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PES INSTITUTE OF TECHNOLOGY – BANGALORE SOUTH CAMPUS

Dept. of MBA

Lesson Plan
Semester – I

Subject Code : 14MBAFM403 Total no of Lectures: 56


Subject Title : Tax Management IA Marks: 50
Type : Finance Credits: 4
Faculty Name : Mr. Saravanakrishnan V Exam Hours: 03
No of Lecture Hours / Week : 04 Exam Marks: 100
Practical Component Hour : 01 Ratio of theory to problems: 50 : 50

Pre-Requisite: Mention the pre-requisite course code if required


Read the highlights of this year and previous year Union Budget.

Course Objectives:
1.To provide the students with a comprehensive understanding of residential status in tax laws
2. To acclimatize the students with process of computing tax liability of Individuals
3. To understand corporate taxation system in the country
4. To know the deductions and exemptions available in the tax laws
5. To Provide Insight into GST
Course Outcomes:
1. Realize the complexities involved in tax liability of Individuals
2. Know the corporate tax system.
3. Ad Be aware of deductions and exemptions of taxes
4. Understand working of GST system in the country

Table - 1
Session Plan
Session No.

Cumulative
Module No

Evaluation
Technique

Coverage
Learning
Student
Contents Pedagogical Presentation Assignments
Tools /Practical / additional
Component work

I 1 Course Outline: Introduction to Lecture Refer the Refer the # Class Discussion
subject and importance of the Case Discussion Table 2 Table 3 # Test I
subject and career Video # Case Presentation
Course Objective: To make the
students understand the
importance of subject
Course Outcome: 8%
Will be able to understand the use
of subject and career option
available for the field of study.

2 Course Outline: Basic concepts: Lecture Refer the Refer the # Class Discussion
assessment year, previous year, Case Discussion Table 2 Table 3 # Test I
person, assessee, Income, charges Video # Case Presentation
on income, gross total income,
Course Objective: To understand
the basic concepts
Course Outcome:
Students will be able to understand
AY,PY and other basic concepts.
3 Course Outline: Lecture Refer the Refer the # Class Discussion
capital and revenue receipts, Case Discussion Table 2 Table 3 # Test I
residential status, Video # Case Presentation
Course Objective:
To know capital and revenue
receipts
Course Outcome: students will be
able to understand and differentiate
what is capital and revenue receipts
4 Course Outline: Lecture Refer the Refer the # Class Discussion
Receipt and accrual of income, Case Discussion Table 2 Table 3 # Test I
connotation of income deemed to Video # Case Presentation
accrue or arise in India.
Course Objective:
TO know about income and
connotation of income
Course Outcome:
Will be able identify the different
types of income
5 Course Outline: Tax Planning, Tax Lecture Refer the Refer the # Class Discussion
Evasion and Tax Management. Case Discussion Table 2 Table 3 # Test I
Course Objective: To understand Video # Case Presentation
tax Planning, Tax Evasion and Tax
Management.
Course Outcome:
Will be able to understand the
importance of tax planning and about
evasion and how to manage the tax.
6 Course Outline: Problems on Lecture Refer the Refer the # Class Discussion
residential Status of Individual assessee Problem Solving Table 2 Table 3 # Test I
Course Objective: To understand Case Discussion # Case Presentation
how to do problems on residential Video
status
Course Outcome: Will be able to
find out the residential status
Course Outline: Problems on Lecture
7 residential Status of Individual assessee Problem Solving Refer the Refer the # Class Discussion
Course Objective: To understand Case Discussion Table 2 Table 3 # Test I
how to do problems on residential Video # Case Presentation
status
Course Outcome: Will be able to
find out the residential status
Course Outline: Problems on Lecture
8 residential Status of Individual assessee Problem Solving Refer the Refer the # Class Discussion
Course Objective: To understand Case Discussion Table 2 Table 3 # Test I
how to do problems on residential Video # Case Presentation
status
Course Outcome: Will be able to
find out the residential status

