Solapur University Question Paper
M.Com. (Part – I) (Semester – I) (Old) Examination, 2014
TAXATION (Paper – I) (Gr. C)
Day and Date : Saturday, 19-4-2014 Max. Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
Instructions : 1) Answer to Question No. 1 and 2 are compulsory.
2) Answer any three questions from Question No. 3 to 6.
3) All questions carry equal marks.
1. Select the correct alternative : 10
i) For an individual (man or woman), resident in India who is of the age of
65 years or more at any time during the previous year the income tax will be
liable to be paid when his/her income exceeds.
a) Rs. 1,90,000 b) Rs. 2,10,000 c) Rs. 2,40,000 d) Rs. 1,85,000
ii) Income deemed to accrued or arise in India is taxable in the case of
a) Resident only
b) Non resident
c) Both ordinarily and not ordinarily resident
d) All assessees
iii) Interest credited to Unrecognised Provident Fund shall be
a) Fully exempt
b) Neither exempt nor taxable in the year of accrual
c) Fully taxable
d) Exempt upto 12% of salary
iv) Anil is entitled to watchman allowance of Rs. 600 p.m. for the security of his
house. He pays Rs. 500 pm to the watchman employed by him. The taxable
allowance shall be
a) Rs. 120 pm b) Rs. 100 pm c) Rs. 600 pm d) None of the above
v) Tea and snacks are provided by X Ltd. to employees in the office during the
office hours. The value of this perquisite shall be
a) Nil
b) Nil, if it is upto Rs. 50 per meal
c) Actual amount spent by employer
SLR-N – 4 -2-
vi) Salary for exemption of leave encashment shall be taken as
a) Last drawn salary
b) Average salary for 10 months immediately preceding the month of
retirement
c) Average salary for 10 months immediately preceding the date of retirement
vii) Ashok has a house property at New Delhi and another house property at
Mumbai where he is employed. Both the houses are self occupied. The annual
value of
a) One house shall be nil
b) Both the houses shall be nil
c) Of no house shall be nil
viii) Secondary and Higher Education Cess (SHEC) is leviable on
a) Income tax
b) Income tax and surcharge if applicable
c) Income tax, surcharge if applicable and education cess
ix) Rates of the income tax are given in
a) Income Tax Act b) Income Tax Ready Recknoer
c) Income Tax Rules d) None of the above
x) Income from house property can be
a) Only positive
b) Only nil
c) Negative only if property is self occupied
d) Positive or negative
2. Write short notes on (any two) : 10
a) Person as defined under Income Tax.
b) Income deemed to accrue or arise in India.
c) Un-recognized provident fund
d) Unrealized rent
e) Any 5 incomes which are exempt from tax.
-3- SLR-N – 4
3. Mrs. Rajani is the owner of a two storied house in Madras. She gets a monthly
rent Rs. 7,000 from her tenant in the ground floor. 10
The first floor, identical in all respect with the ground floor used to be occupied
by a friend of Mrs. Rajani from whom she charged a rent of Rs. 5,000 per month.
During the year ended 31-3-2011 the friend stayed in Mrs. R house up to
31-12-2010. On 1-1-2011 it was again let out to tenant at a rent of Rs. 7,000 per
month.
Details of expenses incurred by Mrs. Rajani during the year ending 31-3-2011 in
respect of the house were as under :
Rs.
a) Cost of repairing ground floor 7,500
b) Cost of repairing first floor 50,000
c) Interest on loan taken for construction of first floor 20,000
d) Municipal tax paid by owner 6,000
e) Monthly salary of an employee for collecting rent 1,000
Compute Mrs. Rajani’s income from house property for the assessment year
2011-12 on the basis of the above noted data.
