Reg. No. : ........................................

5029 Q.P. Code : [15 CCA 03]

(For the candidates admitted from 2015 onwards)

B.Com. (CA) DEGREE EXAMINATION,
DECEMBER 2020.
Fifth Semester
Part III — Commerce with Computer Applications
INCOME TAX LAW AND PRACTICE
Time : Three hours Maximum : 75 marks

SECTION A — (10  1 = 10 marks)

Answer ALL questions.

Choose the correct answer:

1. Receipt of amount on maturity of LIC policy is

(a) A revenue receipt (b) A capital receipt
(c) A casual receipt (d) None of these
LIC £õ¼]°ß •vºÁøh¢x ö£Ó¨£k® öuõøP
(A) J¸ Á¸Áõ´ ö£ÖuÀ
(B) J¸ ‰»uÚ ö£ÖuÀ
(C) J¸ uØö\¯À ö£ÖuÀ
(D) CøÁPÒ GxĪÀø»
2. Second additional condition for resident to be on
ordinarily resident is that he must have stayed in
India during the seven previous years preceding
the relevant previous year at least.
(a) 182 days (b) 365 days
(c) 60 days (d) 730 days
J¸ Si²›ø© ö£ØÓÁº \õuõμnU
Si²›ø©²ÒÍÁμõP CμshõÁx TkuÀ
{£¢uøÚ¯õP C¢v¯õÂÀ öuõhº¦øh¯ •¢øu¯
BsiØS •¢øu¯ HÊ •¢øu¯ BskPÎÀ Á]UP
÷Ási¯ SøÓ¢u£m\ |õmPÒ
(A) 182 |õmPÒ (B) 365 |õmPÒ
(C) 60 |õmPÒ (D) 730 |õmPÒ

3. Salary received by a member of parliament is

(a) Taxable as Salary income
(b) Exempt from tax
(c) Taxable as income from other sources
(d) None of these
£õμõЩßÓ EÖ¨¤ÚμõÀ ö£Ó¨£mh \®£Í®
(A) \®£Í Á¸Áõ¯õP Á› Âv¨¤ØS›¯x
(B) Á›°¼¸¢x »US
(C) ¤Ó CÚ[Pμ¸¢x Á¸Áõ¯õP Á›
Âv¨¤ØS›¯x
(D) CøÁPÒ GxĪÀø»

2 5029
4. Preconstruction interest is deductible in
(a) 4 instalments (b) 5 instalments
(c) 6 instalments (d) 3 instalments
Pmk©õÚzvØS •¢øu¯ Ámi PÈUP¨£kÁx
(A) 4 uÁønPÒ (B) 5 uÁønPÒ
(C) 6 uÁønPÒ (D) 3 uÁønPÒ

5. Profits earned from an illegal business are

(a) Taxable
(b) Tax free
(c) Ignored by Tax Authorities
(d) None of these
\mhzvØS ¦Ó®£õÚ ÁõoP® ‰»® \®£õvzu
C»õ£[PÒ
(A) Á› Âv¨¤ØS›¯x
(B) Á›°À»õux
(C) Á› Bøn¯ºPÍõÀ uºUP¨£mhx
(D) CøÁPÒ GxĪÀø»

6. Tax is reduced from casual income at

(a) 10% + Surcharge and casses
(b) 20% + Surcharge and casses
(c) 30%
(d) None of these

3 5029
 uØö\¯À Á¸Áõ°¼¸¢x SøÓUP¨£k® Á›
(A) 10% + Tku»õÚ Á› ©ØÖ® Á›PÒ
(B) 20% + Tku»õÚ Á› ©ØÖ® Á›PÒ
(C) 30%
(D) CøÁPÒ GxĪÀø»

7. In case of movable property, title to property

passes at the time when
(a) Consideration is paid
(b) Contract is entered for sale
(c) Sale is registered
(d) Property is delivered pursuant to a contract
to sell.
|P¸® ö\õzx GßÓ {ø»°À, ö\õzvß uø»¨¦
©õØÓ¨£kÁx
(A) ©Ö£¯ß ö\¾zu¨£k® ö£õÊx
(B) ÂØ£øÚUPõÚ J¨£¢u®
(C) ÂØ£øÚ £vÄ ö\´¯¨£kQÓx
(D) ÂØ£øÚUPõÚ J¨£¢uzvØS xøn¯õS®
ö\õzx.

