REG NO:

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATIONS- MAY 2023
B.B.A. (CIMA) - VI SEMESTER
M4 17 MC 602 :INCOME TAX - II
Duration: 3 Hours Max. Marks: 70
SECTION - A
I) Answer any TEN questions. Each carries 1 mark. (10x1=10)
1. Donation given to unapproved scientific research institution will be allowed as
deduction to what extent?
2. Short term capital gains on sale of Building is charged at what rate?
3. Mr. A won a lottery of Rs. 500,000. However his cost of buying lottery tickets is
Rs. 100,000. What is the amount of tax he needs to pay?
4. What is the maximum deduction u/s 80D towards medical insurance premium
paid for both other than senior citizens and for senior citizens?
5. Dividend received on shares from Ananya Ltd - ₹1,80,000 (Net).
Find the taxable amount of dividend under Income from other Sources.
6. Mr. A is sole proprietor. He has unabsorbed depreciation of Rs. 50,000. How
many years this loss can be carried forward and under which head this can be
set off?
7. Mr. A donated clothes worth Rs. 100,000 to an approved charitable institution.
What is the amount of deduction he will get u/s 80G?
8. Mr. X took a life insurance policy in the name of his father (age 65 years) and
paid a premium of Rs. 50,000 in the previous year. What is the amount of
deduction he is eligible u/s 80C?
9. Ms. Nithya is into manufacturing business and she charged additional
depreciation of 20% on her old plant and machinery. Explain whether she can
charge the same or not with reason.
10. Mr. A recovered bad debts of Rs. 100,000 in the current year. However, he had
not written off the same in the books in any of the previous years. How much
will be the deemed profits u/s 41 for the current year?
11. Bonus given by proprietor to himself is ₹80000. How do you treat this
transaction while computing Profit and Gains of Business and Profession if it is
shown on the debit side of P&L account?
12. State the set off and carry forward provisions of Loss from House property.
SECTION - B
II) Answer any THREE questions. Each carries 6 marks. (3x6=18)
13. Mr. Dhiran and Company are Chartered Accounts in Delhi. They have
submitted the following Receipt and Payment Account for the year. Compute
Income from Profession.

Recepits Amount Payments Amount

(Rs.) (Rs.)
To Audit Fees 2,24,000 By Drawings 48,000

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 To Financial 98,000 By Office Rent 42,000
Consultancy
Service
To Dividend from 6,000 By Telephone 15,000
Bosch Limited Installation
Charges
under O.Y.T.
Scheme
To Accountancy 24,000 By Electricity 4,200
Works Bill
To Dividend on 4,000 By Salary to 66,000
units of UTI Staff
By Charities 1,200
By Gifts given 9,600
to relatives
By Car 21,000
Expenses
By 2,500
Subscription
for Journals
By Institute 1,200
fee
By Stipends 12,000
given to
trainees
By Net 1,33,300
Income
TOTAL 3,56,000 TOTAL 3,56,000

Other Information –
a) Depreciation of car during the year amounts to ₹5,000

b) 30% of the car is used for personal purposes.

14. Riaz is a resident individual, submits the following particulars of his income
for the year ended 31/3/2022.
Compute Taxable Income from Other Sources.
a) Royalty from coal mine – Rs. 20,000
b) Agricultural Income in Nepal – Rs.15,000
c) Salary as a member of Parliament – Rs.36,000
d) His residential house has been taken on a rent of Rs.10,000 p.a. half of
which he has sublet at Rs.1,200p.m.
e) Dividend received from a co-operative society – Rs.5000
f) He has incurred the following expenses:
i) Paid collection charges Rs.100 for collecting dividends
ii) Rs.3000 spent for earning and collecting royalty income

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 15. K Industries a non-manufacturing concern, has 8 machines eligible for
depreciation at 15%. The Written down value as on 01.04.2021 is Rs 9 lakhs.
During December 2021, a new machinery was purchased for Rs. 4 lakhs which
falls in the same block. Compute the depreciation/Capital gain for AY 2022-23
if 2 of the old machines are sold for a) Rs. 10 lakhs; b) Rs. 16 lakhs. Expenses
incurred for such transfer is Rs. 20,000.

16. Mr. Mahadev, a noted bhajan singer of Rajasthan and his wife Mrs. Dariya
furnish the following information relating to AY 2022-23.
Particulars Rs.
Income of Mr. Mahadev – professional bhajan 565,000
singer (computed)
Salary income of Mrs. Dariya (computed) 380,000
Loan received by Mrs. Dariya from Ramu & 250,000
Jay Pvt ltd (Mrs. Dariya holds 35% shares of
the company which has incurred losses since
inception 2 years back)
Income of their minor son Golu winning 250,000
singing reality show on TV
Cash gift received by Golu from friend of Mr. 21,000
Mahadev on winning the show
Interest income received by minor married 40,000
daughter Gudia from deposit with Ramu and
Jay Pvt Ltd
Computed total taxable income of Mr. Mahadev and Mrs. Dariya for the AY
2022-23.

17. Mr. Anand aged 81 years provides the following particulars of his income for
the assessment year 2022-23.
Compute his Tax liability.

