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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (Integrated) SEMESTER 3 EXAMINATION WINTER 2018
Subject Code: 2537105 Date: 10/12/2018
Subject Name: Income Tax
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1

Explain the following concepts
1. Assessment year 2. Person 3. Previous year
07

What are the different categories of residential status? Explain how these categories are determined and affect the tax liability of an assesses?
07
Q.2

Mr. B is working in XYZ Ltd. and has given the details of his income for the P.Y. 2014-15. You are required to compute his gross salary from the details given below:
Basic Salary Rs. 10000 Pm
D.A. is for retirement benefits) Rs. 8000 Pm
Commission as a percentage of turnover
Turnover during the year Rs. 500000
Bonus Rs. 40000
Gratuity Rs. 25000
His own contribution in the RPF Rs.20000
Employer's contribution to RPF 20% of his basic salary
Interest accrued in the RPF 13% p.a. Rs. 13,000
07

Mr. X is a Finance Manager in XYZ Ltd. The company has provided him with rent-free unfurnished accommodation in Calcutta. He gives you the following particulars:
Basic salary Rs. 6,000 p.m.
Advance salary for April 2015 Rs.5000
Dearness Allowance Rs. 2,000 p.m. is for retirement benefits)
Bonus Rs. 1500 p.m.
Even though the company allotted the house to him on 1.4.2014, he occupied the same only from 1.11.2014. Calculate the taxable value of the perquisite for A.Y. 2015-16.
07
OR

Explain in detail the tax provision pertaining to interest on securities.
07
Q.3

List down the expenses which are admissible under provision of Income tax Act under the head of Profit and Gains from Business and Profession.
07

Savita has a property whose municipal valuation is Rs. 1,30,000 p.a. The fair rent is Rs. 1,10,000 p.a. and the standard rent fixed by the Rent Control Act is Rs. 1,20,000 p.a. The property was let out for a rent of Rs. 11,000 p.m. throughout the previous year. Unrealised rent was Rs. 11,000. She paid municipal taxes of municipal valuation. Interest on borrowed capital was Rs. 40,000 for the year. Compute the income from house property of Savita for A.Y.2015-16.
07
OR
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Q.3

Mr. Sharma is a practicing advocate. His Profit and Loss A/c for 2016-17 is as under. Calculate Profits and Gains from Business and Profession.
Particulars
Amt.
Particulars
Amt.
Stationery Expense
1,20,000
Fees from clients
12,00,000
Printing Expense
3,00,000
Bad Debt Recovered
20,000
Repairing of computer system
10,000
Agriculture income
10,000
Insurance of Office
15,000
Salary to staff
1,00,000
Depreciation
1,55,000
Personal expense
25,000
Bonus to employees
20,000
Fees for advice taken from expert from USA
1,30,000
Surplus/ Net Profit
3,55,000
TOTAL
12,30,000
TOTAL
12,30,000
Additional information:
i. Depreciation allowed as per Income-tax is Rs. 1,65,000.
ii. Bonus to employees is still payable.
iii. Tax has not been deducted at source on the fees paid to USA expert
07

From the following details, calculate Income from House Property for A.Y. 2017-18:
Municipal Value
Rs. 3,00,000
Fair Rent
Rs. 2,80,000
Standard Rent
Rs. 2,50,000
Actual Rent
Rs. 20,000 p.m.
Rent Unrealized for
2 months
Municipal Tax Levied
10% of municipal value
Municipal Tax Paid
Rs. 10,000
Interest on Housing Loan paid
Rs. 80,000
07
Q.4

Write short note on: Exemptions from Long-term Capital Gain. [Explain any one in detail.]
07

Explain the deductions allowed under section 80C and 80CCC of Income Tax Regulations.
07
OR
Q.4

Calculate the amount of Capital Gain from the following information:
Building I
Building II
Sale Consideration
Rs. 10,00,000
Rs. 25,00,000
Expenses on Sale
Rs. 1,00,000
0
Date of Sale
14/09/2016
29/10/2016
Cost of Purchase
Rs. 3,00,000
Rs. 11,00,000
Date of Purchase
01/02/2009
03/06/1998
Cost of Improvement
0
Rs. 25,000
Date of Improvement
N.A.
03/06/2011
Cost Inflation Index: 2016-17: 1125, 2011-12: 785, 2008-09: 582, 1998-99: 351
07

Explain the deductions allowed under section 80D, 80DD and 80E of Income Tax Regulations.
07
Q.5

List down payment on which tax is deducted at source.
07

What is Casual income? Discuss the provisions of income tax act for casual income.
07
3
OR
Q.5

Mr. Het works with TCS in Chennai office. He has received the following:
Gross Salary Rs. 5,00,000
Dearness Allowance Rs. 1,00,000
Overtime Allowance Rs. 50,000
House Rent Allowance Rs. 1,20,000
During the year, Het paid Rs. 1,32,000 as house rent. Calculate his taxable House Rent Allowance for A.Y. 2017-18.
07

Explain the following terms:
1. Capital asset 2. Long Term Capital Gain 3. Short Term Capital Gain
07