8. If assessee is a Senior Citizen, maximum

permissible deduction for Premium paid for
medical insurance u/s 80 D is
(a) 5,000 (b) 10,000
(c) 30,000 (d) 50,000
4 5029
 Á› ö\¾zx® |£º ‰zu Si©PÚõP
C¸US®ö£õÊx, ¤›Ä 80 D ß RÌ ©¸zxÁU
Põ¨¥miØPõÚ •øÚ©® ö\¾zv¯vÀ AvP£m\®
AÝ©vUPUTi¯ PÈÄ
(A) ¹. 5,000 (B) ¹. 10,000
(C) ¹. 30,000 (D) ¹. 50,000

9. Loss under the head house property cannot be

set-off against
(a) Salary income
(b) Business income
(c) Capital gains
(d) Casual income
Ãmka ö\õzx uø»¨¤ß RÌ |mh® CuØS GvμõP
\›Pmh•i¯õux.
(A) \®£Í Á¸Áõ´
(B) ÁõoP Á¸Áõ´
(C) ‰»uÚ Buõ¯[PÒ
(D) uØö\¯À Á¸Áõ´

10. Casual loss can be set-off against

(a) Casual income
(b) LTCG
(c) Income from other sources
(d) None of these

5 5029
 uØö\¯À |mh® CuØS GvμõP \›Pmh¨£k®
(A) uØö\¯À Á¸Áõ´
(B) LTCG
(C) ¤ÓCÚ[Pμ¸¢x Á¸Áõ´
(D) CøÁPÒ GxĪÀø»
SECTION B — (5  5 = 25 marks)
Answer ALL questions.

11. (a) Explain:

(i) Person
(ii) Deemed assessee
ÂÍUSP.
(i) |£º
(ii) Á› ö\¾zx£ÁμõPU P¸u¨£k£Áº
Or
(b) Mr. Rajan left for Singapore on 15.3.2015
after staying in India for 15 years. He
returned to India on 31.8.2017. What will be
his residential status for the assessment year
2018-2019?
v¸. μõáß GߣÁº 15 BskPÒ C¢v¯õÂÀ
u[Q°¸¢u ¤ÓS 15.3.2015 AßÖ
][P¨§¸US ö\ßÓõº. AÁº 31.8.2017 AßÖ
C¢v¯õÂØS v¸®¤Úõº. ©v¨¥mk Bsk
2018–2019UPõÚ AÁ¸øh¯ Si°¸¨¦
{ø»ø© GßÚ?
6 5029
12. (a) Write short notes on ‘Bonus’.

‘÷£õÚì’ £ØÔ ]ÖSÔ¨¦ ÁøμP.

Or
(b) From the following calculate Gross Annual
Value:

MRV 1,05,000
FRV 1,07,000
SR 1,35,000
Actual Rent 1,12,000
Period in the P.Y. 12 months

¤ßÁ¸ÁÚÁØÔ¼¸¢x ö©õzu Bsk

©v¨ø£U PnUQkP.
¹.
MRV 1,05,000
FRV 1,07,000
SR 1,35,000
Esø©¯õÚ ÁõhøP 1,12,000
•¢øu¯ BsiÀ Põ»® 12 ©õu[PÒ

7 5029
13. (a) Compute income from other sources from the
following particulars.

(i) Dividend from Ashok Leyland Ltd. 25,000

(ii) Dividend from a Co-operative 5,000

Society

(iii)Interim dividend from Rane Ltd. 6,000

(iv) Dividend from a Foreign Company 26,000

(v) Dividend from U.T.I. 3,000

¤ßÁ¸® £μ[Pμ¸¢x ¤Ó CÚ[Pμ¸¢x

Á¸® Á¸©õÚ[PøÍU PnUQkP.
¹.

(i) A÷\õU ÷»÷»sm ¼ªöhmi¼¸¢x 25,000

£[Põuõ¯®

(ii) TmkÓÄU PÇPzvhª¸¢x £[Põuõu¯® 5,000

(iii) μõ÷Ú ¼ªöhmi¼¸¢x CøhUPõ» £[Põuõ¯® 6,000

(iv) A¯À|õmk {Ö©zv¼¸¢x £[Põuõ¯® 26,000

(v) U.T.I. °hª¸¢x £[Põuõ¯® 3,000

Or

8 5029
 (b) From the following Compute the business
income:

Net Profit 5,50,000

Administrative expenses 10,000
Trade expenses 5,000
Household expenses 3,000
Discount allowed 4,000
Income tax 400
Provision for bad debts 2,000
Bad debts 3,000
Donation to P.M. National relief fund 4,000
Legal fee 200
¤ßÁ¸ÁÚÁØÔ¼¸¢x Áõo£ Á¸Áõø¯U
PnUQkP.