Particulars Amount
(Rs.)
Salary Income (Computed) 8,60,000
House Property Income 40,000
Winning from Lottery 1,00,000
Profit on Sale of shares (short term – 90,000
Securities Transaction Tax paid)
Long term Capital Gain on sale of a piece 2,20,000
of plot
TOTAL INCOME 13,10,000

SECTION - C
III) Answer any TWO questions. Each carries 15 marks. (2x15=30)
18. Mr. Eminem owns 2 acres of agricultural land in urban area of Ludhiana which
he sold on 30th November 2021 at Rs. 50 Lakhs per acre.
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 Other particulars are as follows:
a) Cost of 2 acres of land purchased in 1997 is Rs. 6 lakhs

b) Fair market value as on 1-4-2001 is Rs. 23 lakhs

c) Selling Expenses is Rs. 1 lakh

d) He owns one residential house on 30-11-2021

e) Date of filing of return of income is 31st July, 2022.

f) He purchased 10 acres of agricultural land in rural area for Rs.8 lakhs on

10th June 2022.

g) He purchased a piece of plot to construct residential building for Rs. 6 lakhs

at Ludhiana.

h) He deposits Rs.15 lakhs in a Scheduled bank in a Capital Gain deposit

account scheme on 30th July 2022 to construct a residential house.

i) Amount invested in Bonds of National Highway Authority of India Rs.8

lakhs on 31st March 2022.

j) CII of 2021-22 is 317

CII of 2001-02 is 100

Compute his Taxable Income from Capital gain.

19. Mr.Arora furnishes the following particulars of his income for the Financial
year 2021-22.
i) Dividend received from UTI – Rs.10,000

ii) Net amount received as winnings from horse race – Rs.21,000

iii) Winning from lottery (Net) Rs.70,000.

Cost of lottery ticket was Rs.5000

iv) Interest on Income Tax Refund – Rs.1,000

v) Amount won from, T.V.Programme “Kaun Banega Crorepathi” –

Rs.2,00,000

vi) Interest on 8% tax free Relief Bonds of RBI Rs.5000

vii)On 1-4-2021, he subscribed for 1,000, 10% debentures of Rs.100 each of Pearl
Limited. The date of interest payment is March 31st every year.

viii) Interest received from Punjab Government Loan – Rs. 20,000

ix) Interest received on 8% debentures of Phymox Limited (Unlisted Company)

– Rs.4,500

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 x) Gift from father – Rs.50,000

xi) Family pension received – Rs. 48,000

xii) He lives in a rented house paying rent at Rs.10,000 p.m. He has sublet 1/3rd
portion of the house on a rent of Rs.4,500 p.m. The municipal tax Rs.6,000
and repairs of the house Rs.2,700 have been borne by him.

Calculate Income from Other Sources for the assessment year 2022-23.

20. C.A. Prakash, a resident, furnishes the following particulars for AY 2022-23:
Particulars Rs

Salary – Taxable, Computed 6,00,000

Income from House Property – Taxable, computed (2,00,000)
(other than arrears)
Income from Profession:
Gross Receipts 40,00,000
Expenses incurred 30,00,000
Short term capital gain on sale of listed shares 3,00,000
Long term capital gain on sale of unlisted shares 2,00,000
Dividend income from Domestic company 16,00,000
Interest Income – FD (gross) 1,00,000
Lottery winnings (Net of TDS @ 30%) 3,50,000
Compute the taxable income and tax liability of CA. Prakash for AY 2022-
23.

21. Mr. Narayanaswamy is a Chartered accountant practicing in Mumbai. The

following is the analysis of his receipts and payment account for the year
ending 31st March 2022.

Receipts Amt Payments Amt

To Balance b/d 9,500 By Salaries 64,000
To Professional
190,000 By Rent 12,000
Income
To House rent for 8 By Telephone
32,000 5,500
months Expenses
To Share of Income By Professional
6,250 3,000
from HUF Expenses
To Share of profits By Motor Car
11,000 7,500
from firm Expenses
To LIC policy By Misc. Office
77,750 1,500
matured with bonus expenses
By Purchase of
80,000
car
By Advance
12,500
Income Tax
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 By Personal
42,400
expenses
By Entertainment
17,000
Expenses (official)
By House
Property
Expenses:
- Municipal Taxes 6,000
- Repairs 2,500
- Insurance 2,000
- Collection
600
charges
By Balance C/d 70,000
Total 326,500 Total 326,500

Compute Mr. Narayanaswamy’s gross total income after taking into account
the following:
(i) Value of benefits received from clients during the course of profession is
Rs. 5,500.
(ii) Allowable rate of depreciation on motor car is 15%.
(iii) Municipal value of the house property is Rs. 42,000. This house was self-
occupied for residence for 4 months during the year.

SECTION - D
IV) Case Study – Compulsory question. (1x12=12)
22. a) X Ltd is an event management company located in Bangalore. It
organizes a fashion show in Dubai for Y Ltd from Mumbai. X Ltd
engages beauty parlor in Dubai for giving beauty treatment for the
models in Dubai. What is the place of supply for the beauty parlour
service? (4 marks)

b) Route Mobile Ltd of Bangalore wanted to book a flight ticket for the
manager from Mumbai to Dubai. But it could not do it. However, it has
asked the manager to book ticket, he did so. The manager boarded the
international flight from Mumbai. Which is the place of supply and
location of supplier? (4 marks)

c) What is the difference between medicine and sanitizer from GST point
of view? (4 marks)

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