Annamalai University 2007 B.Com , 2008 : - XIV : DIRECT TAXES - Question Paper

B.B.S. / B.Com. (Business Studies)
DEGREE EXAMINATION, 2008
( 3rd YEAR ) ( GROUP - A ) ( PAPER - XIV )
740. DIRECT TAXES May ] [ Time : three Hours
Maximum : 100 Marks
ans any 5 ques..
All ques. carry equal marks.
(5 × 20 = 100)
1. discuss any 5 exempted incomes under
part 10 of Income - Tax Act, 1961.
2. discuss the steps involved in the computation
of income from house property with suitable
examples.
3. discuss the various incomes that is taxed as
income from business or profession.
4. discuss the incomes that are taxed as income
from other sources.
5. elaborate the exempted assets ? discuss them
with suitable examples.
6. Mr. K. furnishes the subsequent particulars of
his salary income :
Rs.....
Salary per annum - 1,80,000
Dearness allowance per
annum - 72,000
40 % of D.A. forms part of superannuation
benefits
Conveyance allowance
per annum - 60,000
60 % spent for official duties.
Entertainment allowance
per annum - 30,000
Fully spent for official duties
Commission on purchases - 40,000
Unfurnished house, given by employer
Determine his salary income in the
subsequent cases :
House is owned by the employer :
(i) Population of the city exceeds
4,00,000.
(ii) Population of the city does not
exceed 4,00,000.
7. From the subsequent particulars compute the
income from house property of Mr. Hari :
Date of completion
of construction 1-4-2006 1-4-2006
Nature of occupation Self-occupied Let out
Rs... Rs...
Municipal value 10,00,000 15,00,000
Fair rent 12,00,000 14,00,000
Standard rent 8,00,000 16,00,000
Annual rent received /
receivable Nil.... 18,00,000
Municipal taxes paid 1,20,000 1,50,000
Insurance premium paid 10,000 15,000
Interest on loan for
pre-construction period 3,00,000 4,50,000
8. Mr. Sivam purchased 2,000 shares of S - Ltd.
on 1-10-2003 at Rs. 120 per share. He
incurred five % brokerage in this connection.
He sells the shares @ Rs. 200 per share and
pays brokerage @ four %. calculate capital gain
in the subsequent cases :
(i) Date of sale is 30-09-2004
(ii) Date of sale is 1-10-2004
CII : 2003 - 2004 : 463
2004 - 2005 : 480.
9. Mr. Rameshkumar furnishes the subsequent
particulars of his assets and liabilities from
which you are asked to compute the wealth
tax payable by him :
Rs.....
(i) Residential house at
Thirukkuvalai - 5,00,000
(ii) Jewellery and ornaments - 6,00,000
(iii) Co-parcenary interest
in HUF property - 1,00,000
(iv) Motor car - 3,00,000
(v) Cash in hand - 30,000
(vi) Land at Thiruvarur - 4,00,000
(vii) Stock of gold and silvers - 3,00,000
(viii) Bond of public sector
undertakings - 2,00,000
(ix) Cash in hand as per
cash book - 1,00,000
(x) Loan taken for the
purchase of land - 50,000
10. X, a lawyer by profession furnishes the
subsequent summary of his cash book for the
current financial year :
Receipts Rs. Payments Rs.
Balance b/d 5,000
Fees 1,85,000
Remuneration
as examiner 18,000
Interest on
bank deposits 16,000
Rent from
property 48,000
Dividend 6,600
2,78,600
Salaries to staff 60,000
Rent of
chamber 30,000
Car expenses 36,000
House hold
expenses 60,000
Local taxes
for house 1,200
Repairs of
house 24,000
LIC premium
for self 4,800
Cost of journals 9,000
Medical
treatment
of self 15,000
Balance c/d 38,600
2,78,600
Additional info :
(i) rd of house is used by X for
own residence.
(ii) X is insured for Rs. 40,000.
(iii) X has to get medical treatment for
an eye ailment.
(iv) of the car expenses relate to
personal use.
compute his taxable income.

Earning:   Approval pending.