Coverage
Learning
Evaluatio

Techniqu

Cumulati
Student
Session
Module

No.
No

Pedagogical Presentation Assignments

ve
n

e
Tools /Practical / additional
Component work
Course Outline:
II 9 Explanation under various heads of Lecture Refer the Refer the # Class Discussion
income. Case Discussion Table 2 Table 3 # Test I
Course Objective: To understand Video # Case Presentation
the various heads of income
Course Outcome: Will be able to
understand the various heads of
income for tax calculations 32%
Course Outline:
10 Explanation under various heads of Lecture Refer the Refer the # Class Discussion
income. Case Discussion Table 2 Table 3 # Test I
Course Objective: To understand Video # Case Presentation Cum
the various heads of income ulati
Course Outcome: Will be able to ve
understand the various heads of Cov
income for tax calculations erag
Course Outline: Income from e
11 salary (Basic problems) Lecture/Problem Refer the Refer the # Class Discussion
Course Objective: Solving Table 2 Table 3 # Test I
To know how to calculate tax for Case Discussion # Case Presentation
income from salary Video
Course Outcome:
Students will be able to calculate
tax for person income from salary

Course Outline: Income from


12 salary (Basic problems) Lecture Refer the Refer the # Class Discussion
Course Objective: Case Discussion Table 2 Table 3 # Test I
To know how to calculate tax for Video # Case Presentation
income from salary
Course Outcome:
Students will be able to calculate
tax for person income from salary

13 Course Outline: Income from


salary (Basic problems) Lecture Refer the Refer the # Class Discussion
Course Objective: Case Discussion Table 2 Table 3 # Test I
To know how to calculate tax for Video # Case Presentation
income from salary
Course Outcome:
Students will be able to calculate
tax for person income from salary

14 Course Outline: Income from


salary (Basic problems) Lecture Refer the Refer the # Class Discussion
Course Objective: Case Discussion Table 2 Table 3 # Test I
To know how to calculate tax for Video # Case Presentation
income from salary
Course Outcome:
Students will be able to calculate
tax for person income from salary

15 Course Outline: Income from


salary (Basic problems) Lecture Refer the Refer the # Class Discussion
Course Objective: Case Discussion Table 2 Table 3 # Test I
To know how to calculate tax for Video # Case Presentation
income from salary
Course Outcome:
Students will be able to calculate
tax for person income from salary

16 Course Outline: Income from


salary (Basic problems) Lecture Refer the Refer the # Class Discussion
Course Objective: Case Discussion Table 2 Table 3 # Test I
To know how to calculate tax for Video # Case Presentation
income from salary
Course Outcome:
Students will be able to calculate
tax for person income from salary

Course Outline: Income from


House Property
17 Course Objective: To understand Lecture Refer the Refer the # Class Discussion
the income from house property Cases Discussion Table 2 Table 3 # Test I
Course Outcome: Video # Case Presentation
Student will able to identify the
income from HP
18 Course Outline: Income from
House Property Lecture Refer the Refer the # Class Discussion
Course Objective: To understand Problem solving Table 2 Table 3 # Test I
the income from house property Cases Discussion # Case Presentation
Course Outcome: Video
Student will able to identify the
income from HP

Techniqu
Session No.

Learning
Student
Contents Pedagogical Presentation Assignments

Evaluation
Tools /Prac /

e
tical additi
Comp onal
onent work
19 Course Outline:
Income under the head Profit and Lecture Refer the Refer the # Class Discussion
III Gains of Business or Professions Problem solving Table 2 Table 3 # Test II
and its computation- Course Cases Discussion # Case Presentation
Objective: To know the Video
computation method
Course Outcome: student will
know how to calculate

20 Course Outline: basic Lecture


method of accounting Problem solving Refer the Refer the # Class Discussion
Course Objective: to know the Cases Discussion Table 2 Table 3 # Test II
basic method of accounting Video # Case Presentation
Course Outcome: will be able to
do basic accounting
21 Course Outline: scheme of Lecture
business deductions/ allowance- Problem solving Refer the Refer the # Class Discussion
Course Objective: to know the Cases Discussion Table 2 Table 3 # Test II
scheme of business deductions & Video # Case Presentation
allowance
Course Outcome: Will be able to
understand the deductions & 50%
allowance which help to reduce tax

22 Course Outline: deemed profits-


maintenance of books, Lecture Refer the Refer the # Class Discussion
Depreciation Problem solving Table 2 Table 3 # Test II
Course Objective: To know the Cases Discussion # Case Presentation Cum
deemed profits and to maintain the Video ulati
books ve
Course Outcome: Cov
Will be able to understand about erag
deemed profits e