{Pμ C»õ£® 5,50,000

{ºÁõPa ö\»ÄPÒ 10,000
¯õ£õμa ö\»ÄPÒ 5,000
Ãmk E£÷¯õPa ö\»ÄPÒ 3,000
Ámh® AÝ©vzux 4,000
Á¸©õÚ Á› 400
ÁμõUPhß JxUS 2,000
ÁμõUPhßPÒ 3,000
¤μu© ©¢v› ÷u]¯ {Áõμn {vUS 4,000
|ßöPõøh
\mhUPmhn® 200

9 5029
14. (a) From the following particulars calculate
capital gain u/s 54:
Mr. Vasan sells a residential house property
in Chennai for 99,00,000 on April 25, 2017
which was acquired by him on May 10, 2011
for 5,00,000. In August 2017, he purchases
a house in Madurai for 15,00,000. On June
30, 2018, Vasan sells the house property in
Madurai for 20,00,000. CII for 2011-12 is
184, for 2017-2018 is 272 and 2018-19 is 280.
¤ßÁ¸® ÂÁμ[Pμ¸¢x ¤›Ä 54ß RÌ
‰»uÚ Buõ¯zøuU PnUQkP.
v¸.Áõ\ß AÁºPÒ ÷© 10,2011 AßÖ
Áõ[Q¯ ¹.5,00,000 ©v¨¦ÒÍ Si°¸¨¦
Ãmka ö\õzøu H¨μÀ 25, 2017 AßÖ
¹.99,00,000 US ÂØQÓõº. BPìm 2017À,
©xøμ°À J¸ Ãmøh ¹.15,00,000US
Áõ[SQÓõº.
ãß 30, 2018 AßÖ Áõ\ß ©xøμ°À Áõ[Q¯
Ãmøh ¹.20,00,000US ÂØQÓõº. £nÃUPU
SÔ±mk Gs 2011–12US 184, 2017–2018US
272 . 2018-19 US 280.
Or
(b) What is gross total income?
ö©õzu TkuÀ Á¸©õÚ® GßÓõÀ GßÚ?

10 5029
15. (a) From the following, compute Mr. David’s
Cross Total Income:

Loss from house property 10,000

Short-term Capital gain 1,05,000
Long-term Capital loss 85,000
Interest on Govt. Securities 10,000
Unaborbed depreciation brought 25,000
forward from 2015-16

¤ßÁ¸ÁÚÁØÔ¼¸¢x, v¸.÷hÂm AÁºPÎß

ö©õzu TkuÀ Á¸©õÚzøuU PnUQkP.

Ãmka ö\õzv¼¸¢x |mh® 10,000

SÖQ¯ Põ» ‰»uÚ Buõ¯® 1,05,000
}sh Põ» ‰»uÚ |mh® 85,000
Aμ_¨£zvμ[PÎß «x Ámi 10,000

2015-16 ¼¸¢x GkzxU 25,000

öPõÒͨ£hõu ÷u´©õÚ® •ß
öPõn쨣mhx

Or

11 5029
 (b) Calculate the tax liability of Mrs. Sujatha
Who’s age below 60, from the particulars
given below:

Income from Salary (Computed) 3,00,000

Income from house property 74,000
Income from Other sources 1,50,000
Donation to NDF 8,000
¤ßÁ¸® ÂÁμ[Pμ¸¢x v¸©v._áõuõ
AÁºPÎß Á¯x 60 US RÌ GßÓ {ø»°À
Á› ö£õÖ¨ø£U PnUQkP.

\®£Ízv¼¸¢x Á¸©õÚ® (PnUQmhx) 3,00,000

Ãmka ö\õzv¼¸¢x Á¸©õÚ® 74,000
¤Ó CÚ[Pμ¸¢x Á¸©õÚ® 1,50,000
NDF US |ßöPõøh 8,000
SECTION C — (5  8 = 40 marks)
Answer ALL questions.

16. (a) Explain the regulatory objectives of taxation.

