EAGLES INSTITUTE OF MANAGEMENT

KOZHIKODE ROAD, VALANCHERY, MALAPPURAM, KERALA

PAPER – 4: TAXATION-Date:13/10/2023
Time allowed: 1 Hour Maximum Marks: 30
Section – A: Income Tax Law

Multiple Choice Questions

1. Mr. Ram acquired a house property at Chennai from Mr. Satyam, a resident, for a
consideration of ₹ 85 lakhs, on 23.8.2022. On the same day, Mr. Ram made two separate
transactions, thereby acquiring an urban plot in Gwalior from Mr. Vipun, a resident, for a
sum of ₹ 50 lakhs and rural agricultural land from Mr. Danish, a resident, for a
consideration of ₹ 75 lakhs. Which of the following statements are correct assuming that
in the consideration amounts as aforementioned all the charges incidental to transfer of the
immovable property are included?
(a) No tax deduction at source is required in respect of any of the three payments.
(b) TDS@1% is attracted on all the three payments.
(c) TDS@1% on ₹ 85 lakhs and ₹ 50 lakhs are attracted. No TDS on payment of ₹ 75
lakhs for acquisition of rural agricultural land.
(d) TDS@1% on ₹ 85 lakhs is attracted. No TDS on payments of ₹ 50 lakhs and ₹ 75
lakhs
(2 Mark)

2. For an assessee, who is a salaried employee who invests in equity shares, what is the
benefit available in respect of securities transaction tax paid by him on sale and
acquisition of 100 listed shares of X Ltd. which has been held by him for 14 months
before sale? –
(a) Rebate under section 88E is allowable in respect of securities transaction tax paid
(b) Securities transaction tax paid is treated as expenses of transfer and deducted from sale
consideration.
(c) Capital gains without deducting STT paid is taxable at a concessional rate of 10% on
such capital gains exceeding ₹ 1 lakh
(d) Capital gains without deducting STT paid is taxable at concessional rate of 15%
(1 Mark)

3. Under section 54EC, capital gains on transfer of land or building or both are exempted if
invested in thebonds issued by NHAI & RECL or other notified bond –

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 (a) within a period of 6 months after the date of such transfer
(b) within a period of 6 months from the end of the relevant previous year
(c) within a period of 6 months from the end of the previous year or the due date for filing
the return of income under section 139(1), whichever is earlier
(d) At any time before the end of the relevant previous year.
(1 Mark)

4. Ms. Shalini received interest on enhanced compensation of ₹ 5,00,000. Out of this

interest, ₹ 1,50,000 relates to the previous year 2020-21, ₹ 1,90,000 relates to previous
year 2021-22 and ₹ 1,60,000 relates to previous year 2022-23. She paid ₹ 1 lakh to her
advocate for his efforts in the matter. What amount would be taxable in P.Y. 2022 -23 and
taxable, if any, under which head of income
(a) ₹ 2,50,000 under the head “income from other sources”
(b) ₹ 4,00,000 under the head “income from other sources”
(c) ₹ 1,60,000 under the head “income from other sources”
(d) ₹ 1,60,000 under the head “Capital gains”
(2 Mark)

Descriptive Questions

5. Mr. Lalit, a dealer in shares and securities, has entered into following transactions during
the previous year 2021-22:
(i) Received a motor car of ₹ 5,00,000 as gift from his friend Sunil on the occasion of his
marriage anniversary.
(ii) Cash gift of ₹ 21,000 each from his four friends.
(iii) Land at Jaipur on 1st July,2021 as a gift from his friend Kabra, the stamp duty value
of the land is ₹ 6 lakhs as on the date. The land was acquired by Mr. Kabra in the previous
year 2001-02 for ₹ 2 lakhs.
Mr. Lalit purchased from his friend Mr. Abhishek, who is also a dealer in shares, 1000
shares of ABC Ltd. @400 each on 19th June,2021 the fair market value of which was ₹
600 each on that date. Mr. Lalit sold these shares in the course of his business on 23rd
June,2021.
Further, on 1st November, 2021, Mr. Lalit took possession of his residential house booked
by him two years back at ₹ 20 lakh. The stamp duty value of the property as on 1st
November, 2021 was ₹ 32 lakh and on the date of booking was ₹ 24 lakh. He had paid ₹ 1
lakh by account payee cheque as down payment on the date of booking.
He received a shop (building) of the fair market value ₹ 1,50,000 and cash ₹ 50,000 in
distribution from the ABC (P) Ltd at the time of liquidation process of the company in

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 proportion of his share capital. The balance in general reserve of the company attributable
to his share capital is ₹ 1,25,000.
On 1st March,2022, he sold the plot of land at Jaipur for ₹ 8 lakh.
The value of the cost inflation index is 100 and 317 for the previous year 2001-02 and
2021-22 respectively.
Compute the income of Mr. Lalit chargeable under the head "Income from other sources"
and "Capital Gains" for A.Y. 2022-23.
(8 Mark)

6. Briefly discuss the provisions of tax deducted at source and compute the amount of TDS
under the Income-tax Act in respect of the following payments:
(i) ₹ 51,000 paid to Mr. A, a resident individual as interest income on compensation
awarded by Motor Accidents Claims Tribunal by a transport company.
(ii) Ms. Asha deposited ₹ 35,00,000 @10% p.a. on 1.7.2021 with ABC Co-operative bank
limited.
(4 Mark)

Section – B: Indirect Tax

Multiple Choice Questions

7. Mr. Avishkar is a painter registered under GST in Delhi. He sends his artwork for
exhibition in Mumbai.
At what point of time, supply is considered to have been made under GST?
(a) When painting is completed.
(b) When painting is sent for exhibition in Mumbai.
(c) When painting is displayed at the exhibition in Mumbai.
(d) When painting is purchased by one of the visitors in the exhibition.
(1 Mark)

8. In case of supply of goods for ₹ 5,00,000, following information is provided-

Advance received on 1st April Invoice issued on 15th April Goods removed on 25th April
What is the time of supply of goods, where tax is payable under forward charge?
(a) 1st April
(b) 15th April
(c) 25th April
(d) 30th April
(1 Mark)

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 Descriptive Questions

9. An order is placed to T & Co;, Sholapur on 18th August, 2022 for supply of fabrics to
make garments. Company delivered the fabrics on 4th September, 2022 and after
completion of the order issued the invoice on 15th September, 2022. The payment against
the same was received on 30th September, 2022. Determine the time of supply for the
purpose of payment under CGST Act, 2017 with your explanations.
(ii) HM Industries Ltd. engaged the services of a transporter for road transport of a
consignment on 20th May, 2022. However, the consignment could not be sent
immediately on account of a strike in the factory, and instead was sent on 20th July 2022.
Invoice was received from the transporter on 20th June 2022 and payment was made on
25th August 2022.
What is the time of supply of the transporter’s service?
(5 Mark)

10. (i) What is ‘e-invoicing’?

(ii) What is the threshold limit for mandatory issuance of E-invoice for all registered
businesses?
(iii) A consignor hands over his goods for transportation on Friday to the transporter.
However, assigned transporter starts the movement of goods from consigner’s warehouse
to its depot located at distance of 600 Km. on Monday.
When will the e-way bill be generated and for how many days it will be valid?
(5 Mark)

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