M.Com. DEGREE EXAMINATION, NOVEMBER 2017
Third Semester
Commerce
INCOME TAX LAW AND TAX PLANNING
(CBCS 2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all the questions.
1. Write any two features of the term 'Income'.
2. What is Annual Value?
3. What is Tax Planning?
4. From the following details calculate capital gain:
Sale consideration of residential house
Rs. 25,00,000 on 26.10.2009 (CII 632)
Cost of acquisition of the house on 1.8.2001 is
Rs. 7,02,000 (CII 426)
New residential house acquired on 2nd February
2010 is Rs. 7,50,000.
5. When a company is said to be Resident?
Sub. Code
611304
RW-778
2
Sp 6
Part B x 10 50)
Answer all the questions, choosing either or
6. How is the residential status of an Assessee
determined for income tax purposes? Discuss the
influence of residence on tax liability.
Or
Shree Ramesh has the following income for the
financial year 2015-16. Income from property
situated in London 40,000 Income from salary
received in India for services rendered in London
28,000 Profit from business in London
controlled from India 1,20,000 Profit from
Kanpur business 1,10,000 Agricultural income in
India 10,000 Compute the income of Shree Ramesh
for the assessment year 2016-17. If he is not
ordinary resident in India.
7. Mr. Parthiban is an employee of Delhi Pvt. Ltd. He
drawn salary Rs. 5,000 p.m. He gets Rs. 2,000 as
dearness allowance D.A. is a part of
superannuation benefits). He earn 10% commission
on the sales achieved by him. The sales target
achieved by him during the relevant previous year
is Rs. 40,000. He also gets house rent allowance
Rs. 2,000 p.m. The rent paid by him is Rs. 2,500
p.m. Calculate the amount of gross salary.
Or
Sanjay owns a house property. Following are the
details about the property Municipal value of house
72,000 per annum. Fair rent of house 66,000 per
annum. Standard rent of house 60,000 per annum.
The house was let out at 6,000 per month but was
sold on 1st January, 2016. Find out income from
house property for the assessment year 2016-17.
RW-778
3
Sp 6
8. Y and Z formed a partnership firm in 2014-15 to
carry on a business, X contributed a building as his
capital. He purchased his building in may 1987 for
Rs. 2,00,000.the fair market value of the building in
May 1987 for Rs. 2,00,000. The fair market value of
the building on the date of contribution was
Rs. 10,00,000. However the firm credited his capital
amount by Rs. 12,50,000. Compute the amount of
taxable capital gains. The cost of inflation index for
relevant years is: 1987-88(150), 2014-45(1024).
Or
Are the following payments allowed in computation
of income from business or profession?
Gift to employee on Deepawali 3,000
Labour welfare expenses 6,300.
Contribution to labour welfare fund 8,000
Donation to a recognized college 5,000
Contribution to approved National laboratory
for scientific research 7,000.
Give reason in support of your answer.
9. Can unabsorbed depreciation be carried forward
even if the return is filed-after due date?
Or
X and Mrs. X hold 20% and 30% equity shares in C
Ltd. respectively. They are also employeed from
1/4/2014 in Bombay branch of C Ltd. (Monthly
salary Rs. 80,000 and Rs. 40,000 respectively)
without any technical/professional qualification.
Other Income of X and Mrs. X are Rs. 1,60,000 and
Rs. 1,90,000. Find out the net income of X and
Mrs. X for the assessment year 15-16.
RW-778
4
Sp 6
10. Why there is a tax due even after TDS was
deducted?
Or
What is Central Board of Direct Tax? Discuss its
functions and powers.
Part C x 10 10)
Compulsory.
11. 'Every assessee is a person, but every person need not be
an assessee'. Critically examine the statement with
reference to the relevant definitions under the provisions
of the Income Tax Act 1961.
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