23 Course Outline: Problems on


computation of income from Lecture Refer the Refer the # Class Discussion
business Problem solving Table 2 Table 3 # Test II
Course Objective: To calculate Cases Discussion # Case Presentation
the taxable income of business Video
Course Outcome: Students will be
able to calculate taxable income of
business
24 Course Outline: Problems on
computation of income from Lecture Refer the Refer the # Class Discussion
business Problem solving Table 2 Table 3 # Test II
Course Objective: To calculate Cases Discussion # Case Presentation
the taxable income of business Video
Course Outcome: Students will be
able to calculate taxable income of
business
25 Course Outline: Problems on
computation of income from Lecture Refer the Refer the # Class Discussion
business Problem solving Table 2 Table 3 # Test II
Course Objective: To calculate Cases Discussion # Case Presentation
the taxable income of business Video
Course Outcome: Students will be
able to calculate taxable income of
business
26 Course Outline: Problems on
computation of income from Lecture Refer the Refer the # Class Discussion
business Problem solving Table 2 Table 3 # Test II
Course Objective: To calculate Cases Discussion # Case Presentation
the taxable income of business Video
Course Outcome: Students will be
able to calculate taxable income of
business
27 Course Outline: Problems on Lecture Refer the Refer the # Class Discussion
computation of income from Problem solving Table 2 Table 3 # Test II
profession of Individual assessee Cases Discussion # Case Presentation
and Depreciation Video
Course Objective: To calculate
the taxable income of profession
Course Outcome: Students will be
able to calculate taxable income of
profession
28 Course Outline: Problems on Lecture Refer the Refer the # Class Discussion
computation of income from Problem solving Table 2 Table 3 # Test II
profession of Individual assessee Cases Discussion # Case Presentation
and Depreciation
Course Objective: To calculate
the taxable income of profession
Course Outcome: Students will be
able to calculate taxable income of
profession
IV

Techniqu
Module No

Learning
Student
Contents Pedagogical Presentation Assignments

Evaluation
Tools /Prac /

e
tical additi
Comp onal
onent work
29 Course Outline: Lecture Refer the Refer the # Class Discussion
Income under capital gain, basis of Problem solving Table 2 Table 3 # Test II
charge, Course Objective: Cases Discussion # Case Presentation
Course Outcome:

30 Course Outline: transfer of capital Lecture Refer the Refer the # Class Discussion
asset Problem solving Table 2 Table 3 # Test II
Course Objective: To know Cases Discussion # Case Presentation
transfer of capital asset
Course Outcome: Students will be
aware of transfer of capital asset

31 Course Outline:, inclusion & Lecture Refer the Refer the # Class Discussion
exclusion from capital asset, capital Problem solving Table 2 Table 3 # Test II
gain Cases Discussion # Case Presentation
Course Objective: To know the
inclusion & exclusion from capital
asset, capital gain
Course Outcome: Students will be
able to understand the inclusion
and exclusion from capital asset will
be able to calculate to tax liability.
32 Course Outline: computation of Lecture Refer the Refer the # Class Discussion
capital gain( theory & problems), Problem solving Table 2 Table 3 # Test II
Course Objective: To compute Cases Discussion # Case Presentation
the capital gain
Course Outcome: will be able to
compute the capital gains from
capital asset

33 Course Outline: computation of Lecture Refer the Refer the # Class Discussion
capital gain( theory & problems), Problem solving Table 2 Table 3 # Test II
Course Objective: To compute Cases Discussion # Case Presentation
the capital gain
Course Outcome: will be able to
compute the capital gains from
capital asset

34 Course Outline: computation of Lecture Refer the Refer the # Class Discussion
capital gain( theory & problems), Problem solving Table 2 Table 3 # Test II 71%
Course Objective: To compute Cases Discussion # Case Presentation
the capital gain
Course Outcome: will be able to
compute the capital gains from
capital asset

35 Course Outline: computation of Lecture Refer the Refer the # Class Discussion
capital gain( theory & problems), Problem solving Table 2 Table 3 # Test II Cum
Course Objective: To compute Cases Discussion # Case Presentation ulati
the capital gain ve
Course Outcome: will be able to Cov
compute the capital gains from erag
capital asset e

