rent of the
house hired by him.
SLR-NN – 16 -6-
5. A) For the assessment year 2013-14, John submits the following information : 10
House 1 Rs. House 2 Rs.
Fair Rent 75,000 85,000
Rent 78,000 78,000
Municipal valuation 76,000 75,000
Municipal taxes due 13,000 14,000
Repairs 3,500 4,700
Insurance 2,000 3,000
Land revenue (paid) 2,500 4,000
Ground rent (due) 1,600 6,000
Interest on capital borrowed by mortgaging
House 1 (funds are used for construction of
House 2) Rs. 14,000
Nature of occupation Let out for Let out for
residence business
Determine the taxable income of John for the assessment year 2013-14.
OR
B) Giri owns two houses which he occupied for his own residence. He submits
the following particulars in respect of these houses for the financial year
2012-13 :
House 1 Rs. House 2 Rs.
Municipal value 12,000 24,000
Fair rent 15,000 27,000
Standard rent under Rent Control Act 9,000 20,400
Municipal tax paid 1,800 2,400
Amount spent on repairs 1,200 3,000
Interest paid/payable on loan taken for
building the house 3,000 36,000
Giri request you to compute his total income in a manner which minimises his
incidence of tax.
_____________________
M.Com. – I (Semester – I) (New) Examination, 2014
TAXATION (Paper – I) (Gr. C)
Day and Date : Saturday, 19-4-2014 Total Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
Instructions : 1) All questions are compulsory.
2) Figures to the right indicate marks.
1. Select the correct choice : 10
1) Finance Bill becomes the Finance Act when it is passed by
A) The Lok Sabha
B) Both the Lok Sabha and Rajysabha
C) Both the Houses of Parliament and given the assent of the President
D) Both the Houses of Parliament and given the assent of the Prime Minister/
Finance Minister
2) Body of individuals should consist of
A) Individuals only
B) Persons other than individuals only
C) Both the above
D) None of these
3) Surcharge on income tax is payable by
A) All assesses except a foreign company
B) Individual and HUF only
C) A company, domestic or foreign
D) None of these
SLR-NN – 16 -2-
4) The maximum amount on which income tax is not chargeable for the
assessment year 2013-14 in case of a resident woman who is less than 60
years old is
A) Rs. 2,00,000
B) Rs. 5,00,000
C) Rs. 2,50,000
D) Rs. 2,40,000
5) The maximum amount on which income tax is not chargeable for the assessment
year 2013-14 in case of a resident woman who is less than 60 years old is
A) Rs. 2,00,000
B) Rs. 5,00,000
C) Rs. 2,50,000
D) Rs. 2,40,000
6) RDC Ltd., is registered in U.K. The control and management of its affairs is
wholly situated in India. R Ltd., shall be
A) resident in India
B) non-resident in India
C) not ordinarily resident in India
D) None of these
7) An award of Rs. 1,00,000 was announced for tracing a missing person.
R traced the person and received the award amount. Such receipt shall be
A) casual income
B) fully exempt
C) fully taxable
D) None of these
-3- SLR-NN – 16
8) An employee is covered under Payment of Gratuity Act, 1972. If the employee
has completed service of 16 years 6 months and 5 days, the number of
completed year shall be taken as
A) 16 years
B) 17 years
C) 16 years 6 months and 5 days
D) None of these
9) If rent is paid for a house situated in Delhi, the house rent allowance shall be
exempt to the maximum extent of
A) 40% of salary
B) 50% of salary
C) 60% of salary
D) None of these
10) An assessee was allowed deduction of unrealized rent to the extent of
Rs. 40,000 in the past although the total unrealized rent was Rs. 60,000. He
is able to recover from the tenant Rs. 45,000 during the previous year on
account of such unrealized rent. He shall be liable to tax to the extent of
A) Rs. 45,000
B) Nil
C) Rs. 25,000
D) None of these
2. Write short note on : 10
a) Determination of Residential status of the assesse
b) Taxable perquisites under Income from Salary.
SLR-NN – 16 -4-
3. A) Mr. Sumit, a citizen of India, is an export manager of Sidharth Overseas
Limited, an Indian Company. Since 1-5-2008. He has been regularly going to
Germany for export promotion. He spent the following days in U.S.A. for the
last five years : 10
Previous year
ended
No. of days spent in
Germany
31-3-2009 318
31-3-2010 150
31-3-2011 270
31-3-2012 311
31-3-2013 295
Determine his residential status for the assessment year 2013-14 assuming
that prior to 1-5-2008 he had never travelled abroad.
B) Following are the incomes of Raghavan, a citizen of India, for the previous
year 2012-13.
