CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE – 560 029

SCHOOL OF BUSINESS AND MANAGEMENT

MID SEMESTER EXAMINATION – SEPTEMBER 2020
(BBA(H) 5th Sem)
COURSE NAME: Taxation Law I MAX MARKS: 50
COURSE CODE: BBBH532 TIME:2 HRS 30 MINUTES

SECTION A

(Answer ALL questions). Each Question Carries 15 Marks. (2X15=30 Marks)

Q. Questions Rubrics Criteria

N
o
1 Mr Tagore is a citizen of Australia, during the PY 2019-20 he stays in India for Residential Status:
82 days, while during the year 2018-19 he was in India for 120 days, in the 8 marks
year 2017-18, he visited his friend in Chennai and stayed with him for 30
days. During 2016-17, he was in Shimla (Himachal Pradesh) for 200 days , Incidence of tax: 7
prior to this he came to India on 1 st May 2012 and left India on 22 nd Feb marks
2015.
Determine his residential status for AY 2020-21 and accordingly determine his
taxable income, if he had following sources of inflow of money.
Technical fees paid by Government of India for a foreign project( Rs.
Amount is received outside India) 1,90,000
Rental Income from a House property in Canada, this amount Rs
was completely used for education of his daughter at IIM 10,00,000
,Bangalore
Agriculture Income from West Bengal Rs
10,50,000
Income from a Business having its Head office at Kolkata, service Rs
is rendered in India but amount is received in USA 20,00,000
Dividend from a Canadian company Rs 7,65,000
Pension received in Canada for services rendered in India for a Rs 9,10,000
US based company
Interest on Fixed Deposits in Punjab National Bank , Kolkata Rs 2,50,000
2 Mr Viraj Kapoor is a working with a HR consulting firm at Delhi(population more Basic pay, DA,
than 1 crore according to 2011 census), his salary comprises of following Commission: 3
components. marks
1) His Basic pay was Rs 58000 p.m., according to company policy his DA is
60% of basic pay,50% of which is according to retirement benefits. Salary Allowances and
is due at beginning of next month. Commission on profit Rs 10,000, his Perquisites:10
employer paid his professional tax of Rs 3000. marks
2) His HRA was Rs 12000 p.m., while rent of the house was Rs 15000 p.m.
3) He paid Rs 15,000 towards his Life insurance policy premium Deductions: 2
4) He and his employer contributes Rs 12000 p.m., each towards RPF marks
5) He is also provided with holiday allowance of Rs 6000 p.m.,
6) His employer provided him with a car of 1800 cc with effect from 1-07-
2019, 30% usage of this car is for personal purposes. The cost of the car is
 Rs 10,00,000, petrol consumption during the year was Rs 1,00,000, while
on insurance and repair Rs 40,000 was spent. All expenses with respect
to running and maintenance of this car was done by employer of Mr.
Viraj.
7) On 1-4-2019 he took a personal loan from his employer worth Rs
3,00,000 at a rate of 7.5%, however SBI interest rate for personal loan on
1-4-2019 was 11%.
8) Free refreshment is provided during office hours Rs 6000 p.a,
Reimbursement of his resident gas bills Rs 8000 is done by his employer.
9) For 300 days in a year he is provided with free lunch in office premises
worth Rs 150 per meal per day.

10) His Income Tax penalty paid by employer Rs 1700

Calculate his taxable income.

SECTION B
Case Study
Note: It is MANDATORY to attempt the Case study (1X20=20 Marks)

Q. No Questions Rubrics Criteria

3. Mrs. Rose (58 years), finance manager in a company, at Bangalore. She Basic Pay, DA, Bonus: 3
submits the following information relevant for the PY 2019-20. marks
1) Till her retirement she was provided, basic pay of Rs 80,000
p.m.,( Salary is due at the end of month), entertainment Allowances and
allowance Rs 2000 per month; Bonus Rs 40,000; education perquisites: 5 marks
allowance Rs 400 p.m, for her granddaughter, DA Rs 12,000 per
month Gratuity and leave
2) Mrs. Rose paid her professional tax Rs 2000 for PY 2019-20 encashment: 7 marks
3) She has been provided with House rent allowance (till her
retirement) of Rs 18000 per month, while she stays in a house Deductions and tax
at Bangalore, where rent is Rs 26000 per month. She has spent liability: 5 marks
Rs 2,00,000 on furnishing this house.
4) She was provided with an Apple laptop exclusively for official
purpose worth Rs 1,00,000.
5) She is provided with a car of 1200cc, which is owned by
employer and was used by Mrs. Rose for both personal and
official purpose. Depreciation of the car is of Rs 20,000,
maintenance of car is Rs 38000 and driver’s salary is Rs 10,000
per month (all these expenses are met by employer of Mrs.
Rose) She pays Rs 5000 per month towards personal use of car
provided to her by her employer
6) She retires on 31 Dec 2019 after 20 years of service. She was
drawing a monthly Basic pay of Rs 76,000 during calendar year
2017, Rs 78,000 during calendar year 2018 and Rs 80,000
during calendar year 2019. Till 31 March 2019 her DA was Rs
 10,000 p.m., she also received a gratuity of Rs 10,00,000 at the
time of her retirement (according to payment of gratuity act
1972).
7) After her retirement all the above mentioned basic pay,
allowances and perquisites were stopped and she was
provided with leave encashment of Rs 2,80,000, her employer
allowed her 45 days of leave for every one year of service, she
had already availed leave for 18 months during her service
period.
Calculate her taxable income and tax liability for PY 2019-20