36 Course Outline: computation of Lecture Refer the Refer the # Class Discussion
capital gain( theory & problems), Problem solving Table 2 Table 3 # Test II
Course Objective: To compute Cases Discussion # Case Presentation
the capital gain
Course Outcome: will be able to
compute the capital gains from
capital asset
37 Course Outline: deductions from Lecture Refer the Refer the # Class Discussion
capital gains. Problem solving Table 2 Table 3 # Test II
Course Objective: To understand Cases Discussion # Case Presentation
the deductions from capital gains Video
Course Outcome: Will be able to
reduce the tax liability by applying
if deduction any under capital
gains.
38 Course Outline: Income from Lecture Refer the Refer the # Class Discussion
Other Sources Problem solving Table 2 Table 3 # Test II
Course Objective: To know the Cases Discussion # Case Presentation
other sources of income Video
Course Outcome: will be able
identify and understand the
different source of income
39 Course Outline: Permissible Lecture Refer the Refer the # Class Discussion
deductions under section Problem solving Table 2 Table 3 # Test II
80C to 80U. Cases Discussion # Case Presentation
Course Objective: To understand Video
the deduction available under
income tax law
Course Outcome:
Will be aware of deductions and
exemptions of taxes helps to
reduce the tax liability.
40 Course Outline: Lecture Refer the Refer the # Class Discussion
Setoff and carry forward of losses. Problem solving Table 2 Table 3 # Test II
Course Objective: To know how Cases Discussion # Case Presentation
to setoff and carry forward the Video
losses
Course Outcome:
Students will be able to understand
how to setoff and forward the
losses they make in business and
profession.
Techniqu
Session No.

Evaluation
Learning

e
Student
Contents Pedagogical Presentation Assignments
Tools /Prac /
tical additi
Comp onal
onent work
41 Course Outline: Lecture Refer the Refer the # Class Discussion
Computation of tax liability of a firm Problem solving Table 2 Table 3 # Test III
and partners. Cases Discussion # Case Presentation
Module No

Course Objective: To compute tax Video


liability for firm and partners
Course Outcome: Students will be
able to compute tax liability of a
firm and partners

V 42 Course Outline: Lecture Refer the Refer the # Class Discussion


Computation of tax liability of a firm Problem solving Table 2 Table 3 # Test III
and partners. Cases Discussion # Case Presentation
Course Objective: To compute tax Video
liability for firm and partners
Course Outcome: Students will be
able to compute tax liability of a
firm and partners

43 Course Outline: Lecture Refer the Refer the # Class Discussion


Computation of tax liability of a firm Problem solving Table 2 Table 3 # Test III
and partners. Cases Discussion # Case Presentation
Course Objective: To compute tax Video
liability for firm and partners
Course Outcome: Students will be
able to compute tax liability of a
firm and partners
45 Course Outline: Lecture Refer the Refer the # Class Discussion
Computation of tax liability of a firm Problem solving Table 2 Table 3 # Test III
and partners. Cases Discussion # Case Presentation 89%
Course Objective: To compute tax Video
liability for firm and partners
Course Outcome: Students will be
able to compute tax liability of a
firm and partners

46 Course Outline: Computation of Lecture Refer the Refer the # Class Discussion
taxable income of a Problem solving Table 2 Table 3 # Test III Cum
company with special reference to Cases Discussion # Case Presentation ulati
MAT. Video ve
Course Objective: To compute tax Cov
liability for company using MAT. erag
Course Outcome: e
Will be able understand MAT and
compute tax income for company
using MAT.
47 Course Outline: Computation of Lecture Refer the Refer the # Class Discussion
taxable income of a Problem solving Table 2 Table 3 # Test III
company with special reference to Cases Discussion # Case Presentation
MAT. Video
Course Objective: To compute tax
liability for company using MAT.
Course Outcome:
Will be able understand MAT and
compute tax income for company
using MAT.
48 Course Outline: Computation of Lecture Refer the Refer the # Class Discussion
taxable income of a Problem solving Table 2 Table 3 # Test III
company with special reference to Cases Discussion # Case Presentation
MAT. Video
Course Objective: To compute tax
liability for company using MAT.
Course Outcome:Will be able
understand MAT and compute tax
income for company using MAT.
49 Course Outline: Computation of Lecture Refer the Refer the # Class Discussion
taxable income of a Problem solving Table 2 Table 3 # Test III
company with special reference to Cases Discussion # Case Presentation
MAT. Video
Course Objective: To compute tax
liability for company using MAT.
Course Outcome: Will be able
understand MAT and compute tax
income for company using MAT.
50 Course Outline: Corporate Lecture Refer the Refer the # Class Discussion
dividend Tax Problem solving Table 2 Table 3 # Test III
Course Objective: To know about Cases Discussion # Case Presentation
corporate dividend tax Video
Course Outcome: Will be able to
understand corporate dividend tax

Techniqu
Session No.

