DISTANCE EDUCATION
B.B.A. (CS)/B.B.A. (Lateral) DEGREE EXAMINATION,
MAY 2016.
TAX LAWS
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. What is previous year? Under what circumstances income
of a person can be assessed in same year in which it is
earned?
2. What are the different types of assessee?
3. How to determine the residential status of an assessee?
4. What are the assets not included in the capital assets?
5. List out the incomes which are taxable under the head
'Income from other sources'.
6. Write short notes on 'Deemed Income'.
7. Mr. David sold a plot on 1.6.2013 (CII 939) for
Rs.12,40,000. He spent Rs.40,000 for sale. The plot was
received by him on death of his father on 22.3.1990
(CII l72). His father had acquired it on 1.4.1980 for Rs.
1,00,000 and its FRV on 1.4.1981 was Rs. 1,40,000. On
1.6.2008, he invested Rs. 3,00,000 in NABARD bonds.
Compute his taxable capital gains.
Sub. Code
32
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8. Compute Income under the head Income from other
sources of Miss. Shanmathi
Rs.
Director's fee 20,000
Interest from Bank (Gross) 6,000
Income from undisclosed sources 24,000
Dividend on shares (Gross) 12,800
Ground Rent 600
PART B — 15 60 marks)
Answer any FOUR questions.
9. Define agricultural income. Discuss its different types.
10. Explain the concept of income and state its features.
11. Mr. X constructed one house in 1990. 75% of the property
is let out and 25% is occupied for his residence. The let
out portion is also self-occupied for one month.
The particulars are: Rs.
Municipal value of full house 5,000 p.a
Annual rent of 75% portion 4,000 p.a
Municipal taxes 500 p.a
Ground Rent l00 p.a
Repairs 200 p.a
Fire Insurance premium 150 p.a
Collection charges 60 p.a
Interest on loan taken for construction 600 p.a
His income from all other sources amounts to Rs. 10,000.
Determine his income from house property.
12. Mr. Bhagwandas is a registered medical practitioner. He
keeps his books on cash basis, and his summarized cash
account for the year ended 31st March, 2014 is as under:
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Rs. Rs.
Balance b/d 1,22,000 Cost of medicines 10,000
Loan from bank for private
purpose
3,000
Surgical
equipments
8,000
Sales of medicines 25,250 Motor car 1,20,000
Consultation fees 1,55,000 Car expenses 6,000
Visiting fees 24,000 Salaries 4,600
Interest on govt. securities 4,500 Rent of
dispensary
1,600
Rent from property (not
subjected to local taxes)
3,600 General expenses 300
Personal
expenses
1,11,800
Life insurance
premium
3,000
Interest on loan
from bank
300
Insurance of
property
200
Balance c/d 71,550
3,37,350 3,37,350
Compute his income from profession and house property
for the previous year 2013-14 taking into account the
following further information
One-third of motor-car expenses are in respect of his
personal use.
Depreciation allowable on car and surgical
equipment is 15%.
13. A purchases 250 equity shares of ABC Ltd. on June
1980 for Rs. 270 per share and incurs expenditure of Rs.
500 on brokerage and share transfer fees. The fair
market value of one equity share on 1.4.1981 is Rs. 300.
On July 1987 he gets 200 bonus shares. On July
2006 he gets 300 rights shares for Rs. 600 per share. On
September 15, 2013, he sells all the 750 shares for
Rs. 700 per share and incurs an expenditure of Rs. 1,500
on brokerage. Cost inflation index in 1981-82 Rs. 100 and
in 2013-14 is 939. Compute his taxable for the
assessment year 2014-15.
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14. The following particulars are submitted by Dr. Abirami
for the A.Y. 2014-15. You are required to compute his
gross tax liability.
Rs.
Income from House property
(computed)
68,000
Agricultural Income 15,000
Long-term capita1 gains 20,000
Lottery winning from Tamilnadu
State
50,000
Life Insurance Premium paid 5,000
Casual Income from T.V. Game
show
14,000
Business Income 1,00,000
15. From the following particulars, find out the taxable
salary of Mr. Arun working at Tiruchi (population more
than 4 lakh) for the assessment year 2014-15
Salary Rs.12,000 p.m.
D.A. Rs.1,500 p.m.
Employer's contribution to RPF 14% of salary.
Rent for accommodation — fair rental value is Rs.
80,000 p.a.
Interest on provided Fund balance 13% p.a.-Rs.
3,900.
Professional tax paid Rs. 2,000
Medical allowance received Rs.500 p.m.
Arrears of salary Rs.13,200.