4. Mr. Kamal Nath is Assistant manager of a National Textile Company of Jaipur,
since 1986. He has submitted the following particulars of his income for the
financial year 2010-11. 10
i) Basic salary Rs. 40,000.
ii) Dearness allowance Rs. 5,000/- per month (Rs. 200 p.m. enters into retirement
benefits).
iii) Education allowance for two children at Rs. 150 p.m. per child.
iv) Commission on sales 1% of turnover of Rs. 10,00,000.
v) Entertainment allowance Rs. 700 p.m.
vi) Travelling allowance for his official tours Rs. 30,000. The entire amount is
spent on the official tour.
vii) He was given cloth worth Rs. 1,000 by his employer free of cost.
viii) He resides in the flat of the company. Its market rent is Rs. 12,000 p.m. A
watchman and a cook have been provided by the company at the bungalow
who are paid Rs. 400 per month each.
SLR-N – 4 -4-
ix) He has been provided with a motor car of 1.8 ltr. engine capacity for his
official as well as personal use. The running and maintenance costs are
borne by the company.
x) Employers contribution to R.P.F. is Rs. 40,000/- and the interest credited to
this fund at 13% rate amounted to Rs. 16,250/-.
xi) Contribution by Sikri to recognized provident fund Rs. 40,000/-.
xii) Rent of house recovered from Sikri Rs. 1,500 p.m.
xiii) Tax deducted at source from the above payments Rs. 6,000.
Compute income from salaries for the assessment year 2011-12. Assume the
population of Jaipur is 26 lakhs as per 2001 census.
5. X earns the following income during the financial year 2010-11. 10
Rs.
a) Interest from an Indian company received in London 1,20,000
b) Pension from former employer in India received in USA 1,80,000
c) Profits earned from a business in Paris which is controlled
in India, half of the profits being received in India 2,00,000
d) Income from agricutlure in Bhutan and remitted to India 1,25,000
e) Income from property in England received there 4,00,000
f) Past foreign income brought to India 1,00,000
Compute his income for assessment year 2011-12 if he is :
i) Resident and ordinarily resident in India.
ii) Not ordinarily resident in India
iii) Non-resident in India.
6. Mr. Kennedy, who is an American citizen came to India for the first time on
17th April 2007. His stay in India during the last 4 years were as follows : 10
Financial year Stay in No. of days
2007-08 333
2008-09 111
2009-10 66
2010-11 55
Determine his residential status for all the four years from the above.
_____________________
M.Com. (Part – I) (Semester – I) (Old) Examination, 2014
TAXATION (Paper – I) (Gr. C)
Day and Date : Saturday, 19-4-2014 Max. Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
Instructions : 1) Answer to Question No. 1 and 2 are compulsory.
2) Answer any three questions from Question No. 3 to 6.
3) All questions carry equal marks.
1. Select the correct alternative : 10
i) For an individual (man or woman), resident in India who is of the age of
65 years or more at any time during the previous year the income tax will be
liable to be paid when his/her income exceeds.
a) Rs. 1,90,000 b) Rs. 2,10,000 c) Rs. 2,40,000 d) Rs. 1,85,000
ii) Income deemed to accrued or arise in India is taxable in the case of
a) Resident only
b) Non resident
c) Both ordinarily and not ordinarily resident
d) All assessees
iii) Interest credited to Unrecognised Provident Fund shall be
a) Fully exempt
b) Neither exempt nor taxable in the year of accrual
c) Fully taxable
d) Exempt upto 12% of salary
iv) Anil is entitled to watchman allowance of Rs. 600 p.m. for the security of his
house. He pays Rs. 500 pm to the watchman employed by him. The taxable
allowance shall be
a) Rs. 120 pm b) Rs. 100 pm c) Rs. 600 pm d) None of the above
v) Tea and snacks are provided by X Ltd. to employees in the office during the
office hours. The value of this perquisite shall be
a) Nil
b) Nil, if it is upto Rs. 50 per meal
c) Actual amount spent by employer
SLR-N – 4 -2-
vi) Salary for exemption of leave encashment shall be taken as
a) Last drawn salary
b) Average salary for 10 months immediately preceding the month of
retirement
c) Average salary for 10 months immediately preceding the date of retirement
vii) Ashok has a house property at New Delhi and another house property at
Mumbai where he is employed. Both the houses are self occupied. The annual
value of
a) One house shall be nil
b) Both the houses shall be nil
c) Of no house shall be nil
viii) Secondary and Higher Education Cess (SHEC) is leviable on
a) Income tax
b) Income tax and surcharge if applicable
c) Income tax, surcharge if applicable and education cess
ix) Rates of the income tax are given in
a) Income Tax Act b) Income Tax Ready Recknoer
c) Income Tax Rules d) None of the above
x) Income from house property can be
a) Only positive
b) Only nil
c) Negative only if property is self occupied
d) Positive or negative
2. Write short notes on (any two) : 10
a) Person as defined under Income Tax.