Evaluation
Learning

e
Student
Contents Pedagogical Presentation Assignments
Tools /Prac /
tical additi
Comp onal
onent work
51 Course Outline: Lecture Refer the Refer the # Class Discussion
Introduction to GST, Cases Discussion Table 2 Table 3 # Test III
Module No

Course Objective: To make aware Video # Case Presentation


of GST
Course Outcome: Will be able to
understand GST and application of
it the country

VI 52 Course Outline: Levy and Lecture Refer the Refer the # Class Discussion
exemption, Cases Discussion Table 2 Table 3 # Test III
Course Objective: To know the Video # Case Presentation
vevy and exemption
Course Outcome: Will be able
understand the levy and exemption
under GST

53 Course Outline: Time and value of Lecture Refer the Refer the # Class Discussion
supply Cases Discussion Table 2 Table 3 # Test III
Course Objective: To know the Video # Case Presentation
time and value of supply
Course Outcome: Awareness
about time and value supply in GST
54 Course Outline: Administration of Lecture Refer the Refer the # Class Discussion
GST. Problem solving Table 2 Table 3 # Test III
Course Objective: To know the Cases Discussion # Case Presentation
administration of GST Video
Course Outcome: Realize the
administration of GST in India

55 Course Outline: Introduction to Lecture Refer the Refer the # Class Discussion
Customs duty. Problem solving Table 2 Table 3 # Test III
Course Objective: To help to Cases Discussion # Case Presentation
understand about custom duty Video
Course Outcome: Be aware of
custom duty
56 Course Outline: Revision of rules Lecture Refer the Refer the # Class Discussion 100%
and regulation and deductions of all Problem solving Table 2 Table 3 # Test III
cases Cases Discussion # Case Presentation
Course Objective: to remember Video
the deductions and rules
Course Outcome: Will be shown in
the results
Table – 2
Practical Component
S.No. Mod. No. Presentation Topics
Understanding the usage of software package while
1-10 I
calculating different taxes
Preparation of Income tax returns of Individual
11-20 II
assesses.
21 - 30 III to IV Preparation of sales tax returns
30 - 40 V to VI Studying the online submission of Income tax returns
Table – 3
Assignments & Additional Work
S.No. Mod. No. Assignment Topic
1 to 30 I to VI Assignment – 1:
Each student will be given one question each from
Question Bank from the following manner (One 2 marks
question, One 6 marks question and One 8 marks
question) from module 1 to 2.

Assignment – 2:
Each student will be given one question each from
Question Bank from the following manner (One 2 marks
question, One 6 marks question and One 8 marks
question) from module 3 to 4.

Assignment – 3:
Each student will be given one question each from
Question Bank from the following manner (One 2 marks
question, One 6 marks question and One 8 marks
question) from module 5 to 6.

Two Surprise Quizzes will be conducted during this


period.
Question Bank contents will be divided as an assignment topics to the students
Table – 4
Case Study Topics
S.No. Mod. No. Particulars
1 - 30 I – VI Case study will be given to the students for
presentation based on previous year question papers
problems
1 ” Question Paper, VTU, June / July 2015
2 ” Question Paper, VTU, December 2011, 12, 13, 14
3 ” Question Paper, VTU, June / July 2011, 12, 13, 14
4 ” Question Paper, VTU, December 2010
5 ” Question Paper, VTU, July 2010
6 ” Question Paper, VTU, December 2009
7 ” Question Paper, VTU, July 2009
8 ” Question Paper, VTU, December 2008
9 ” Question Paper, VTU, July 2007
10 ” Question Paper, VTU, December 2006 / January 2007
11 ” Question Paper, VTU, July 2006
12 ” Question Paper, VTU, December 2005 / January 2006
13 ” Question Paper, VTU, January / February 2005
14 ” Question Paper, VTU, June / July 2004
15 ” Question Paper, VTU, January / February 2004
16 ” Question Paper, VTU, June / July 2003
17 ” Question Paper, VTU, January / February 2003
18 ” Question Paper, VTU, July / August 2002
19 ” Question Paper, VTU, February 2002
20 ” Question Paper, VTU, August / September 2000
Table – 5
References & Additional Readings
S.No. Mod. No. Particulars
1 I – VI Mehrotra- Direct Tax – SahityaBhavan
2 ” T N Manoharan- Students Guide to Income Tax – Snow White

