DISTANCE EDUCATION
B.B.A. (CS)/B.B.A. (Lateral) DEGREE EXAMINATION,
DECEMBER 2017.
TAX LAWS
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — x 8 40 marks)
Answer any FIVE questions.
1. Define Assessee. Explain the classes of Assessees.
2. What are included under the head "Income"?
3. Explain about deemed incomes.
4. Mr. Senthil, an Indian citizen leaves India for the first
time on 31st May 2012 and comes back on 15th May 2015.
He again leaves India on 10th June 2016 to come back on
14th January 2017. He is living in India since then.
Determine his status for the previous year 2016-17.
5. Mr. Kumar retired on 15.06.2016 from a manufacturing
company after putting service of 30 years and 7 months.
He received a Gratuity of Rs. 3,60,000. Basic salary of
Mr.Kumar was Rs.20,000 p.m. during 2015 and
Rs.22,000 p.m. during 2016. He was also getting D.A.
Rs.5,000 p.m. which was increased from Rs.4,000 on
1.4.2016. 50% of D.A. is presumed to enter into salary for
computation of all retirement benefits but 100% of DA is
part of basic salary for calculation of pension benefits.
Compute his taxable gratuity, if he is not covered under
Payment of Gratuity Act, 1972.
Sub. Code
32
DE-2455
2
SP 5
6. MRV of the residential house is Rs.24,000 and actual rent
is Rs.2,500 p.m. During the previous year 2016-17 house
was vacant for two months. The municipal taxes are
10% of MRV, During the year owner paid Rs.30,000 as
arrears of Municipal taxes. Interest on loan taken for the
construction of house payable to his employer is
Rs. 16,000. Compute income from house property.
7. Find out the indexed cost and capital gain in following
cases. Rs.
Cost of acquisition in 1976-77 1,00,000
Cost of improvement made in 1979-80 50,000
Fair market value on 1-4-1981 [C.I.I. 100] 1,60,000
Cost of additions made in 1988-89 [C.I.I. 161] 1,20,000
Sale price of the house on 1-11-2016 28,60,000
[C.I.I. 1125]
Expenses on sale 60,000
8. Calculate income from other sources from the information
given below. Rs.
Winning from lottery 1,00,000
Amount received from race winnings 35,000
Gifts Received during the previous year 2016-17
Received Rs.20,000 as gift from his friend
DE-2455
3
SP 5
Received Rs. 1,00,000 as gift from his elder
brother
Received Rs. 1,40,000 as gift on his marriage.
Received Rs.80,000 as gift from his NRI friend
on 1-1-2017
Another gift of Rs. 18,000 received from his
friend.
PART B — x 15 60 marks)
Answer any FOUR questions.
9. Explain the provisions of Agricultural Income.
10. Mr. Ram an employee of Ranchi (population 15 lakhs)
based company provides the following particulars of his
salary income:
Rs.
Basic salary 12,000 p.m.
Profit Bonus 12,000
Commission on turnover achieved by him 42,000
Entertainment allowance 2,000 p.m.
Club facility 6,000
Transport allowance 1,800 p.m.
DE-2455
4
SP 5
Free use of car of more than 1.6 lt. capacity for both
personnel and employment purposes; expenses are
met by employer.
Rent free house provided by employer.
Lease rent paid by employer 6,000 p.m.
Free education facility for three children of the
employee:
(Bills issued in the name of employer) 22,500
Gas, water and electricity bills issued
in the name of employee but paid by 16,800
employer.
Compute income under the head salary for the
assessment year 2017-18.
11. Mr.Babu owns a house property at Cochin. It consists of
3 independent units and information about the property
is given below:
Unit Own residence Unit Let out Unit Own business.
Rs.
MRV 1,20,000 p.a.
FRV 1,32,000 p.a.
Standard Rent 1,08,000 pa.
Rent 3,500 p.m.
Unrealised rent for three months
DE-2455
5
SP 5
Repairs 10,000
Insurance 2,000
Interest on money borrowed for the 96,000
construction of property
Municipal taxes 14,400
Date of completion 1.11.1998
Compute income from house property.
12. From the following statement, compute the income from
profession of Dr.Alex if accounts are maintained on
mercantile system:
Rs. Rs.
To Dispensary rent 36,000 By Visiting fees 45,000
To Electricity and water
charges
6,000 By Consultation
fees
1,25,000
To Telephone expenses 6,000 By Sales of
medicines 72,000
To Salary to nurse and
compounder
36,000 By Dividends 5,000
To Dep.on surgical equipment 6,000
To Purchase of medicines 36,000
To Depreciation on X-ray
Machine
4,000
To Income Tax 5,500
To Donation to Rama Krishna
Mission
4,000
To Motor Car expenses 9,600
To Dep.on car 4,800
To Net Income 93,100
2,47,000 2,47,000
DE-2455
6
SP 5
Additional Information:
Electricity and water charges include domestic bill
of Rs.2,500
Half of motor car expenses are for professional use.
Telephone expenses include 40% for personal use.
Opening stock of medicines was Rs. 6,000 and
closing stock was Rs.4,000
13. Mr.Vasu purchased a house in Udipi in 1976 for
Rs.50,000. He incurred the following expenses for the
improvement of the house.
Renovation of the house Rs.25,000 and additions of
2 rooms after one year Rs.20,000.
The F.M.V. of the house on 1-4-81 was Rs.1,10,000.
He sold the house in May 2016 for Rs.16,00,000.
He purchased another house property within 2 months
for Rs. 3,00,000 and invested in Capital Gains Account
Scheme Rs.50,000.Calculate taxable capital gain for the
previous year 2016-17.Cost Inflation Index for 1981-82
was 100 for 2015-16 is 1125.
14. Explain any twenty exempted incomes U/S 10.
15. Under what circumstances income of other persons can
be included in the income of assessee under Income-tax
Act, 1961?