b) Income deemed to accrue or arise in India.
c) Un-recognized provident fund
d) Unrealized rent
e) Any 5 incomes which are exempt from tax.
-3- SLR-N – 4
3. Mrs. Rajani is the owner of a two storied house in Madras. She gets a monthly
rent Rs. 7,000 from her tenant in the ground floor. 10
The first floor, identical in all respect with the ground floor used to be occupied
by a friend of Mrs. Rajani from whom she charged a rent of Rs. 5,000 per month.
During the year ended 31-3-2011 the friend stayed in Mrs. R house up to
31-12-2010. On 1-1-2011 it was again let out to tenant at a rent of Rs. 7,000 per
month.
Details of expenses incurred by Mrs. Rajani during the year ending 31-3-2011 in
respect of the house were as under :
Rs.
a) Cost of repairing ground floor 7,500
b) Cost of repairing first floor 50,000
c) Interest on loan taken for construction of first floor 20,000
d) Municipal tax paid by owner 6,000
e) Monthly salary of an employee for collecting rent 1,000
Compute Mrs. Rajani’s income from house property for the assessment year
2011-12 on the basis of the above noted data.
4. Mr. Kamal Nath is Assistant manager of a National Textile Company of Jaipur,
since 1986. He has submitted the following particulars of his income for the
financial year 2010-11. 10
i) Basic salary Rs. 40,000.
ii) Dearness allowance Rs. 5,000/- per month (Rs. 200 p.m. enters into retirement
benefits).
iii) Education allowance for two children at Rs. 150 p.m. per child.
iv) Commission on sales 1% of turnover of Rs. 10,00,000.
v) Entertainment allowance Rs. 700 p.m.
vi) Travelling allowance for his official tours Rs. 30,000. The entire amount is
spent on the official tour.
vii) He was given cloth worth Rs. 1,000 by his employer free of cost.
viii) He resides in the flat of the company. Its market rent is Rs. 12,000 p.m. A
watchman and a cook have been provided by the company at the bungalow
who are paid Rs. 400 per month each.
SLR-N – 4 -4-
ix) He has been provided with a motor car of 1.8 ltr. engine capacity for his
official as well as personal use. The running and maintenance costs are
borne by the company.
x) Employers contribution to R.P.F. is Rs. 40,000/- and the interest credited to
this fund at 13% rate amounted to Rs. 16,250/-.
xi) Contribution by Sikri to recognized provident fund Rs. 40,000/-.
xii) Rent of house recovered from Sikri Rs. 1,500 p.m.
xiii) Tax deducted at source from the above payments Rs. 6,000.
Compute income from salaries for the assessment year 2011-12. Assume the
population of Jaipur is 26 lakhs as per 2001 census.
5. X earns the following income during the financial year 2010-11. 10
Rs.
a) Interest from an Indian company received in London 1,20,000
b) Pension from former employer in India received in USA 1,80,000
c) Profits earned from a business in Paris which is controlled
in India, half of the profits being received in India 2,00,000
d) Income from agricutlure in Bhutan and remitted to India 1,25,000
e) Income from property in England received there 4,00,000
f) Past foreign income brought to India 1,00,000
Compute his income for assessment year 2011-12 if he is :
i) Resident and ordinarily resident in India.
ii) Not ordinarily resident in India
iii) Non-resident in India.
6. Mr. Kennedy, who is an American citizen came to India for the first time on
17th April 2007. His stay in India during the last 4 years were as follows : 10
Financial year Stay in No. of days
2007-08 333
2008-09 111
2009-10 66
2010-11 55
Determine his residential status for all the four years from the above.
_____________________
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