TYBCOM SEM 5 Direct Tax Question Paper – Mumbai University

TYBCOM SEM 5 Direct Tax Question Paper

November 2018

(3 Hours)                                                                                                                                            (Total Marks 100)

N.B.
1) All questions are compulsory.
2) Figures to the right indicate maximum marks.
3) Working should form part of the main answer.

Q.1 A) Choose the correct option and rewrite the statements (Any Ten): (10 marks)

1) Income Tax Act extends to __________.
a) Whole of India
b) India and Pakistan
c)Whole of Maharashtra

2) Income Tax is a tax on ___________.
a) Goods
b) Services
c) Income

3) The Legal status of Ms. Hima Das, Indian sprint runner is ___________.
a) an individual
b) a body of individuals
c) a sportsman

4) Personal 24 carat gold mangalsutra is _________ asset.
a) Fixed on
b) Capital
c) Current

5) Every assessee is a person and __________.
a) Every person is also an assessee
b) Every person need riot be an assessee
c) An individual is always an assessee

6) Total income of a person is determined on the basis of his ___________.
a) Citizenship
b) Residential Status
c) Marital Status

7) In case of capital assets acquired on 01 -04-1971, Fair Market Value of this capital asset is determined as on ___________.
a) 01-04-2001
b) 01- 04- 1981
c) 01-04-1971

8) Deduction under Section 80D in respect of medical insurance premium is allowed to __________.
a) An individual
b) Any assessee
c) An individual and HUF

9) Share of profit received by a partner of partnership firms ___________.
a) Fully exempt
b) Fully taxable
c) Partly Treble

10) Uncommuted pension received by a government employee is ___________.
a) Exempt
b) Taxable
c) 1/3 exempt

11) The deduction under Section SOE is allowed for payment of interest to the extent of __________.
a) ₹25,000
b) ₹10,000
c) any amount

(12) Award received from the government is ___________.
a) Taxable
b) Exempt
c) Partly exempt

Q.1 B) Re-write following full sentence and state whether it is True or False (Any Ten): (10 marks)

1. Ex-gratia received from employer is taxable as a salary.
2. When a property is occupied by the owner himself that property is called let-out house property.
3. Expenses on local festival Navaratri puja is allowable business expenditure.
4. Previous year can be more than 12 months.
5. There are total five heads of income.
6. Salary received by a Member of Parliament is taxable under the head Income from salaries.
7. Cost inflation index is applicable for transfer expenses.
8. The status of Indian origin individual is always a resident.
9. Ground tent is taxable under the head income from house property.
10. Gift received by a doctor from his patient is taxable under the head income from profession.
11. Interest on Income Tax refund is taxable under the head income from other sources.
12. Any sum received under key-man insurance policy is taxable,

Q.2) Mr. Abhijit, who is physically disabled to the extent of 55%, works in a private company. He has provided the following particulars of his income for the previous year ended on 31 March, 2018. (15 marks)

1) Basic Salary ₹40,000 per month.
2) Dearness Allowance ₹16,000 per month.
3) House Rent Allowance ₹10,000 per month.
[Exempt (under section 10) ₹6,000 per month.]

4) Travelling Allowance ₹50,000.
(Amount actually spent on travelling ₹38,000)
5) He was provided with the accommodation by his employer, of which was ₹35,000.
6) Bonus declared by employer during the year was ₹15, 000.
7) Profession tax ₹2,500.
8) Employee’s contribution to Provident Fund ₹48, 000.

He also received the following:
9) Interest on fixed deposits with Bank of India ₹44,000.
10) Interest on fixed deposits with Post Office ₹10,000.
11) Dividend from co-operative credit society ₹6,500.
12) Gift from his sister ₹51,000.
During the year, he paid ₹32,000 as premium on his Life Insurance Policy.
Compute his taxable income for the Assessment Year 2018-19

OR

Q.2) Mr. Kedar was a Maharashtra State Government employee, who retired on 30th November,2017. Thereafter, he joined a private company from 1st January, 2018. (15 marks)
He has provided the following particulars fc for the previous year ended on 31st March 2018.

(A) From Maharashtra State Government:
Basic Salary @₹30,000 per month.
Dearness Allowance @₹10,000 per month.
Gratuity received on retirement ₹3,00,000.
Commutation of Pension received on retirement ₹2,20,000.
Pension received @₹8,000 per month.
Profession tax deducted @₹200 per month.
Employee’s contribution to provident fund @₹5,000 per month.

(B) From Private Company:
Salary ₹25,000 per month.
Entertainment Allowance @₹2,200 per month.

(C) Other Information:
Interest received on company debentures ₹60,000.
Dividend received from Indian Companies ₹32,000.
Interest received on 8% Taxable RBI Bonds ₹20,000.
During the year, he deposited ₹50,000 in his PPF account and paid ₹22,000 towards medical insurance premium for himself and his spouse.
Compute his taxable income for the Assessment Year 2018-19.

Q.3) Mr. Sanghameetra provides the following information for the previous year ended 31^st March, 2018. You are required to compute his net taxable income for Assessment Year 2018-19. (15 marks)
Profit and Loss A/c for the year ended 31% March, 2018

Particulars	₹	Particulars	₹
To Printing & Stationery	20,000	By Gross Profit	8,50,000
To General expenses	25,000	By Income Tax Refund	8,000
To Interest on capital	55,000	By Dividend from UT	35,000
To GST Penalty	23,000	By Interest on Saving Bank A/c	5,000
To Income Tax	49,000	By Amount received from LIC for matured insured policy	15,000
To Office Rent	26,000
To Depreciation	30,000
To Salaries	1,20,000
To Advertising	9,001
To Net Profit	5,55,999
Total	9,13,000	Total	9,13,000

Additional Information:

Salaries includes ₹55,500 for medical treatment of Mr. Sanghameetra’s dependent brother, who is person with severe physical disability (81%).