Table – 6
IA Pattern
Test Marks Practical / Presentations Assignments / Seminars
10 5 5

 For Internal Evaluation T1 marks and the best out of remaining two will be considered.

 1st Test is mandatory.


Question Bank:-

 3 Marks Questions:

1. What is meant by ‘Indian company’?


2. Explain the concept of ‘Business’ as per the IT Act.
3. What is meant by ‘Working Partner’ and his responsibilities?
4. Explain the words ‘Assessee’ and ‘Assessee in default’ as per IT Act.
5. What is an assessment year?
6. What is a previous year?
7. Who are included in “Person”?
8. Who is regarded as assesee?
9. Who is regarded as an assessee? How assessment year is differentiated from previous year by firm?
10. What is gross total income?
11. Define capital and revenue receipts.
12. Connotation of accrual of income – How is it computed?
13. What do you understand by expression “Salary”?
14. What is basis of charge of salary income?
15. What is basis of charge under the head “Capital gains”?
16. What is transfer of capital asset?
17. What is basis of charge under head “profits and gains of business or profession”
18. What are the basic principles for arriving at business income?
19. Method of accounting – How for relevant for computing business income?
20. What are the deemed profits and how they are charged to tax.
21. What is the mode of set off and carry forward?
22. Inter-source adjustment – How made.
23. Inter-head adjustment – How made.
24. Mention the steps involved in the process of setting off of losses and their carry forward.
25. Carry forward of loss – How to set off.
26. Deduction in respect of pension fund – when available? (Sec.80 ccc)
27. What is partnership?
28. How to find out income of firm?
29. How to find out tax liability of firm?
30. Define minimum alternate tax (MAT).
31. Who is ‘Manufacturer’ under the Central Excise Act?
32. What are the provisions of CST Act in brief?
33. What are sources of procedures under CST Act?
34. What is tax liability on inter-state sales?
35. What is VAT?
36. What is need for VAT
37. Define concept of CenVAT.
38. Define the object of central excise and customs act.
39. What is Fringe Benefit Tax (FBT)? Who pays it?
40. What is slump sale?
41. Mr. Pratap Chowdari, a resident of Ajmer, receives Rs.1,92,000/- per annum as basic salary during the previous year
2009-10. In addition he gets Rs.19,200/- as dearness allowance forming part of basic salary, 7 per cent commission on
sales made by him (sale made during the relevant previous year is Rs.86,000/-) and Rs.24,000/- per annum as house
rent allowances. He however pays Rs.21,500/- per annum as house rent. Determine the quantum of house rent
allowance exempt from tax.

42. XYZ Ltd., a company registered in India furnishes the following information for the year ending March 31, 2010.

a. Business income – Rs.32,79,000/- (Before deducting depreciation but after debiting salary to sales manager
Rs.1,00,000/-; Perquisites to sales manager Rs.14,000/-; Fringe benefit tax of Rs.1000/-; Interest of Rs.20,000/-
paid on public deposit and reserve for bad debts Rs.15,000/-).
b. Dividends from a domestic private limited company – Rs.20,000/- (declared & received on September 5, 2008
& September 20, 2008 respectively).
c. Interest from UTI – Rs.80,000/- (received on July 10, 2008). On January 3, 2008 the company purchases a
computer for Rs.2,60,000/- (depreciation rate; 60%). Besides, the company is also entitled for depreciation
allowance of Rs.36,000/- on other assets.

