Bangalore University 2007 B.Com Income Tax - II - Question Paper

VI Semester B.Com. Examination, May/June 2007
(Semester Scheme)
COMMERCE (Paper - 6.2)
Income Tax - II

Time : three Hours Max. Marks : 90

Instruction : Answers should be completely either in English or Kannada.

part - A

ans any ten ques.. (10x2=20)

1. a) What do you mean by “Profession” ?
b) What do you mean by “expressly admissible expenses” ?
c) describe “Speculative transaction”.
d) describe “Transfer of an asset”.
e) What do you mean by “long term capital gain” ?
f) How do you determine the “cost of acquisition” if the asset is acquired by gift ?
g) How do you gross up the value in the subsequent cases.
i. Net interest received on bank deposits.
ii. Net amount received on winning from lottery.
h) What is a “Bond Washing Transaction” ?
i) Mention the provisions for deductions under part 80DD.
j) provide the meaning of set-off and carry forward.
k) Hoe do you set-off and carry forward short term capital losses.
l) provide the meaning of Gross Total Income and Total Income.

part - B

ans any 5 ques.. (5x5=25)

2. Mr. X purchased a house property in 1978 for Rs. 80,000/-. The fair market value of this house was Rs. 1,40,000/- on first April 1981. In the year 1985 on first November he incurred Rs. 60,000 for improvement of the house and sold the property on tenth September 2005 for Rs. 15,00,000/- and purchased a house for Rs. 5,00,000 on 15th March 2006.

calculate the capital gain chargeable to tax for the assessment year 2006-07. The cost inflation index are 1981-82 = 100, 1985-86 = 133, 2005-06 = 497.

3. explain with reasons, the admissibility of the subsequent expenses while computing profits and gains of business.

a) Income tax paid Rs. 30,000/-
b) Outstanding sales tax pf previous years paid during the year Rs. 20,000/-
c) Interest paid on loan taken for daughter’s wedding Rs. 8,000/-
d) Loss due to Robbery Rs. 50,000/-
e) Legal expenses Rs. 10,000/- to defend the assessee’s title to his assets.

4. Briefly explain the provisions for deductions under part 80 U.

5. In the year 1986-87 Mr. A purchased an agricultural land in an urban area for Rs. 2,00,000. In the year 2005-06, this land was acquired by the urban development authority. He was received a compensation of Rs. 12,00,000/- from the authority. calculate his capital gain and also advice him regarding the amount of capital gain to be deposited in the capital gain account scheme to avoid income tax.

6. Mr. Bharath furnishes the subsequent particulars of his incomes for the P.Y 2005-06. You are needed to calculate his income from other sources for the A.Y. 2006-07.

i) Interest on listed securities (Net) Rs. 4,490/-

Earning:   Approval pending.