DON BOSCO COLLEGE CHITRADURGA

First Internal Assessment- NOV 2022

COURSE: BCOM SUBJECT: BUSINESS TAXATION SEMESTER:5th

Time: 1 hour DATE:29/11/2022 Maximum Marks: 20

Answer any two of the following questions (10x2=20)

1. From the following particulars compute the total income of a Hindu Undivided Family
for the Assessment Year 2022-23:

RS

(i) Income from business 5,52,000

(ii) Salary received by a member of the family from his 2,00,000

services elsewhere

(iii) Director's fees received by the Karta by his 15,000

personal exertion

(iv) Annual rental value of the property let-out 12,000

(v) Municipal taxes paid 600

(vi) Dividend received from domestic companies 4,500

(Gross)

(vii) Long-term capital gains 9,880

(viii) Short-term capital gains 10,000

(ix) 1/2 share in profits of an AOP 10,000

(x) Donation to an approved charitable institution in 5,000

cash
2. The following details have been supplied by Shri Nawal, the Karta of a Hindu Undivided
Family. You are required to compute the total income of the family and its tax liability
for the Assessment Year 2022-23:

RS

1. Profit from the business of purchase and sale of shares 8,60,000

2. Security Transaction Tax paid on above 2,40,000

3. Short-term capital gains 7,500

4. Long-term capital gains 9,000

5. Long-term capital loss 7,700

6. Rent received from the house property 21,000

7. Local tax paid on the above-mentioned house property 3,000

8. Interest received on Government securities 9,000

9. Interest on Loan is taken to purchase these securities 6,000

10. Interest on Savings Bank A/c 20,000

11. Donation to Jawahar Lal Nehru Memorial Trust by 6,000

cheque

12. Premium paid on life insurance policy of Karta 3,060

3. Following are the incomes of Sumitra Pharma Ltd. for the PY 2021-22. Find out the
Gross total income of the company if it is; (a)A Resident company; and (b) A non-
resident company.

RS

1. Interest on deposit with an Australian Company (1/3 6,30,000

received in India and 2/3 in Mauritius)

2. Interest on German Development Bonds (50% 2,00,000

received in Germany and remaining 50% is received in
Mauritius)

3.Dividend from a foreign company, received in 3,80,000

Mauritius

4. Profit on sale of property situated in UK (10% of the 10,00,000

profit is received in India and 90% is received in
Mauritius, amount received in Mauritius is used for
purchasing Gold in India) (The value of Gold on 31st
March 2020 is Rs.17,00,000)

5. Income earned from business in New Zealand which 4,00,000

is controlled from Kolkata (20% received in Kolkata,
70% is received in New Zealand and 10% is received in
Mauritius)

6.Profit from business in Chennai (entirely controlled 7,00,000

and managed from Mauritius, 70% of the profit is
received in India and 30% in Mauritius)

7.Income from commercial property situated in 6,10,000

Mauritius, deposited in SBI branch there.

8.Royalty received in Mauritius for a Patent Right given 2,80,000

to a non-resident (the non-resident has utilized the
Patent Right for development of a product in India)

9. Interest receive in Mauritius on money lent to Y Ltd. 19,00,000

an Indian company (money is lent in the UK, which is
used by Y Ltd. for setting up a factory in the UK)

10. Fees for technical services rendered from a 18,00,000

profession setup in India (the project is completed by
the technical executives of the company in Spain,
amount is received in Spain)