1) Interest on saving bank deposit in corporation bank, Delhi 12,000
2) Income from agriculture in Africa invested in Russia 5,000
3) Dividends received in USA from an English Company,
out of which Rs. 2,000 were remitted to India 12,000
4) Salary drawn for two months for working in Indian
Embassy’s Office in Australia and Salary received there 48,000
5) Income from house property (The building is situated in
Iraq, out of which Rs. 20,000 deposited in a bank in Iraq
and the balance remitted to India 25,000
6) Pension received in Belgium for services rendered in
India with a limited company 10,000
You are required to compute his gross total income for the Assessment Year
2013-14 if he is
a) resident and ordinarily resident,
b) not ordinarily resident, and
c) a non resident.
4. A) Arvind, an employee in a private company at Delhi has furnished the following
particulars in respect of his earnings for the year ending 31-3-2013. He retired
on 31-3-2013. 10
Rs.
1) Basic Salary including D.A. 6,20,000
2) Retirement gratuity not exceeding 1/2 months salary for
each year of completed service computed on average salary of
last 10 months claimed exempt u/s 10(10). He is not covered
under the payment of Gratuity Act 11,00,000
3) Though he had no earned leave to his credit yet he was paid
Rs. 50,000 which is claimed exempt u/s 10(10AA) as retirement
benefit of en-cashing earned leave.
4) He has been provided with a car from company (Less than 1.6 ltr. engine
capacity) without driver for only coming and going from residence to office
and back. The car is owned by the company.
5) Company has paid the residential gas, electricity and water bills of
Rs. 20,000 during the year.
6) The accommodation provided is a company owned flat fully furnished at a
cost of Rs. 1,00,000. Its fair rental value is Rs. 8,000 p.m. only.
He has paid professional tax of Rs. 2,500 during the year. Compute his income
under the head salaries for the assessment year 2013-14.
OR
-5- SLR-NN – 16
B) Mr. Arun Lal is employed in Bharat Taxtiles Ltd. Mumbai on a monthly salary
of Rs. 20,000. In addition to this fixed salary, he is entitled to a commission
@ 5% on the sales made by him. During the previous year 2012-13, he had
received following allowance and amenities from his employer.
i) Dearness allowance @ Rs. 2,000 per month which is granted to him
under the terms of employment and counted for retirement benefits.
ii) Bonus equal to two months basic salary
iii) House Rent Allowance @ Rs. 5,000 per month
iv) Entertainment allowance @ Rs. 250 per month.
v) The company paid Rs. 1,000 as his income tax penalty.
vi) In September 2012 during leave he went on a visit to Kashmir with his
family. The expenditure amounting to Rs. 16,000 as passage money by
air was paid to him by employer as leave travel assistance.
vii) He had been provided with the amenities of gas, electricity and water, the
expenses of which amounting to Rs. 12,000 were paid by the company.
viii) Commission on sale of Rs. 10,00,000 @ 5%.
ix) He was given Titan Watch worth Rs. 9,000 by his employer on the foundation
day of the company.
x) He and his employer each contributed 12.5% of his salary to recognized
provident fund. The interest credited to this fund for the previous year at
13.5% rate of interest amounted to Rs. 27,000.
Compute the taxable income from salary of Mr. Arun Lal for the assessment
year 2013-14 keeping in mind that he spent Rs. 6,000 p.m. as rent of the
house hired by him.
SLR-NN – 16 -6-
5. A) For the assessment year 2013-14, John submits the following information : 10
House 1 Rs. House 2 Rs.
Fair Rent 75,000 85,000
Rent 78,000 78,000
Municipal valuation 76,000 75,000
Municipal taxes due 13,000 14,000
Repairs 3,500 4,700
Insurance 2,000 3,000
Land revenue (paid) 2,500 4,000
Ground rent (due) 1,600 6,000
Interest on capital borrowed by mortgaging
House 1 (funds are used for construction of
House 2) Rs. 14,000
Nature of occupation Let out for Let out for
residence business
Determine the taxable income of John for the assessment year 2013-14.
OR
B) Giri owns two houses which he occupied for his own residence. He submits
the following particulars in respect of these houses for the financial year
2012-13 :
House 1 Rs. House 2 Rs.
Municipal value 12,000 24,000
Fair rent 15,000 27,000
Standard rent under Rent Control Act 9,000 20,400
Municipal tax paid 1,800 2,400
Amount spent on repairs 1,200 3,000
Interest paid/payable on loan taken for
building the house 3,000 36,000
Giri request you to compute his total income in a manner which minimises his
incidence of tax.
_____________________
0 comments:
Pen down your valuable important comments below