OR

Q.3) The following is the Receipts and Payments Account of Advocate Happy Salve for  the year ended 31^st March, 2018: (15 marks)
Receipt and Payment A/c

Receipts	₹	Payments	₹
To Balance b/d	4,00,000	By Office Expenses	8,00,000
To Fees from clients	25,00,000	By Stamp paper & court fees	3,00,000
To Fee for fighting India’s case at International Court	1	By Salary to staff	15,00,000
To Income for attending court hearing	7,00,000	By Office Rent	4,00,000
To Gift received from client	5,55,555	By Conveyance	1,00,000
To Dividend from foreign company	10,000	By Drawings	6,00,000
To Rent from open plot of land	12,000	By Balance c/d	4,77,556
Total	41,77,556	Total	41,77,556

Additional Information:

(1) Drawings includes ₹99,000 towards pension fund (U/S 80CCC) of LIC and ₹92,000 for medical treatment expenditure of his son who is physically disabled to the extent of 51%.
You are required to compute his net taxable income for the Assessment Year 2018-19.

Q.4) Mr. Aniket furnishes you the following particulars of income earned by him during the previous year ended on 31st March, 2018. (15 marks)
Compute his Gross Total Income for the Assessment Year 201 8-19 assuming that he is:
1) Resident and Ordinarily Resident.
2) Resident but not Ordinarily Resident.
3) Non-Resident.

S.No.	Particulars	₹
1)	Income from business in Delhi, controlled from London	2,00,000
2)	Interest on Debentures of Indian Company received in Japan	2,20,000
3)	Rent from property in France received in Mumbai	2,40,000
4)	Interest on Bank Accounts in Dubai	1,20,000
5)	Income from agriculture in Sri Lanka	1,40,000
6)	Income from business in Nepal controlled from India	1,60,000
7)	Salary earned and received in Singapore	1,80,000
8)	Past untaxed profits earned in U.K. brought to India during the previous year.	2,60,000

OR

Q.4) Mr. Pratham is an Indian citizen. He visits various countries for the purpose of his business. Following are the details of his visits out of India: (15 marks)

Name of Country	Date of Departure from India	Date of Arrival in India
Germany (for first time)	01.07.2015	01.03.2017
France	10.04.2017	28.04.2017
U.K.	15.05.2017	01.06.2017
Australia	28.06.2017	15.07.2017
Singapore	01.09.2017	17.09.2017
China	01.02.2018	22.02.2018

Determine his residential status for the Assessment Tear 2018-19

Q.5) Mr. Mahesh is the owner of two houses. He provides you the information of these two houses for the year ended on 31% March, 2018 as under: (15 marks)

a) First house is let-out with municipal valuation ₹3,00,000 p.a. and actual rent ₹30,000 p.m. municipal tax paid @10% on municipal valuation. Interest on housing loan paid £50,000 and house was vacant for 2 months.
b) Second house is self-occupied property with municipal valuation ₹1,00,000, municipal tax paid ₹10,000 and interest on housing loan paid ₹45,000.

You are required to calculate taxable income for the Assessment Year 2018-19.

OR

Q.5) Mr. Dinesh provides the following particulars of assets transferred by him during the previous year ending 31st March, 2018. You are required to compute his Income from Capital Gains chargeable to tax for Assessment Year 2018-19. (15 marks)

Financial Year	Amount
1999 – 2000	2,00,000
2003 – 2004	3,27,000
2009 – 2010	3,70,000
2014 – 2015	8,40,000

Financial Year	Cost Inflation Index
2001 – 2002	100
2003 – 2004	109
2009 – 2010	148
2014 – 2015	240
2017 – 2018	272

Q.6 a) Explain the term Income with suitable examples. (10 marks)
Q.6 b) Explain the deductions under Income from other sources. (10 marks)

OR

Q.6 Write short notes on any four of the following: (20 marks)

i) Assessment Year and Previous Year.
ii) Taxable perquisites.
iii) List of assets which are not capital assets.
iv) Allowable business expenditure.
v) Deductions under Income from house property.
vi) Deduction under section 80DD.

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Tips to score good marks in TYBCOM Exam

1. Don’t wait until the last minute to start studying: begin early. You’ll have more time to learn the topic and solve questions, the earlier you start.
2. Remain arranged: Plan a study schedule and stick to it. Take time to rest and refresh during breaks.
3. Regularly review your notes: Regularly reviewing back your notes will help you keep the content in your memory.
4. Practice, practice, practice: By working through sample problems and completing sample tests, you can identify your areas of weakness and become familiar with the exam’s format.
5. Ask for assistance if you need it: If you’re having trouble with the subject, don’t be shy to ask for assistance. You can seek advice from your teacher, a classmate, or a tutor.
6. Get a good night’s sleep: The night before the exam, be sure to get lots of rest. A mind that has got enough sleep is better prepared to memorize and recall information.
7. Arrive early on exam day: Arrive early on the day of the exam to give yourself time to settle your worries and mentally prepare.
8. Stay focused during the exam: Avoid being distracted during the exam by remaining focused. Take a deep breath and return your attention to the activity at hand if you realize that your mind is roaming.
9. Don’t waste too much time on any one question: keep an eye on the time. If you start to struggle, leave it and return to it later.
10. Review your exam after you’re done: After you’re finished, review your paper for a while. By doing this, you’ll be able to correct any mistakes you may have made and provide any answers you’re not sure about.