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SAINTGITS COLLEGE OF APPLIED SCIENCES

SECOND INTERNAL EXAMINATION

Final Year B.Com

INCOME TAX LAW & PRACTICE


Time: 3 Hrs Max. Marks:
80

Section A

Answer all questions.

Each carries 2 marks.

1. What is transferred balance from URPF to RPF?

2. Who is a specified employee?

3. What do you mean by partly agricultural income?

4. What do you mean by best judgment assessment?

5. What is PAN?

6. What do you mean by unabsorbed depreciation?

7. What do you mean by Capital Gain Account Scheme?

8. Explain E-filing of return

9. What do you mean by bond washing transaction?

10.What is annual accretion?

[10x2 = 20
marks]

Section B

Answer any six questions.

Each carries 5 marks.

11.Explain the provisions of clubbing of income.

12.Explain the incomes exempted from tax under the head income from
capital gain.

13.How will you determine the residential status of HUF?

14.Explain the valuation of Gas, Electricity and water under the head income
from salary.
15.Calculate the taxable capital gain. An asset was purchased in the year
2000-03 for Rs.426000. During the PY it was sold for Rs.800000. Expenses
in connection with the transfer of sale is Rs.10000. [CII2000-03:447;2007-
08:551]

16.From the following calculate GAV

Municipal Value Rs.4,00,000

Fair rental value Rs.3,75,000

Standard rent Rs.3,75,000

17.Calculate income from other sources from the following.

a. Income from agricultural land situated in Pakistan Rs.43000

b. Income from royalty Rs.5000. Actual expenditure spent for this


Rs.500

c. Salary as Member of Parliament Rs.4000 per month

d. Winnings from crossword puzzles Rs.10000

e. Rental income from plant and machinery Rs.40000 excluding


Rs.2000 for repairs and Rs.5000 for depreciation.

18.From the following calculate taxable HRA

Basic salary Rs.140000 p.a

DA Rs.95000 p.a[Rs.45000 forms part of salary]

HRA Rs.72000 p.a

He resides in his own house. Turnover achieved by him is


Rs.1000000 with a commission of 3%. He works in Kanyakumari.

[6 x 5 = 30
marks]

Section C

Answer any three questions.

Each carries 10 marks.

19.Explain any ten incomes exempt from tax.

20.Explain the different types of assessment.


21.From the following details calculate taxable capital gain.

a. Sale consideration of residential house for Rs.3000000 on 26-08-


2007

b. Cost of acquisition of the house on 1-7-99 is Rs.1002000[CII:389]

c. New residential house acquired on 2nd March 2008 for Rs.1000000

d. Cost of stamp and registration fees Rs.100000.

22.From the following P&L a/c calculate income from business

To rent 50,000 By gross profit


3,00,000

To salary to employees 45,000 By house property income


1,50,000

To depreciation 8,000 By income from other sources


2,50,000

To donation 8,000

To net profit 5,89,000

7,00,000
7,00,000

23.Mr.M is employed in ABC Ltd., Bangalore. He gets the following


emoluments. Calculate income from salary.

Basic salary Rs.12500 per month

DA [forming part] Rs.600 p.m

Bonus Rs.5000

Fees Rs.1000

2% commission on turnover achieved [turnover achieved Rs.1,


50,000]

HRA Rs.7250 p.m [rent paid Rs.6400 p.m]

Entertainment allowance Rs.400 p.m

[3 x 10 = 30
marks]