Determine the net income of the company for the assessment year 20010-11. The company declares 2 per cent
dividend which comes to Rs.78,600/-
 7 Marks Questions:

1. How to charge tax on Income?


2. What is total income and how is it computed?
3. What one must know for deciding residential status?
4. Connotation of receipts of income – How is it understood?
5. What are permissible deductions from salary income?
6. What is tax treatment of Provident Fund?
7. Winning from lotteries, crossword puzzles, horse races and card games etc – How to compute.
8. What is regarded as dividend and how is charged to tax?
9. What is the scheme of business deductions/allowances?
10. When maintenance of books of account becomes compulsory.
11. What are the special provisions for computing income on estimated basis under sec.44AD, 44AE and 44AF?
12. Deduction in respect of medical insurance premia – when and to what extent available? (Sec.80D)
13. Deduction in respect of medical treatment, etc – to what extent available? (Sec.80DDB)
14. Deduction in case of a person with disability – to what extent available? (Sec.80U)
15. Special provisions in respect of newly established hundred per cent export-oriented undertakings. (Sec.10B)
16. How to avail deduction in respect of export of artistic hand-made wooden articles (Sec.10BA)
17. How to find out taxable income of partners of a firm?
18. What are different kinds of companies and their relevant definitions?
19. Discuss in detail about fringe benefit tax?
20. What are the objects of the central sales tax act?
21. Which are the assets not treated as capital assets for computation of capital gain?
22. What do you understand by ‘Tax evasion’ ‘Tax avoidance’ and Tax planning?
23. When and how tax is to be deducted at source from salary u/s. 192 of Income Tax Act?
24. Explain any five incomes chargeable under the head income from other sources.

25. M/s XYZ Ltd., is engaged in the business of carriage of goods. On April 01, 2008 it owns 10 trucks (6 of which are
“heavy goods vehicle”). On May 06, 2007 one of the heavy goods vehicles is sold by the company, to purchase a light
goods vehicle on a May 10, 2008, which is put to use only from June 17, 2008. Find out the net income of XYZ Ltd.,
for the assessment year 2010-11 taking into consideration the following data:
Freight collected Rs.8,90,000
Less:
Operational expenses Rs.6,40,000
Depreciation as per section 32 Rs.1,90,000
Other office expenses Rs. 15,000
Net profit 45,000
Other business / non-business income Rs. 70,000
[Note: estimated income: HGV: Rs.3,500/- pm LGV: Rs.3150/-pm]

26. Mrs. Anitha S Kulkarni aged 26 years receives the following emoluments during the previous year 2008-09: Basic
pay: Rs.86,000, Commission (50% of basic pay); Rs.43,000/- Entertainment allowance: Rs.10,000/-. She contributes
Rs.10,720/- towards provident fund, Rs.2400/- has been deducted as professional tax, contributes Rs.10,000/- towards
mediclaim policy. Determine the taxable income assuming she is a Government employee and has statutory provident
fund.

27. X submits the following information relevant for the previous year ending March 31, 2008, for determining net income
for the assessment year 2009-10, assuming him as Non-resident in India:
Profit of Business A carried on in India Rs.80,000
Loss of Business B carried on in India (-) Rs.30,000
Profits of Business C carried on in Canada Rs.40,000
(income is earned and received in Canada
and controlled from Canada)
Loss of Business D carried on in Canada Rs.70,000
(Though profits not received in India and
Business controlled from New Delhi )
Unabsorbed depreciation of Business D Rs.52,000
Income from property situated in India Rs.12,000
Income from property situated in Canada Rs.17,000
(rent received in Canada)
Determine the net income.

 10 Marks Questions :

1. What is regarded as “Income” under the Income tax act?


2. How to determine residential status of an individual?
3. What is the relationship between residential status and incidence of tax?
4. Connotation of income deemed to accrue or arise in India – How is it understood
5. Different forms of salary – How taxed?
6. Different forms of allowances – How taxed?
7. Problems on computation of salary income.
8. What is basis of charge under the head “Income from other sources”.
9. What is regarded as interest on securities?
10. Problems on computation of income from business/profession.
11. Problems on set off and carry forward of losses
12. Deduction in respect of life insurance premium, deferred annuity, contributions to PF, subscription to certain
equity shares or debenture etc (Sec.80C)
13. Deduction in respect of maintenance including medical treatment of dependent being a person with disability –
When and to what extent available (Sec.80DD)
14. Deduction in respect of repayment of loan taken fro higher education – When and to what extent available?
(Sec.80E)
15. Special provisions in respect of newly-established undertakings in free trade zone, etc. (Sec.10A)
16. Problems on computation of taxable income of firm and partners.
17. Tax on distributed income to unit holders – Discuss.
18. Critically analyze the three variants of VAT.
19. What is a sale under CST Act? State objects and provisions of CST.
20. Explain five heads, which attracts value of fringe benefit at concessional rate.

