You are on page 1of 3

Total No. of Questions : 7] SEAT No.

P944 [Total No. of Pages : 3

[4470] - 310
M.B.A. (Semester - III)
304 - B : Direct Taxation
(2008 Pattern)
Time : 3 Hours] [Max. Marks : 70
Instructions to the candidates:
1) Question no. 1 is compulsory Attempt any 4 from the remaining questions.
2) Use of electronic accounting calculator is allowed.
3) Figures in the right indicates full marks.

Q1) a) Define the following terms with respect to Income - Tax Act 1961:
i) Previous year
ii) Assesseo
iii) Assessment
iv) Assessment year
b) Explain briefly atleast five deductions available U/s 80c to 80u under
Income Tax Act 1961. [10]

Q2) a) Miss smita Rao is working as a Lecturer in a Government college and

her Income particulars are as follows : [10]
i) Salary Rs. 5000 p.m.
ii) DA @ 35 % which enters into retirement benefit.
iii) CCA Rs. 120 per month
iv) Children Education Allowance @ Rs. 200 per month for one child.
v) Transport allowance Rs. 800 per month
vi) Medical allowance Rs. 200 per month.
vii) HRA Rs. 3500 per month. She is staying in a rented house for
which she is paying Rs. 3200 per month as rent.
viii) Entertainment Allowance Rs. 500 P.M. professional Taxes paid Rs.
200 p.m.
Compute Taxable Salary of Miss. Smita Rao. for A. Y. 2013-14.
b) Shri satya Prasad is an employee of a company in Bangalore and draws
a Basic Salary of Rs. 6000 p.m. D. A is 10% of Basic. Bonus is 20% of
Basic. He is provided with a Rent Free Accomodation by his employer.
Determine the value of perquisite Rent Free Accomodation provided
and owned by employer. [5]

Q3) From the following information given by Mr. xyz. Find out the income from
House property for the A. Y. 2013-14.
Municipal Valuation Rs. 2,80,000 p.a.
Fair Rental value Rs. 2,85,000 p.a.
Standard Rent Rs. 2,75,000 p.a.
The property has been let out on Rent for Rs. 20,000 p.m. The house
remained vacant for two months and Rs. 20,000 could not be recovered
from the tenent which is treated as unrealised rent. Municipal Taxes
Rs. 10,000/- was paid by Mr. xyz. Interest on loan taken for the construction
of property was Rs. 120000/- which was paid by assesser. [15]

Q4) a) What are the provisions of Taxable Income and Tax Liability of company
Assesser under Minimum Alternate Tax. [8]
b) Enumerate with reference to sec 10 of Income Tax Act 1961 any seven
types of income which are exempted from Tax. [7]

Q5) Mr. Ram Bisist aged 48 years has given the following particulars of his income
and savings for the financial year ending 31 - 3 - 2013. [15]
a) Gross Salary Rs. 7,10,000 p.a.
b) Profits from Business Rs. 1,00,000 p.a.
c) Interest on Govt. Securities Rs. 5000 p.a.
d) Dividend received from an Indian Company Rs. 5600 /- p.a.
e) Income from House Property Rs. 20,000 p.a.
f) He paid Rs. 2500 p.a. as Professional Tax.
g) He paid Rs. 10,000 for LIC, Rs. 10,200 as deposit in public provident
fund and Rs. 5000/- in National savings certificate
Compute the Income Tax Liability of Mr. Ram for A. Y 2013-14.

[4470]-310 2
Q6) a) Mr. Jhonny purchased a residential house for Rs. 5,00,000 /- on
15th June 2011. Expenses incurred for purchase of house. Rs. 50,000.
He sold the house on 1st August 2013, for Rs. 6,50,000/-. Expenses
incurred on sale Rs. 5000. He made an expenditure of Rs. 15,000/- on
1st June 2012 for constructing additional room. compute his capital Gain.

b) What is capital Gain? Explain the deductions / exemptions allowed from

Capital Gain. [5]

Q7) a) For A.Y 2013-14 write down the Tax Rates [Tax slabs] applicable to the
following : [8]

i) Individual male [below 60 yrs]

ii) Individual Female [below 60 yrs]
iii) Senior Citizen [above 60 yrs]
iv) Senior Citizen [above 80 yrs]
b) Explain the provisions regarding Set Off, Carry forward Loss and Set
Off Losses under Income Tax Act 1961. [7]


[4470]-310 3