Á›Âv¨¤ß JÊ[S•øÓ ÷|õUP[PøÍ
ÂÍUSP.
Or
(b) How will you ascertain residential status of
an individual assessee?
J¸ uÛ|£º Á› ö\¾zx£Á›ß Si²›ø©
{ø»ø¯ GÆÂu® PshÔÁõ´?
12 5029
17. (a) Mrs. Mary employed as a manager in a
Private Limited Company at Erode. Compute
her Salary income from the following:

(i) Basic Salary 8,000 p.m.

(ii) D.A. 2,000 p.m.
(iii) Bonus 8,000 p.a.
(iv) Entertainment allowance 500 p.m.
(v) Employer’s Contribution to RPF 15,000 p.a.
(vi) Interest Credited to RPF 1,100.
@ 11% p.a. amounted to

v¸©v. ÷©› AÁºPÒ J¸ uÛ¯õº

Áøμ¯ÖUPP¨£mh {Ö©zvß ÷©»õÍμõP D÷μõmiÀ
£o¯õØÖQÓõº. ¤ßÁ¸ÁÚÁØÔ¼¸¢x AÁ¸øh¯
\®£Í Á¸©õÚzøuU PnUQkP.

(i) Ai¨£øh \®£Í® ©õu¢÷uõÖ® ¹.8,000 p.m.

(ii) £g\¨£i ©õu¢÷uõÖ® ¹.2,000 p.m.
(iii) ÷£õÚì Á¸hzvØS ¹.8,000 p.a.
(iv) ©QÌa]¨£i ©õu¢÷uõÖ® ¹.500 p.m.
(v) •u»õ롧 £[PΨ¦ Á¸hzvØS RPF À ¹.15,000 p.a.
(vi) ÁμÄ øÁUP¨£mh 11% RPF Ámi ¹.1,100.
öuõøP°À

Or
13 5029
 (b) Find out the net annual value of the House
property.

Actual Rent 20,000 p.m.

Municipal Value 2,50,000

Fair Rental Value 2,40,000

Municipal Taxes:

Paid by Owner 10,000

Paid by tenant 5,000

Ãmka ö\õzvß {Pμ Bsk ©v¨ø£U Psk¤iUP.

¹.

ö£ØÓ ÁõhøP ©õu¢÷uõÖ® 20,000 p.m.

|Pμõm] ©v¨¦ 2,50,000

Ez÷u\ ÁõhøP ©v¨¦ 2,40,000

|Pμõm] Á›PÒ:

•u»õÎ ö\¾zv¯x 10,000

Si°¸¨£Áº ö\¾zv¯x 5,000

14 5029
18. (a) Profit and Loss a/c of Mr. Ram is as follows:

To Income Tax 4,800 By Gross Profit 1,46,230

To Establishment 17,500 By Bank Interest 5,770
expenses
To Rent 6,000
To Household 14,500
expenses
To Discount 2,500
To Advertisement 2,000
To Postage 8,100
To Fire Insurance 1,500
To Gift 1,600
To Donations 11,400
To Purchase of 15,000
machinery
To Repair to 500
furniture
To Interest on Loan 10,000
To L.I.C. Premium 6,000
To Reserve for 7,000
doubtful debts
To Interest on 2,500
Capital
To Rates and Taxes 4,500
To Net Profit 36,600
1,52,000 1,52,000

Find out the Business Income of Mr.Ram.

15 5029
 v¸. μõ® AÁºPÎß C»õ£–|mhU P/S ¤ßÁ¸©õÖ
¹. ¹.
Á¸©õÚ Á› 4,800 ö©õzu »õ£® 1,46,230
{ÖÄøPa ö\»ÄPÒ 17,500 Á[Q Ámi 5,770
ÁõhøP 6,000
Ãmk E£÷¯õPa 14,500
ö\»ÄPÒ
Ámh® 2,500
ÂÍ®£μ® 2,000
Ag\À ö\»Ä 8,100
wUPõ¨¥k 1,500
£›_ 1,600
|ßöPõøh 11,400
C¯¢vμUöPõÒ•uÀ 15,000
AøÓP»ß £ÊxPÒ 500
Phß «x Ámi 10,000
L.I.C. •øÚ©® 6,000
I¯UPhß JxUS 7,000
•uÀ «x Ámi 2,500
Ãu[PÒ ©ØÖ® 4,500
Á›PÒ
{Pμ »õ£® 36,600
1,52,000 1,52,000
v¸. μõ® AÁºPÎß Áõo£ Á¸©õÚzøuU
Psk¤iUP.

