The Institute of Chartered Financial Analysts of India University 2011 C.A Chartered Accountant Chartered Accountancy -Pcc - Mock Test Series 1 - Question Paper

Net income 12,50,000
Cost of capital 10%
You are needed to compute the return on investment. (3 × three = nine Marks)
PAPER – 5: TAXATION
Note: Students are advised to ans this test paper based on the
assessment year 2009-10
QUESTIONS
1. State with reasons whether the subsequent statements are actual or false [A.Y.
2009-10] -
(a) The benefit of weighted deduction under part 35(2AB) in respect of
scientific research expenditure would be available up to 31.3.2007.
(b) Any sum received by an employer from his employees towards
contributions to provident fund, superannuation fund etc. are not
taxable.
(c) Under part 40A(3), 20% of the expenditure in respect of which
payment exceeding Rs. 20,000 has been made by account payee
cheque or account payee draft is disallowed.
(d) Deemed dividend under part 2(22)(e) is chargeable to tax on
mercantile basis, irrespective of the method of accounting followed by
the assessee.
2. Mr. Suresh and Mrs. Suresh are foreign citizens. During the previous year
2008-09, Mr. Suresh and Mrs. Suresh have the subsequent income:
Particulars Mr.
Suresh
Mrs.
Suresh
Amount
(Rs.)
Amount
(Rs.)
(i) Interest on company deposits in India 50,000 7,50,000
(ii) Income deemed to be received in India 35,000 60,000
(iii) Income from business situated in
Nepal and controlled from India (40
per cent is received in India and 60 per
cent is received outside India)
70,000 42,000
(iv) Dividend declared by an Indian
company
35,000 50,000
(v) Salary received in India for services
rendered outside India
97,000 90,000
(vi) Interest received from the Government
of India (received outside India)
60,000 21,000
(vii) Interest received from a foreign
company outside India (on capital
which is utilized outside India)
80,000 7,000
(viii) Income from a business in France,
controlled from Mumbai
42,000 97,000
(ix) Royalty received in India from the
Government of India
15,000 7,000
(x) Royalty received in India from a nonresident
in respect of technology used
by such person outside India
22,000 10,000
(xi) Agricultural income in Europe 58,000 76,000
From the above particulars ascertain the gross total income of Mr. Suresh

Earning:   Approval pending.