DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
Second Semester
Corporate Secretaryship
DIRECT TAXES
(Upto 2012 13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Define the following terms
Assessment Year
Assessee and
Person.
2. What are the deductions allowed u/s 24 and what extent
its allowed?
3. What are the powers of Income Tax Officers?
4. Mr. X is employed at Amritsar on a salary of
Rs. 3,000 pm. The employer is paying HRA of
Rs. 350 pm. But the actual rent paid by him (employer) is
Rs. 500 pm. He is also getting commission on turnover
achieved by him and turnover is Rs. 1,50,000. Calculate
gross salary.
Sub. Code
23
DE-425
2
sp3
5. The following are particulars of income of Mr. Sultan, for
the assessment year 2014-15.
Rs.
Income from House Property (Computed) 61,200
Business Income 80,000
Dividend (Gross) from a Co-operative
Society 500
Long term Capital gain from land 1,800
Life Insurance premium on his own life, 28,000
Deposit in National Savings Scheme 1992 12,500
Compute his total income.
6. Compute the income, for the year ending 31st March,
2015 under the head 'Income from other sources' of
Mr. Devakumar. His investment were
Govt. securities Rs. 70,000.
7.5% Agra municipal bonds Rs. 50,000.
debentures of a company Rs. 30,000.
capital investments bonds Rs. 20,000.
7. The following are the particulars of income of Mr. NSM
for the previous year ended 31.3.2015.
Rs.
Loss from house property 6,000
Interest received on Sundry Advances 3,000
Cloth business income 70,000
Share of loss in a firm 18,000
Loss in speculation 3,200
Dividends 5,000
Short term capital gains 1,500
Long term capital gains 21,000
Compute the gross total income of Mr. setting off
the different losses against other incomes and state
losses, which could be carried forward.
DE-425
3
sp3
8. Business income of an individual for the Assessment
Year. 2015-16 has been determined by the assessing
officer at Rs. 2,50,000. Later, it is found that he has not
considered the following while determining the income
Rs.
Depreciation for the current year 12,000
Unabsorbed depreciation carried forward 15,000
Unabsorbed business loss carried forward
from A.Y. 2012-2013 3,000
Determine the total income for the A.Y. 2015-16.
PART B — × 15 60 marks)
Answer any FOUR questions.
9. Discuss the incomes totally exempt from tax u/s 10 of
Income Tax Act 1961.
10. Explain the deductions allowed in respect of certain
payments u/s 80G.
11. The following particulars relates to income of Mr. Metha
for the previous year 2014-15. He is employed in a cotton
textile mill at Bengaluru on a monthly salary of
Rs. 25,000. He is also entitled to a commission of
sales achieved by him. The sale effected by him during
the previous year amounted to Rs. 40,00,000. He received
the following allowances and perquisites during the
previous year
Dearness pay Rs.6,000 pm.
Bonus two months basic salary.
Entertainment allowance Rs. 2,000 pm.
House rent allowance Rs. 5,000 pm.
He spent Rs. 6,000 pm as rent of the house occupied
by him in Bangaluru.
The employer paid Rs. 10,000 towards the income
tax liability of Mr. Metha.
DE-425
4
sp3
He has also been provided with gas, electricity and
water facility and employer spent Rs. 15,000 on
these.
He and his employer both contribute 15% of his
salary to his recognised provident fund.
Interest credit to this fund amounting to
Rs. 30,000 during the previous year.
Compute his taxable salary income.
12. Mr. Kannan owns three houses. From the following
details calculate his income from house property.
Particulars House 1 House 2 House 3
Municipal Value 50,000 pa 1,00,000 pa 70,000 pa.
FRV 60,000 pa 1,20,000 pa 1,00,000 pa
Standard rent 55,000 pa 1,10,000 pa 1,05,000 pa
Rent received Nil 15,000 pm Nil
Municipal Taxes 2,500 15,000 5,000
Interest on loan for
construction 12,000 24,000 18,000
Vacancy period Nil 2 Months Nil
Unrealised Rent Nil Nil Nil
Nature of occupation Self
Occupied
Let out Own
Business
13. Following are the particulars of assets sold during the
previous year 2014-15. Calculate the taxable amount of
capital Gains if CII for 2014 15 is 1024.
Assets Year of
Acquisition
CII Cost of
Acquisition
FMV
as on
1-4-81
Selling
expenses
Selling
price
Shop 1980 81 100 20,000 40,000 10,000 3,80,000
Jewellery 1980 81 100 10,000 55,000 4,75,600
Shares 1982 83 109 22,000 2,000 1,90,000
Shares 1990 91 182 8,000 1,000 20,000
Plant
(Depreciable)
1982 83 109 4,00,000

7,00,000
Residential
House
1984 85 125 60,000 4,20,000
DE-425
5
sp3
14. Giri is an employee of a Private Limited Company based
in Coimbatore. He gets Rs. 5,000 per month as salary.
Besides the employer provides him a housing facility at
concessional rate (lease rent of unfurnished house
Rs. 46,000) Cost of furniture Rs. 50,000. Rent paid by the
assessee Rs. 10,000 and medical allowance of Rs. 1,200
per month. Determine the net income and tax liability of
Giri for the assessment year 2015-16 after giving due
consideration to the following particulars.
Rs.
Long term capital gain 16,000
Winning from Lottery (Gross) 60,000
Expenses incurred in collecting Lottery prize 1,000
Mediclaim insurance premium paid on his wife's life 2,000
Investment in Eligible infrastructure bonds 30,000
Contribution to public provident funds 80,000
Life insurance premium on own life (sum assumed
Rs. 1,00,000) 30,000
15. From the following profit and loss account of
Mr. Ananthasekaran, Compute taxable income for the
assessment year 2015-16.
Rs. Rs.
Opening stock 15,000 Sales 1,80,000
Purchases 40,000 Closing stock 20,000
Wages 20,000 Gift from father 10,000
Rent 46,000 Sale for car 17,000
Repairs for car 3,000 Income tax refund 3,000
Medical expenses 3,000
General expenses 10,000
Depreciation of car 4,000
Profit for the year 89,000
2,30,000 2,30,000
DE-425
6
sp3
Following is the further information:
Mr. Ananthasekaran carries on his business from a
rented premises half of which is used as his
residence.
Opening stock as well as Closing stock valued at
15% below cost.
Mr. Ananthasekaran bought a car during the year
for Rs. 20,000. He charged 20% depreciation on the
value on the car. The car was sold during the year
for Rs. 17,000. The use on the car was 3/4th for the
business and 1/4th for personal use.
Medical expenses were incurred during the sickness
on Mr. Ananthasekaran for his treatment.
Wages include Rs. 250 per month on account of
Mr. Ananthasekaran's driver for 10 months.