Or
16 5029
 (b) Calculate income from other sources from
the following:

(i) Winnings received from Sikkim Lottery 70,000

Winnings from Horse Races 2,000
Winnings from Crossword Puzzles 4,000
(ii) Winnings from Lottery 2,000
Winnings received from Horse Races 56,000

¤ßÁ¸ÁÚÁØÔ¼¸¢x ¤Ó CÚ[Pμ¸¢x
Á¸©õÚzøuU PnUQkP.
¹.
(i) ]UQ® »õmh› ‰»® Qøhzux. 70,000
Svøμ £¢u¯[Pμ¸¢x Qøhzux 2,000
SÖUöPÊzx ¦vºPμ¸¢x Qøhzux 4,000
(ii) »õmh› ‰»® Qøhzux 2,000
Svøμ £¢u¯[Pμ¸¢x Qøhzux 56,000

19. (a) Mr. Suresh, a resident Indian, Sold Gold for

30,00,000 on May 20, 2017, which he acquired
on April 16, 1977 at cost of 1,70,000. The Fair
market value of Gold on April 1, 2001 was
1,50,000. He has invested 4,00,000 in buying
a residential house on June 15,2018. Ascertain
the Capital gains chargeable to tax during the
A.Y. 2018-2019. CII for 2001-2002 is 100, for
2017-2018 is 272 and 2018-19 is 280.

17 5029
 v¸. _÷μè, J¸ Si²›ø© C¢v¯ß, H¨μÀ
16, 1977 À Áõ[Q¯ ¹.1,70,000 AhUP•ÒÍ
u[Pzøu ÷© 20, 2017À ¹.30,00,000 ÂØÓõº.
H¨μÀ 1, 2001 AßÖ u[Pzvß {¯õ¯©õÚ
\¢øu ©v¨¦ ¹.1,50,000. AÁº ¹.4,00,000ØS
J¸ Si°¸¨¦ Ãmøh Áõ[SÁvÀ
ãß 15, 2018 AßÖ •u½k ö\´uõº.
©v¨¥mk Bsk 2018–2019ØPõÚ Á›
›¨¤ØS›¯ ‰»uÚ Buõ¯[PøÍU
PnUQkP. £nÃUPUSÔ±mk Gs 2001–
2002US 100, 2017–2018US 272. 2018-19 US
280.

Or
(b) Explain the various deductions u/s 80E.
¤›Ä 80E ßRÌ £À÷ÁÖ PÈÄPøÍ ÂÍUSP.

20. (a) Compute the gross total income of

Mr. Sudhir, from the following:
Profit Loss

Salary income (Computed) 84,000

Income from House property (Computed)
House ‘A’ 30,000

18 5029
House ‘B’ 34,000
Profits and gains of business or
Profession: Business ‘X’ 16,000
Business ‘Y’ 20,000
Capital Gains:
STCG 12,000
STCL 56,000
LTCG 25,000
Income from other sources:
Income from Card games 38,000
Income from betting 30,000

¤ßÁ¸ÁÚÁØÔ¼¸¢x v¸._vº AÁºPÎß ö©õzu

TkuÀ Á¸©õÚzøuU PnUQkP.
C»õ£® |mh®
¹. ¹.
\®£Í Á¸©õÚ® (PnUQmhx) 84,000
Ãmka ö\õzv¼¸¢x Á¸©õÚ®
(PnUQmhx)
30,000
Ãk ‘A’

Ãk ‘B’ 34,000
ÁõoP® AÀ»x öuõȼß
C»õ£[PÒ ©ØÖ® Buõ¯[PÒ 16,000
ÁõoP® ‘X’
ÁõoP® ‘Y’ 20,000
‰»uÚ Buõ¯[PÒ:
STCG 12,000
19 5029
 STCL 56,000
LTCG 25,000
¤Ó CÚ[Pμ¸¢x Á¸®
Á¸©õÚ[PÒ:
^mk Âøͯõmk ‰»® Á¸©õÚ® 38,000
£¢u¯® ‰»® Á¸©õÚ® 30,000

Or
(b) Total income of Mr.Surendran is 5,16,000.
He is a Senior Citizen. Compute the tax liability.
v¸. _÷μ¢vμß AÁºPÍx ö©õzu Á¸©õÚ®
¹.5,16,000. AÁº ‰zuU Si©Pß. AÁμx
Á›°ß ö£õÖ¨ø£U PnUQkP.

————————

20 5029