21. Mr. Manish H Vora, an individual, sells a residential house at Madras on June 10, 2008 for Rs.32,00,000/- [cost
of the land acquired in 1985-86 is Rs.50,000/- and cost of construction in 1985-86 is Rs.3,50,000/-]. To claim
exemption u/s 54, he makes an investment of Rs.4,86,000/- on a residential flat at New Delhi and Rs.9,70,000/-
deposits in bank account for utilizing for purchase of house. Calculate the capital gain to be added to his
income. [Note: indexation for 1985-86 is 133 and 2007-08 is 551]

22. ABC Ltd, a manufacturing Company owns the following assets as on April 01, 2008.

Assets Rate of Depreciation Cost Price


Plant A 30% Rs.2,00,000
Plant B 15% Rs.4,06,000
Plant C 15% Rs.14,70,000
Plant D 30% Rs.20,000
It has purchased the following assets on 10.3.2009

Assets Rate of Depreciation WDV on 01.04.08


Plant E 30% Rs.8,00,000
Plant F 15% Rs.2,00,000

It has sold the following plants during previous year 2009-10:

Assets Rate of Depreciation Sale consideration Expenses on transfer


Plant C 15% Rs.20,00,000 Rs.20,000
Plant A 30% Rs.8,00,000 Rs.2,000

Determine the amount of depreciation and capital gain for the assessment year 2010-11. The company is not
eligible for additional depreciation.

23. Mr. Satish aged 32 years, posted at Mumbai, receives a salary of Rs.18,000 per month during 2008-09 from A
Ltd. His employer contributes Rs.26,500/- towards provident fund. His other allowances are: Special
allowance: Rs.1,14,000 and medical allowance: Rs.11,100 and 0.5 per cent commission on sales achieved by
him. During the year, turnover achieved by him is Rs.4,80,000. Employer provides a Maruti-800 car with a
chauffeur for his private and official purpose with effect from November 10, 2008. The amount of interest
credited to provident fund on May 10, 2008 at 11% comes to Rs.12,830.
Income from other sources is Rs.7,54,000.
Payment/Contributions
Insurance premium paid on own life (S.A.Rs.22,500) 6,500
Insurance premium paid on the life of mother 3,800
Insurance premium paid on the life of father 5,00
Insurance premium paid on the life of spouse (S.A.Rs.1,00,000) 4,000
Insurance premium paid on the life of major son (40,000) 3,100
Contribution towards public provident fund 50,000
Insurance premium due before 31/03/08, paid on 4/4/08 1,000
Contribution towards public provident fund 1,000
Contribution made for participating in ULIP 2,000
Repayment of loan taken from LIC for purchase of house 22,000
Tuition fee of his son 12,500
Investments in units of notified mutual fund for financing
Infrastructure facility 2,000
Determine the tax liability on the assumption that provident fund is statutory provident fund.

24. Profit and Loss account of A company [a firm of chartered accountants which satisfies all conditions of section
184 and 40(b) for year ending March 31, 2008 is as follows:
Expenses 88,000 Receipts from clients for
Depreciation 32,000 tax advice 60,000
Remuneration to partners 75,000 Audit fees 72,000
Interest on capital to partners 5,000 Net loss 2,00,000
Other information:
a) Out of expenses Rs.88,000, Rs.17,250 is not deductible u/s 36 and 37
b) Depreciation as per section 32, is Rs.33,100/-
c) Interest on capital to partners, not deductible u/s 40 (b) is Rs.700/-
Compute the income of the firm as well as remuneration deductible u/s 37 (1) read with section 40(b).
25. Mr. Mahesh Bhat, an Indian citizen, leaves India for the first time on September 20, 2006 for the purpose of
employment. He comes to India for a visit of 146 days on April 10, 2007. He comes back on May 16, 2008.
Find out his residential status for the assessment year 2010-11.

b) Dr. Jofin Patricks is a foreign citizen (not being a person of Indian origin). Since 1981, he visits India every
year in the month of April for 100 days. Find out his residential status for the assessment year 2010-11.